HOUSE FINANCE COMMITTEE March 17, 2006 1:34 P.M. CALL TO ORDER Co-Chair Chenault called the House Finance Committee meeting to order at 1:34:52 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Richard Foster Representative Mike Hawker Representative Reggie Joule Representative Mike Kelly Representative Beth Kerttula Representative Carl Moses Representative Bill Stoltze, Vice-Chair MEMBERS ABSENT Representative Jim Holm Representative Bruce Weyhrauch ALSO PRESENT JUNEAU  Erin Willis; Virginia Palmer, Caregiver; Peggy Brown, Executive Director, Alaska Network on Domestic Violence & Sexual Assault; Max Mielke, United Association of Pipe fitters; Tim Burch, Student, University of Alaska; Lindsey Forest for Sophie Stradley, Students, University of Alaska- Southeast (UAS); Bob Doll, City Council & Better Ferries for Alaska; Kean D. Nuttall, Big Brothers, Big Sisters; Denali Wentz, Big Brothers, Big Sisters; Nancy Davis, Registered Nurse (RN) & Public Health (PH) Professional; Angela Solerno, Mental Health Advisory Board on Alcohol; Marianne Mills, Alaska Geriatric Exchange Network (AGENET); Joanne Schmidt, Alaskan Commission on Aging; Emily Ferry, Alaska Transportation Priorities Project; Mary Hakala, Alaska Kids Count Network; Laurie Heagy, Glacier Valley Teacher; Bart Watson; Barbe McClung, Self; Andrea Doll, Self; Harriet Milks, Juneau Community Charter School (JCCS); Jerry Cune, United Fisherman of Alaska (UFA); Carl Rose, Executive Director, Alaska Association of School Boards (AASB); Candy Wierzelewski, Big Brothers, Big Sisters; Frankie Pillifant; Ben Goldrich, Marine Engineers Association; Larissa Roop, Adult Education; Carin Smolin, Adult Education Association; Mike Pavell, Adult Education; Cachet Garrett, Student, University of Alaska Southeast; Darrelleno Violet Kartson, Big Brothers, Big Sisters; Barbara Thurston, Juneau Community Charter School; Kevin Gadsey, SAIL; Pamela Mueller-Guy, SAIL; Christopher Cox, University of Alaska Student; Martha Penrose, Board Member, Pioneer Homes of Alaska; James Waste, Executive Director, Alaska Public Broadcasting; Sioux Douglas, Alaska Public Broadcasting; Darryl Tseu, Inlanboatmen's Union; Linda Frame, Arts for Kids; Walter Majoros, Executive Director, Juneau Youth Services; Suzanne Cohen, Community Charter Schools; Andi Story, Juneau School Board; Rosemary Hagevig, Executive Director, Catholic Community Services; William Judy, Community Charter Schools; Brenda Taylor; Mark Johnson, Emergency Medical Services (EMS); Lori Hoover, Alaska Statewide Mentor Program PRESENT VIA TELECONFERENCE  FAIRBANKS  Representative David Guttenberg; Tom Haskins; Bob Johnston, Adult Learning Programs of Alaska; Richard Kacsur, ACCESS Alaska; Jean Williams, ACCESS Alaska; David Jacobson; Bobby Fithian, Alaska Professional Hunter; Bryon Haley, Chitina Dip netters; Michael Ingham, Alaska Army National Guard; Charlie Green, Hospice, Tanana Valley; Taber Rehbaun, Arctic Alliance for People; Big Brothers, Big Sister; Jeanette Graso, NAMI Alaska; Joe Letarte; Torie Foote; Suzanne Price, Director, Fairbanks Community Behavioral Health Center; Nancy Kelly, Pioneer Home; Joe Hayes, University of Alaska- Fairbanks (UAF); Lori Markkanen, Fairbanks Resource Agency; Dan LaBrosse, ACCESS Alaska; Dan Johnson, Interior Region EMS; Drenda Tigner, Presbyterian Hospitality House; Cheryl Keepers, North Star Borough; Carrie Dershin, HSS Commission Joseph Blanchard, President, Student Government, UAF; Colleen Shin, Alaska Center for Children and Adults (ACCA) Joan Johnson; Murray Richmond; Lou Gross, North Star Council on Aging; Jackie Debevec, Arctic Alliance for People; Terry Strle, United Way; Elrita Magoffin; Luke Hopkins, North Star Borough Assembly; Tim Sharp, Business Manager, Laborers Local 942; Ron Sommerville, Vice Chair, Board of Game; Dick, Burley, Board of Game; Cliff Judkins, Board of Game; Ben Grussendorf, Board of Game; Ted Spraker, Board of Game 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 24th Legislative Session, contact 465- 6814. After the 24th Legislative Session they will be available through the Legislative Library at 465-3808. Statewide Testimony: JUNEAU & FAIRBANKS  HB 365-APPROP: OPERATING BUDGET/LOANS/FUNDS  HB 366-APPROP: MENTAL HEALTH BUDGET  TIME SPEAKER DISCUSSION  1:34:52 PM Co-Chair Co-Chair Chenault called the House Chenault Finance Committee meeting to order to take testimony on HB 365 & HB 366.  