HOUSE FINANCE COMMITTEE March 13, 2002 12:19 P.M. TAPE HFC 02 - 38, Side A TAPE HFC 02 - 38, Side B TAPE HFC 02 - 39, Side A TAPE HFC 02 - 39, Side B TAPE HFC 02 - 40, Side A (Tape malfunction) TAPE HFC 02 - 40, Side B (Tape malfunction) TAPE HFC 02 - 41, Side A TAPE HFC 02 - 41, Side B CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 12:19 P.M. MEMBERS PRESENT Representative Eldon Mulder, Co-Chair Representative Bill Williams, Co-Chair Representative Con Bunde, Vice-Chair Representative Eric Croft Representative John Davies Representative Richard Foster Representative John Harris Representative Bill Hudson Representative Ken Lancaster Representative Carl Moses Representative Jim Whitaker MEMBERS ABSENT None ALSO PRESENT Representative Mary Kapsner; Representative Gary Stevens; Representative Drew Scalzi; Representative Peggy Wilson; Representative Ethan Berkowitz #HB403 #HB404 PRESENT VIA TELECONFERENCE HOMER: Mary Griswold; Merritt Mitchel; Laura Asbell; Darrell Behymer; Roger MacCampbell; Susan Drathman; Bonnie Betley; Sharon Whytal; Ginny Espenshade; Joey Eastman; Rebecca Paul DILLINGHAM:    Brad Angason; Andrew Devalpine; Pearl Strub; Michael Halko; Terry Hoefferle; Jean Timmerman; Cristy Tilden; Joan Ribich; Rob Carpenter CORDOVA:    Sue Aspelund; Helen Mansuy; Nicole Songer; Bill Lindow KENAI:    Roy Anderson; Cindy Wood; James E. Fisher; Joan Bennett Schrader; Eliza Eller; Lynette Haas; Mary Miller; Sharon M. Brower; Dave Spence; margaret Parsons Williams; Kacey Cooper; Dennis Hass; Wini Crosby; JoAnn Hagen; Linda LeVeque; Teresa Smith; Cindy Davis-Bryant KODIAK:    Donald Roberts; Dave Jones; Romy Arquiza; Pat Holmes; Gabrielle Ledoux EMMONAK:    Bill Charles BETHEL: Karen Sidell; Al Unok, Mayor; Mike Samuelson; Darcy Anderson; Authour Lake; Mary Gregory, Bethel. SEWARD: Monica Luther, SeaView Community Services; William Dunham GLENNALLEN:    Joseph Hart   PETERSBURG:    Larry King; Deborah Downs; Karin McCullough; Paul Anderso, Mayor; Susan Ohmer; Dale Stone, Chief of Police; Shawn Riley; Suzanne Hebert; Dave Berg   SITKA:    Iva Greywolf; Gerry Hope; Dan Moreno; Marlys Tedin; Canille Ferguson; Tony Zimmer; Keith Perkins   KETCHIKAN:    Kevin Murphy; Karen Polley; Patti Mackey; George Tipton; Bob Weinstein, Mayor; Jim Marmon; Bill Ratigan   TOK:    Mary Louise Yoder   WRANGELL:    Robert Plunella; Don McConachie   FAIRBANKS: Donald Ritter; Joanne Trefethen; Terry Schmidt; Dawn Sadler; Linda Tremback; Vanessa Spencer; Doug Pomeroy; Andy Harrington; Marta Mueller; David Leone; Jan Dawe; Donna Galbreath; Suzanne Price; Stan Bloom; Roger Hansen; Shannon Uzzell; Hans Gunderson; Mary Westcott; Don Billings; Stanley Ned; Andrea Earnest; Sue Cole; Ann Swift; Earl Beistline; Rayman Stith; Annette Frieburger; Rayna Hamm; Susan Hansen; Patty Meritt, Tabor Rehbaum; Gabe Sam; Colleen Redman; Carl Benson; Todd Larkin; Amanda Race GENERAL SUBJECT(S): The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 22nd Legislative Session, contact 465- 2156. After the 22nd Legislative Session they will be available through the Legislative Library at 465-3808.   Public Testimony on the Operating Budget HB 403-APPROP: OPERATING BUDGET/LOANS/FUNDS HB 404-APPROP: MENTAL HEALTH BUDGET LOG SPEAKER DISCUSSION    TAPE HFC 02 - 38  SIDE A  000 Co-Chair Mulder Opened the House Finance Committee meeting on public testimony for the operating budget, HB 403 & HB 404.    HOMER  113 MARY GRISWOLD Spoke in support for fully funding HOMER education and support of HJR 15. She urged passage of the fiscal plan.  316 MERRITT MITCHEL, Testified in support of full funding for ADVISORY COUNCIL, funding for the University and work on UNIVERSITY, finding other funding sources.  HOMER 458 LAURA ASBELL, HOMER Testified in support of full funding for the University. She added her opposition for dropping funding for the Head Start Program.  553 DARRELL BEHYMER, Testified in support of full funding for HOMER the Board of Regions budget request for the University.  700 ROGER MAC CAMPBELL, Testified in support of full funding for HOMER the Division of Parks. He urged that the program keep their program receipts for operations.  