Lisa Murkowski

Ms. MURKOWSKI

Ms. MURKOWSKI. Mr. President, I speak today on behalf of Alaska's most vulnerable individuals, our children, the disabled, and the elderly poor. Since its enactment in 1965, the Medicaid program has helped States provide low-income and disabled individuals with access to vital health care services. In 1997, Congress allowed States to take on certain health-related responsibilities for children. The Denali Kid Care program, a Medicaid expansion, has been very successful in providing health services for Alaskan children. Unfortunately, under current law many Alaskans who rely on this program could lose some or all of their Medicaid coverage. This is because Alaska's Federal Medical Assistance percentage, FMAP, adjustment, a correction to the Medicaid formula due to the high cost of health care in Alaska, will expire within the next 2 fiscal years. An FMAP correction is necessary for Alaska because this ``one-size-fits-all'' formula does not account for variations in cost-of-living, and does not consider Alaska's higher federally mandated poverty level. First of all, the FMAP formula was developed in 1946, 13 years before Alaska was admitted to the Union. This archaic formula is used to calculate the Federal share of Medicaid costs for each State. The calculations are based on the per capita income of individual States relative to the national per capita income. In this way, States with higher per capita incomes end up paying a higher percentage of their Medicaid costs. This formula appears to work well for States near the national norms for most economic indicators. It most certainly does not work in the State of Alaska, however, where these economic indicators appear more frequently as statistical exceptions and outlyers. The problem is fairly simple: it just costs more to do business in Alaska, and this includes health care. A national per capita income threshold is not a fair indicator unless it takes into account the cost of living in that area. The cost-of-living adjustment for Federal employees in Alaska suggests that it costs 25 percent more to live in Alaska than in the lower 48, and Federal employee salaries are adjusted accordingly. A dollar simply does not buy the same thing in Alaska that it does in the lower 48. This is especially true for health care costs. Estimates suggest that, on average, it costs up to 71 percent more to deliver health care services in Alaska. American Hospital Association data shows that Alaska has the highest average expense per hospital admission of any State in the Nation. But let's talk real numbers again. If you were to be admitted to a hospital in Oregon, on average the cost would be $6,649.00; in Alaska the same average hospital stay costs almost double, $10,859.00. There are also higher costs associated with limited road access and necessary air ambulance service for rural and isolated communities, but the Medicaid FMAP formula does not consider any of these additional costs. In addition to the higher cost of services in Alaska, the Federal Government sets the poverty level 20 percent higher in Alaska than in any of the lower 48 States. This means 1 out of every 5 Alaskans is eligible for Medicaid. The problem is that this is essentially an unfunded Federal mandate because the FMAP formula, again, does not change to reflect this additional requirement. The higher demand for services that results from the higher poverty level dilutes our resources. The Medicaid FMAP formula was developed before Alaska became a State and does NOT provide the funds to cover all of those who are eligible. However, in 1997 and again in 2000, Congress recognized that the Medicaid FMAP formula was unfair for Alaska and enacted an adjustment to the formula. Due in part to this more equitable funding and a careful re-allocation of resources, Alaska now: has the lowest age- adjusted death rate for breast cancer in the Nation; has one of the lowest infant mortality rates in the Nation; and has one of the lowest percentages of low birth weight babies in the Nation. These are encouraging statistics, but more can and must be done to improve access to quality health care. All disabled and low-income Americans, including Alaskans, have been assured access to quality medical care. Alaska has proven it can deliver this quality care, but only with the necessary adjustment to the FMAP formula that recognizes the reality of Alaska's needs. This issue is timely because the Congress has the opportunity to allow the State of Alaska to plan for the future. Planning is the essence of good management, and when it comes to health care, we must allow States to plan for future needs. In short, the Federal Government must remember its commitment to Alaskans, and allow my State a benefit that all other states have, assurance that money for vital Medicaid services will not just dry up and disappear. Alaskans do not seek charity, we seek equity. The Congress has supported this request twice before, and I ask for an additional extension to honor Federal commitments to my state. The legislation that I am introducing today will permanently adjust the Medicaid formula for Alaska. I sincerely hope that my colleagues will support this vital legislation that will preserve my State's ability to provide health insurance to the most vulnerable Alaskans.

