HB 246 - ELIMINATING PIONEERS' HOME PROGRAM CO-CHAIR BUNDE apologized that not everyone wishing to testify in Juneau and on teleconference would be able to do so, due to the time demands of HB 226. The bill would be rescheduled for a later date, when further testimony will be taken. Number 877 REPRESENTATIVE GARY DAVIS, sponsor of the bill, began by noting that the short title of the bill is "Eliminating Pioneers' Home Program." That is not what the bill does at all. The bill offers an opportunity to transfer the operation of pioneers' homes to private institutions, as opposed to keeping them state-operated institutions. REPRESENTATIVE DAVIS also indicated that it is his intention to have HESS Committee members take no action on this bill immediately. He would like to form a subcommittee and have the subcommittee members discuss and review the intent of this legislation over the interim. If there is an opportunity for the privatization of the pioneers' homes, he requested that the bill come back to the legislature next session. REPRESENTATIVE DAVIS hoped those comments would alleviate a lot of concerns. Many people fear some action may be taken on this bill and there will be interference with their present conditions. The intent of the bill is not to cause any upheaval or disturb the current situation. As written, it is currently an impossibility to pursue this legislation. Repercussions to current residents (which is not what Representative Davis intends) would occur. Number 1000 CO-CHAIR BUNDE said he would take the advice of Representative Davis to work on this bill in the interim in a subcommittee. Co- Chair Bunde repeated that he still would like to bring the bill up at a future date so the people who would like to testify will have an opportunity to do so. Co-Chair Bunde encouraged Representative Davis to seek a title amendment, as the current title is pretty strong. CO-CHAIR BUNDE asked those testifying on teleconference to limit their testimony to two minutes. He said he would try to hear testimony from as many people as possible. Of course, written testimony was always welcome. Number 1061 PATRICK KALEN, Representing the Pioneers of Alaska, said the concerns of his peers were pretty much unanimous. The bill was discussed at length at a meeting held the previous night. The morning paper seemed to put Representative Davis in the "hot seat," because as it was worded, it appeared Representative Davis wants to eliminate the Pioneers' Home Program. MR. KALEN now understands that is not what Representative Davis wants to do. However, the very idea of making changes in the operation of the pioneers' home was very disturbing to the pioneers. MR. KALEN said the pioneers are looking for some evidence that privatizing would solve some problems in the operation of the pioneers' home. Mr. Kalen's biggest concern regards the residency requirements. Mr. Kalen said his organization understands that everything is going to take a hit in the future. He hopes the pioneers' homes survive. MR. KALEN understands that many people feel the private operation of pioneers' homes is the best solution. Mr. Kalen did not feel there was a problem with the operation of the homes, and said, "If it ain't broke, don't fix it." Number 1162 MR. KALEN encouraged Representative Davis to call him so they can discuss ideas. He also encouraged the HESS Committee to hold the bill so pioneers can get a better understanding of the aims of the bill. CO-CHAIR BUNDE noted that there are judges who are making changes that perhaps many people are not happy with. However, those decisions are a fact of life. HESS Committee members as well as the residents of pioneers' homes have to deal with those decisions. Co-Chair Bunde also encouraged Representative Davis to do more when changing the title of the bill. He suggested the words "eliminate" and "Pioneer" be changed. There are no longer pioneers' homes. They are old folks homes. The state pays a $50,000-plus subsidy for those that are on the inside as opposed to those who are on the outside. CO-CHAIR BUNDE said the state is going to have to deal with this problem, and HESS Committee members will appreciate the guidance and direction of Mr. Kalen. Number 1238 BEAVER BENTLEY testified via teleconference that he too is a little wary of the bill's current wording, which reads eliminating the pioneers' home. He said that benefits are being cut at the federal and state levels to the point at which programs and people are beginning to suffer. If his health conditions worsen, he may have to reside at an assisted care facility. He does not like the idea of private care. Number 1305 DOROTHY WESTPHAL testified via teleconference that she is a 33-year resident of Alaska. She is very proud that she finally reached the age at which she could join a pioneer group. She said she can see many flaws in HB 246. Basically, the plan is supposed to save money. However, in order to get those homes into saleable condition, much money would be spent to replace equipment and keep up the homes. The mechanics of