HOUSE FINANCE COMMITTEE March 04, 2004 6:01 PM TAPE HFC 04 - 45, Side A TAPE HFC 04 - 45, Side B TAPE HFC 04 - 46, Side A CALL TO ORDER Co-Chair Harris called the House Finance Committee meeting to order at 6:01 PM. MEMBERS PRESENT Representative John Harris, Co-Chair Representative Bill Williams, Co-Chair Representative Kevin Meyer, Vice-Chair Representative Mike Chenault Representative Eric Croft Representative Hugh Fate Representative Richard Foster Representative Mike Hawker Representative Reggie Joule Representative Carl Moses Representative Bill Stoltze MEMBERS ABSENT None ALSO PRESENT Representative David Guttenberg. PRESENT VIA TELECONFERENCE Carter Crawford, Arctic Alliance, Fairbanks; Cameron Leonard, Alaska Legal Services, Fairbanks; Brenda Stenfill, Interior Alaska Center for Non-violent Living, Fairbanks; Antonia Graffia, Fairbanks; Jeanette Grasto, Alaska Mental Health Board/ National Alliance for the Mentally Ill, Fairbanks; Joy Price, National Alliance for the Mentally Ill, Fairbanks; Greg Petrowich, KUAC, University of Alaska Fairbanks; Diane Darnall, Fair Air, Fairbanks; Marta Mueller, Fairbanks; H.B. Telling, Fairbanks; Jackie Bisbee, North Pole; Becky Snow, Fairbanks; Else Guttenberg, Fairbanks Native Association, Fairbanks; Luck Hopkins, Fairbanks; Gordon DePue, Fairbanks; Taber Rehbaum, Fairbanks; Ian Michael Herbert, Fairbanks; Elizabeth Olson, Fairbanks; v Karen Parr, Fairbanks; Ruthamae Karr, Fairbanks; Mary Calmes, Fairbanks; Tim Quintal, Fairbanks; Art Hansen, Fairbanks; Gerald Brown, Fairbanks; Jennifer House, Finance Director, Fairbanks Memorial Hospital, Fairbanks; Julie Maier, Fairbanks; Nancy Baker, Fairbanks; Thomas Walker, Fairbanks; Marilyn Russell, Fairbanks; Philip Martin, Fairbanks; Sandra Trumboer, MADD; Lizanne Hanson, Fairbanks; Mike Prax, North Pole; Carrie Dershin; Scott Palder, Fairbanks. hb375 GENERAL SUBJECT(S): HB 375-APPROP: OPERATING BUDGET/LOANS/FUNDS   HB 377-APPROP:MENTAL HEALTH BUDGET Public Testimony - Fairbanks  The following overview was taken in log note format. Tapes and handouts will be on file with the House Finance Committee through the 23rd Legislative Session, contact 465- 2156. After the 23rd Legislative Session they will be available through the Legislative Library at 465-3808. LOG SPEAKER DISCUSSION    TAPE HFC 04 - 45  SIDE A  000 Co-Chair Harris Convened the House Finance Committee meeting to take statewide testimony on the operating budget from Fairbanks.  129 CARTER CRAWFORD, Testified in support of funding for the ARCTIC ALLIANCE, community-matching block grants program. FAIRBANKS  508 Representative Observed that community grants were Hawker zeroed in the Governor's FY04 budget and restored by the House to $1 million. The grants remain at $1 million in the FY05 budget.  650 CAMERON LEONARD, Expressed concern with reductions to ALASKA LEGAL Alaska Legal Services, which was zeroed SERVICES, FAIRBANKS out in the current budget. This is the only legal service for low-income families.  856 BRENDA STENFILL, Testified in support of funding for the INTERIOR ALASKA domestic violence and sexual assault CENTER FOR NON-shelters. VIOLENT LIVING,  FAIRBANKS 1037 ANTONIA GRAFFIA, Testified in support of funding for the FAIRBANKS domestic violence and sexual assault shelters.  1312 JEANETTE GRASTO, Testified in support of funding for ALASKA MENTAL HEALTH community mental health programs. Voiced BOARD/ NATIONAL opposition to further cuts to the mental ALLIANCE FOR THE health budget. Voiced opposition to the MENTALLY ILL, cuts in Medicaid Services.  FAIRBANKS   1557 JOY PRICE, NATIONAL Testified in support of funding for ALLIANCE FOR THE community mental health programs. MENTALLY ILL, Expressed concern with reductions to FAIRBANKS Alaska Legal Services, which was zeroed out in the current budget.  1809 GREG PETROWICH, Voiced support for continuation of KUAC, UNIVERSITY OF funding for the public broadcasting ALASKA FAIRBANKS satellite infrastructure.  2011 Representative Fate Would loss of the transponder affects medical services and village health aids.  2126 Mr. Petrowich Could not respond, but observed that there are community health programs offered by the service.  