SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE March 2, 1998 9:06 a.m. MEMBERS PRESENT Senator Gary Wilken, Chairman Senator Loren Leman, Vice-Chairman Senator Lyda Green Senator Jerry Ward MEMBERS ABSENT Senator Johnny Ellis COMMITTEE CALENDAR SENATE CONCURRENT RESOLUTION NO. 11 Creating the Long-Term Care Task Force. HEARD AND HELD SENATE BILL NO. 252 "An Act relating to paternity establishment and child support; relating to the crimes of criminal nonsupport and aiding the nonpayment of child support; and amending Rule 37(b)(2)(D), Alaska Rules of Civil Procedure; and providing for an effective date." HEARD AND HELD SENATE JOINT RESOLUTION NO. 39 Relating to improving reading instruction in elementary and secondary schools. PREVIOUS SENATE COMMITTEE ACTION SCR 11 - No previous Senate action. SB 252 - No previous Senate action. SJR 39 - No previous Senate action. WITNESS REGISTER Senator Bert Sharp Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Sponsor of SCR 11 Mr. Floyd Heimbuch OPAG 235 E 3rd Ave Anchorage, AK 99501 POSITION STATEMENT: Supports SCR 11 Ms. Dulce Noble Alzheimer's Association 240 E Tudor Road, Suite 110 Anchorage, Alaska 99504 POSITION STATEMENT: Supports SCR 11 Ms. Florence Orr 2110 Dawnlight Anchorage, Alaska 99501 POSITION STATEMENT: Supports SCR 11 Mr. Frank Appel 6424 Hampton Drive Anchorage, AK 99504 POSITION STATEMENT: Supports SCR 11 Mr. Robert Hanson 6730 Lawlor Anchorage, Alaska 99509 POSITION STATEMENT: Supports SCR 11 Mr. Edward Barber Jr. 1060 Belmont Drive Anchorage, Alaska 99517 POSITION STATEMENT: Supports SCR 11 Ms. Kay Branch Bristol Bay Native Association P.O. Box 310 Dillingham, Alaska 99576 POSITION STATEMENT: Supports SCR 11 Mr. Bob Hufman 1018 Galena St. Fairbanks, Alaska 99709 POSITION STATEMENT: Supports SCR 11 Mr. Merrill Hakala 140 Front Street Fairbanks, Alaska 99701 POSITION STATEMENT: Supports SCR 11 Ms. Kathleen Dalton P.O. Box 70681 Fairbanks, Alaska 99707 POSITION STATEMENT: Supports SCR 11 Mr. Don Hoover 1029 Kodiak Fairbanks, Alaska 99709 POSITION STATEMENT: Supports SCR 11 Mr. Frank McGilvary 504 Monroe Fairbanks, Alaska 99701 POSITION STATEMENT: Supports SCR 11 Ms. Betty Hufman 1018 Galena St. Fairbanks, Alaska 99709 POSITION STATEMENT: Supports SCR 11 Ms. Vera Gazaway Older Persons Action Group (OPAG) 415 Willoughby Ave. #414 Juneau, Alaska 99801 POSITION STATEMENT: Supports SCR 11 Ms. Marie Darlin National Assn. of Retired Federal Employees 415 Willoughby Ave. #506 Juneau, Alaska 99801 POSITION STATEMENT: Supports SCR 11 Laraine Derr Alaska State Hospital Assn. 319 Seward Street, #11 Juneau, Alaska 99801 POSITION STATEMENT: Supports SCR 11 Ms. Barbara Miklos Child Support Enforcement Division 550 West 7th Avenue, Suite 310 Anchorage, Alaska 99501 POSITION STATEMENT: Explained the provisions of SB 252 ACTION NARRATIVE TAPE 98-19, SIDE A Number 001 CHAIRMAN WILKEN called the Senate Health, Education and Social Services (HESS) Committee to order at 9:06 a.m. Present were Senators Wilken, Ward and Green. CHAIRMAN WILKEN announced the order of bills would SCR 11, SB 252 and SJR 39. SCR 11 - LONG-TERM CARE TASK FORCE SENATOR BERT SHARP, sponsor of SCR 11, gave the following overview of the measure. As Alaska's senior citizen community continues to increase in size, the state needs to plan for the long term care and needs of these citizens. While most families desire to provide home care for their elderly parents, the reality is that most will live in a long term care facility sooner or later. Either way, the cost of providing long term care is becoming insurmountable to the state and to private citizens. In an effort to assure that Alaska's senior citizens can plan and get the best care possible, the Legislature established a working group in 1996 to analyze long term care services available in the state and the projected costs of such care. SCR 11 will create a long term care task force to review the working group's findings and to develop equitable plans for providing actuarially sound and affordable long term care options for all senior citizens. He urged committee members to support SCR 11 so that the dialogue to find the answers to the long term care needs of senior citizens within the State of Alaska will continue. SENATOR WARD stated the task force will be comprised of four majority members, two minority members, and six non-elected members. He expressed concern that this task force will be making recommendations to the Legislature, yet because of its make-up, might not adequately reflect the views of the majority of the Legislature. He asked Senator Sharp if he thought the composition of the task force could be a problem. SENATOR SHARP said he thinks this particular topic lends itself more toward common ground than most. He explained the task force is designed to determine options