Legislature(1997 - 1998)
03/08/1997 10:32 AM Senate STA
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* first hearing in first committee of referral
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SENATE STATE AFFAIRS COMMITTEE
March 8, 1997
10:32 a.m.
MEMBERS PRESENT
Senator Lyda Green, Chairman
Senator Jerry Ward, Vice-Chairman
Senator Jerry Mackie
MEMBERS ABSENT
Senator Mike Miller
Senator Jim Duncan
ALSO IN ATTENDANCE
Senator Randy Phillips
COMMITTEE CALENDAR
SENATE BILL NO. 54
"An Act relating to eligibility for the longevity bonus; and
providing for an effective date."
- HEARD AND HELD IN COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
SB 54 - See State Affairs Committee minutes dated 3/6/97.
WITNESS REGISTER
Rupert E. Andrews
American Association of Retired Persons, AK Chapter
9416 Long Run Drive
Juneau, AK 99801
POSITION STATEMENT: Testified in opposition to SB 54
Joe McGill
Dillingham Senior Center
P.O. Box 1469
Dillingham, AK 99576
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Agnes Ross
Juneau, AK
POSITION STATEMENT: Testified in opposition to SB 54
Yule Kilcher
P.O. Box 353
Homer, AK 99603
POSITION STATEMENT: Suggested reinstatement of state income tax
Dale Bondurant
HC1 Box 1197
Soldotna, AK 99669
POSITION STATEMENT: Testified in opposition to SB 54
J.B. Woods
P.O. Box 1733
Seward, AK 99664
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Mary Halpin
Mid Valley Seniors, Houston, AK
P.O.Box 518
Palmer, AK
POSITION STATEMENT: Testified in opposition to SB 54
Ed Earnhart
1043 W. 74th Ave.
Anchorage, AK 99518
POSITION STATEMENT: Testified in support of SB 54
Ms. Terry Burrell
3716 Wesley Lane
Anchorage, AK 99508
POSITION STATEMENT: Testified in opposition to SB 54
Robert Schenker
801 Airport HTS., #243
Anchorage, AK 99508
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Dora Giordono
Mid Valley Seniors, Houston, AK
P.O. Box 518
Palmer, AK 99645
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Lorena Showers
923 W. 11th Ave.
Anchorage, AK 99501
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Jean Smith
P.O. Box 1928
Anchorage, AK 99510
POSITION STATEMENT: Testified in opposition to SB 54
Tom Marshall
1569 Birchwood
Anchorage, AK 99508
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Virginia Carter
2260 Knoll Circle
Anchorage, AK 99501
POSITION STATEMENT: Testified in opposition to SB 54
Ms. Frances Swaim
2221 Egan Ave.
Fairbanks, AK 99701
POSITION STATEMENT: Testified in opposition to SB 54
ACTION NARRATIVE
TAPE 97-9, SIDE A
Number 001
SB 54 MAXIMUM INCOME FOR LONGEVITY BONUS
CHAIRMAN GREEN called the Senate State Affairs Committee to order
at 10:32 a.m. and brought up SB 54 as the only order of business
before the committee. She said the meeting would be considered a
work session for the purpose of taking public testimony on SB 54.
Number 010
RUPE ANDREWS of Juneau, representing the American Association of
Retired Persons, Alaska Chapter (AARP), testifying in opposition to
SB 54, outlined the Association's two main concerns with the
legislation.
The AARP believes the data base that the figures were taken from is
not a good data base because that data base is based on the 1990
census and there have been a lot of changes since that time.
The AARP's second concern relates to the phasing out of the
longevity bonus in 1993. At that time, there was a passive
agreement between seniors in the state and the Alaska Legislature
that this would be the last statement on this subject. There is
concern that if changes are made now, there will be more changes
made in the future, and AARP feels that this legislation is not
needed at this time.
Number 065
CHAIRMAN GREEN agreed that when a person is planning their
retirement it does make it difficult to suddenly have a change that
is not anticipated or where there have been assurances that further
changes to the program would not be made. MR. ANDREWS responded
that entry into the program ended in 1996, and each year the state
should start to show a significant decline in the cost of the
program.
Number 095
JOE MCGILL, testifying from the Dillingham LIO and representing the
Dillingham Senior Center, stated that group has discussed this
legislation and they are in opposition to making any changes to the
longevity bonus program. He said he doesn't think the longevity
program was ever intended to be a welfare type of program based on
an individual's income.
