Legislature(2003 - 2004)
04/30/2003 05:27 PM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 30, 2003
5:27 PM
TAPES
SFC-03 # 70, Side A
SFC 03 # 70, Side B
SFC 03 # 71, Side A
SFC 03 # 71, Side B
CALL TO ORDER
Co-Chair Gary Wilken convened the meeting at approximately 5:27 PM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Ben Stevens
Senator Con Bunde
Also Attending: JOE BALASH, Staff to Senator Therriault;
Testifiers are listed in the order they spoke.
SUMMARY INFORMATION
SB 117-ELIMINATING LONGEVITY BONUS PROGRAM
The Committee heard from the Senate President and took public
testimony. The bill was held in Committee
SENATE BILL NO. 117
"An Act eliminating the longevity bonus program and making
related conforming changes; and providing for an effective
date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken reminded that the committee substitute proposes to
"continue the Alaska Longevity Bonus Program as a needs-based
program for Alaskan seniors with a monthly income of 150 percent
over the Alaska federal poverty level."
AT EASE 5:30 PM / 5:30 PM
JOE BALASH, Staff to Senator Therriault, re-read the statement he
made during the previous hearing into the record. [See Committee
minutes for April 30, 2003, 9:00am.]
Co-Chair Wilken requested the witness review the eligibility
requirements proposed in the committee substitute.
Mr. Balash listed monthly income limits of $1,402 for an individual
and $1,893 for a couple, assets that do not exceed $4,000 for an
individual and $6,000 for a couple. He noted that a primary
residence, one automobile and sufficient funds for burial would be
exempted from the asset limitations.
Senator Bunde commented that the State is facing a fiscal challenge
and warned that if not addressed, a serious economic downturn or
depression would occur. He relayed that many have stated that this
is a legislative problem, but he argued this is a problem shared by
all Alaskan residents. He requested that those who oppose any
reduction to the longevity bonus program offer suggestions to
compensate for the funding.
Co-Chair Wilken stated this meeting would not "turn into a debate"
on how to balance the budget, etc.
JIM GARRIGUES, Abbott Loop Community Council, testified via
teleconference from Anchorage and asked why nonresidents and aliens
are given longevity bonuses. He asked why people who "never earned
a paycheck" in Alaska are receiving these payments. He also wanted
to know why the elderly must shoulder the responsibility to balance
the budget, and asserted it is the Legislature's duty to find
another solution.
RON COWAN, Long Term Care Ombudsman, testified via teleconference
from Anchorage that he understood the fiscal challenges of the
State. He told of his experiences in working with senior citizens.
He listed two reasons the longevity bonus should be maintained:
respect for the contributions they have made to the State, and
because a promise was made to them. He stated the means test
criterion is too limited and he offered to assist in determining
more appropriate criteria.
J.R. HAWK LANGMAN, Pioneers of Alaska, Igloo #15, testified via
teleconference from Anchorage that he does not financially rely on
the longevity bonus and would be willing to forgo receiving his
payments if he were assured that the funds would be wisely spent.
He spoke to the need of these funds for the economies of rural
villages.
DELISA CULPEPPER testified via teleconference from Anchorage, about
disparities in the Denali KidCare program criteria compared to
Medicare coverage for senior citizens. She told of the reliance on
longevity bonus payments to many senior citizens to pay
prescription drug expenses.
GORDON J. SEVERSON testified via teleconference from Anchorage to
yield his time to Elizabeth Dennis.
ELIZABETH DENNIS, Alaska Resident since 1957 testified via
teleconference from Anchorage that the longevity bonus is crucial
to the economy of many villages. She informed that reductions to
the program would remove an important cash flow source to the
economy of the State. She predicted many residents would be forced
to move Outside where their money is stretched farther. She
asserted that the state income tax must be reinstated.
MARGE ZIELINSKI testified via teleconference from Fairbanks and
read statements she submitted earlier to the Committee [copy on
file.] She asserted, "leave the longevity bonus alone; it is not
broke." She added that the issue of the program's cost would
resolve itself, remarking, "read the obituaries".
GLENN HACKNEY testified via teleconference from Fairbanks to his
disbelief that the longevity bonus program is being revised again.
He opined that the operational expenses of the program are minimal
and he challenged the expenses listed in the fiscal note. He quoted
session laws from 1972 citing that the program should not be based
on income or assets. He assured he would pay taxes associated to
operating his vehicle, including the proposed increases in gasoline
taxes registration fees and the proposed surcharges for new tire
purchases.