and their costs to individuals and group plans, and not to dictate a specific course of action. The task force will establish what the need for, and marketplace is, for long term care. He thought representatives from the various commissioners' offices will add expertise in their particular fields and will not control the direction or the outcome of the task force's work because the need is universal. SENATOR WARD maintained that although the task force will be working on a common goal, the resolution directs it to submit proposed legislation. He repeated his concern that the task force will have eight non-majority members. Number 137 CHAIRMAN WILKEN noted he only had one copy of the work group's report which he offered to pass around to committee members. He then took testimony from participants on the teleconference network. BOB HUFMAN, a Fairbanks resident, testified in favor of SCR 11 because establishing an actuarially sound system of long term care for senior citizens is an admirable goal. In checking over a number of long term care policies offered by several underwriters, he found they all fell short of what is truly required in the way of benefit needs and costs. Judging from what is available on the market today, the state could devise an adequate plan that may be an attractive proposal to middle-aged people whose participation would help balance out the payment schedule. The results of the McDowell Group report show the tremendous impact the cost of supporting residents in the Pioneer Homes will have on the state budget as the rates rise to the full cost of care by the year 2003. The cost of state monetary assistance will rise from $1,408,000 in 1997 to over $15,800,000 in 2003. That figure alone justifies underwriting a long term care policy, either by the state alone or in concert with a reputable company. Alaskans desperately need assistance with this monumental problem. He urged formation of the task force as soon as possible. MERRILL HAKALA testified from Fairbanks and thanked Senator Sharp for introducing SCR 11. She believes SCR 11 is very important to senior citizens of the state because the cost of Pioneers' Homes is increasing dramatically. Most seniors enter Pioneers' Homes with a few dollars in the bank, but are wiped out once they enter long term care. The dignity of senior citizens needs to be preserved. FLOYD HEIMBUCH, Executive Director of the Older Persons Action Group (OPAG), testified from Anchorage on his own behalf. He stated the Anchorage Advisory Commission is undertaking a study on this subject and it intends to produce a study without the bias that a funding corporation or entity might build into it. He hoped a new task force will be careful when determining the focus of the plan and who is working on the plan. The following areas of concern are basic to what senior citizens are thinking about: mental health; access; finding an acceptable institution when one needs help; physical activity; secure surroundings; financial problems; at-home family care; and consumer protection. He encouraged the task force to use the Alaska Commission on Aging's information effort, OPAG's publication Voices, and senior center newsletters to focus on what is available now, rather than on what will be available after the plan is made. Mr. Heimbuch concluded that people are living longer and we are using outdated concepts to deal with their needs. He suggested looking at a plan that will allow people to "bank" volunteer services, while they are able, to be applied toward the cost of long term care in the future. MS. DULCE NOBLE, Executive Director of the Alzheimer's Association, spoke in support of SCR 11. The work group's studies resulted in an analysis of the current long term care system. The group determined the strengths of the current system and the challenges that lie ahead. The creation of a task force is essential to implement some of the group's recommendations. Because of demographic trends, the number of seniors in need of help in 10 to 15 years will increase, and many caregivers will be feeling the impact. The task force will need to create an infrastructure to address these needs. Number 276 KAY BRANCH, Bristol Bay Native Association (BBNA) Elderly Services Manager, and a board member of the Alzheimer's Association, stated she is familiar with the long term care needs of people in rural areas and supports SCR 11. She believes it is important to take the analysis that was recently completed and convert it into an equitable plan. The costs of long term care are exceedingly high. BBNA received money from the Division of Senior Services to conduct its own research on the need for assisted living in the Dillingham area. At present there are no nursing homes or assisted living facilities. BBNA held seven community forums throughout