Legislature(2025 - 2026)SENATE FINANCE 532

04/03/2025 03:30 PM Senate STATE AFFAIRS

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Audio Topic
03:33:39 PM Start
03:34:52 PM Presentation: What is Amhta and How Does It Benefit Alaskans?
05:03:02 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Location Change --
Meeting jointly with the House State Affairs
Committee
+ Presentation: What is AMHTA and how does it TELECONFERENCED
benefit Alaskans?
Mary Wilson, Chief Executive Officer, Alaska
Mental Health Trust Authority
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
                         JOINT MEETING                                                                                        
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 3, 2025                                                                                          
                           3:33 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 Senator Scott Kawasaki, Chair                                                                                                  
 Senator Jesse Bjorkman, Vice Chair                                                                                             
 Senator Bill Wielechowski                                                                                                      
 Senator Elvi Gray-Jackson                                                                                                      
 Senator Robert Yundt                                                                                                           
                                                                                                                                
HOUSE STATE AFFAIRS                                                                                                             
                                                                                                                                
 Representative Ashley Carrick, Chair                                                                                           
 Representative Andi Story, Vice Chair                                                                                          
 Representative Rebecca Himschoot                                                                                               
 Representative Ky Holland                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
SENATE STATE AFFAIRS                                                                                                            
                                                                                                                                
 All members present                                                                                                            
                                                                                                                                
HOUSE STATE AFFAIRS                                                                                                             
                                                                                                                                
 Representative Sarah Vance                                                                                                     
 Representative Kevin McCabe                                                                                                    
 Representative Elexie Moore                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: WHAT IS AMHTA AND HOW DOES IT BENEFIT ALASKANS?                                                                   
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MARY WILSON, Chief Executive Officer (CEO)                                                                                      
Alaska Mental Health Trust Authority (AMHTA)                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Co-presented the overview from AMHTA.                                                                     
                                                                                                                                
JUSDI WARNER, Executive Director                                                                                                
Trust Land Office                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Co-presented the overview from AMHTA.                                                                     
                                                                                                                                
KATIE BALDWIN-JOHNSON, Chief Operating Officer (COO)                                                                            
Alaska Mental Health Trust Authority (AMHTA)                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Co-presented the overview from AMHTA.                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:33:39 PM                                                                                                                    
CHAIR KAWASAKI called  the joint meeting of the  Senate and House                                                               
State Affairs Standing  Committees to order at  3:33 p.m. Present                                                               
at the call to order  were Senators Bjorkman, Wielechowski, Gray-                                                               
Jackson, Yundt and Chair Kawasaki.                                                                                              
                                                                                                                                
CHAIR KAWASAKI passed the gavel to Chair Carrick.                                                                               
                                                                                                                                
CHAIR  CARRICK  stated   present  at  the  call   to  order  were                                                               
Representatives Holland, Himschoot, Story and Chair Carrick.                                                                    
                                                                                                                                
Chair Carrick passed the gavel back to Chair Kawasaki.                                                                          
                                                                                                                                
^PRESENTATION: WHAT IS AMHTA AND HOW DOES IT BENEFIT ALASKANS?                                                                  
 PRESENTATION: WHAT IS AMHTA AND HOW DOES IT BENEFIT ALASKANS?                                                              
                                                                                                                              
3:34:52 PM                                                                                                                    
CHAIR KAWASAKI announced  the presentation What is  AMHTA and How                                                               
Does It Benefit Alaskans?                                                                                                       
                                                                                                                                
3:35:13 PM                                                                                                                    
MARY WILSON, Chief Executive Officer  (CEO), Alaska Mental Health                                                               
Trust  Authority  (AMHTA),  Anchorage, Alaska,  co-presented  the                                                               
overview from  AMHTA and moved  to slide 2,  Trust Beneficiaries.                                                               
She  said  the  board  and  staff  are  dedicated  to  supporting                                                               
beneficiaries  to  improve  their   lives  and  health  outcomes.                                                               
Beneficiaries include Alaskans  with behavioral health conditions                                                               
or  developmental disabilities,  particularly  those  at risk  of                                                               
institutionalization.  The  trust   prioritizes  both  youth  and                                                               
adults, emphasizes  community-based support to  prevent worsening                                                               
conditions,  and incorporates  prevention efforts  when possible.                                                               
She said  while state statutes  define beneficiaries  using older                                                               
terminology,  the  trust  uses  updated  language;  for  example,                                                               
referring  to  "substance  use   disorder"  instead  of  "chronic                                                               
alcoholic suffering from psychosis."                                                                                            
                                                                                                                                
3:38:31 PM                                                                                                                    
MS. WILSON  shared a  video found at  the following  web address:                                                               
http://alaskamentalhealthtrust.org/about                                                                                        
                                                                                                                                
