SB 117-ELIMINATING LONGEVITY BONUS PROGRAM  CHAIR GARY STEVENS announced this was the second hearing for SB 117 and he would take testimony for one hour. He asked individuals who spoke during the previous hearing to allow others the opportunity to express their views. He said he would rotate testimony among the different sites. LORILYN SWANSON, the manager of Fireweed Place in Juneau, opposed SB 117 and read the following into the record: Last week I presented written testimony to you but had to leave prior to testifying. My one suggestion to you in that testimony was that you consider contacting the Longevity Office for addresses of constituents in your district so that you could contact them first hand and get an overall sense of how important this monthly income is to them. This went along with the fact that the Governor's office is stating and still is that they are hearing more on the pull-tab legislation and very little from seniors on the longevity bonus issue. I hope that you have been able to contact some of your constituents prior to making a decision to pass this bill out of your committee today. This past week seniors receiving the longevity bonus received a letter from the Governor on the safety net programs. This letter offended many. They felt that they were being told to apply for welfare. Much has been said about the so-called safety nets that the state has in place for seniors. Much has not been said about the fact that any senior cannot make over $914 up to $1,025.01 and special income groups $1,656 or they will not qualify for these safety nets. These safety nets are not going to help most seniors now receiving the longevity bonus as their income will not fall to this poverty level but it will be close. The permanent fund is also at question this year. Yes this would affect all Alaskans but especially a major loss to low income seniors should they also lose the longevity bonus. This program was an incentive to seniors in order to allow them to stay in Alaska. We need the seniors in Alaska. Listen to your constituents. Listen to the seniors. There is sense of panic from those who currently show the bonus as 20 to 30 percent of their income. You have and will hear more testimony on how the bonus is used for necessities such as rent, fuel, electricity, and prescriptions. It is true. Sooner or later someone is going to have to step up to the plate and show seniors that he or she is willing to make a stand for them, let it be you, do not pass SB 117 out of your committee today. SENATOR JOHN COWDERY questioned whether she would favor placing a question on the Permanent Fund Dividend application asking the applicant to contribute part of his or her dividend to seniors to continue the longevity bonus program. MS. SWANSON thought that would be a good idea. She didn't think cutting the program completely on July 1 was fair. DORIS PECK from Juneau spoke for those who are 75 and older to oppose SB 117. Many of these people are struggling with their own budgets. Few are able to move into the work force and none that she interviewed want to step into the welfare safety net. She said, "Please don't jerk the rug from beneath the elders. They live on budgets too." DORIS ROBBINS from Juneau represented the Retired Public Employees of Alaska. She does not receive the bonus, but believes the state should keep its promise to seniors. The program is phasing itself out with the youngest recipient at 72 years old. Seniors are important to Alaska's economy because they keep most of their money circulating within the state. They are carriers of our Alaska heritage and serve as good role models. She said she would be willing to donate from her permanent fund to keep the bonus program alive. MAXINE DERR from Anchorage opposed SB 117. She is thankful for the program because she has no pension even though she worked for many years. She favored a means based test. PATRICIA BARBER has lived in Alaska for more than 40 years and her husband is a third generation Alaskan. She wanted to rebut the comments made by the Administration stating that the program is inequitable. She doesn't receive the bonus but that is no reason to cut it for others; life isn't always equitable. The Administration's logic is personally offensive and others in her same situation have similar feelings. "Our seniors are visible and in some communities, vital... It's a win-win situation. The seniors who now receive the bonus should continue to do so. Period, end of subject." J.R. HANK LANGMAN has lived in Alaska since 1949 and his wife has been an Alaskan since 1944. He asked, "How can you believe that you can remove from the economy of Alaska, $47 million and not hurt the economy?" The safety net programs couldn't possibly cushion the small communities across the state against this loss of revenue. JOHN WEBSTER from Palmer is a 40 year resident of Alaska. He spent His career working for the U.S. Postal Service in Anchorage. He is distraught at the termination of the longevity bonus because it reduces his income 9 percent. He pointed out longevity dollars turn over many times creating jobs for others. He closed saying," Take my longevity and make an instant Democrat out of me." ERNIE LINE from Wasilla opposed SB 117. He