NANCY MENDENHALL testified via teleconference from Fairbanks about
the investments that retirees contribute to the State, including
volunteerism. She warned that the State would suffer if many senior
citizens relocated to other states. She recommended that State
employee positions should be eliminated rather than the longevity
bonus program.
CLIFF BRENNEN testified via teleconference from Fairbanks that
"like the road to Hell" this legislation is probably well intended.
He cautioned that income qualifications would create a further
divide between rural and urban communities, suggesting that rural
residents are able to hold harmless significantly more assets than
urban residents, including boats and fish wheels.
GLEN FRANKLIN testified via teleconference from Fairbanks that he
came to Fairbanks in September 1933. He found this legislation
degrading and an insult to the participants in the program,
regardless of whether they would qualify under the income and
assets standards. He noted today is his birthday.
CHARLES MICHON testified via teleconference from Homer that he
moved to Alaska in 1994 for health reasons. He stated that if he
did not receive the longevity bonus he would need to leave the
State due to cost of living. He suggested State employees should
take a salary reduction.
CARL GLANVILLE testified via teleconference from Homer about an
event that destroyed his bridge. He suggested "a little
housekeeping on the part of the State" to reduce the number of
employees who "actually contribute nothing".
IRIS DOUGLAS testified via teleconference from Homer that the
program should not be changed because participants are "dying out".
She did not want to be forced to receive welfare.
VI JERREL, PhD. testified via teleconference from Homer in
opposition to the committee substitute, stressing the program
should remain unchanged. She qualified that she does not receive
longevity bonus payments. She informed that former Governor Jay
Hammond established the program as an incentive for senior citizens
to remain in Alaska. She requested identification of those seniors
who supposedly do not depend on the bonus income.
JAMES DENNIS, testified via teleconference from an offnet location
in Craig
SFC 03 # 70, Side B 06:14 PM
Mr. Dennis continued that the "free ride is over" and that the
State income tax must be reinstated.
JUNE HAAS testified via teleconference from an offnet location in
Haines that she missed qualifying for the longevity bonus program
by three days; however she has many friends who depend on the
benefits. She expressed the program was never intended as an income
program. She suggested that if a means test is implemented the
income level should be set at $2500 per individual. She furthered
that the income for couples should be no less than for two
individuals, as living expenses are the same for one person as two.
LORILYN SWANSON, Manager, Fireweed Place, and Board Member, Alaska
Commission on Aging, testified in Juneau that of the seniors who
qualify for subsidized housing, 30-40 percent of their income is
comprised of longevity bonus benefits. She spoke of income
qualifications for low-income senior housing, stressing the amounts
are significantly higher than the amounts proposed in the committee
substitute.
DORIS ROBBINS, Retired Public Employees of Alaska, testified in
Juneau that this bill breaks a promise made when the provisions to
phase out the program were implemented in 1994. She suggested that
those seniors who would no longer qualify would take their
remaining income, leave the State and spend that money elsewhere.
MYRNA GARDNER, Juneau resident, testified in Juneau that this bill
would impact Alaska's most vulnerable citizens. She suggested two
options to the State's budget crisis, reduced spending and
generating revenues. She asserted that generating revenues would
"make those requesting programs pay". She compared the revenues
potentially generated by a State income tax, particularly from
nonresidents.
ROSALEE WALKER, AARP and board member, Older Persons Action Group,
testified in Juneau that since this proposal was first offered, the
organizations have offered services to assist in finding
alternatives. However, she stated those offers have not been well
received. She referenced the application for adult public
assistance programs [copy on file] and stated the qualifications do
not address senior citizens' particular circumstances.
MIKE RACE, Vice President, Pioneers of Alaska, testified in Juneau
that the organization is in opposition to the bill. He quoted
Robert Service regarding the obligations of a promise made. He
suggested the Committee consider all testimony received.
EMMA ANDREW testified via teleconference from an offnet location
about the impacts of elimination of the longevity bonus to elders
residing in villages. She noted many of these elders are not
educated and have no other means of income.
ROBERT NICK, village mayor and lifelong Alaskan, testified via
teleconference from an offnet location about the large percentage
of residents over the age of 65 in the Bethel area. He was thankful
for the longevity benefit payments received by his deceased mother
for four years.
PETRIA FALKENBERG testified via teleconference from Kenai about the
dependence on the longevity bonus by many seniors for medical
expenses. She noted she is not a senior citizen. She asserted the
seniors have made the "ultimate sacrifice" in making Alaska "what
it is today." She suggested implementing a state lottery as an
alternate method of addressing the State's budget situation.