3:41:14 PM                                                                                                                    
MS.  WILSON moved  to  slide  3, Creation  of  the Alaska  Mental                                                               
Health Trust Authority, and stated  that the Alaska Mental Health                                                               
Trust has  its roots  in pre-statehood  Alaska, when  people with                                                               
disabilities  were often  institutionalized  out-of-state due  to                                                               
lack   of  local   services.   In   1956,  Congress   transferred                                                               
responsibility for  mental health services to  Alaska and granted                                                               
one million  acres to generate  income for programs. She  said by                                                               
1982, much  of the  land and funds  were not  properly allocated,                                                               
leading  to a  1984 class-action  lawsuit, Weiss  v. Alaska.  The                                                               
1994  settlement  established  the  Alaska  Mental  Health  Trust                                                               
Authority with restored lands, a  $200 million cash contribution,                                                               
and an  independent board  of trustees.  She said  the settlement                                                               
clarified  that  the  trust   supplements,  not  replaces,  state                                                               
funding  for   basic  mental   health  services.   More  detailed                                                               
historical  resources, including  an  oral  history project,  are                                                               
available on the trust's website.                                                                                               
                                                                                                                                
3:44:31 PM                                                                                                                    
MS. WILSON moved  to slide 4, Board of Trustees,  and stated that                                                               
the  Alaska Mental  Health Trust  is governed  by an  independent                                                               
Board  of Trustees,  which provides  oversight  and direction  to                                                               
improve beneficiary  lives. Trustees  serve five-year  terms, are                                                               
appointed by the governor, and  confirmed by the legislature. She                                                               
said AS  44.25.219 outlines the  panel that  considers applicants                                                               
and sends recommendations to the  governor for consideration. The                                                               
panel  of   6  people  are  either   trust  beneficiaries,  their                                                               
guardians, family  members, or representatives  of beneficiaries.                                                               
She  said  panel members  are  selected  by key  state  entities,                                                               
including the  Alaska Mental Health Board,  Governor's Council on                                                               
Disabilities  and Special  Education, Advisory  Board on  Alcohol                                                               
and Drug Abuse, Alaska Commission  on Aging, Alaska Native Health                                                               
Board, and  the Trust  Authority. The  trust currently  has seven                                                               
trustees.                                                                                                                       
                                                                                                                                
3:45:40 PM                                                                                                                    
MS.  WILSON moved  to  slide 5,  Our Role,  and  stated that  the                                                               
Alaska  Mental  Health Trust  administers  a  perpetual trust  to                                                               
improve the lives  of its beneficiaries. As  an independent state                                                               
corporation,  it   manages  land  and  cash   assets  to  support                                                               
comprehensive mental  health and disability  services, partnering                                                               
with the  state, local governments, nonprofits,  tribal entities,                                                               
and  providers.  She  said  funds   are  prioritized  for  system                                                               
improvements,   innovation,  and   strategic  initiatives,   with                                                               
financial   assets  managed   by   the   Alaska  Permanent   Fund                                                               
Corporation (APFC) and Treasury Division,  and land assets by the                                                               
Trust  Land  Office. The  trust  develops  an annual  budget  for                                                               
grants  and  operations,  is entirely  self-funded,  and  manages                                                               
assets with a  long-term perspective for both  current and future                                                               
beneficiaries.   She   said   the  trust   also   advocates   for                                                               
beneficiaries,  provides recommendations  for state  general fund                                                               
allocations,  supports  development   of  the  state's  five-year                                                               
comprehensive  mental health  plan, and  adapts its  tactics over                                                               
time  to   align  with  evolving   beneficiary  needs   and  best                                                               
practices.                                                                                                                      
                                                                                                                                
3:49:03 PM                                                                                                                    
MS. WILSON moved  to slide 6, Trust Focus Areas,  and stated that                                                               
the trust  uses defined focus  and priority areas to  guide grant                                                               
funding, advocacy,  and systems  change efforts. These  areas are                                                               
strategically developed  over time  with input  from stakeholders                                                               
and trustees, align with the  state's comprehensive mental health                                                               
plan, and  ensure funding reaches  all beneficiary  groups across                                                               
the lifespan, including children and the elderly.                                                                               
                                                                                                                                