JUNEAU  1:36:09 PM ERIN WILLIS Spoke in support of funding for K-12 education programs. She stated that she was the vice president of the Parent Teacher Association (PTA) at her school and expressed concern for adequate funding to provide good teacher/student ratios.  1:38:28 PM VIRGINIA Advocated for flexible long-term care PALMER, programs. She relayed difficult CAREGIVER circumstances in her life related to Alzheimer's disease, and the support provided by caregiver programs.   1:41:17 PM PEGGY BROWN, Testified in support of funding for EXECUTIVE programs serving victims of domestic DIRECTOR, violence and sexual assault. She ALASKA NETWORK emphasized the amount of need for these ON DOMESTIC services in the state and urged VIOLENCE & funding. She noted that additional SEXUAL ASSAULT funding would help to meet these needs.  1:43:50 PM MAX MIELKE, Testified in opposition to the wage UNITED setting practices. He noted the amount ASSOCIATION OF of public projects, as compared to the PIPEFITTERS personnel available and urged adequate wages and hiring practices.  1:46:08 PM TIM BURCH, Spoke in support of the Governor's STUDENT, increments for the University. He UNIVERSITY OF commended the legislature for its ALASKA consistent support of the University.  1:48:42 PM LINDSEY FOREST Emphasized the importance of the FOR SOPHIE University and urged support. She STRADLEY, stated that all campuses need the STUDENTS, funding in order to provide excellent UNIVERSITY OF education.  ALASKA- SOUTHEAST (UAS) 1:49:30 PM BOB DOLL, CITY Testified in support of funding for the COUNCIL & Alaska Marine Highway System (AMHS). BETTER FERRIES He spoke to the significance of the FOR ALASKA service to Alaskans and its potential earnings of $15 million for the State. He noted that more remote communities would suffer from any reduction in  funds and proposed recapitalization of the program.  1:52:55 PM KEAN D. Advocated in support of the Governor's NUTTALL, BIG proposed Youth Success Initiative. He BROTHERS, BIG introduced his little brother and SISTERS discussed the benefits of the Big Brothers/Big Sisters program, which serves 1700 youth statewide. He also emphasized the importance of the University and urged support.   1:55:12 PM DENALI WENTZ, Advocated support for the Governor's BIG BROTHERS, proposed Youth Success Initiative. He BIG SISTERS spoke about the ways in which the Big Brothers/Big Sisters programs supported him and other youth throughout the State.   1:55:53 PM NANCY DAVIS, Testified in support of funding for the REGISTERED nurses salary increase, as well as NURSE (RN) & including nurses in the Department of PUBLIC HEALTH Corrections budget. She stated that (PH) adequate funding was necessary to PROFESSIONAL recruit the number of nurses needed to meet the needs in the State. She also advocated for increased funding for specific segments of the public health system.  1:59:01 PM ANGELA Testified in support of the Bring the SOLERNO, Kids Home Initiative. She explained MENTAL HEALTH the benefit of the program in providing ADVISORY BOARD home care for youth with emotional ON ALCOHOL conditions. She asked that the entire $2.5 million for community behavioral health funding be fully met.  2:02:01 PM MARIANNE Advocated for flexible long-term care MILLS, ALASKA programs. She emphasized the benefits GERIATRIC of the program for vulnerable, elderly EXCHANGE Alaskans in need of home care. She gave NETWORK figures of how many elderly Alaskans (AGENET) required home care and stated that program prevents costs