Ms. MURKOWSKI. Mr. President, during his State of the Union speech this week, President Bush emphasized the importance of local and charitable initiatives that help define the character of the many communities that make up the mosaic of our country. I have come to the floor today to discuss a community tradition that is unique to many of Alaska's remote villages and which should be recognized and supported by the Federal Government. Subsistance whaling is vital to the survival of several Alaska Native communities. In many of our remote villages, the whale hunt is a tradition that has been carried on over many millennia. As part of that tradition, it is the custom that the captain of the hunt make all provisions for the meals, wages and equipment costs associated with the hunt. After the hunt, the Captain is repaid in whale meat and muktuk, which is blubber and skin. However, as part of the tradition, the Captain donates a substantial portion of the whale to his village in order to help the community survive the harsh winter. While the International Whaling Commission, IWC, has banned commercial whaling, it has specifically recognized the cultural significance of whaling to the Alaska Native community and has allowed them to continue the seasonal hunt. The IWC recognizes that the traditional whale hunt is not carried on for financial gain. Although the hunt generates no financial gain to the whaling captain, the captain incurs real expenses. Since the whaling captain is not engaged in a business, he is not permitted to deduct the costs he incurs from his taxes. In order to maintain the traditional hunt and to offset some of the costs incurred by the Captain, I am today introducing legislation that would allow the captain to claim a charitable deduction of up to $10,000 to help defray the costs associated with providing this community service. I want to point out that if the Captain incurred all of these expenses and then donated the whale meat to a local charitable organization, the Captain would almost certainly be able to deduct the costs he incurred in outfitting the boat for the charitable purpose. However, the cultural significance of the Captain's sharing the whale with the community would be lost. Moreover, since there is no commercial market for whale meat because of the international whaling bank, there is no way to set the value of such a charitable contribution. This is a very modest proposal and I urge my colleagues to support this measure. I ask unanimous consent that the text of the bill be printed in the Record.

Ms. MURKOWSKI

Ms. MURKOWSKI. Mr. President, I speak today on behalf of Alaska's most vulnerable individuals, our children, the disabled, and the elderly poor. Since its enactment in 1965, the Medicaid program has helped States provide low-income and disabled individuals with access to vital health care services. In 1997, Congress allowed States to take on certain health-related responsibilities for children. The Denali Kid Care program, a Medicaid expansion, has been very successful in providing health services for Alaskan children. Unfortunately, under current law many Alaskans who rely on this program could lose some or all of their Medicaid coverage. This is because Alaska's Federal Medical Assistance percentage, FMAP, adjustment, a correction to the Medicaid formula due to the high cost of health care in Alaska, will expire within the next 2 fiscal years. An FMAP correction is necessary for Alaska because this ``one-size-fits-all'' formula does not account for variations in cost-of-living, and does not consider Alaska's higher federally mandated poverty level. First of all, the FMAP formula was developed in 1946, 13 years before Alaska was admitted to the Union. This archaic formula is used to calculate the Federal share of Medicaid costs for each State. The calculations are based on the per capita income of individual States relative to the national per capita income. In this way, States with higher per capita incomes end up paying a higher percentage of their Medicaid costs. This formula appears to work well for States near the national norms for most economic indicators. It most certainly does not work in the State of Alaska, however, where these economic indicators appear more frequently as statistical exceptions and outlyers. The problem is fairly simple: it just costs more to do business in Alaska, and this includes health care. A national per capita income threshold is not a fair indicator unless it takes into account the cost of living in that area. The cost-of-living adjustment for Federal employees in Alaska suggests that it costs 25 percent more to live in Alaska than in the lower 48, and Federal employee salaries are adjusted accordingly. A dollar simply does not buy the same thing in Alaska that it does in the lower 48. This is especially true for health care costs. Estimates suggest that, on average, it costs up to 71 percent more to deliver health care services in Alaska. American Hospital Association data shows that Alaska has the highest average expense per hospital admission of any State in the Nation. But let's talk real numbers again. If you were to be admitted to a hospital in Oregon, on average the cost would be $6,649.00; in Alaska the same average hospital stay costs almost double, $10,859.00. There are also higher costs associated with limited road access and necessary air ambulance service for rural and isolated communities, but the Medicaid FMAP formula does not consider any of these additional costs. In addition to the higher cost of services in Alaska, the Federal Government sets the poverty level 20 percent higher in Alaska than in any of the lower 48 States. This means 1 out of every 5 Alaskans is eligible for Medicaid. The problem is that this is essentially an unfunded Federal mandate because the FMAP formula, again, does not change to reflect this additional requirement. The higher demand for services that results from the higher poverty level dilutes our resources. The Medicaid FMAP formula was developed before Alaska became a State and does NOT provide the funds to cover all of those who are eligible. However, in 1997 and again in 2000, Congress recognized that the Medicaid FMAP formula was unfair for Alaska and enacted an adjustment to the formula. Due in part to this more equitable funding and a careful re-allocation of resources, Alaska now: has the lowest age- adjusted death rate for breast cancer in the Nation; has one of the lowest infant mortality rates in the Nation; and has one of the lowest percentages of low birth weight babies in the Nation. These are encouraging statistics, but more can and must be done to improve access to quality health care. All disabled and low-income Americans, including Alaskans, have been assured access to quality medical care. Alaska has proven it can deliver this quality care, but only with the necessary adjustment to the FMAP formula that recognizes the reality of Alaska's needs. This issue is timely because the Congress has the opportunity to allow the State of Alaska to plan for the future. Planning is the essence of good management, and when it comes to health care, we must allow States to plan for future needs. In short, the Federal Government must remember its commitment to Alaskans, and allow my State a benefit that all other states have, assurance that money for vital Medicaid services will not just dry up and disappear. Alaskans do not seek charity, we seek equity. The Congress has supported this request twice before, and I ask for an additional extension to honor Federal commitments to my state. The legislation that I am introducing today will permanently adjust the Medicaid formula for Alaska. I sincerely hope that my colleagues will support this vital legislation that will preserve my State's ability to provide health insurance to the most vulnerable Alaskans.