3:50:01 PM                                                                                                                    
MS. WILSON moved to slide 7,  Trust Grant Making FY26, and shared                                                               
a chart. She stated that  the Alaska Mental Health Trust's grant-                                                               
making program is entirely self-funded  and overseen by the Board                                                               
of Trustees.  For FY26, the  trust will grant about  $30 million,                                                               
divided between:  Authority Grants  (blue section of  the chart)-                                                               
awarded directly  to community  partners for  planning, services,                                                               
facilities,  and  workforce   development.  Mental  Health  Trust                                                               
Authority Authorized  Receipts (MHTAAR) grants (green  section of                                                               
the chart)- awarded  to state agencies and included  in the state                                                               
budget  with   legislative  approval.   MS.  WILSON   said  since                                                               
inception,  roughly  $270 million  has  gone  to state  agencies.                                                               
Grants  support capital  projects, training,  data and  planning,                                                               
and positions focused on beneficiary  needs. She said spending is                                                               
prioritized to  drive system improvement  and is  often leveraged                                                               
with  other  funders. A  detailed  FY24  grant investment  report                                                               
lists all funded projects.                                                                                                      
                                                                                                                                
3:52:50 PM                                                                                                                    
MS. WILSON moved to slide  8, Crisis Now Community Implementation                                                               
2024/2025,  and  stated  that  beyond  grant-making,  the  Alaska                                                               
Mental Health Trust leads system  change initiatives, notably the                                                               
multi-year  Crisis Now  program. This  initiative aims  to ensure                                                               
individuals  in psychiatric  crisis  receive appropriate,  least-                                                               
restrictive care,  reducing suicides, emergency room  visits, and                                                               
inappropriate law  enforcement involvement. Over five  years, the                                                               
Board of  Trustees has committed  about $20 million in  grants to                                                               
support Crisis  Now. The trust also  provides expertise, convenes                                                               
partners,  and  champions  the   initiative.  Programs  like  the                                                               
Fairbanks mobile  crisis team  demonstrate success,  resolving 85                                                               
percent of  the calls  within the  community rather  than through                                                               
law enforcement  or hospitalization.  While the  front-end crisis                                                               
response has  improved, the trust  continues working  on back-end                                                               
stabilization and  follow-up services  to fully  transform crisis                                                               
care in Alaska.                                                                                                                 
                                                                                                                                
3:55:43 PM                                                                                                                    
JUSDI WARNER,  Executive Director, Trust Land  Office, Anchorage,                                                               
Alaska, co-presented the  overview from AMHTA and  moved to slide                                                               
9. She  stated that  the Trust Land  Office (TLO),  a specialized                                                               
unit within  the Department of  Natural Resources,  manages about                                                               
one million acres of Alaska  Mental Health Trust land exclusively                                                               
to  maximize  revenue.  Assets  include  forestry,  minerals  and                                                               
energy,   commercial  and   program-related   real  estate,   and                                                               
mitigation lands.  She said land management  focuses on analyzing                                                               
and coordinating across asset classes  to achieve the highest and                                                               
best  use,  with  long-term   sustainability  in  mind.  Revenues                                                               
support  trust beneficiaries,  with FY24  earnings exceeding  $17                                                               
million, including  $10.5 million from land  sales and contracts.                                                               
TLO  also advances  land subdivision  projects, completing  three                                                               
last year and developing several others.                                                                                        
                                                                                                                                
3:57:32 PM                                                                                                                    
KATIE  BALDWIN-JOHNSON,  Chief  Operating Officer  (COO),  Alaska                                                               
Mental  Health Trust  Authority (AMHTA),  Anchorage, Alaska,  co-                                                               
presented  the overview  from AMHTA  and moved  to slide  10. She                                                               
stated   that  the   Alaska   Mental   Health  Trust   emphasizes                                                               
beneficiary and  stakeholder input  as essential to  its mission.                                                               
She  said  beyond funding,  the  trust  convenes partners  across                                                               
systems to  advance initiatives at policy,  state, community, and                                                               
individual  levels.  Engagement  occurs through  public  comment,                                                               
listening  sessions, roundtables,  and  collaboration with  state                                                               
advisory  boards  representing beneficiary  populations.  Regular                                                               
interaction  with professional  and  advocacy  groups across  the                                                               
continuum of  care informs staff and  trustees in decision-making                                                               
and  funding  allocations.  As a  state  corporation,  the  trust                                                               
operates  transparently   under  the  Open  Meetings   Act,  with                                                               
publicly noticed meetings and accessible materials.                                                                             
                                                                                                                                
4:00:36 PM                                                                                                                    
MS.  WARNER  moved   to  slide  11,  Trust   Land  Office  Public                                                               
Engagement, and  stated that the  Trust Land Office  (TLO) shares                                                               
the Trust Authority's commitment  to beneficiaries but focuses on                                                               
land management  and revenue  generation. Public  and stakeholder                                                               
input informs  decisions, but all actions  prioritize the trust's                                                               
best interest. She said engagement  occurs through public comment                                                               
at board  meetings, Trust Resource Management  Committee updates,                                                               
a 30-day  public notice process  for proposed  actions, community                                                               
meetings for major projects, and  collaboration with industry and                                                               
resource  management  partners  to leverage  broader  stakeholder                                                               
insights.                                                                                                                       
                                                                                                                                