957 SUSAN DRATHMAN, Testified in support of full funding for HOMER education. She added that she supported programs for Kid Care and disabilities. She noted that she supported sales tax, income tax and reduction of the permanent fund.  1102 BONNIE BETLEY, HOMER Voiced concern with the cuts to public assistance and any changes to the Division of Family and Youth Services. She noted that she suupported State sales tax and income tax. She voiced support of the programs proposed by Governor Knowles.  1251 SHARON WHYTAL, HOMER Voiced support for creating a vision for the future. She addressed the most vulnerable impacts that the cuts will cause.  1343 GINNY ESPENSHADE, Stressed that the proposed budget was HOMER irresponsible. It will cost the State more in the future. Taking away the prevention services is not a good decision. Cuts should not be taken first.  1520 JOEY EASTMAN, HOMER Testified in support of full funding for education.  1623 REBECCA PAUL, HOMER Testified in support of full funding for Head Start as proposed by Governor Knowles. She stressed that it is vital that the money be supported.  1753 CO-CHAIR MULDER Pointed out that last year the match did not happen.  1807 REPRESENTATIVE Stated that he understood that it would DAVIES happen this year.    DILLINGHAM  1855 BRAD ANGASON, Testified in opposition to reductions in DILLINGHAM village public safety officers.  2001 ANDREW DEVALPINE, Spoke to the approach used by the DILLINGHAM Committee and the budget cuts. He asked that the State start using taxes.  2127 PEARL STRUB, Testified in support of full funding for DILLINGHAM job support services and training programs. She added that the budget cuts to Department of Health and Social Services are too dramatic. Ms. Strub concluded with opposition to the cuts to  the University.  2344 MICHAEL HALKO, Testified in opposition to the DILLINGHAM unallocated reduction for the reductions to food safety. He thought that the State would end up with a third world sanitation system.   2440 TERRY HOEFFERLE, Testified in opposition to the DILLINGHAM unallocated reduction for the Power Cost Equalization (PEC). He encouraged reconsideration of that cut and the irresponsible approach to the budget cuts. He stated that consideration should be made for revenue enhancement.  2707 JEAN TIMMERMAN, Echoed concerns with the budgeting DILLINGHAM approach and cut. Testified in opposition to the unallocated reduction for the nursing budget and the Emergency Medical Services. She added that with some of the cuts will result in the loss of matching dollars.  2848 CRISTY TILDEN, Spoke in opposition to any cuts to DILLINGHAM alcohol treatment programs. Additionally, she urged continued testified in support of full funding for the ASAP program. She noted support for income tax.  3008 JOAN RIBICH, Testified in opposition to the DILLINGHAM unallocated reduction for the Mental Health Budget. She stressed that it will hamper the effort to keep these individuals healthy. The proposal will result in increased admissions to the hospitals.  3149 ROB CARPENTER, Spoke against the cuts as proposed in HB DILLINGHAM 403. Testified in opposition to the elimination of the Division of Subsistence. He stressed that it is needed in rural Alaska. He added his support for VPSO's throughout the State. Fire prevention & head start funding needed.  3324 REPRESENTATIVE Stated that there is not a reduction to LANCASTER PCE but an increase in fuel costs.  3357 REPRESENTATIVE Commented that the amount of money in PCE DAVIES has been constant but with the raise in fuel costs make those costs increase.   The Committee recessed at 12:55 P.M.  RECESS   The Committee reconvened at 1:05 P.M.  RECONVENED    KENAI  3517 ROY ANDERSON, KENAI Spoke against underfunding the Department of Education for K-12.  3822 ELIZA ELLER, KENAI Spoke in support for fully funding disabled services for those that are disabled throughout the State of Alaska. She testified against SB 42 and the fear associated with that bill and how it will affect the disabled.  4257 CINDY WOOD, KENAI Testified in oppositions to reductions in the developmental disability and disabled children at risk.  4440 JAMES FISHER, KENAI Testified in support of full funding for food inspections, and fish and game oversights. None of the proposed cuts come close to approaching the fiscal gap. Revenue measures needs to be considered. He thought that the cuts would create a social travesty.    