has been in Alaska since 1945 when Forth Avenue was the only paved road in town. He has recently suffered a number of illnesses and physical setbacks and the longevity bonus helps make ends meet. He questioned why there is so much antipathy to an income tax. He said, "Don't pick on the seniors, we're not really as bad as some people make us out to be." LOUISE HARRIS, President of Palmer Senior Center, is 89 years old. The bonus checks are spent in Alaska and provide economic stimulus to communities. In addition, the program probably costs the state less than public assistance and certainly it has a different meaning for older Alaskans. People in their 70s, 80s and 90s shouldn't be expected to reenter the workforce to replace the bonus checks. NANCY MENDENHALL from Fairbanks opposed SB 117. The program has been successful in encouraging retirees to remain in Alaska. Seniors invest considerable time, money and resources to make their communities better places to live. She asked whether data was available to show the contributions made by seniors and whether they wouldn't more than offset the longevity bonus program. JOHN BOULETTE from North Pole opposed SB 117. He has lived in Alaska for 39 year, is 72 years old and gets the smallest bonus. It helps pay for his utilities and prescription drugs. He has spent the last 18 years volunteering in his community and he remembers when there were few volunteers because no one could afford to live in Alaska when they weren't working. NIILO KOPONEN opposed SB 117. He is a former member of the Legislature and has lived in Alaska since 1952. He remembers when the program was instituted during the Hammond Administration. The phase-out was written as a contractual agreement with the people who were then receiving the bonus. Eliminating the program would break this contract, it would adversely impact small communities and it would impact families of seniors. GENENEIVA DEE DEE PEARSON from Kodiak opposed SB 117. She does not receive the bonus but still doesn't want to see the program cut. She wondered whether the Governor and legislators weren't counting on seniors being around for the next election. An income tax would be fair. EVAN CUNDIFF opposed SB117. He and his wife have lived in Homer for 45 years and they plan to die in Alaska. He believes eliminating the longevity bonus program is a travesty. The letter from the Governor stated that no one should be paid the bonus since more Alaskans over 65 don't receive the bonus than do elicited the suggestion to take everyone off the state payroll and start over again. This would include all state employees as well as all state legislators. He closed saying, "If we must conserve, let's put a little compassion in our conservatism." EARL GLANVILLE from Anchor Point opposed SB 117. He moved to Alaska in 1943. Because there has been such a rapid growth in state government, he asked that the Governor eliminate all state employees that do nothing more than hold down a chair and shuffle papers. VI JERREL from Homer opposed SB 117. Although she doesn't receive a bonus check, she feels it is necessary to protect those seniors who do get a check. There has been lots of good testimony given in defense of the program. There is a public perception that the salaries for the Governor and many of his top administrators could be reduced and added to the bonus program. "If Governor Murkowski had campaigned on his request to eliminate the longevity bonus program, Fran Ulmer would be governor today." ED ZASTROW from Ketchikan has lived in Alaska for 45 years. He spoke on behalf of 30 seniors from the Ketchikan Senior Center whose signatures were faxed to the Chair as an expression of opposition to SB 117. He is also the president of the local AARP chapter and all those members are opposed to the bill. Representative Williams and Senator Taylor spent over two hours in a pre legislative hearing and are aware of the opposition. GUY TOWNSEND from Ketchikan opposed SB 117. He arrived in Ketchikan in 1936 He wondered if this is the start of longevity recipients leaving Alaska. LENORE JONES from Kenai opposed SB 117. When she read the Governor's letter that stated the bonus program was inequitable she was amazed that the Governor thought the Legislature could pass laws to make everyone equal. Seniors currently receiving the bonus have already paid their dues to the state. VIVIAN SWANSON from Kenai opposed SB 117. She is the president of the local AARP chapter and they believe those receiving the bonus depend on it as part of their monthly budget. MONTY RICHARDSON from Seward opposed SB 117. He and his wife receive the bonus and its elimination combined with new user fees will considerably impact their economic status. Although they won't be lined up at the welfare office, there are many Alaskan seniors who are barely scrimping by on incomes close to the poverty level. The children of these low-income seniors will suffer and do without if the bonus program is eliminated. He agreed with Mike Doogan; those not receiving the bonus have but one leg while those currently receiving it have two legs. The Governor's proposal is to see that everyone has just one leg. ROBERT MONTEGUE spoke on behalf of the residents of the Anchorage