LENORE JONES testified via teleconference from Kenai that Alaska
voters elected the legislators to represent them.
DALE JOHNSON testified via teleconference from Kenai that he would
be willing to forgo his $100 monthly longevity bonus payment if
other concessions were made by the Legislature.
THELMA LUDWIGSEN testified via teleconference from Ketchikan that
she opposes elimination of longevity benefits for seniors living on
a "close budget"
MARGARET ANTONSON, employed by the Division of Public Assistance
for 28 years, testified via teleconference from Ketchikan about the
difficulties for elderly people to request public assistance. She
pointed out that the paperwork itself is difficult.
CLEO WESTON, 51-year Alaskan, testified via teleconference from
Ketchikan that she had felt "shortchanged" when she first received
the bonus as payment amounts should have been based on length of
Alaskan residency. She expressed it is hard to request public
assistance and that she grew up when welfare was a "nasty word".
DEE DALHAUG, 36-year old, administrator of an assisted living home,
testified via teleconference from Ketchikan about the difficulties
of elderly to obtain housing. She stressed those who receive the
longevity bonus have earned it and deserve it.
Senator Bunde commented on testimony given indicating that the
longevity bonus program was established as a promise. He cited
discussions held during the consideration of the enabling
legislation noting that former Senator Coghill testified that when
the State funds were diminished, the program could be eliminated.
MARY HASTINGS, 75-year resident, testified via teleconference from
Ketchikan that the longevity bonus program should remain unchanged
and not be needs based.
MARY HARDER, 40-year Kodiak resident, testified via teleconference
from Kodiak that although Kodiak is beautiful place, it is
impossible to exist in this location on income less than $2500 per
month. She said losing seniors would have a "sad effect" on Kodiak,
particularly on local churches, as they pledge larger percentage of
their incomes to churches.
DEE LOESCHE, Wasilla Senior Center, testified via teleconference
from Mat-Su in agreement with most of the other testimony given.
She had questions about the qualifications and predicted the
administrative costs of the amended program would be too high.
BETTY MERCER, 78-year old, testified via teleconference from Mat-Su
that she is responsible for the distribution of food in Wasilla.
She listed the income requirements for participation in the food
bank program, which are considerably higher than the proposed
amounts in the committee substitute.
CHESTER WEBB testified via teleconference from Mat-Su that the
legislators continue to increase their salaries, although considers
decreasing benefits to seniors. He supported funding for education,
and suggested elimination of unnecessary programs and pork barrel
projects. He asserted that seniors built this State. He charged
that Governor Murkowski lied during the gubernatorial campaign and
threatened that those legislators who vote for passage of this bill
would be removed from office.
RUSSELL SANDERS, Alaska resident since 1955, testified via
teleconference from Mat-Su that he works with seniors and that he
has seen the state develop. He directed the Committee to leave the
senior citizens alone.
LOUISE HARRIS, 89-years old, and President, Palmer Senior Center,
testified via teleconference from Mat-Su that seniors are a
resource to the State. She explained that seniors spend their
income, pensions and bonuses in Alaska. She also informed that
seniors are proud and that it would be demeaning to apply for
welfare benefits.
JIMMY STEVENS testified via teleconference from an offnet location,
on behalf of elders, about the expenses of operating a boat as well
as heating expenses. He stressed that if legislators care about
elders they should no change the longevity bonus program.
NORMA NICLAS, Director, XYZ Senior Center, testified via
teleconference from Nome, that the longevity bonus program must be
left in place. She stated that these benefits funds are necessary
for seniors to remain in the community, as no pioneer home or
assisted living housing exists in the Nome area.
SFC 03 # 71, Side A 07:03 PM
DAN KARMUN, AK Commission on Aging-Northwest Area, testified via
teleconference from Nome, that he considers his parents his best
teachers. They taught him to respect his elders, he noted. He
informed that Northwest Alaska has the highest cost of living and
that consideration of this should be made in the income eligibility
criteria.
ALBERT KENHERDER testified via teleconference from Sitka that the
longevity bonus benefits paid remain in the State. He warned that
if the program were eliminated he would leave Alaska and spend his
social security income elsewhere.
CHARLES BROKER [spelling not verified] testified via teleconference
from Tok that the existing program should not be changed. He
pointed out that the local senior program assists about 45 seniors
daily. He noted seniors are year-round residents do not only reside
in Tok during the summers to serve tourists.
JOHN CERUTTI, 83-years old, testified via teleconference from
Valdez that the Governor and the legislators lack the political
will to implement an income tax. He disagreed with the change to
the one-year residency requirement, asserted it was "stupid". As a
civil engineer he informed that he helped build the State's
infrastructure.