4:02:34 PM                                                                                                                    
SENATOR BJORKMAN asked  if she could update the  committee on the                                                               
current fund  balance, including projections for  growth from the                                                               
original $200  million infusion in  the 1990s and an  overview of                                                               
the total  land holdings. He  noted that in recent  years, public                                                               
access to  Alaska Mental  Health Trust  land in  his neighborhood                                                               
has been restricted. He asked  how such limitations impact public                                                               
perception of the  trust's value and its ongoing  role in holding                                                               
the  land,   and  how  the   trust  addresses   situations  where                                                               
unauthorized structures are built on its property.                                                                              
                                                                                                                                
4:05:25 PM                                                                                                                    
MS. WARNER replied  that trust lands are not  general state lands                                                               
but are  open to the  public through an  over-the-counter general                                                               
permit  for  activities  like firewood  gathering,  wheeling,  or                                                               
berry picking. At  times, access may be restricted  due to safety                                                               
risks  from  operations such  as  timber  harvests. While  public                                                               
recreation is valued, the trust  balances access with the need to                                                               
generate returns. With one  million acres statewide, unauthorized                                                               
activities sometimes  occur; in those cases,  the trust typically                                                               
works  with state  troopers to  identify responsible  parties and                                                               
require  cleanup but  will  handle it  directly  if necessary  to                                                               
protect investment value.                                                                                                       
                                                                                                                                
4:08:32 PM                                                                                                                    
SENATOR  BJORKMAN  expressed  concern about  people  building  on                                                               
trust  land  without  authorization  and then  being  allowed  to                                                               
purchase that land  because it rewards bad behavior  and isn't in                                                               
the  publics interest.  He reiterated  opposition to  restricting                                                               
public  access,   emphasizing  that  because  public   funds  and                                                               
resources support  the trust, the  public should  have reasonable                                                               
access to its lands.                                                                                                            
                                                                                                                                
4:09:51 PM                                                                                                                    
REPRESENTATIVE HIMSCHOOT  asked when  the trust sells  land, does                                                               
the trust sell it  as raw land, or does it  provide some level of                                                               
development first  and would adding  improvements, such  as Local                                                               
Improvement   Districts  (LIDs)   or  other   enhancements,  help                                                               
increase its value to the trust.                                                                                                
                                                                                                                                
4:11:11 PM                                                                                                                    
MS. WARNER explained that land  sales are evaluated case by case.                                                               
The trust  may add  value by  building roads  or utilities  if it                                                               
increases  returns,   but  the  trust  has   not  partnered  with                                                               
developers  to build  homes. She  said sometimes  the trust  will                                                               
sell only  platted land, where  roads are legally  designated but                                                               
not  yet built.  The approach  depends  on market  demand in  the                                                               
community.                                                                                                                      
                                                                                                                                
4:12:00 PM                                                                                                                    
REPRESENTATIVE  HIMSCHOOT  referenced   slide  11  and  expressed                                                               
concern  that managing  trust  lands solely  for  the benefit  of                                                               
trust beneficiaries  places some Alaskans above  others. She gave                                                               
an example  of land in  her region  that's slated for  logging by                                                               
the trust,  that is  heavily used by  a village  for subsistence,                                                               
which  would harm  the community's  livelihood and  mental health                                                               
while generating revenue  for other Alaskans. She  said the trust                                                               
is not  well-regarded in  that community.  She asked  whether the                                                               
requirement  to manage  land only  for trust  beneficiaries comes                                                               
from statute or is it board policy.                                                                                             
                                                                                                                                
4:13:07 PM                                                                                                                    
MS.   WILSON  replied   that  managing   land  for   the  trust's                                                               
beneficiaries  is  by  statute.  However,  the  board  does  have                                                               
flexibility to  consider local impacts when  reviewing proposals,                                                               
and such ramifications can be considered.                                                                                       
                                                                                                                                
4:13:38 PM                                                                                                                    
REPRESENTATIVE  HIMSCHOOT  noted  that   while  public  input  is                                                               
technically available  through comments and board  meetings, many                                                               
communities may not  be engaged in those  processes. She stressed                                                               
that a process  can be public without truly  being accessible and                                                               
emphasized that  the community wants  more direct  involvement in                                                               
decisions affecting their area.                                                                                                 
                                                                                                                                
MS. WILSON  stated that the  Trust Land Ofice cant   do something                                                               
that will have a negative financial impact on the trust.                                                                        
                                                                                                                                
4:14:55 PM                                                                                                                    
MS.  WILSON moved  to slide  12,  Trust Considerations:  Decision                                                               
Making,  and  explained  that   the  Trust's  decision-making  is                                                               
strategic and  grounded in direction, collaboration  with experts                                                               
and  boards,  evidence-based  practices, stakeholder  input,  and                                                               
grant analysis.  She emphasized using data-driven  strategies and                                                               
consistently prioritizing the needs of beneficiaries.                                                                           
                                                                                                                                