Pioneer home to oppose SB 117. Many of the residents have sent public opinion messages to legislators and a letter to the Governor as well. TOM DAVIS, the director of the Chugiak Senior Center, testified for the seniors at the center in opposition to SB 117. They asked that the bill be thrown out as frivolous legislation. Many of the Governor's safety net programs can't really be supported as a safety net and the Governor's proposed budget recognizes that. SIDE B 4:25 pm ROBERT THIBODEAU from Juneau spoke as a member of the Juneau Commission on Aging in opposition to SB 117. He read the conclusions the McDowell Group reached regarding the economic impact of seniors. Alaska seniors are one of the largest single sources of money flowing into the state. Senior retirement income and medical payments have a significant beneficial effect on the state economy. At the same time, more than half of Alaska seniors live precariously on the edge of solvency. For some, financial considerations may determine whether they continue to reside in the state. For many others, a combination of financial benefits available from state and municipal governments is critical to their well- being. He said his parents came here in 1922 and they left in 1953 because seniors did not retire in Alaska. In 1988 just two percent of the senior population was in Alaska. Seniors contribute a great deal to Alaska and if the state is interested in supporting the tourist industry and the fishing industry it should also support the senior citizen industry. CHAIR GARY STEVENS said he would read the names of everyone that signed up to testify but didn't get the chance. He encouraged anyone who wanted to object to anything that was said previously to speak up. He read the following names: JUNEAU: Barbara Deboff, Wallace Deboff, Ralph C. Hunt, Betty Hunt, Maxine McCoy, George Rogers, Maurice Long, Jim Carroll, Jean Clayton, Norma Sherwin, Alto Van Sickle, Ernestine Denny, Ethel Ryman, Julie Morris, Rosalee Walker, Judy Wygant, Mike Race ANCHORAGE: John Stripe, Ron Hammett, Jesse Wooten, Ron Cowan, Madge Anderson, Ruth Talley, David Ring, Ervin McKenzie, John Anderson, Gordon Geiss, Ed Barber, Nella Wooten and six observers MAT SU: Jim Watenpaugh, Jim Fleming, Bill Church, Patricia Fleming, Jim Sykes, FAIRBANKS: Ed Shellinger, Glenn Hackney, Betty Hufman, Joe Strunka, Glen Franklin, Charlotte Davis, George Taylor, Walter Shuros, Janette Hanneman and seven observers KODIAK: Marjorie Thera KETCHIKAN: Don MacMillan, Ernest Smeltzer, Mabel Smeltzer, Shirley Carlin KENAI: Vivian Jolin, W.E. Jolin SEWARD: Florita Richardson, Margaret Anderson There was no one that disagreed with previous testimony on SB 117. CHAIR GARY STEVENS stated the testimony in opposition to SB 117 was enormous. He thanked everyone for their testimony and he appreciated the stories and pioneer experiences in Alaska. He expressed appreciation for the service the seniors have given and continue to give to the state and nation. He pointed out this is the Governor's bill and the committee was asked by both the Administration and the majority leadership to move the bill to the Finance Committee where it will be discussed with other fiscal items. SENATOR COWDERY said he didn't believe there would be a do pass in the room but he was going to make a motion to move SB 117 from committee with individual recommendations. CHAIR GARY STEVENS asked whether there were any objections. SENATOR GUESS objected and asked to speak to her objection. She said: I've actually been giving this a tremendous amount of thought and I appreciate everyone's testimony and thank you for recognizing what people put in. The other day I told someone that I've never gotten more e-mail correspondence and testimony on an issue. I've only been here three years, but dealt with most of the controversial issues in those three years. Someone said, "Well they must be really organized." and I said no, they're scared. I really do think that's the fact. I don't honestly think the Governor has the support and Senator Cowdery pointed out there's not going to be a do pass on this bill. No one more than me knows the fiscal problems of this state. I think this is a shortsighted policy, honestly. I think it does break a promise and I honestly think it's just plain mean, but I don't want to impugn everything. I don't think it was meant to be that way. I understand the pressure to support a Governor especially for the majority but I truly believe if there's a time to stop a bill it's this time. There areother bills that are more financial bills, but this one's keeping people up at night and I think we just need to say, "You know, we respect that you put it forward, but it needs to stop here." I disagree with moving it out. I don't think it's the right thing for the committee. SENATOR COWDERY informed members he and his wife receive the bonus. SENATOR GUESS informed members her mother-in-law receives the bonus. CHAIR GARY STEVENS informed members his mother-in-law receives the bonus. CHAIR GARY STEVENS called for a roll call vote on the motion to move SB 117 to the Finance Committee. Senators Cowdery, Dyson and Chair Gary Stevens voted yea and Senator Guess voted nay. The motion passed and SB 117 moved from committee.