for more expensive long-term care.   2:04:56 PM JOANNE Advocated for flexible long-term care SCHMIDT, programs and expressed its importance ALASKAN to Alaskans with Alzheimer's disease COMMISSION ON and/or dementia. She noted that the AGING program offsets the cost of more expensive long-term care.   2:06:30 PM EMILY FERRY, Testified in support of full funding ALASKA for the Alaska ferry system. She  TRANSPORTATION emphasized that the cost reflected in PRIORITIES the budget would be repaid by fifty PROJECT percent by revenue generated through the program. She proposed that increased funding would increase revenue, and proposed that the funding from the Juneau road extension be used for the ferry system. She noted a study that demonstrated that a road out of Juneau would actually increase the operating costs for the ferry system.  2:09:45 PM MARY HAKALA, Spoke in support of funding for K-12 ALASKA KIDS education programs. She requested an COUNT NETWORK increase in funding, since the proposed foundation funding would actually result in cuts to school districts. She advocated specifically for Juneau schools.  2:13:00 PM LAURIE HEAGY, Spoke in support of funding for K-12 GLACIER VALLEY education programs. She spoke about TEACHER specific school programs supported by grants and private funding, noting the importance of art education for young children.  2:16:20 PM BART WATSON Testified in support of full funding for the Alaska Marine Highway system. He expressed concern over recent service management declines and emphasized the importance to Southeast Alaskans. He pointed to the services in Norway as a good example of better management.  2:20:10 PM BARBE MCCLUNG, Advocated for flexible long-term care SELF programs. She expressed the importance of the program in providing support that helped her family deal with a long-term illness for an elder. She emphasized the cost savings of those services   2:23:54 PM ANDREA DOLL, Testified in support of funding for Big SELF Brothers/Big Sisters through the Youth Success Initiative. She expressed the importance of the program to communities and individuals.  2:26:01 PM HARRIET MILKS, Testified in support of funding for JUNEAU CHARTER charter schools. She stated her SCHOOL (JCS) appreciation for past funding for her school and emphasized that charter schools are important to the educational community.  2:28:02 PM JERRY CUNE, Testified in support of full funding UNITED for the Department of Fish and Game  FISHERMAN OF budget. He also proposed restored ALASKA (UFA) funding for the Commissioner's office in anticipation of federal initiatives. He noted that if salary adjustments were not funded, funding would be taken from programs.  2:30:43 PM CARL ROSE, Spoke in support of full funding for K- EXECUTIVE 12 education programs. He noted that DIRECTOR, although, they support the $90 million ALASKA increase, they also wish to address the ASSOCIATION OF cost differential that exists. He SCHOOL BOARDS added concern regarding adequate (AASB) funding for the Governor's proposed Youth Success Initiative. He emphasized the importance of that program for prevention of youth problems.  2:34:48 PM CANDY Advocated support for the Governor's WIERZELEWSKI, proposed Youth Success Initiative. She BIG BROTHERS, noted that the program would like to BIG SISTERS continue building on its 30-year history. She relayed her personal experience in the success of that program.  2:37:34 PM FRANKIE Spoke in support of funding for K-12 PILLIFANT education programs. She emphasized the need for improvements in classrooms possible through adequate funding. She also expressed support of funding for the Marine Highway System.  2:40:12 PM BEN GOLDRICH, Testified in favor of continued funding MARINE for the Alaska Marine Highway System. ENGINEERS Public transportation must be fully ASSOCIATION funded. He added that the challenge faced is to provide essential public transportation in a cost effective manner. He requested that experiments be stopped and that the State should not spend money on new roads that end at dead ends. He pointed out the mess of the road proposal out of Juneau and stated that the Lynn Canal road is politically motivated.  