4:16:25 PM                                                                                                                    
MS.  WILSON  moved to  slide  13,  Trust  Continues to  Meet  Its                                                               
Mission,  and stated  that the  trust has  fulfilled its  mission                                                               
over  the  past  30  years  by  improving  beneficiaries'  lives,                                                               
reducing stigma, and expanding access  to quality care statewide.                                                               
She  said  key  achievements  include  crisis  response  efforts,                                                               
funding  more  treatment options,  strengthening  community-based                                                               
services, and awarding over $465  million in grants. Financially,                                                               
the trust's assets  have grown from the original  $200 million to                                                               
about  $800  million, including  $730  million  managed by  APFC,                                                               
ensuring long-term  stability. She  said trust lands  are managed                                                               
to protect and enhance value,  diversify revenue, and responsibly                                                               
benefit beneficiaries.                                                                                                          
                                                                                                                                
4:18:58 PM                                                                                                                    
CHAIR CARRICK commented about slide  8 and the funding allocation                                                               
between urban  and rural  Alaska. She  referenced the  Sources of                                                               
Strength  program  in   southwestern  Alaska,  an  indigenous-led                                                               
suicide  prevention  initiative  with proven  effectiveness.  She                                                               
asked  how  decisions  are  made   regarding  funding  for  urban                                                               
projects versus  evidence-based rural programs and  whether rural                                                               
communities are receiving equitable support.                                                                                    
                                                                                                                                
4:21:11 PM                                                                                                                    
MS. WILSON  replied that the  trust emphasized its  commitment to                                                               
serving all  of Alaska, including rural  areas, acknowledging the                                                               
challenges  involved.  For  programs   like  Crisis  Now,  adapts                                                               
services  to fit  smaller communities,  such as  scheduled mobile                                                               
response visits  to villages, while  recognizing there  is always                                                               
more work to expand coverage.                                                                                                   
                                                                                                                                
4:22:02 PM                                                                                                                    
MS.  BALDWIN-JOHNSON clarified  that  the map  on  slide 8  shows                                                               
areas  specifically involved  in the  Crisis Now  initiative, not                                                               
the  full  distribution of  trust  grants  statewide. Many  other                                                               
communities have successfully partnered  with the trust. She said                                                               
the trust  supports innovative, locally designed  solutions, like                                                               
the  Crisis Now  program in  partnership with  the University  of                                                               
Alaska  Fairbanks, allowing  communities to  tailor responses  to                                                               
their  specific needs,  often with  input from  tribal and  local                                                               
organizations. The trust values  projects created by Alaskans for                                                               
Alaskans and is eager to learn from successful initiatives.                                                                     
                                                                                                                                
4:23:55 PM                                                                                                                    
CHAIR CARRICK commented  that the trust has  strong data sources,                                                               
like  the Youth  Risk  Behavioral Survey,  to  identify areas  of                                                               
greatest need.  She asked  whether grants  are mostly  awarded to                                                               
those who  apply or are if  the trust proactively reaches  out to                                                               
organizations  in  regions  with   the  highest  need  to  ensure                                                               
equitable support for beneficiaries.                                                                                            
                                                                                                                                
4:24:58 PM                                                                                                                    
MS.  BALDWIN-JOHNSON replied  that  the  trust acknowledged  that                                                               
reaching   communities   statewide   is  an   area   of   ongoing                                                               
improvement.   The   trust   engages  through   local   community                                                               
connections,  tribal  and  provider  organizations,  and  regular                                                               
meetings with  tribal behavioral  health directors  to understand                                                               
needs.   She   said   public    input,   outreach   about   grant                                                               
opportunities,  and referrals  from associations  are also  used.                                                               
She  emphasized  that  they  are  continuously  seeking  ways  to                                                               
improve equitable access and support.                                                                                           
                                                                                                                                
4:26:21 PM                                                                                                                    
MS. WILSON  emphasized the  importance of  continuously improving                                                               
outreach and support, noting  that multiple approaches  including                                                               
partnerships,   awareness,   and    proactive   engagement   were                                                               
necessary.  She  mentioned  having   a  visual  map  showing  the                                                               
geographic distribution  of grants, including  rural communities,                                                               
which goes beyond  the Crisis Now initiative and  could be shared                                                               
after the meeting.                                                                                                              
                                                                                                                                
4:27:15 PM                                                                                                                    
CHAIR  CARRICK  emphasized the  importance  of  seeing the  grant                                                               
distribution data  and acknowledged  that resources  are limited.                                                               
She noted that  equitable distribution is central  to the trust's                                                               
mission, raising the  key question of whether the  trust is using                                                               
its  assets as  originally  intended to  serve all  beneficiaries                                                               
effectively.                                                                                                                    
                                                                                                                                
