Dear Neighbors,

         Today the Governor announced his Operating and Capital budget vetoes.  Some of the decisions were not particularly controversial.  One came out of left field - or politically speaking, maybe right field.  I was especially disappointed in, and surprised by the Governor's decision on a major children's initiative - one that he stated his support for before and during the 2010 session.  Governor Parnell vetoed the funding for Denali Kid Care legislation we passed to improve Alaska's ranking as the third-worst children's health plan in the nation.  So - we're still in 48th place there.  Not a proud day.

         Disappointment isn't the reaction I expected for a budget where the Governor signed most of our foster care reform work for this session.  I do thank him for signing our budget efforts to move the biggest reforms in Alaska's foster care system in recent memory forward.  I've linked a recent newsletter summarizing how these budget items will improve the lives and success of our foster youth here. 

         Before I get to this children's health care veto, I will note that there was one disappointment on the foster care front.  The Legislature passed a Capital construction budget which included projects across the state (the foster care and children's heath items he supported were in the separate Operating budget, which I voted for).  The Governor vetoed a needed project devised by the Anchorage Urban League, and other children's advocates, to start a live-in job and life skill training center for foster and disadvantaged youth called Seeds of Change.  That was a disappointment, though funds for the reforms we passed within the Office of Children's Services did pass (for foster youth mentorship, education, job training, school stability, and homelessness prevention).  The Governor did sign two other initiatives to help create success for disadvantaged youth, one run by Shiloh Community Housing in Fairview, and one by Cook Inlet Tribal Council called Dena'ina House.

         In a $3 billion Capital budget, there were much less important items to veto than the Seeds of Change project.  More on the overall Capital budget at the end of this newsletter.   Also, I have attached a list of local and neighborhood Capital budget projects Senator Ellis and I worked on, and how they fared on the veto front.

Children’s Health Care Veto

         I’d like to address the major Operating budget veto the Governor did make.  As he noted at today's press conference, it reverses his stated support for a major children's health initiative this session spearheaded by Senator Bettye Davis (D-Anch.).  Currently Alaska ranks 48th out of the 50 states that provide children's health coverage.  The Legislation sought to return it to the level passed under Governor Tony Knowles, before Governor Murkowski and most Republican legislators cut it in 2003.   

         Here's the backdrop.  Most states provide free children's health coverage, and coverage to pregnant women to protect them and their child's health - to families that earn up to 200% of the federal poverty level.  It's recognizes that private policies for children are unaffordable - upwards of $3,000 to $4,000 per child.  Some states provide universal health care for children - and allow families earning more than 200% of the poverty level to purchase the insurance from the state.  Senator Bill Wielechowski (D-Anch.) and I have long pushed that as a proposal.

         This session, after two years of hard work by Senator Davis and many children's advocates (I carried the bill on the House Floor), the legislature passed her legislation to say families earning up to 200% of the poverty level would be eligible for Denali Kid Care.  The broader legislation Senator Wielechowski and I pushed didn't pass, but through hard work, Senator Davis was able to secure the support for her legislation.

         Governor Parnell has stated the following reason for his reversal in position.  Here are a few links to his prior-stated support for this legislation.  The Governor does not support abortion, or a woman's right to choose it.  He's been clear about that.  Under the Alaska Constitution, the Supreme Court has ruled that if we spend state funds on pregnancy services for women and youth who choose to deliver their children, we also have to fund medical care if they choose to terminate a pregnancy.  The Governor said the abortions that will be allowed under this legislation trouble him. 

         Senator Davis' bill said nothing about abortion.  It didn't promote or oppose abortion.  But like all state funds for health care, if the state spends funds on needed medical care for the vast majority of pregnant women who choose to deliver their babies - as we should - the courts require that we also pay for care for those who exercise their constitutional choice to end a pregnancy.  The Supreme Court opinion requiring this has been around for a decade.  The current Denali Kid Care program, because of this constitutional rule, covers state Medicaid abortion services. 

         So - what is there to say about the Governor's decision?  Well, I think it inserts abortion politics into a bill that, by its intention, meant to cover children's health care.  A bill meant to cover physicals and well-baby checkups, and treatment for children who are sick, or in the emergency room, or who need life-saving surgery.  An estimated one thousand children will be denied health coverage by this veto - for illnesses that have nothing to do with abortion. 

         The abortion aspect of Medicaid services will continue, because the Constitution requires it, and legislators and the Governor cannot violate the Constitution, on rules we agree with or oppose (I am pro-choice, personally).

         I respect the Governor's position on abortion.  I disagree with it.  That's a debate for another day.  But I think today's decision punished children, punished families, and blocks needed health care that has nothing to do with abortion.  You can't refuse an ill child medical treatment because you don't support abortion.  You shouldn't deny a mother a well-baby checkup just because you oppose abortion.  The Governor's decision, in my view, was wrong.  

So what can you do?

         Well, the Governor has only vetoed the funding in the budget for this bill.  SB 13 has not yet come before him to sign (it has not been transmitted by the Legislature but will be soon).  You can write him to express your view that he should not mix abortion with this children's health legislation, and sign it.

         And - then the Legislature has the power to override vetoes.  It will be hard to muster the votes for a veto, and if we move to override this veto, then other legislators will want votes on many other issues.   That’s a complex, and often unsuccessful process.

         Stay tuned, and if you're interested, please write the Governor (sean.parnell@alaska.gov), or write letters to the editor to express your views. 

The Remainder of the Budget

         The Operating and Capital budgets contained hundreds of other items.  The Operating budget, I think, was balanced and responsible - it spent less than the Governor proposed. The Capital budget was large, and that came with pros and cons.  We can provide you information on items you may be interested in, so just let us know.  Also, if you're interested in seeing the vetoes, here is a link to the budget documents so you can read them. 

         Those who voted for the Capital budget had a sound point.  In a struggling economy, funding large, needed projects makes sense.  The Capital budget vote was a difficult one, and I can't lob critical sound bites at those who saw the Capital budget as a jobs plan.  And I do support the education construction bond that will be on the November ballot, in part for its job creation aspects, and in part because the projects in that bond package are needed to educate our youth (more on that later). 

         But in a state that claims it doesn't have money for a decent college aid plan; that needs to sock funds away for savings; that doesn't provide statewide pre-kindergarten education like 40 other states do; that does too little in the way of vocational education, I felt spending $3 billion on a capital budget (roughly $1 billion of that was federal money) didn't seem like the right way to go.  It put lower priority items ahead of higher priorities.   

         In that light, I didn't see an $8 million road improvement on Golden View Drive, for example, as a priority - it's a city road, and needed project, but cost too much to be a state funding priority ($5 million of the total was vetoed by the Governor).  Increasing the Anchorage Port expansion appropriation from $10 million to $20 million seemed unwise when the city isn't putting any money into that city project.  When the city starts contributing to the Port expansion, which has gone from a $175 million, to $500 million, to now a $750 million project, we'll know there is adequate local oversight.  Until then, the state should be more careful with its spending on that project.   

         You'll see lots of press reports on today's decision.  I thought I'd get you my quick reaction on what I saw as the highlights.

         Finally, I hope the following list of neighborhood projects might be helpful.  Here goes.

         As always, call if you have any questions.  I'm off next week, but will write again soon.  Rose will be around if you need help in the meantime.

         Best,