2:45:29 PM LARISSA ROOP, Requested the $1 million dollar funding ADULT allocation for the Adult Education EDUCATION Center. She spoke to the General Education Diploma (GED) funding and benefits that she received from being a high school drop out.  2:47:13 PM CARIN SMOLIN, Encouraged the $1 million dollar ADULT increase for the Adult Education EDUCATION program. GED graduates account for 20% ASSOCIAITON of the Alaska High School graduates. Adult basic education students retain  their jobs. Those students go on to further education. Funding prepares Alaskans for employment in the State.  2:49:22 PM MIKE PAVELL, Encouraged funding for the $1 million ADULT dollar increase for Adult Education EDUCATION Program.  2:51:08 PM CACHET Emphasized the importance of the GARRETT, University and urged support.  STUDENT, UNIVERSITY OF ALASKA SOUTHEAST 2:54:54 PM DARRELLENO Advocated in support of the Governor's VIOLET proposed Youth Success Initiative. She KARTSON, BIG expressed the personal support she BROTHERS, BIG received through the program. SISTERS  2:56:51 PM BARBARA Spoke in support of funding for K-12 THURSTON, education programs. She noted that the JUNEAU proposed funding would result in cuts COMMUNITY in schools and urged increased funding. CHARTER SCHOOL She also requested that the Committee add a small charter school grant to the budget, and suggested that the current funding formula did not function properly.  3:00:55 PM KEVIN GADSEY, Testified in support of funding for the SAIL Youth in Transition and the Interpreter program. He expressed his belief in the success of the program and requested that the State provide funding to supplant cuts in the federal budget.  3:04:37 PM PAMELA Testified in support of Home and MUELLER-GUY, Community based waiver services for SAIL persons with disabilities. As a deaf person, she expressed the benefit of Interpreter Referral services and encouraged passage of the $200 thousand increment included in the budget.  3:08:32 PM CHRISTOPHER Spoke in support of the Governor's COX, increments for the University. He noted UNIVERSITY OF his positive educational experience at ALASK STUDENT UAS and urged full funding.  3:10:41 PM MARTHA Testified in support of full funding PENROSE, BOARD for the Pioneer Homes of Alaska. She MEMBER, noted her experience on the advisory PIONEER HOMES board for the organization and spoke of OF ALASKA the excellent care provided to seniors through the homes. She emphasized the need for adequate funding to continue that care.  3:14:39 PM JAMES WASTE, Encouraged support for public  EXECUTIVE broadcasting. He noted that local DIRECTOR, involvement was critical to the public ALASKA PUBLIC broadcasting services in Alaska, BROADCASTING particularly in rural areas.  3:18:07 PM SIOUX DOUGLAS, Testified in support of full funding ALASKA PUBLIC for Public Broadcasting. She noted her BROADCASTING past experience in child development work and the importance of public communications services. She emphasized the importance of services in rural areas.  3:20:24 PM DARRYL TSEU, Testified in support of funding for INLANBOATMEN'S charter schools, requesting a special UNION appropriation. He also testified in support of full funding for the Alaska Marine Highway System.  3:22:57 PM LINDA FRAME, Spoke in support of funding for K-12 ARTS FOR KIDS education programs. She recounted her experience in implementing the new art curriculum in for K-5. She expressed the importance of creativity within the school system and emphasized the difficulties of cutting art programs due to cost differentials.  3:27:41 PM WALTER Testified in support of funding for MAJOROS, behavioral health services, including EXECUTIVE the Bring the Kids Home initiative. He DIRECTOR, emphasized the importance to add full JUNEAU YOUTH funding to the initiative. He also SERVICES urged funding for programs supporting treatment of Fetal Alcohol Syndrome (FAS).  