4:27:52 PM                                                                                                                    
MS.  WILSON agreed  and stated  her belief  that the  trust would                                                               
always work on addressing gaps and hard issues.                                                                                 
                                                                                                                                
4:28:08 PM                                                                                                                    
REPRESENTATIVE HOLLAND asked what  the Alaska Mental Health Trust                                                               
was doing  to support  startups and  innovations like  Step Away,                                                               
Health  Tie,  and  national programs  like  Johnson  &  Johnson's                                                               
Amplify  Access,  and  how  these efforts  fit  into  an  overall                                                               
strategy  to  build  local capacity,  create  jobs,  and  promote                                                               
Alaskan-based social impact organizations.                                                                                      
                                                                                                                                
4:29:34 PM                                                                                                                    
MS. WILSON  replied that strategic  planning starts at  the trust                                                               
and  with   the  trustees-  valuing  innovation,   having  expert                                                               
knowledge, and  accurate reflection of community  needs. She said                                                               
the trust  gathers input from  both Alaska and  national sources,                                                               
makes  strategic choices,  implements them  effectively, measures                                                               
outcomes, and adjusts as needed.                                                                                                
                                                                                                                                
4:30:23 PM                                                                                                                    
MS.  BALDWIN-JOHNSON replied  that  the  trust actively  supports                                                               
innovation  and  technology initiatives,  including  partnerships                                                               
with organizations like  Step Away and Health Tie.  The trust has                                                               
collaborated  and   brought  various  organization   together  to                                                               
identify challenges  and provide support through  grants, such as                                                               
helping  to launch  a pilot  program for  addiction support.  She                                                               
said  the  trust  also  hosts  conferences  with  technology  and                                                               
innovation  tracks,  connects partners,  leverages  philanthropic                                                               
and state funding, and supports  communities in seeing successful                                                               
models in action. These efforts  aim to adapt effective solutions                                                               
for   local   Alaskan   contexts   and   enhance   services   for                                                               
beneficiaries.                                                                                                                  
                                                                                                                                
4:34:25 PM                                                                                                                    
REPRESENTATIVE  STORY referenced  slide 10  and highlighted  that                                                               
while behavioral  health treatment is essential,  council members                                                               
have also raised concerns about the  lack of group homes and home                                                               
accommodations that  would allow people to  live independently in                                                               
their  communities. She  asked if  the groups  shown on  slide 10                                                               
have communicated  to the board regarding  funding priorities and                                                               
how  the board  balances these  diverse and  pressing needs  when                                                               
considering equitable funding.                                                                                                  
                                                                                                                                
4:35:54 PM                                                                                                                    
MS.  WILSON replied  that  balancing needs  is  difficult due  to                                                               
limited  resources   and  high   demand.  Each   group  advocates                                                               
priorities, and  the board works  to align them with  the state's                                                               
comprehensive  plan, typically  setting two-year  priorities. She                                                               
said  current focus  areas include  prevention  in childhood  and                                                               
crisis management.  She emphasized  that while  addressing mental                                                               
health crises  is essential, long-term improvement  in population                                                               
health  requires upstream  prevention strategies,  such as  early                                                               
interventions that reduce the likelihood of future crises.                                                                      
                                                                                                                                
4:37:50 PM                                                                                                                    
MS. BALDWIN-JOHNSON replied that the  trust relies heavily on its                                                               
four statutory  advisory boards:  the Governor's  Council, Alaska                                                               
Mental  Health  Board,  Advisory  Board on  Alcoholism  and  Drug                                                               
Abuse, and Alaska  Commission on Aging for  guidance on statewide                                                               
needs  and  priorities.  These boards  meet  regularly  with  the                                                               
trust, present at quarterly trustee  meetings, and participate in                                                               
budget development.  The boards identify service  gaps, highlight                                                               
priorities,  review  project  impacts,  and  help  assess  budget                                                               
changes  affecting  beneficiaries.   The  boards  input  directly                                                               
informs  funding decisions,  with  some  budget items  reflecting                                                               
priorities specifically  advocated by these advisory  boards. She                                                               
said  the trust  recognizes  that  supporting independent  living                                                               
involves  both funding  and workforce  challenges. The  trust has                                                               
invested in  direct support service personnel  through senior and                                                               
disability  services  to  help  individuals  live  independently.                                                               
Partnerships  with   the  Alaska  Association   on  Developmental                                                               
Disabilities  have been  key, and  the trust  has also  supported                                                               
intentional  communities, such  as  one on  the Kenai  Peninsula,                                                               
where aging  individuals with  disabilities can  live comfortably                                                               
and independently with family support.  She said these priorities                                                               
have  been  incorporated  into budget  recommendations,  many  of                                                               
which trustees have backed.                                                                                                     
                                                                                                                                