the region: the sizeable attendance at all meetings was indicative of the strong concern people have about ensuring that their elders are cared for in the best way possible. In those areas, people want their elders to remain as close to home as possible. When families cannot care for their elderly relatives at home they have to send them to long term care facilities in Anchorage and Fairbanks. She suggested that a rural Alaskan who is familiar with senior issues be appointed to the task force if SCR 11 passes. KATHLEEN DALTON testified on her own behalf from Fairbanks. She is a conservator-guardian for an 82 year old woman who is in an assisted living facility. She expressed concern that SCR 11 may be redundant and she questioned where the funds for activities of the task force will come from. In addition, she asked that no commissioners or designees be appointed to the task force because those people represent the bureaucracy and will provide no original thinking. She suggested using people in those positions as resources. She requested a copy of the McDowell Group report. Number 350 DON HOOVER testified as a member of the Alaska Commission on Aging, and on his own behalf, in support of SCR 11. He said SCR 11 does not only apply to the elderly, but to people of all ages who need long term care. Alaska rates second highest in the nation in the increase in the number of senior citizens. Growth projections indicate that the population of people 65 and older by the year 2015 will be 80,957. About one-third of those people will be in the 80 to 85 year old age group; over 48 percent of those will have Alzheimer's disease which requires long term care. He expressed concern that SCR 11 requires the task force to complete its work between legislative sessions which will not provide enough time. FLORENCE ORR, representing the Igloo and Womens' Auxiliary of the Pioneers in Anchorage, the National Association of Retired Federal Employees, and the Anchorage Senior Center, testified from Anchorage. Ms. Orr said as a person in her late 80's she is very personally interested in SCR 11. Most of her contemporaries are recognizing that they cannot get along alone anymore and some are panicking about where to go. FRANK APPEL, representing the Alzheimers Association Board, testified in support of SCR 11 and made the following comments. Because the elderly population is likely to increase enormously in the next 20 years, it is important to build upon the analysis completed by the working group. The state will likely experience costs for those people with insufficient assets or income to pay for long term care. The state needs to create a plan to provide funding for effective, efficient, and equitable long term care. FRANK McGILVARY thanked Senators Sharp and Duncan for introducing SCR 11 and expressed support for the measure. JOHN HANCHETT testified on his own behalf from Fairbanks in support of SCR 11. He noted he is a member of the Alzheimers Association, an insurance agent, and has taken care of seniors for 23 years, so is familiar with this issue from a variety of perspectives. He believes the long term care issue is a problem for the current population of senior citizens but will be moreso for the next generation. Besides coming up with alternatives, the task force can give this issue the publicity and attention it needs to get the public to react. BOB HANSEN, testifying from Fairbanks, informed committee members he has provided care for his aging mother for many years. He stated the cost of residency in a Pioneer Home is becoming outrageous and unaffordable for most people. Some seniors have had to move out because of the cost. He believes that is a disgraceful thing to do to pioneers. ED BARBER JR., representing himself, testified from Anchorage and made the following comments. There are many perceived, as well as actual, problems involved in addressing the long term care of senior citizens. He recommended greater emphasis be placed on the membership of the task force so that there is more representation by senior groups and less from the bureaucracy. He commended the drafters of SCR 11 for including a sunset clause and noted his support of the resolution. Number 474 SENATOR LEMAN stated he appreciated the comments about appointing more senior citizens to the task force. He said he thinks it is important to get other input, but maybe in an ex-officio capacity. BETTY HUFMAN testified from Fairbanks in support of SCR 11. She believes this resolution will have an impact on all Alaskans because a lot of young people are caring for elderly relatives. Facilities are not only lacking but are also inadequate, and there is a crying need for assisted living homes for people who do not need full-scale nursing homes. She believes the committee should consist of a broader cross-section