TAPE HFC 02 - 38,  SIDE B  4640 JOAN BENNETT Expressed concern that there would not be SCHRADER, KENAI sufficient funding for health and safety issues.  4436 LYNETTE HASS, KENAI Testified in oppositions to reductions in the developmental disability grants. She noted that there are 1,200 children on the waitlist. Stated that she would pay a state sales tax.  4307 MARY MILLER, KENAI Testified in oppositions to reductions in the developmental disability grants. She thought that most wage earners would support raising revenues through taxes, as opposed to reductions in funding.  4110 SHARON M. BROWER, Testified against reductions in the KENAI Department of Education and Early Development. She noted that course options have been diminished. Spoke in support of an income tax.  3931 DAVE SPENCE, Testified against reductions in the DIRECTOR, PLANNING Department of Education and Early AND OPERATIONS, Development. Testified in support of full KENAI BOROUGH SCHOOL funding for the Department of DISTRICT, KENAI Environmental Conservation food service safety inspectors. He stressed the health and safety factor in regards to children and the possible loss of federal funding.  3653 MARGARET PARSONS Testified in support of additional WILLIAMS, KENAI funding for alcohol and substance abuse programs and encouraged revenue enhancing programs.  3433 KACEY COOPER, KENAI Testified in support of additional funding for the Department of Education and Early Development. She noted the lack of books and recourses.  3224 REPRESENTATIVE Questioned if there are food service HUDSON safety inspectors at the local area.   3142 MR. SPENCE Noted that there are two state inspectors but none at the local level.  3052 DENNIS HAAS Testified in oppositions to reductions in the developmental disability grants. He thought that the permanent fund should be used before the program is reduced.  2926 WINI CROSBY, KENAI Testified in oppositions to reductions in the developmental disability grants. She stressed that person who are the most vulnerable would not receive essential services.  2750 JOANN HAGEN, KENAI Testified in opposition to the unallocated reduction for the Department of Health and Social Services.  2525 LINDA LEVEQUE, KENAI Testified in oppositions to reductions in the developmental disability grants and services. She spoke in support of implementation of taxes.  2357 TERESA SMITH, KENAI Testified in support of full funding for Head Start programs.  2213 BILL CHARLES, Testified in opposition to the budget EMMONAK reductions in the Department of Health and Social Services.    BETHEL  2103 KAREN SIDELL, BETHEL Testified in oppositions to reductions in the developmental disability grants. She pointed out that the services are already limited. She stressed the need to look at revenue raising measures.  1737 AL UNOK, MAYOR, Testified in opposition of the proposed AOTLIK reductions.    KODIAK  1627 DONALD ROBERTS, Testified in opposition of the proposed KODIAK reductions.  1536 DAVE JONES, KODIAK Testified in opposition of the proposed reductions. Testified in support funding for Alaska State Troopers. Testified in support of full funding for the Department of Environmental Conservation food service safety inspectors. Services should not be dictated by the flow of oil. Stressed the need to look at revenue raising measures.  1345 ROMY ARQUIZA, KODIAK Testified in support of full funding for the Department of Environmental Conservation food service safety inspectors.  1325 PAT HOLMES, KODIAK Stressed the need to look at revenue raising measures, such as a statewide  sales tax. He pointed out that Anchorage does not have a sales tax. He spoke in support of capping the Permanent Fund. Testified in opposition to the elimination of the Division of Subsistence.  1136 GABRIELLE LEDOUX, Testified in support of full funding for MAYOR, KODIAK the Department of Environmental Conservation food service safety inspectors. She stressed the impact on the fishing industry. She maintained that the local community does not have the resources to provide the service.    