Rep. Andy Josephson's Newsletter

We have less than 30 days of session and there is still so much to do. Two weeks ago the House took the first step to passing a budget by passing the operating budget over to the Senate. The process is far from over, though, and will continue on until the last weeks of session. Every legislator will be watching closely and I will be sure to keep you all informed as changes occur.

After roughly seven hours of floor debate the House Majority passed the FY16 Operating Budget. I say the Majority passed the budget, because the rest of the Independent Democratic Caucus (along with one Republican) and I voted against the budget. I strongly believe that if you want to understand what best reflects a government’s prioritized values, then you should look at its budget. I believe that this budget shows that our priorities are misplaced. There are many issues with the budget in its current form and I will try to highlight some of those for you.

Education: First and foremost is education. Currently, all state funding for several critical early education programs—like Parents as Teachers, Best Beginnings, and Pre-Kindergarten grants—have been cut. I believe that early education programs are essential to ensure that our students are properly prepared to learn when they later enter the K-12 education system. By cutting these programs, I believe we will see harmful consequences down the line. Noteworthy, ending these programs moves us from 37th in the country to tied for last.

Also included in the education cuts was the removal of $32 million in one-time forward funding. During the floor debate our caucus put forth an amendment that would have kept our promise to the schools to give them adequate funding.

Medicaid Expansion: Or more accurately the lack of Medicaid Expansion. The Governor had placed in his budget the necessary receipt authority for Alaska to expand Medicaid to individuals making 138% of the federal poverty level (roughly $20,000 for an individual and $27,000 for a couple). Sadly, that money was pulled out during the subcommittee process. But what would Medicaid expansion mean for Alaska? An infusion of $1.1 billion in new federal revenue for Alaska over the next 7 years; roughly 4,000 new jobs; and $1.2 billion in wages and salaries for Alaskans.

Financial analysts also project that State general fund savings will be $6.6 million in FY16, and overall savings for Alaska will increase each year. In light of our fiscal challenges, it would be irresponsible to not address Medicaid Expansion during the current legislative session.

Earlier this week there was a presentation by Becky Hultberg (CEO/President of the Alaska State Hospital & Nursing Home Association) about the benefits of expanding Medicaid. You can watch the whole presentation here and see her power-point here!

WWAMI (Washington-Wyoming-Alaska-Montana-Idaho Medical School Program): As many of you are aware Alaska has had a long partnership with Washington, Wyoming, Montana, and Idaho to offer medical school education to Alaska residents for in-state tuition rates at the University of Washington Medical School. This partnership has saved Alaska the cost of building and maintaining our own medical school, which translates to lower tuition rates on our campuses all while helping hundreds of Alaskan students return to practice medicine in Alaska.

A member of the House Majority proposed budget language that would terminate this successful program in 3 years. This program was not something that the Independent Democratic Caucus could let disappear. Representative Claman (D-ANC) offered an amendment to remove this intent language on the floor, and it was defeated by a vote of 25-14. I am hopeful that this language might still be removed now that the budget heads to the Senate.

To learn more about the WWAMI program check out this article by the Alaska Dispatch News.

At the beginning of session I introduced HB 18, which would have expanded Medicaid. At first I was glad that my legislation would not be needed because Governor Walker had included Medicaid expansion in his budget, but as I mentioned earlier that authority was stripped out of the budget. HB 18 then became the focus of the debate. However, no hearings were scheduled and instead there was a call for the Governor to introduce his own bill.

At a press conference on Tuesday, Governor Walker introduced his Medicaid reform and expansion bill. Opponents to Medicaid Expansion sometimes cite the need to reform the State’s Medicaid program before expanding Medicaid (which would cover the tens of thousands of Alaskans who do not have access to affordable healthcare). This bill will both reform and expand the state’s Medicaid program by instituting cost saving initiatives while saving the State, as noted, approximately $6 million according to a recent report commissioned by the Department of Health and Social Services.

You can click here to read an editorial by Governor Walker on why expanding Medicaid is the right thing to do.

As always, please call or email with any thoughts, ideas, or concerns.

Representative Andy Josephson
State Capitol Bldg. Room 430
Phone: 907-465-4939