of the population, and the time limit should be extended. MARIE DARLIN, representing the Alaska Federation of the National Association of Retired Federal Employees (AFNARFE), stated at its last convention, AFNARFE passed a resolution in support of SCR 11. AFNARFE's constituency consists of seniors, and those who are not yet seniors but are caring for parents and/or children in need of long term care. AFNARFE is concerned that recommendations put forth by the working group be acted upon and that policies and a plan be established to meet the reported needs. She noted she will give committee members copies of the Alaska Commission on Aging's latest bulletin which contains updated information on the future demographics of Alaska's senior population. AFNARFE is glad to see this issue is going to get some attention. CHAIRMAN WILKEN asked Ms. Darlin if she is familiar with a report put out in the last year by a commission headed by Amos Alder. MS. DARLIN was not aware of it. CHAIRMAN WILKEN said he was interested to hear what people think of that report. Number 542 VERA GAZAWAY, representing OPAG, stated OPAG has viewed long term care as an inter-generational issue for the reasons previously mentioned. OPAG believes more training and access for home caregivers for people with long term illnesses needs to be provided with state funds. For a number of years, OPAG has endorsed the need for in-home health care and actually had training programs for in-home health care but many of the trainees eventually went to work for hospitals. Also, she noted there is a need for more respite care. One day per week of respite care is a great help to full-time caregivers. LARRAINE DERR, representing the State Hospital and Nursing Home Association, stated the number one goal of the long term care committee is the formation of a long term care task force to address long term care problems in the state. The committee has been reviewing reports over the last few years and has realized that little progress has been made in this area. The committee has a task force appointment scheduled and is willing to offer its support to the task force in SCR 11 in any way it can. The group is definitely in favor of the resolution. SENATOR LEMAN suggested holding the resolution until the next meeting to restructure the make-up of the task force and update the time-frame during which it will operate. CHAIRMAN WILKEN announced SCR 11 will be held in committee until the following Wednesday. TAPE 98-19, SIDE B The committee took a brief at-ease. SB 252 - PATERNITY/CHILD SUPPORT/NONSUPPORT CRIMES BARBARA MIKLOS, Director of the Child Support Enforcement Division (CSED), explained that SB 252 was introduced solely to comply with federal welfare reform requirements. The Personal Responsibility and Work Opportunity Reconciliation Act, commonly known as welfare reform, passed in Congress in 1996. The intent of the Act is to change the welfare system so that it is not viewed as a life long income source, but rather as something temporarily available when people are in need. When Congress passed the Act, it realized people need tools to enable the reform to take place so a great deal of focus was put on child support enforcement provisions. Some of those provisions require legislative changes. SB 154, passed last year, met many of the requirements. Some requirements were put on hold until this year and in the meantime Congress passed technical amendments to the Act. Congress has warned that if this legislation is not enacted, the state could suffer financial penalties in CSED funds and the welfare grant. MS. MIKLOS described the provisions of the bill as follows. The legislation requires all employers to report new hires within 20 days. Existing law only requires larger employers to report. That provision expands the legislation but reduces the penalty for not reporting from $1,000 to $25. SB 252 also gives the Courts authority to revoke sports fishing and hunting licenses in criminal cases or when a person is found in contempt of court. Only a judge may revoke the license and only in those two cases. SB 252 requires social security numbers be placed on drivers' licenses and on hunting and sport fishing licenses. MS. MIKLOS noted Dan Branch of the Department of Law, who drafted SB 252, and Phil Petrie, the Operations Manager of CSED, were available to answer questions. Number 554 SENATOR WARD asked Ms. Miklos to expand on her comment that non- compliance with the federal Act could result in financial penalties to the State. MS. MIKLOS explained the Act contains language that authorizes the Secretary of the Department of Health and Human Services to withhold all federal child support enforcement and welfare program funding for non-compliance. The "could" is because the decision to withhold is left to