4:41:45 PM                                                                                                                    
REPRESENTATIVE  STORY compared  the above  situation to  deferred                                                               
school maintenance, noting that  community needs like housing and                                                               
treatment facilities are consistent  year after year. She pointed                                                               
out that if more treatment  housing existed, Medicaid could cover                                                               
much of the  operations, but the lack of buildings  is a barrier.                                                               
She  asked  whether  the  trust   maintains  a  running  list  of                                                               
recommended   projects,  how   it  tracks   recurring  priorities                                                               
(including equity concerns  like rural access), and  how much can                                                               
realistically be funded each year.                                                                                              
                                                                                                                                
4:42:51 PM                                                                                                                    
MS.  BALDWIN-JOHNSON   emphasized  the  robust   and  transparent                                                               
stakeholder   engagement  process,   documenting  feedback   from                                                               
hundreds of  meetings and  making it  available online.  She said                                                               
common  priorities, such  as  housing,  consistently emerge  year                                                               
after  year,  and  this  input  directly  informs  the  trustees'                                                               
identified focus areas and strategies.                                                                                          
                                                                                                                                
4:44:09 PM                                                                                                                    
REPRESENTATIVE STORY  asked how much  the trust was able  to fund                                                               
annually, based on the summary of requests.                                                                                     
                                                                                                                                
4:44:22 PM                                                                                                                    
MS. BALDWIN-JOHNSON replied she would  need to follow up with the                                                               
committee. She  said each  year a  set amount  is allocated  to a                                                               
portfolio  of  work within  the  trust's  focus areas.  She  said                                                               
because  annual funding  is  limited,  trustees distribute  funds                                                               
among  those areas,  with  allocations  varying somewhat  between                                                               
them.                                                                                                                           
                                                                                                                                
4:44:59 PM                                                                                                                    
CHAIR KAWASAKI noted  that in 2017, a  legislative audit revealed                                                               
that for  about a decade,  proceeds meant  to be invested  in the                                                               
Permanent Fund  Corporation were instead  used by the  Trust Land                                                               
Office to invest directly in  properties, some outside Alaska. He                                                               
asked  what steps  the Trust  Land Office  and the  Mental Health                                                               
Trust  Authority have  taken since  then to  address the  audit's                                                               
findings and recommendations.                                                                                                   
                                                                                                                                
4:46:22 PM                                                                                                                    
MS.  WILSON replied  that  the trust  has  been addressing  prior                                                               
audit  findings  on  its  commercial  real  estate  portfolio  by                                                               
deciding  to  divest   all  properties.  Of  the   six  or  seven                                                               
properties, two  have already been  sold. She said  the portfolio                                                               
is  now managed  within the  Trust Land  Office under  consultant                                                               
oversight,  with  a  plan  to exit  the  commercial  real  estate                                                               
business over the next few years.                                                                                               
                                                                                                                                
4:47:39 PM                                                                                                                    
CHAIR  KAWASAKI   noted  that  the  report   concluded  that  the                                                               
trustees'  actions  were  well-intentioned, aimed  at  maximizing                                                               
revenue for beneficiaries, and the  actions were not conducted in                                                               
a nefarious manner.                                                                                                             
                                                                                                                                
4:47:57 PM                                                                                                                    
MS.  WARNER  replied  that trustees  had  used  income  generated                                                               
between 2017 and the present to  restore the funds taken from the                                                               
principal  to  purchase  commercial real  estate,  returning  the                                                               
money to the trust's corpus.                                                                                                    
                                                                                                                                
4:48:29 PM                                                                                                                    
CHAIR KAWASAKI  stated that trust  land is valuable,  for example                                                               
for  mineral rights  or for  uses  not everyone  approves of.  He                                                               
asked what process  the trust follows to decide  whether to lease                                                               
the land or hold it.                                                                                                            
                                                                                                                                
4:49:27 PM                                                                                                                    
MS.  WARNER replied  that the  Trust Land  Office tries  to align                                                               
with the community  and public needs but when the  two differ the                                                               
trust turns  to statute,  which is to  maximize the  revenue. She                                                               
said the  trust follows a  resource management strategy  for each                                                               
asset   class,  sometimes   allowing   below-market  leases   for                                                               
beneficiary serving organizations. She  said the decisions follow                                                               
a  two-step "best  interest" process:  applications are  reviewed                                                               
internally  and  then issued  for  public  notice, with  comments                                                               
considered.  She  said  decisions  can be  modified,  denied,  or                                                               
affirmed,  and  there  is  an appeal  process  to  the  executive                                                               
director.                                                                                                                       
                                                                                                                                