CHAIRMAN GREEN asked Mr. McGill if the point of view he was
expressing is basically representative of those at the Dillingham
Senior Center, and MR. MCGILL responded that he doesn't know of
anyone who favors making changes to the program or doing away with
it.
Number 140
AGNES ROSS of Juneau expressed her appreciation for receiving the
longevity bonus, which, she said, she depends on along with her
social security. She does not want that benefit cut in any way.
SENATOR MACKIE clarified that part of the concept of the bill is
that if a single individual's income is over $60,000 a year, or, if
a couple's income is over $80,000 a year, that maybe they don't
need the longevity bonus any more, but everyone else below those
income brackets would continue to receive the bonus. He asked Ms.
Ross for her thoughts on that concept. MS. ROSS agreed that if
individuals do have good retirements and they don't need the
longevity bonus, that they should be willing to give it up.
Number 186
YULE KILCHER, testifying from the Homer LIO, believes a better
alternative would be the reinstatement of a state income tax
because then the Legislature would not have to consider limiting
seniors' income. However, he suggested that if the Legislature
does not want to pursue that alternative, then it should consider
lowering the income limit to $40,000.
Number 240
DALE BONDURANT, a 50-year Alaska resident testifying from the Kenai
LIO, stated he opposes SB 54 on its principle and not as it would
affect him personally. He said the proposed limit imposes the
principle that this fund is a form of welfare. The growing concern
in this state seems to be for increasing the maximum benefits of
those who profit from the development of our resources, and this
trend includes reducing and eliminating the returns of these
resources for the benefit of the people. He pointed out that the
permanent fund has been a unique method that has the purpose to
assure some return for the benefit of the people, and he questioned
if those who support this Act would have the same approach in
deciding if their public funded retirement or per diem would be
regulated according to each of their personal means.
Number 266
SENATOR MACKIE commented that the original purpose of the program
was to reward people for their longevity in the state of Alaska,
but court decisions have struck down that whole theory, so he
questions if it is serving its original purpose. MR. BONDURANT
said he thinks the original purpose of the program was to return
some of the wealth obtained from the resources, which belong to the
people.
Number 310
J.B. WOODS, a 45-year resident of Alaska testifying from the Seward
LIO, stated he believes SB 54 is a disgrace to constituents, the
governor and the legislators. He believes those who have been in
the state for many years and have made Alaska what it is today are
being hurt by this, both monetarily and otherwise. He thinks that
a lot of people that have means and are spending a lot of money in
Alaska will no longer remain here and face the cold winters as they
have for so many years.
Number 342
SENATOR WARD clarified that it is the governor who is proposing
this legislation, not the Legislature. He said he agrees with Mr.
Woods comments, and he noted he himself was raised to honor and
respect the elders, and for them to have to turn around and prove
that they should have this benefit is a slap in the face and a
disgrace. He also said there are plenty of other places to cut $8
million out of the budget instead of taking it away from our
seniors.
Number 361
SENATOR RANDY PHILLIPS commented that he has the feeling that the
public is not being heard by the administration on this topic and
the committee is holding these hearings so that the public can be
heard.
Number 387
MARY HALPIN, representing the Mid Valley Seniors in Houston, AK and
testifying from the Mat-Su LIO, voiced her agreement with the
testimony from previous witnesses in opposition to SB 54. She
believes the legislation will turn it into a welfare program, and
that it is setting a bad precedent. She suggested that with the
program being phased about by the previous Legislature, this issue
shouldn't even be under discussion.
Number 410
ED EARNHART testifying from the Anchorage LIO, said he qualifies as
a senior citizen but he firmly supports SB 54. He said this is the
state's money and it is the responsibility of the Legislature and
the governor to come up with budgets that are proper in keeping
with the needs of the state. He believes senior citizens are
already favored in Alaska because of the various housing subsidies
and other benefits they receive. He also pointed out that many
senior citizens have relocated to Alaska so that in many cases this
money isn't going to Alaskans.
Number 492
MS. TERRY BURRELL, a 38-year Alaska resident who is handicapped
with a rare disease, testified from the Anchorage LIO in opposition
to SB 54. She pointed out that private nursing home care in Alaska
runs from $6,000 to $7,000 a month which adds up to $84,000 a year
for one person. She said she doesn't understand how this bill
talks about $60,000 ceiling when it can cost up to $84,00 a year
for nursing home care. She said she wants to remain independent,
but her income, which is below the $60,000 figure now, would have
to rise approximately $40,000 in order for her to receive nursing
home care if that became necessary. She believes SB 54 is a
disgrace to Alaska's senior citizens.