3:30:51 PM SUZANNE COHEN, Testified in support of funding grants COMMUNITY to charter schools and expressed her CHARTER appreciation for past funding. She SCHOOLS also spoke in support of funding for K- 12 education programs.  3:32:19 PM ANDI STORY, Testified for increased funding above JUNEAU SCHOOL the $90 million for public education. BOARD She noted the impact on adequate public education on the Alaskan workforce and expressed her experience as a member of her local school board. She stated that the current funding would lead to $2 million dollars in cuts for her district, creating even a larger student/teacher ratio.  3:35:20 PM ROSEMARY Testified in support of funding for the HAGEVIG, Phoenix Program, providing early EXECUTIVE intervention for at risk families. She DIRECTOR, noted support-reinstating funding for CATHOLIC the Healthy Marriage programs.  COMMUNITY SERVICES  3:38:47 PM WILLIAM JUDY, Testified in support of a supplemental COMMUNITY appropriation for small charter school CHARTER grants. He noted the high level of SCHOOLS parent involvement and fund raising in those schools.  3:41:20 PM BRENDA TAYLOR Spoke in support of funding for K-12 education programs. She expressed her concern that the $5 million had been cut from the mentoring project, a project started with federal funds. She noted that teachers often spent their own funds in order to purchase supplies, making prospects for new teachers more difficult.  3:46:59 PM MARK JOHNSON, Testified in support of increases in EMERGENCY funding for public health services, as MEDICAL well as for emergency health services. SERVICES (EMS) He noted that the majority of EMS workers were currently volunteers.  3:48:39 PM LORI HOOVER, Testified in support of restoring ALASKA funding for the Mentoring Program. She STATEWIDE emphasized that the program provided MENTOR PROGRAM support statewide to nurture quality teachers and would help retain new teachers.  FAIRBANKS  4:07:06 PM Co-Chair Pointed out that testimony would be Chenault taken from Fairbanks.  4:07:28 PM TOM HASKINS Testified in support of increased funding for the Pioneer Home in Fairbanks with a larger facility.  4:09:30 PM BOB JOHNSTON, Spoke in favor of funding GED programs.  ADULT LEARNING PROGRAMS OF ALASKA 4:10:37 PM RICHARD Testified in favor of funding for KACSUR, ACCESS ACCESS Alaska.  ALASKA 4:11:01 PM JEAN WILLIAMS, Testified in support of ACCESS Alaska.  ACCESS ALASKA 4:11:49 PM DAVID JACOBSON Spoke in support of Representative Weyhrauch's amendment, which would add more funds into interpretive services.  4:13:40 PM BOBBY FITHIAN, Encouraged support for wildlife ALASKA conservation. (Faxed comments.)  PROFESSIONAL HUNTER 4:15:49 PM BRYON HALEY, Testified in support of full funding CHITINA for the Department of Fish and Game.  DIPNETTERS 4:16:29 PM MICHAEL Urged support for full funding for  INGHAM, ALASKA Adult Basic Education program and the ARMY NATIONAL number of recruits that come from that GUARD program.  4:17:09 PM CHARLIE GREEN, Testified in support of restoring funds HOSPICE, for Human Services Community Matching TANANA VALLEY Grant Program to the amount recommended in the Governor's budget.  TABER REHBAUN, Urged restoration of funds for ARCTIC Community Matching Block Grant and ALLIANCE FOR continued support for the Youth Success PEOPLE; BIG Initiative.  BROTHERS, BIG SISTER 4:24:17 PM JEANETTE Testified in support of fully funding GRASO, NAMI the Governor's proposal for Bring the ALASKA Kids Home program.  4:25:39 PM JOE LETARTE Testified in support of funding for state park and recreation areas.  4:27:55 PM TORIE FOOTE Spoke in support of full funding for the University and community matching grant program.  4:29:16 PM SUZANNE PRICE, Testified in support of funding for DIRECTOR, children's services in the Bring Kids FAIRBANKS Home budget.  