ETHEL K. BROWN testified via teleconference from Anchorage that
although senior citizens never paid into the longevity bonus
program, they receive benefits due to the contributions they made
to the State. She noted she remained in Alaska because of the
bonuses.
PEG STOUT, Chapter President, AARP, testified via teleconference
from Anchorage that obituaries published in the past two days
indicate seven deaths of people over the age of 73. She asked the
savings of making the longevity bonus program needs based,
predicting it would be costly to implement and another layer of
bureaucracy. She surmised the recipients "pay" for the benefits in
the form of sharing their experiences.
LOIS ARNOLD testified via teleconference from Anchorage that most
recipients of longevity bonus payments do not deposit their checks
into a Swiss bank account. He asserted that by sponsoring this
legislation, Governor Murkowski "shot himself in the foot". She
questioned the cost to implement and monitor the means program
compared to retaining the existing program until all participates
pass away.
WINFRED EASTFIELD testified via teleconference from Anchorage that
at 88-years of age, along with her husband who is 93, they would
not be on the program too much longer. She told of living on a low
income and said she did not receive food stamps because she
scrounged grocery stores for leftovers.
NORMAN EASTFIELD testified via teleconference from Anchorage about
his youth, pointing out that he does not drink or smoke and does
volunteer work.
CHARLOTTE M. DAVIS, Public Health Nurse, testified via
teleconference from Fairbanks that she is not an elder and has no
family in Alaska. She furthered that she has worked with elders for
over 20 years. She stated that elimination of the longevity bonus
program would have severe impacts, specifically relating to
Medicaid. She explained that more people would become eligible and
forced to enlist in the Medicaid program. She predicted the
Pioneers' Homes would be affected as well.
ED SHELLINGER testified via teleconference from Fairbanks that the
Governor and the members of the Legislature do not listen. He
suggested that senior citizens work with a legislative committee
for a two-year period to reach solutions to the State's fiscal
situation. He told of his recent hospitalization and the related
expenses.
BOB HUFMAN testified via teleconference from Fairbanks about
newspaper articles that have made a "major issue" of the longevity
bonus program creating two classes of senior citizens: those who
receive benefits and those who do not. He surmised that the
provisions of this committee substitute would create two classes of
welfare recipients.
HAL LEVEY testified via teleconference from Fairbanks that this
would create a hardship for those with moderate incomes.
BETTY HUFMAN testified via teleconference from Fairbanks that she
is opposed to any kind of means test, asserting it is "ill
conceived". She stated that seniors are being asked to "build the
bridge" until revenues from the Governor's resource development
programs are realized. She pointed out that seniors would not live
long enough to see the benefits.
ERNEST LINE testified via teleconference from offnet location in
Wasilla that candidate Murkowski did not speak of an intention to
eliminate the longevity bonus program. He stated that the committee
substitute should be reviewed and rewritten. He suggested the
Legislature should "bite the bullet" and reinstate an income tax.
MARIE DARLIN, Coordinator, Capital City Task Force, AARP, testified
in Juneau that seniors could be involved in reaching a solution to
Alaska's budget problems.
PAT LUBY, Legislative Representative, AARP, testified in Juneau
that gerontology studies show that as people age they would become
poor. He added that this would occur mostly among women, as most of
their assets are utilized to support dying spouses. He calculated
the hourly wage of those seniors who would qualify under the
proposed income requirements would be $5.50. He also noted that
prescription drug coverage and subsequent expenses are different
for each person, which is not considered in this legislation. He
asserted that seniors told to save their money for retirement, but
are not told that if the do this and "follow the rules", they would
be punished.
JOE SONNEMAN testified in Juneau that because his parents live in
Chicago, he assists seniors in Juneau in hopes that someone else
will care for his parents in Chicago. He surmised that a "welfare
approach" to the longevity bonus program politically would "not
sell". He recommended a progressive income tax. He also recommended
a reduction of the Department of Corrections budget to three
percent of total expenditures.
CAROL FLEEK testified in Juneau on behalf of her parents in
Ketchikan who have lived in Alaska since 1953. She informed that
her parents spend $400 each month for prescriptions. She indicated
there are few job opportunities for elderly residents in Ketchikan.
Although her parents' income is greater than the proposed
qualifying amount, she stated it could be six months to one year
before they would qualify for subsidized housing benefits. She told
the Committee that she and her siblings assist in supplementing
their parent's incomes. She suggested a $100 senior tax levied to
all workers or a $100 reduction taken from each resident's
permanent fund dividend to pay the expenses of the longevity bonus
program. She asserted she would be willing to forego receiving a
permanent fund dividend.