handling the sales and clearing the titles would be very costly. Ms. Westphal can see many obstacles. MS. WESTPHAL said there would also be a large cost to the morale of the residents of Alaska who wish to reside in those homes. She is really against HB 246. She does not think this bill will work. Her main concern is for those who presently have Alzheimer's or who are going to need care. The pioneers' homes have wonderful Alzheimer's units. She does not think this bill will make people's lives better. MS. WESTPHAL repeated that it will cost a lot money to even sell the homes. There would also be a large cost on the residents. Those residents have to find somewhere else to live. She asked where those residents are going to go. CO-CHAIR BUNDE assured Ms. Westphal that notes were being taken of her concerns. The goal of the HESS Committee is to help the state in financial issues. The HESS Committee does not wish to beat up on people for the sake of saving money. Number 1465 R.N. DeARMOND testified via teleconference from the Sitka Pioneers' Home that that building was established in 1913. Over the years, it has cared for approximately 3,000 residents of the territory and state of Alaska. About a dozen of those residents were former members of the Alaska Legislature. MR. DeARMOND asked that a large effort be made to save the Alaska Pioneers' Home system. Perhaps some modifications should be made. To that end, Mr. DeArmond suggested the creation of a special interim joint committee of the House and Senate, with the membership from the Pioneers of Alaska, to look into ways in which the revenues of the system might be increased and the cost of operation might be reduced. MR. DeARMOND said he would be faxing HESS Committee members some specific suggestions about enhancement. Number 1552 CO-CHAIR TOOHEY asked if Mr. DeArmond had listened to testimony which took place in April 1994, when Co-Chair Toohey was helping a committee do exactly what he had just recommended. The final draft was something that apparently was not acceptable by just about everyone. Therefore, she does not know whether the state is going to have to wait until the situation is so desperate the doors will have to be shut until a solution is found. However, major changes are necessary. CO-CHAIR TOOHEY said changes must be made that involve the infusion of new monies (i.e., Medicaid and Medicare). The state must find some more ways to bring money in. There must be some criteria on what allows one to be a member of the pioneers' homes. As Mr. DeArmond knows, many years ago, the homes were created for indigent miners who did not have the ability to get benefits for themselves saved over the years. CO-CHAIR TOOHEY said that changed in the 1960s and 1970s, and the system allowed anyone to join into the system. There are people that have homes who are spending the weekends at their homes and the weeks at the pioneer home. That used to be fine, but the state can no longer afford that. Decisions must be made. These are very hard decisions to make, but solutions must be reached. CO-CHAIR TOOHEY encouraged everyone to get involved, and assured the residents of pioneers' homes that she would never allow a resident to be put out on the street. That will never be allowed. However, ideas are needed about the future of the pioneers' homes, or there will be no future for those homes. Number 1644 ANNABEL APPLING, Resident, Sitka Pioneers' Home, testified via teleconference that she has lived in Sitka for 79 years. She knows what the pioneers' home means. It is a great place for senior citizens. However, it sounds like the sponsor of the bill wants to make street people out of them. Ms. Appling thought the homes should be saved for the seniors. They have worked hard. The Sitka home is the most beautiful in Alaska, and it should be kept that way. CO-CHAIR BUNDE informed others wishing to testify that after testimony is taken in Sitka, public testimony will be closed on HB 246 for the day. Interested parties will be notified about the bill's next hearing. Number 1673 ART NIELSEN, Resident, Sitka Pioneers' Home, testified that he has resided at the pioneers' home for the last year and a half. He asked HESS Committee members to not pass the bill. Number 1706 ANN JENSEN, Resident, Sitka Pioneers' Home, said that one of the residents spent two hours at the legislative information office last week, and waited for an hour and a half to testify at the current hearing. She is in a wheelchair. She asked Ms. Jensen to tell HESS Committee members that she is very anxious about the bill. She has no place to go. She cannot afford to pay any more money. MS. JENSEN noted that in the 1960s, the state expanded the pioneers' home system, adding new units between 1972 and 1988. Other homes were expanded. That was marvelous for those residing in the homes. But it also means that no private organization was able to compete with those homes. The residents now have no place to go. CO-CHAIR BUNDE apologized for the long discussion on HB 226. He thanked all those testifying.