the discretion of the Secretary. She added the State of Idaho has already received a letter advising it to hold a hearing and take action within 60 days, or federal funds will be withheld. SENATOR WARD questioned whether committee members had a copy of that letter and what specific conditions the State of Idaho has to meet. MS. MIKLOS offered to provide committee members with a copy of the letter. She said the agency is requiring the State of Idaho to pass the provisions of welfare reform but it does not specify which provisions the State of Idaho is out of compliance with. SENATOR WARD asked why the State of Idaho has received that ultimatum and other states that are out of compliance have not. MS. MIKLOS replied last year Idaho's Legislature passed a bill that did not meet all of the requirements of the federal Act and indicated it did not plan to do any more. She thought the reason Alaska has not received similar correspondence is because the Department of Health and Social Services believes Alaska intends to pass legislation this year. SENATOR LEMAN referred to a CSED question and answer document in committee members' packets, and specifically to the question of whether the use of social security numbers in CSED matters serves enough of a compelling state interest to override a person's right to privacy. Senator Leman read the following statement from the document. "The Courts likely will find that any privacy concerns are far outweighed by society's interest in effective child support enforcement." He stated that while he agrees with that statement, he is concerned that the Alaska Courts have handed down two separate rulings in the past week that are very bizarre in the application of the Right to Privacy clause as it links with Equal Protection. He said he has very little confidence in what that court might do in interpreting CSED's use of social security numbers. He thought CSED would have a compelling state interest to protect the right of the child but likewise, so would enhancing the relationship of a child with a parent, but one judge did not agree. He said it concerns him when the courts misinterpret what others find to be common sense. SENATOR WARD maintained the State of Idaho has taken the position that it will go through the administrative hearing process first and should lose no money until that process is complete. He noted he spoke to a few people whose believe the federal government has not articulated its position well enough for states to fully understand the requirements. Number 504 MS. MIKLOS indicated it is her understanding the State of Idaho is working on legislation to meet the requirements, and that maybe both things are occurring simultaneously. She noted the people she spoke with in Idaho were hoping to get legislation through this year. SENATOR WARD asked if she spoke with legislators. MS. MIKLOS answered she spoke with officials in the child support division. SENATOR WARD asked if the State of Idaho will be the first to have an administrative hearing. MS. MIKLOS was not sure. She added that most states have attempted to comply. SENATOR WARD pointed out the State of Idaho wants to have a hearing for the purpose of clarification of the Act's requirements. Number 492 CHAIRMAN WILKEN informed committee members an analysis, prepared by the National Council of State Legislators, was in committee packets. He asked Ms. Miklos to review the letter from the Department of Health and Human Services. MS. MIKLOS stated the letter says Alaska must comply according to the welfare reform legislation. She read excerpts from the letter as follows. "Therefore, a determination that a state IV-D plan is disapproved will result in immediate suspension of all federal payments for the state's child support enforcement programs. ...Alaska received approximately $12.4 million in Title IV-D funding for the administration of its child support program in FY 97 and over $3.2 million in Title IV-D performance related child support incentives. In addition, in order to be eligible for a block grant for Temporary Assistance for Needy Families (TANF), the Act requires the State to certify that it will operate a child support enforcement program under the state plan approved under part D. Therefore, TANF funding would also be jeopardized if the State failed to enact the required child support legislation on a timely basis. Alaska's federal funding for IV-A was approximately $63 million." MS. MIKLOS indicated the total amount of federal funds that could be lost is $78 million. SENATOR WARD questioned whether anyone from the Department of Health and Human Services has notified CSED in writing that even $1 would be eliminated without a hearing. MS. MIKLOS said no. SENATOR WARD stated he does not like blackmail in any form, and he is unsure of the process. He did