2153 Representative Questioned why the University did not pay Hawker for the service.  2313 Mr. Petrowich Pays a portion of the cost, and brings in money through course work, but there are multiple use of four channels. He estimated that the users would not have sufficient funds to pay for the service.  2414 Mr. Petrowich In response to a question by Representative Hawker, observed that the state leases space from a private provider. Public broadcasting provides services for free, not everyone in the state can afford the cost of cable.  2507 Representative Fate Clarified that federal funds are used for the tele-medical services.  2615 DIANN DARNALL, FAIR Voiced support for funding for tobacco AIR, FAIRBANKS prevention and cessation programs.  2759 Representative Questioned if the tax on tobacco should Hawker be increased.  2822 Ms. Darnall Stressed that the prevention of youth smoking would be enhanced by a tax increase.  2914 Representative Observed that the $1 million Hawker appropriation in the FY05 budget is at the full 20 percent funding level.  3023 MARTA MUELLER, Voiced support for the University of FAIRBANKS Alaska. Noted support for additional revenue measures.  3210 Vice-Chair Meyer Questioned if she supports the Percent of Market Value.  3321 Ms. Mueller Expressed support for the POMV plan.  3401 H.B. TELLING, Spoke in support of additional funding FAIRBANKS for education.  3446 JACKIE BISBEE, NORTH Testified in support of funding for POLE Department of Labor and Workforce Development, vocational rehabilitation  programs.  3603 BECKY SNOW, Voiced opposition to the cuts in Medicaid FAIRBANKS Services. Spoke in support of additional funding for education. Noted support for additional revenue measures. Expressed support for the POMV plan. Expressed support for implementation of a statewide income tax. Testified in support of full funding for public broadcasting.  3902 ELSE GUTTENBERG, Testified in support of the Alcohol FAIRBANKS NATIVE Safety Action Program, Department of ASSOCIATION, Health and Social Services (ASAP).  FAIRBANKS 4230 Representative Noted that the Department of Health and Hawker Social Services has proposed a cut off of the program for the youth ASAP program. He observed that the Subcommittee has restored a full six-month funding for the adult ASAP program.  4518 LUCK HOPKINS, Spoke in support of the Governor's FAIRBANKS increments for the University.  TAPE HFC 04 - 45, Side B  4544 GORDON DEPUE, Noted support for an examination of PERS, FAIRBANKS which he feels is an unfunded liability. The average contribution is 16.5 percent, which is higher than the 11 percent average for the private sector.  3932 TABER REHBAUM, Testified in support of funding for the FAIRBANKS community-matching block grants program. Expressed concern with reductions to Alaska Legal Services.  3640 IAN MICHAEL HERBERT, Spoke in support of additional funding FAIRBANKS for education and the University. Expressed support for implementation of a statewide income tax and encouraged a tax to the oil companies.  3124 ELIZABETH OLSON, Spoke in support of additional funding FAIRBANKS for education. Expressed support for implementation of a statewide income tax.  3018 Representative Asked what cuts were made to education.  Chenault 2940 Vice-Chair Meyer Increased K-12 by $8 million dollars. The Governor's budget funded the formula at full cost but enrollment is down so that amount has been cut. He guaranteed that the House Finance Committee would continue to look at greater funding for education.  2834 KAREN PARR, Spoke in support of additional funding FAIRBANKS for education. She pointed out that if there continues to be teacher reduction, there will be a dismantling of important  programs. Teachers will be leaving the State. It would take years to rebuild programs.  2438 Representative Asked about the shortage of teachers in Chenault the Fairbanks area. He asked if Fairbanks funds to the cap. Ms. Parr thought it was funded close to the cap. Inflation has eaten up the buying power. Representative Chenault agreed that the State has not kept pace with the education needs.  