BERTHA HANSEN testified via teleconference from Ketchikan that it
is the seniors that made the "great land of Alaska" what it is
today. She charged that seniors are now expected to balance the
State's budget when the legislators have not. Seniors are proud and
should not have to go on welfare, she stressed.
ED ZASTROW testified via teleconference from Ketchikan about the
multiple times he has testified in opposition to this bill. He
asserted that the committee substitute is "completely unacceptable"
because the qualifying monthly income and asset amounts are too low
and "insulting" to seniors. He expressed that this bill needs
additional study, and that changing the program is unacceptable. He
reiterated that he opposes any change to the longevity bonus
program.
PAT FLEMMING testified via teleconference from Mat-Su to tell the
Committee to leave bonus exactly the way it is. She noted she does
not receive bonus, that she has lived in Alaska for four years and
loves seniors. She asked if a lawsuit would require the program
opened to all seniors in the State. She spoke to costly litigation
and the total loss of the program.
Co-Chair Wilken informed the witness that a preliminary opinion
from the Legislature's legal council rules that this legislation is
constitutional and legal.
Senator Bunde asked if the witness' comments pertained to the
longevity bonus program as it was established in 1976, or the
amended program implemented at the direction of the court.
Ms. Flemming answered that her statement is to the program "as it
stands today".
SFC 03 # 71, Side B 07:50 PM
FRANK GIRARD testified via teleconference from Mat-Su that the
proposed means testing should be further reviewed. Without the
longevity bonus benefits, he informed that he and wife would lose
their home. He disagreed with the argument that because some
seniors currently do not qualify for the program, others should be
eliminated from it as well. He suggested legislators should donate
a percentage of their "lavish" income to fund education. He spoke
to a correlation between taxation of church property to this
matter, surmising that because of religious political clout no
politician would consider taxing church property.
JIM WATENPAUGH testified via teleconference from Mat-Su that
"forcing grandma or granddad on welfare rolls" is "cold blooded".
He stressed that seniors pay the ultimate cost with their lives in
ending receipt of longevity bonus benefits. He charged that if this
bill passes, some legislators would have to "learn to walk on
water" to get reelected.
BARBARA KOGASSOGOON, Savoonga resident, testified via
teleconference from Nome that she needs the longevity bonus to
provide housing for her kids and grandkids.
ED BARBER testified via teleconference from Anchorage to question
the fiscal note. He expected the administrative costs would
increase drastically, although the legislature is supposedly
opposed to additional bureaucracy.
FUTURE MALVO testified via teleconference in Anchorage in
opposition to SB 117.
ANN SECREST, Director of Communications, AARP, testified via
teleconference from Anchorage, about the adverse affects of
reductions to the longevity bonus program. She spoke of Norm
Eastfield's volunteer work at the McLaughlin Youth Center.
KATHERINE FERGUSON, Alaska resident since 1958, testified via
teleconference from Fairbanks, that she and her husband had
expected they would have to leave the State after retirement. She
noted the longevity bonus program was enacted and enabled them to
remain in Alaska near their family. She expressed that she feels
she is in a battle with Governor Murkowski. She requested the
Committee delay its final decision on this legislation until more
information is available. She stressed that seniors require time to
adjust to lower incomes.
JOE V. STRUNKA testified via teleconference from Fairbanks that he
is not a recipient of the longevity bonus program. He added that he
came to Alaska in 1962 and has sent letters and testified before
the Knowles Administration in support of continuing the longevity
bonus program. If turned into a welfare program, he recalled that
former Governor Knowles was concerned the eligibility would be
expanded to all seniors aged 65 and older and would be a "Pandora's
box". Mr. Strunka asserted that the "cancer" is actually the number
of State employees. He suggested the State should privatize
functions and eliminate the Department of Transportation and Public
Facilities. He furthered that the Department of Fish and Game
should be eliminated as well because the federal government has
taken over many management duties. He also suggested reductions to
higher education funding, stating that the many campuses are not
necessary and telling of a distance education program in London.
Senator Bunde commented that if every State employee position were
eliminated, the State deficit would only be reduced by one-half.
Co-Chair Wilken noted 62 testifiers spoke at this hearing and he
thanked them as well as those Committee members present.
ADJOURNMENT
Co-Chair Gary Wilken adjourned the meeting at 08:10 PM
| Document Name | Date/Time | Subjects |
|---|