not think the federal government has adequately defined its mandates and it is approaching the problem on a state-by-state basis. SENATOR GREEN noted the NCSL analysis contains provisions that are not mandated: one in Section 2, one in Sections 4 and 5, and Sections 15 and 17. It also contains a repeal of the sunset clause from last year which is the reason this measure had enough support to pass the Senate. She said she would be hard pressed to support this package. SENATOR WARD thought the committee might need to look at a different package or require an administrative hearing as the State of Idaho has. CHAIRMAN WILKEN stated that unless the HESS committee is willing and able to rewrite this legislation, the bill should be moved to the Judiciary Committee where its legal implications will be analyzed. SENATOR WARD thought the HESS committee would be passing on its duty and right to request a hearing. MS. MIKLOS said if members want to pass the bill on to the Judiciary Committee, she would be glad to write a letter to Senator Ward that explains exactly what is happening in Idaho to clarify this issue. Number 419 SENATOR GREEN stated she does not know what changes have been made and what provisions might be implanted in the bill that might have unintended implications. She noted she is not comfortable passing this legislation on without a clear understanding of it. SENATOR WARD pointed out he understands what SB 252 does, but does not know that the State of Alaska is necessarily required by federal law to comply. The mandate has been implied through correspondence from the Department of Health and Social Services, but the mandate is subject to an action, which is usually a case of federal officials deciding precisely what the state must do. CHAIRMAN WILKEN announced SB 252 would be held in committee to give members more time to discuss the bill's implications with agency staff. SENATOR LEMAN asked Ms. Miklos to provide the committee with an analysis of SB 252 that determines how much of its content was not in last year's bill, and that compares the bill to the federal law. MS. MIKLOS noted she already prepared that material and would provide it to Senator Leman. CHAIRMAN WILKEN informed committee members he was recently contacted by an irate constituent about CSED's handling of his case. Ms. Miklos intervened in the case and the problem was resolved to everyone's satisfaction. He thanked Ms. Miklos and stated she is off on the right foot as CSED's new director. The committee took a brief at-ease. SJR 39 - SUPPORT READING EXCELLENCE ACT SENATOR ROBIN TAYLOR, sponsor of SJR 39, stated he is not alone in his concern about the current level of reading skills and the level those skills have dropped to over the last 20 years. He described an article in Forbes magazine about Boeing as follows. Boeing estimates it will lose over $2 billion because it was not able to complete projects and meet contract deadlines last year. The cause of the problem is that of the 12,000 new hires in its workforce, about 8,000 needed remediation in reading and math. The same article spoke about other major businesses across the United States experiencing the similar problem of entry level workers' inability to read. The purpose of SJR 39 is to notify Congress that Alaska supports the Reading Excellence Act, or S 1596, sponsored by Senator Paul Coverdell. The purpose of that Act is to teach every child to read in the early childhood years as soon as they are ready, or as soon as possible once they enter school, but not later than the third grade. The Act then goes on to provide $212 million for research, teaching, and individual grants for primary and secondary reading instruction. Senator Taylor said he would like to see Alaska be in a position to take advantage of that federal money and begin a pilot program. Alaska's student enrollment is less than many medium school districts elsewhere yet it is diverse. Senator Taylor explained S 1596 also provides for tutorial assistance, and 95 percent of the funds would go directly into instruction to children. It also authorizes grants to parents for tutorial assistance. Number 202 SENATOR GREEN stated, as a former teacher, she is struck by the notion that the Legislature is getting into somebody else's business thereby demeaning the profession of teachers. She said the Legislature must give assurance that it is striving for better performance and is not out to demean the teaching profession. Senator Green questioned whether the word "systematic" as contained in S 1596, is in relation to phonics. She noted literacy experts have been caught up on that word and she was unsure that any legislator knows the full implication of the word when it comes to an educational method of delivery. She asked Senator Taylor whether S 1596 specifically refers