Number 535
ROBERT SCHENKER, a 48-year resident of Alaska, testifying from the
Anchorage LIO, said he is a working senior who receives a $150
monthly stipend from the longevity bonus program. If this
legislation should become law, he will penalized to the extent that
he will lose the bonus, which, ironically, was intended for old
time Alaskans like himself. At the same time, there will be non
working seniors with less than 5 years residency in the state of
Alaska, some of whom are foreign nationals, who will continue to
receive $250 from the state of Alaska. He suggested stopping the
pitting of seniors against seniors on this piecemeal method that is
ascribed to in SB 54.
Number 579
DORA GIORDONO, a board member of the Mid Valley Seniors in Houston,
AK testifying from the Mat-Su LIO, voiced her opposition to SB 54.
She related she has been a recipient of the longevity bonus for
many years, and pointed out that 90 percent of the state's senior
citizens don't have an income of $60,000 to $80,000 a year. She
said most seniors are on a fixed income and need the longevity
bonus to live in comfort and dignity.
TAPE 97-9, SIDE B
Number 005
LORENA SHOWERS, a 93-year old senior citizen representing the
American Association of Retired Persons, Alaska Chapter and
testifying from the Anchorage LIO, stated she believes SB 54 is a
crime against all of the seniors. She said Alaska's senior
citizens have worked hard and saved their money so that they would
be able to live comfortably during their retirement years. They
also have many expenses such as medical expenses that are not
covered by Medicare, and the longevity bonus helps them meet these
types of expenses.
Number 040
CHAIRMAN GREEN said one of things that bothers her with some of the
legislation and issues before the Legislature this year are these
types of issues that cause people concern and fear, although she
doesn't think this was the intention of SB 54, but she thinks it is
one of the side effects. She also related that she does not plan
to move SB 54 out of the State Affairs Committee.
Number 060
JEAN SMITH, a 53-year resident of Alaska testifying from the
Anchorage LIO, stated she is still working and she thinks the
governor's proposal to pass this legislation is misguided and is an
insult to all longtime residents. Making the longevity bonus a
needs-based program is another giant step down the road towards
socialism in this country. The governor and others have forgotten
the original purpose of the longevity bonus program, which was to
at least partially reimburse the pioneers for the taxes and
assessments they paid through the early years to build the
infrastructure throughout the state that current residents now
enjoy. She questioned that if this legislation were to pass, what
the cost of added bureaucracy would be to determine the gross
income of the bonus recipients.
Number 085
TOM MARSHALL, testifying from the Anchorage LIO, said an article in
the Anchorage Daily News said that there would be an $8 million
savings if SB 54 were to pass, but he thinks a little bit of
arithmetic shows that even if half of the disenfranchised seniors
under this bill went outside for a six-month stay in a second rate
resort, they would take $12 million with them. He also concluded
that some people will manipulate their incomes in order to continue
qualifying for the longevity bonus.
Number 115
VIRGINIA CARTER, testifying from the Anchorage LIO, said that the
senior citizens making over $60,000 a year are the people that go
to the $100 ticket fund raisers that benefit the poor and other
less fortunate people in the state. She believes that Alaska's
seniors should be treated equally, and just because a person
happens to be in the upper income bracket, they shouldn't be
penalized any more than the person who is in the lower income
bracket.
Number 135
FRANCES SWAIM, testifying from the Fairbanks LIO in opposition to
SB 54, stated she and her husband are residents of the Fairbanks
Pioneers' Home, and although they have enough money right now to
pay their monthly rent, the rent has been going up every year since
they moved into the home. She said it seems the Legislature is in
favor of charging the residents more, but not letting them have the
perks of the longevity bonus. She pointed out that if she and her
husband should end up in the nursing wing of the home by the year
2001, they will be paying $77,376 a year to be there.
Number 155
CHAIRMAN GREEN thanked all the people who testified during the
meeting, and she encouraged seniors to send in their comments for
the committee file so that this information will be available for
other legislators.
There being no further business to come before the committee,
CHAIRMAN GREEN adjourned the meeting at 11:35 a.m.
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