CORDOVA  956 SUE ASPELUND, Testified in support of full funding for EXECUTIVE DIRECTOR, Department of Fish and Game. She stressed DISTRICT FISHERMEN that the fishing industry would receive a UNITED, CORDOVA critical blow from the reductions and noted that federal funding would be lost. Testified in opposition to the elimination of the Division of Subsistence.  738 HELEN MANSUY, NAMI Testified in opposition to the reductions CORDOVA for mental health programs.   613 NICOLE SONGER, CFRC, Testified in opposition to the reductions CORDOVA for mental health programs.  528 BILL LINDOW, CORDOVA Testified in opposition to the elimination of the Division of Subsistence.    SEWARD  400 MONICA LUTHER, Testified in opposition to reductions for SEAVIEW COMMUNITY mental health programs. Testified in SERVICES, SEWARD oppositions to reductions in the developmental disability grants.  216 WILLARD DUNHAM, Testified in support of full funding for SEWARD the Department of Health and Social Services.    BETHEL    TAPE HFC 02 - 39,  SIDE A  007 MIKE SAMUELSON, Testified in opposition to the BETHEL elimination of the Division of Subsistence.  054 DARCY ANDERSON, Testified in opposition to reductions for BETHEL mental health programs. She stressed that a lack of services would result in increased state costs. Testified in opposition to the unallocated reductions.  319 ARTHUR LAKE, BETHEL Testified in support of additional funding for alcohol and substance abuse  programs. Testified in opposition to the unallocated reductions. Testified in opposition to reductions in village public safety officers.  957 MARY GREGORY, BETHEL Testified in opposition to the elimination of the Division of Subsistence.  1111 CINDY DAVIS-BRYANT, Testified in opposition to reductions for KENAI mental health programs.   RECESSED The Committee Recessed at 2:20 P.M.  1855 RECONVENED The Committee reconvened at 4:40 P.M.    PETERSBURG  1939 LARRY KING, Testified in support of additional PETERSBURG funding for alcohol and substance abuse programs. Mr. King also testified against reductions to the Division of Family and Youth Services.  2240 DEBORAH DOWNS, Testified in opposition to the PETERSBURG unallocated reduction for the Department of Health and Social Services. Testified against reductions to the Division of Family and Youth Services and Foster Care.  2449 KARIN MCCULLOUGH, Spoke in support for funding for Head PETERSBURG Start in order to receive the needed federal funding.  2554 PAUL ANDERSON, Voiced opposition against any cuts that MAYOR, PETERSBURG would hurt energy. Mayor Anderson voiced continued support for the Alaska Marine Highway Transportation System. He encouraged using the Permanent Fund earnings.  2750 SUSAN OHMER, Testified in opposition to the PETERSBURG unallocated reduction for the Department of Health and Social Services and the cuts to the Division of Family and Youth Services.  2949 DALE STONE, CHIEF OF Testified in support of full funding for POLICE, PETERSBURG Department of Health and Social Services and Department of Public Safety to address crime and violence before they become bigger than they already are.  3215 SHAWN RILEY, Testified in support of full funding for PETERSBURG the Alaska Marine Highway System.  3327 SUZANNE HEBERT, Testified in support of additional PETERSBURG funding for the Department of Education and Early Development and in particular funding for Head Start.  3549 CO-CHAIR MULDER Interjected that the Committee needs to adopt the committee substitute.  3615 Vice-Chair Bunde Moved to adopt work draft, 22-LS1295\P, Utermole, 3/11/01 and 22-LS1483\C,  Utermohle, 3/11/02. There being NO OBJECTION, it was adopted.    GLENALLEN  3640 JOSEPH HART, Testified in opposition to the GLENALLEN elimination of the Division of Subsistence.    SITKA  3757 GERRY HOPE, SITKA Testified in opposition to the elimination of the Division of Subsistence.  3948 DAN MORENO, SITKA Testified in opposition to the elimination of the Division of Subsistence. He added his opposition to any further cuts to the Alaska Marine Highway Transportation System. He pointed out that cuts will affect the impact to the federal shares.  4224 KEITH PERKINS, SITKA Voiced concern on how the local governments will be able to work with the cuts made statewide. He voiced support for a long-range fiscal plan.  4539 CANILLE FERGUSON, Addressed revenue building. She spoke to SITKA cuts to tourism and how that will affect revenues in Southeast Alaska.    