to phonics. SENATOR TAYLOR said it wouldn't dare because that word is so frightening to the professional community. He repeated the goal is that children learn to read. He maintained that over 30 years of research shows that phonics is one of the best methods to use. He noted the federal law will require that teachers use methods based on replicable research, research that is objective and valid, and that has had a peer review. He maintained that school districts seem to try a new approach about every two or three years without any follow-up; therefore no one knows which approach succeeded. S 1596 requires methods to be used that have been studied and for which empirical evidence is available. CHAIRMAN WILKEN noted that the words "phonics skills," rather than "phonics," are referred to on page 4 in two places. SENATOR WARD suggested adding "and all members of Congress" on line 17 after the word "Representative." SENATOR TAYLOR agreed the resolution should go to all members of Congress. SENATOR GREEN suggested naming Paul Coverdell as a recipient in the resolution. SENATOR TAYLOR agreed his name should be added. Number 202 SENATOR LEMAN stated he appreciates Senator Coverdell's promotion of individual education accounts which will give parents the flexibility to find the best educational opportunity for their children. He stated he would like to include endorsement of that type of approach to education in SJR 39 as he believes the two are interrelated. SENATOR TAYLOR commented SJR 39, especially in regard to the provision allowing tutorial grants, will accommodate those families who have one child out of several who has trouble reading who need special help. SENATOR LEMAN stated one of his concerns is that the Alaska Legislature will be promoting a federal program that has a high cost. He stated S 1596 requires that funds for teacher training be spent on programs proven effective by scientific research. He noted although he agrees with that concept, he offered a similar amendment regarding sex education to a bill several years ago which was defeated in the House. He agreed these programs should be based on valid research. Number 168 SENATOR TAYLOR commented that after listening to concerns that the bill is an unfunded mandate, he drafted a sponsor substitute which only requires that a nationally normed test be given to second graders to find out how students are faring in Alaska. That approach should determine how serious the problem is and should provide direction for future legislative action. If the students' scores are below the national average, the Legislature could recommend the use of phonics instruction in the curriculum and provide financial assistance to schools willing to use it to remove the mandate concept. SENATOR TAYLOR maintained that spending money on the problem in the lower grades will save money later on. CHAIRMAN WILKEN commented that everyone agrees on the end result Senator Taylor is trying to reach with SB 203, but everyone involved needs to agree on the way to go so all can buy in on the approach. Number 084 SENATOR WARD asked for suggestions on language to amend SJR 39 to include other members of Congress. CHAIRMAN WILKEN questioned whether SJR 39 will impede the progress of S 1596 by specifically referring to "phonics" on lines 8 and 10. He suggested deleting that reference and addressing the phonics issue in SB 203. SENATOR TAYLOR suggested replacing the language on line 17 with the following: "...Representative, and all of the members of Congress." SENATOR WARD moved to amend line 17 as Senator Taylor suggested. There being no objection, the motion carried. SENATOR LEMAN moved to add Senator Coverdell's name after the names of Alaska's Congressional delegation, in SJR 39. There being no objection, the motion carried. SENATOR WARD informed committee members he supports including the word "phonics" in SJR 39. BARBARA THOMPSON, Director of the Division of Teaching and Learning Support for the Alaska Department of Education (DOE), testified. DOE supports SJR 39 as it finds the illiteracy rate alarming and believes a greater emphasis on reading needs to occur. DOE supports phonics in the context of a balanced comprehensive reading program. SENATOR LEMAN commented that a weaker emphasis is now placed on phonics in the earlier grades than he experienced as an elementary grade student, and as a result, students experience more of a struggle when it comes to spelling and the interrelationship of letters to words. TAPE 98-20, SIDE A SENATOR WARD asked Ms. Thompson to articulate on DOE's position on using the word "phonics" in SJR 39. MS. THOMPSON replied DOE recognizes phonics as being a part of a balanced and comprehensive program. There being no further business to come before the committee, CHAIRMAN WILKEN adjourned the meeting.