2047 RUTHAMAE KARR, Voiced support for funding for tobacco FAIRBANKS prevention and cessation programs. Expressed support for implementation of a statewide income tax.  1615 MARY CALMES, Commented on ways to raise money to fund FAIRBANKS programs. Expressed support for implementation of a statewide income tax.  1454 TIM QUINTAL, Expressed support for implementation of a FAIRBANKS statewide income tax and noted support for additional revenue measures so that support services and education can be fully funded. He added concerns with the PERS and TRS drain on the system.  1257 Representative Asked if there should be a moratorium on Stoltze retirement incentive programs.  1229 Representative Fate Asked about consideration given to income tax.  1158 Mr. Quintal A graduated tax would be painless.  1140 ART HANSEN, Testified in support of funding for FAIRBANKS community mental health programs. He added that there needs to be alternatives to the court system option. Keep the patients out of jail. Spoke in support of additional funding for education.  942 Representative Fate Commented on jail & substance abuse concerns currently existing in the State prisons. He asked about the difference between alcohol and drug abuse.  843 Mr. Hansen Did not know, however, other works in the Mental Health field testify that alcohol and abuse go together. Domestic abuse & child abuse go together.  754 Representative Fate Voiced appreciation for all those coming out to testify for education from Fairbanks.  715 GERALD BROWN, Commented on the role of government to FAIRBANKS the people in the State. Spoke in support of additional funding for education. Testified in support of funding for community mental health programs. Mr. Brown commented on how to  fund these projects should come from income and expressed support for implementation of a statewide income tax and a statewide income tax. Permanent Fund should be used as a revolving loan fund. An endowment fund. Expressed support for the community matching grant program in the Department of Health and Social Services.  TAPE HFC 04 - 46, Side A  013 JENNIFER HOUSE, Voiced opposition to the cuts in Medicaid FINANCE DIRECTOR, Services.  FAIRBANKS MEMORIAL HOSPITAL, FAIRBANKS 344 JULIE MAIER, Spoke in support of additional funding FAIRBANKS for education. Expressed support for implementation of a statewide income tax.  704 NANCY BAKER, Expressed support for implementation of a FAIRBANKS statewide income tax. Tax is not a penalty, but a privilege. Expressed support for the POMV plan if there is also an income tax.  1208 Representative Fate Questioned if Ms. Baker supports a spending limit.  1234 Ms. Baker Did not have an opinion on a spending limit. She observed that the lowest income individuals are suffering the worst effects of the reductions.  1342 Vice-Chair Meyer Observed that an income tax would cost $8 million a year to implement. The Percent of Market Value would not have a cost to implement.  1451 Ms. Baker Spoke against implementation of a income tax.  1552 THOMAS WALKER, Spoke in support of the Governor's FAIRBANKS increments for the University.  1726 MARILYN RUSSELL, Spoke in support of additional funding FAIRBANKS for education. Expressed support for implementation of a statewide income tax and increased taxes on the oil industry.  2410 PHILIP MARTIN, Spoke in support of additional funding FAIRBANKS for education. Noted support for additional revenue measures.  2654 LIZANNE HANSON, Spoke in support of additional funding FAIRBANKS for education.  3011 MIKE PRAX, NORTH Spoke in support of reductions to the POLE budget. He emphasized the people need to take responsibility for themselves.  3338 SANDRA TRUMBOER, Support of funding for women's shelters MADD and alcohol and action programs.  3549 CARRIE DERSHIN Support for the community matching block grants.  3942 Representative Recognized the wiliness of testifiers to Foster pay for services. He observed the reduction of revenue to the state. The state's income has been reduced by approximately half of its funding since the 1980's. He observed the need for multiple revenue measures.  4139 SCOTT PALDER, Testified in support of a citizen review FAIRBANKS of cases of children taken from their homes by Division of Family and Youth Services.   ADJOURNMENT The meeting was adjourned at 8:25 PM