TAPE HFC 02 - 39,  Side B  4627 Ms. Ferguson Continued testimony. Testified in support of additional funding for the Department of Education and Early Development.  4510 TONY ZIMMER, SITKA Testified in support of revenue sharing and safe communities. He added support for continued funding for community jails and at risk community housing. He did not agree with unfunded mandates. Mr. Zimmer addressed deferred maintenance concerns. Testified in support of additional funding for the Department of Education and Early Development and increase to match inflation.    PETERSBURG  4200 DAVE BERG, Spoke in support for greater funding and PETERSBURG further funding for the state ferry system.    WRANGELL  3917 ROBERT PLUNELLA, Voiced support for the Alaska Marine WRANGELL Highway Transportation System. He spoke in support for revenue sharing and save communities and HB 20. He stated that Wrangell was opposed to a statewide sales tax.  3613 DON MCCONACHIE, Addressed SB 343 and the Wrangell and  WRANGELL Petersburg Borough. He commented that he was concerned about that. He reiterated support for HB 20 and 100% funding for the Senior Tax exemption.  3412 Mr. Perkins Interjected his support for HB 20. He echoed his support for a long-range fiscal plan.    KETCHIKAN  3233 KEVIN MURPHY, Testified in support of additional KETCHIKAN funding for alcohol and substance abuse programs. He stated that the needs for service resources have been increased with the proposed budget.  3006 KAREN POLLEY, Voiced support for the State income tax, KETCHIKAN which would provide state revenue. She added support for capping the Permanent Fund to support the state government. Testified in support of full funding for the Department of Education and Early Development.  2746 RECESSED The Committee recessed at 5:30 PM   RECONVENED The Committee reconvened at 5:41 PM  2740  TOK  2700 MARY LOUISE YODER, Testified in oppositions to reductions in TOK the developmental disability grants.  2433  KETCHIKAN  2414 PATTI MACKEY, Testified in support of full funding for KETCHIKAN the Division of Parks. Spoke in support of capping the Permanent Fund.  2203 GEORGE TIPTON, Spoke in support of capping the Permanent KETCHIKAN Fund.  2040 BOB WEINNSTEIN, Spoke in support of continued funding for MAYOR, KETCHIKAN the Alaska Marine Highway System. Testified in opposition to the unallocated reduction for the Southeast Alaska Transportation Plan. He voiced support for revenue sharing. Testified in support of additional funding for the Department of Education and Early Development and the high school exam.  1555 JIM MARMON, Testified in support of full funding for KETCHIKAN the Division of Parks, user fees.  1350 RECESSED Committee recessed at 6:00 P.M.  1335 RECONVENED Committee reconvened at 7:10 P.M.    FAIRBANKS  1309 SUZANNE PRICE, Testified in opposition to reductions for FAIRBANKS mental health programs.  0812 DONALD RITTER, Testified in opposition to the FAIRBANKS unallocated reduction for the Department of Health and Social Services.  0558 JOANNE TREFETHEN, Testified in opposition to the FAIRBANKS unallocated reduction for the Department  of Health and Social Services, Developmental Disabilities  0350 TERRY SCHMIDT, Spoke in favor of the Governor's proposed FAIRBANKS budget for FY03. Stressed the need to look at revenue raising measures.  0111 DAWN SADLER, Testified in oppositions to reductions in FAIRBANKS the developmental disability grants.   Non-functioning Tape  TAPE HFC 02 - 40,  SIDE A  0124 LINDA TREMBACK, Testified in oppositions to reductions in FAIRBANKS the developmental disability grants.    TAPE HFC 02 - 41,  SIDE A  0250 VANESSA SPENCER. Spoke in favor of continued funding for FAIRBANKS the University of Alaska.  0519 DOUG POMEROY, Testified in opposition to reductions for FAIRBANKS mental health programs.  0830 ANDY HARRINGTON, Testified in opposition to the FAIRBANKS unallocated reduction for the entire state budget. Stressed the need to look at revenue raising measures.  1010 MARTA MUELLER, Spoke in favor of continued funding for FAIRBANKS the University of Alaska Agriculture Program  1215 DAVID LEONE, Testified in support of additional FAIRBANKS funding for the Department of Education and Early Development and sufficient Public Safety.  