Dear Friends and Neighbors,

The House voted on the Operating Budget just after midnight on Thursday night and it is now on its way to the Senate for further consideration. I have some concerns with this version of the budget in light of the substantial cuts already proposed by the Walker-Mallott Administration. Approving the budget is a continuing process that we will follow closely in the weeks ahead. As always, I value feedback from West Anchorage residents and neighbors in order to better represent you. Please let me know if you ever have any issues or concerns!

Medicaid Expansion

The House Majority did not include Medicaid expansion in the Operating Budget now under review by the Senate. You can watch that debate here. In challenging budget times, accepting federal funds to expand the State’s Medicaid program can save costs, make health coverage accessible to thousands of uninsured Alaskans, and drive economic growth. Since before Statehood, we have routinely accepted millions from the federal government for transportation projects. The current federal contribution rate for most transportation  projects is 90%--and the federal contribution for Medicaid expansion will be 100% through December 31, 2016 and then eventually stabilize at 90%. Investing in our human capital with Medicaid expansion will strengthen our State economy in much the same way as transportation projects. Studies project that over the next seven years, Medicaid expansion in Alaska would likely yield:

•     $1.1 billion in new federal revenue for Alaska
•     4,000 new jobs
•     $1.2 billion more in wages and salaries paid to Alaskans
•     $2.49 billion in increased economic activity throughout the state

Financial analysts project that State general fund savings will be $6.1 million in fiscal year 2016, and overall savings for Alaska will increase each year. In light of our fiscal challenges, it is financially responsible to address Medicaid expansion during the current legislative session.

Education

The Governor has already proposed a significant reduction in the education budget with removal of $32 million in one-time forward funding. The budget committee process, under direction of the House Majority, is seeking to reduce education programs even further. During the budget debate on the House floor, the Independent Democratic caucus tried to hold the line with the substantial reductions already proposed by the Governor. The House Majority voted against all amendments that would have maintained the level of cuts recommended by the Governor.

You can watch the entire Operating Budget debate here

In the budget supported by the House Majority, Pre-Kindergarten programs and the Parents As Teachers will be substantially reduced in July. These programs have been proven to be successful investments in our children. And the programs save Alaska money in the long-run. As the budget process continues, we will look for ways to continue these valuable programs.

WWAMI (Washington-Wyoming-Alaska-Montana-Idaho Medical School Program)

For over 25 years, Alaska has partnered with Washington, Wyoming, Alaska, Montana, and Idaho to offer medical school education to Alaska residents for in-state tuition rates at the University of Washington Medical School. This 5-State partnership has saved Alaska millions compared to the cost of building and operating our own medical school. And the WWAMI program has helped hundreds of Alaskans to return to practice medicine in Alaska! A member of the House Majority proposed budget language that would have announced a plan to terminate this successful program in 3 years. Given the successful history of this cost-saving program, I offered an amendment to remove this intent language from the budget. Drawing an analogy to a college football team that tries to recruit players while telling them that the school will end the program in three years, I encouraged my colleagues in the State House to remove this language from the budget. I remain optimistic that the final budget will continue our commitment to affordable medical education for Alaskans.

Constituent Pizza Party

Sincerely,

    Rep. Matt Claman

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