COMMUNITY BEHAVIORAL HEALTH CENTER 4:30:41 PM NANCY KELLY, Spoke in support of funding more staff PIONEER HOME for all the Pioneer Homes in Alaska.  4:31:46 PM JOE HAYES, Testified in support of maintaining UNIVERSITY OF funding for the University of Alaska ALASKA-system.  FAIRBANKS (UAF) 4:33:03 PM LORI Testified in support of Home and MARKKANEN, Community based waiver services for FAIRBANKS persons with disabilities. She also RESOURCE testified in support of expanding AGENCY Medicaid support.   4:35:06 PM DAN LABROSSE, Spoke in support of funding sign ACCESS ALASKA language services.  4:36:35 PM DAN JOHNSON, Testified in support of funding for EMS INTERIOR services. He noted that funding in the REGION EMS past has been flat.  4:38:17 PM DRENDA TIGNER, Spoke in favor of funding Youth At Risk PRESBYTERIAN Initiative.  HOSPITALITY HOUSE 4:40:53 PM CHERYL Spoke to the shortfalls in their KEEPERS, NORTH operating budget. Ms. Keepers testified STAR BOROUGH in support of meeting essential human  service needs.  4:43:28 PM CARRIE Spoke in favor of equal access to DERSHIN, HSS health care as provided in the human COMMISSION services grant.  4:46:39 PM JOSEPH Testified in support of funding for BLANCHARD, University of Alaska - Fairbanks.  PRESIDENT, STUDENT GOVERNMENT, UAF 4:47:53 PM COLLEEN SHIN, Spoke in favor of full funding the ALASKA CENTER Governor's increment for FASD programs FOR CHILDREN and for the Community Services matching AND ADULTS block grants. (ACCA)  4:52:40 PM JOAN JOHNSON Testified in support for Community Services matching block grants.  4:52:58 PM MURRAY Testified in support of continued RICHMOND funding for PBS and NPR.  4:54:25 PM LOU GROSS, Testified in support of funding for the NORTH STAR Community Matching Grant.  COUNCIL ON AGING 4:57:49 PM JACKIE Asked that the Community Matching Block DEBEVEC, Grant be restored.  ARCTIC ALLIANCE FOR PEOPLE 5:00:29 PM TERRY STRLE, Testified in support of funding for the UNITED WAY Community Matching Block Grant. She explained the grant process.  5:02:19 PM ELRITA Testified in support of funding new MAGOFFIN positions at the Fairbanks Pioneer Home.  5:06:17 PM LUKE HOPKINS, Testified in support of the Human NORTH STAR Services Matching Grant.  BOROUGH ASSEMBLY 5:10:22 PM TIM SHARP, Testified in favor of funding wage and BUSINESS hour investigators.  MANAGER, LABORERS LOCAL 942 5:12:15 PM RON Addressed the Governor's proposal of SOMMERVILLE, $3.3 million for wild life VICE CHAIR, conservation. Mr. Sommerville spoke to BOARD OF GAME the Board's attempt to balance Alaska's predator/prey relationships. He stressed that is required by State law.  5:14:51 PM DICK, BURLEY, Discussed surveys needed to implement BOARD OF GAME the programs needed to balance the predator/prey ratio. He asked for re- instatement of departmental money.  5:16:59 PM CLIFF JUDKINS, Spoke of an imbalance in game and a BOARD OF GAME need for predator control and the money necessary to support those programs.  5:19:38 PM BEN Discussed the need to meet subsistence GRUSSENDORF, needs and for the intensive game BOARD OF GAME management needed for keeping the balance.  5:22:03 PM Representative Thanked Mr. Grussendorf for his years Foster of public service.  5:22:23 PM TED SPRAKER, Spoke of the need for predator BOARD OF GAME management and the need for more funding for the Department of Fish and Game.  5:23:26 PM Representative Asked about the change in regulations Kelly due to a recent court case.  5:23:49 PM Mr. Burley Responded that the regulations are okay. The Board has submitted more information to the Courts.  5:24:58 PM Representative Inquired about enforcement information.  Joule 5:25:36 PM Mr. Somerville Replied that the Board is considering adopting a resolution regarding enforcement. He added that regulations mentioned before were adopted by a previous board and were too stringent. They are being reviewed.  ADJOURNMENT The meeting was adjourned at 5:28 P.M.