1444 JAN DAWE, FAIRBANKS Testified in opposition to the unallocated reduction for the to Department of Natural Resources, Timber Sales Program.  1815 DONNA GALBREATH, Testified in opposition to the FAIRBANKS unallocated reductions. Noted that to kill the disease you don't cut back on the antibiotics.  2050 STAN BLOOM, Testified in opposition to the FAIRBANKS elimination of the Division of Subsistence. Testified in support of full funding for Department of Fish and Game. Testified in opposition to reductions in the Division of Parks, which would result in park closures.  2318 ROGER HANSEN, Testified in oppositions to reductions in FAIRBANKS the developmental disability grants.  2453 SHANNON UZZELL, Spoke in favor of continued funding for FAIRBANKS the Denali Kid Care Program and the University of Alaska.  2555 HANS GUNDERSON, Testified in support of full funding for FAIRBANKS the University of Alaska.  2709 MARY WESTCOTT, Testified in support of full funding for FAIRBANKS the Department of Environmental  Conservation.  2809 DON BILLINGS, Testified in opposition to reductions for FAIRBANKS mental health programs.  3105 STANLEY NED, Testified in opposition to the FAIRBANKS elimination of the Division of Subsistence. Testified in support of additional funding for fish and wildlife protection in the Department of Fish and Game.  3339 ANDREA EARNEST, Testified in support of full funding for FAIRBANKS the Department of Environmental Conservation, Fairbanks Laboratory.  3502 SUE COLE, FAIRBANKS Testified in support of additional funding for the Community School Program.  3607 ANN SWIFT, FAIRANKS Testified in opposition to the budget reductions. Testified in support funding for Alaska State Troopers. Stressed the need to look at revenue raising measures.  3836 EARL BEISTLINE, Testified in support of additional FAIRBANKS funding for the Alaska Mineral Research funding.  4145 RAYMAN STITH, Testified in opposition to reductions for FAIRBANKS mental health programs for children.  4228 ANNETTE FREIBURGER, Testified in opposition to the budget FAIRBANKS reductions. Testified in support of full funding for Family Support grants.  4430 RAYNA HAMM, Testified in opposition to the budget FAIRBANKS reductions. Testified against reductions to the Division of Family and Youth Services. Testified in support funding for Alaska State Troopers. Testified in support of additional funding for alcohol and substance abuse programs. Testified in opposition to reductions for mental health programs. Maintained rural areas suffer most. Spoke in support of capping the Permanent Fund. Stressed the need to look at revenue raising measures. Testified in support of full funding for the Division of Parks.  4705 SUSAN HANSEN, Testified in oppositions to reductions in FAIRBANKS the developmental disability grants and services.  4837 PATTY MERITT, Testified in support of additional FAIRBANKS funding for the Department of Education and Early Development.    TAPE HFC 02 - 41,  SIDE B  4901 PATTY MERITT, Continued to testified in support of full FAIRBANKS funding for the Denali Kid Care Program and expressed support for funding for the University of Alaska.  4901 TABOR REHBAUM, Testified in opposition to the budget FAIRBANKS reductions. Testified in opposition to the unallocated reductions Department of Health and Social Services. Stressed the need to look at revenue raising measures. Spoke in support of capping the Permanent Fund.   4519 GABE SAM, FAIRBANKS Testified in opposition to the elimination of the Division of Subsistence.  4351 COLLEEN REDMAN, Testified in support of full funding for FAIRBANKS the Head Start and the Smart Start programs.  4029 CARL BENSON, Stressed the need to look at revenue FAIRBANKS raising measures. Testified in opposition to further budget reductions.  3818 AMANDA RACE, Testified in oppositions to reductions in FAIRBANKS the developmental disability grants. Testified in opposition to reductions for mental health programs.  3527 TODD LARKIN, He maintained that state support for FAIRBANKS programs creates a dependency on state funding. He spoke in support of reducing the role of government. He expressed support for further budget reductions.   The meeting was adjourned at 8:33 P.M.  ADJOURNMENT