4:51:38 PM                                                                                                                    
SENATOR  BJORKMAN  urged the  Trust  Land  Office to  proactively                                                               
engage  with  local  stakeholders, legislators,  and  communities                                                               
when pursuing large land use  projects. Early communication helps                                                               
define  the   project  narrative   and  prevents   opposition  or                                                               
derailment due  to lack of  information. He asked  how successful                                                               
the  Trust  Land Office  has  been  in attracting  and  retaining                                                               
public members  specifically on the Advisory  Board on Alcoholism                                                               
and  Drug  Abuse (ABADA)  Board  and  if  the  trust is  able  to                                                               
maintain enough board members.                                                                                                  
                                                                                                                                
4:53:10 PM                                                                                                                    
MS. BALDWIN-JOHNSON  replied that board members  are appointed by                                                               
the governor and that, to  her knowledge, the seats are generally                                                               
well-filled  with individuals  who  bring  lived experience  with                                                               
recovery or  mental illness.  She said she  didn't have  the full                                                               
board   composition  on   hand  and   offered  to   provide  that                                                               
information or follow up with the boards if desired.                                                                            
                                                                                                                                
4:54:05 PM                                                                                                                    
SENATOR  BJORKMAN  noted  constituent concerns  about  the  ABADA                                                               
Board particularly  regarding how  members with  lived experience                                                               
interact and  function on  the boards. He  asked about  the roles                                                               
public members are placed in  and referenced past conflicts among                                                               
board members that led to negative interactions.                                                                                
                                                                                                                                
4:54:47 PM                                                                                                                    
REPRESENTATIVE HIMSCHOOT  remarked on  the irony that  while many                                                               
initiatives are  funded by trust assets,  the statute prioritizes                                                               
money over  broader mental health considerations,  which she sees                                                               
as  problematic for  her  district. She  referenced  slide 6  and                                                               
stated that in the FY25  budget process she attempted to increase                                                               
funding  for the  Infant Learning  Program (ILP)  and was  denied                                                               
because the  trust board hadn't  requested it. She  asked whether                                                               
the trust directly  decides on program funding  increases and how                                                               
those decisions are made.                                                                                                       
                                                                                                                                
4:56:10 PM                                                                                                                    
MS.  WILSON  replied  the  trust  has  direct  control  over  the                                                               
authority grants,  which come  straight from  the trust.  For the                                                               
MHTAAR  grants,  however,  the  process  is  more  about  receipt                                                               
authority and collaboration with partners.                                                                                      
                                                                                                                                
4:56:33 PM                                                                                                                    
REPRESENTATIVE HIMSCHOOT  asked if the  trust has any  control or                                                               
input on funding increase for the infant learning program.                                                                      
                                                                                                                                
4:56:43 PM                                                                                                                    
MS. WILSON  replied that at the  state level the trust  has input                                                               
but no control.                                                                                                                 
                                                                                                                                
4:56:56 PM                                                                                                                    
MS. BALDWIN-JOHNSON  replied that advisory  board recommendations                                                               
go  through a  formal process  as part  of budget  discussions to                                                               
identify  priorities. Boards  can request  trust support  for the                                                               
general  funds, though  the ILP  recommendation occurred  outside                                                               
that  process.  She  said  the   trust  strongly  supports  early                                                               
intervention and ILP programs.                                                                                                  
                                                                                                                                
4:58:03 PM                                                                                                                    
CHAIR CARRICK  noted the trust's  valuable work and the  need for                                                               
more  assets  to  meet growing  needs  but  highlighted  frequent                                                               
conflicts  between the  trust land  office's mandate  to maximize                                                               
revenue and community concerns. She  noted the proposed land sale                                                               
on Esther  Dome as  an example where  revenue goals  clashed with                                                               
strong  public opposition.  She  asked  if increased  legislative                                                               
oversight in  these decisions help  guide the trust  in balancing                                                               
these two often competing priorities.                                                                                           
                                                                                                                                
4:59:35 PM                                                                                                                    
MS.  WILSON  replied  that legislative  oversight  could  be  one                                                               
potential solution  to balancing  competing priorities,  but it's                                                               
unclear if it  would fully resolve the issue. The  funding of the                                                               
trust  comes from  a combination  of  a fixed  percentage of  the                                                               
permanent fund and revenue from  land, timber, and mineral sales,                                                               
which must be carefully preserved.                                                                                              
                                                                                                                                
CHAIR KAWASAKI thanked the presenters for their overview.                                                                       
                                                                                                                                
5:03:02 PM                                                                                                                    
There being no further business to come before the committees,                                                                  
Chair Kawasaki adjourned the joint Senate and House State                                                                       
Affairs Standing Committee meeting at 5:03 p.m.                                                                                 

Document Name Date/Time Subjects
Trust State Affairs PPT 4.2.25.pdf SSTA 4/3/2025 3:30:00 PM
AMHTA Presentation