Ms. MURKOWSKI

Ms. MURKOWSKI. Mr. President, I rise to introduce a bill to establish the Denali Transportation System. This bill in intended to help create in the same beneficial transportation system in Alaska as exists for every other State in the Union. It is patterned after a similar effort adopted years ago for the Appalachian region, which has demonstrated beyond any doubt that transportation investment is wise investment. The bill authorizes the Secretary of Transportation to establish a program to fund the costs of construction of the Denali Transportation System, at a level of $450 million per year from Fiscal Year 2004 through Fiscal Year 2009. As new roads are constructed, they will become part of the National Highway System. As my colleagues are aware, Alaska's ability to develop a strong economy for the benefit of the State and the nation is deeply impaired by the lack of transportation. This affects all aspects of life in the 49th State, from the delivery of fuel and essential services to individuals and families in our many remote villages, to our ability to develop Alaska's abundance of valuable natural resources. Only our major cities have modern roadways, and many of those remain isolated. No State, or its citizens, can prosper without adequate transportation systems. In much of the country, such systems have been in place since before the American Revolution, and have been constantly changing, adapting and being upgraded ever since. In much of Alaska, in contrast, residents are still forced to travel between communities by boat, or on frozen rivers, just as they did when the Territory of Alaska was first purchased from Imperial Russia. In this day, and age, such a situation is completely unacceptable. It is a lasting mark of neglect, and it is past time to rectify it. The Denali Transportation System will provide far greater benefits than costs. As we enter an era where gigantic natural changes are occurring in the Arctic environment, and ice-free maritime transportation through the Arctic Ocean is expected to become a reality within decades, it is critical that we begin to prepare ourselves for those changes. Adequate transportation connections to, and within, America's only Arctic State are imperative. As we debate a Federal budget during a time when the economy is struggling, let us not forget that the key to long-term prosperity is wise investment. Investing in Alaska is investing wisely. We have incomparable resources and vigorous citizens. It is time we have the transportation system that will allow those assets to be used as they should. Mr. President, I ask unanimously consent that the text of the bill be printed in the Record.

Ms. MURKOWSKI

Ms. MURKOWSKI. Mr. President, I come to the floor today to offer my support for the confirmation of Governor Ridge as Secretary of Homeland Security. President Bush chose wisely when he nominated Tom Ridge to head this new department. Governor Ridge's adeptness in politics won him six terms as a United States Congressman and two terms as Governor of Pennsylvania. In both positions, he was praised for his intelligent leadership and attention to detail. His service in the military, in which he received a Bronze Star for Valor in Vietnam, only adds more credit to his name. While my colleagues can further attest to Mr. Ridge's accomplishments, I would like to focus my attention on the impact that Homeland Security has on my State, and I encourage Mr. Ridge to consider Alaska's security as a means of enhancing National Security. With nearly 50 percent of the total Coastline of the United States, Alaska has much to gain from the new Department of Homeland Security. Our coastal communities rely on a free-flow of air and maritime traffic to meet their daily needs. Any interruption in this traffic could imperil our isolated communities. Twenty percent of our Nation's domestic oil supply flows through the Trans-Alaska Pipeline, which spans some 800 miles from Prudhoe Bay in the north, to Valdez in the south. The Valdez terminal is the northernmost ice-free port in the United States. Its protection, therefore, is crucial to the safe and effective transport of Alaska Crude oil to the West Coast. Another port of importance to my State is the Port of Anchorage. Nearly 80 percent of all goods destined for Alaskan cities flow through the Anchorage Port. These communities, many with populations smaller than 100 people, rely on the Anchorage Port to remain open. Providing for the security of the Port of Anchorage is essential to the well- being of the Alaskan people. In addition to commerce, most of the people in Alaska's coastal regions rely on the Fishing industry for jobs, generating nearly half a billion dollars for the State annually. With approximately 1200 groundfish vessels operating in Alaskan waters, harvesting nearly 2 billion pounds of groundfish every year for U.S. and foreign consumers, Alaska's position as a fish leader is unquestionable. Fishing in Alaskan waters is an issue of security. The ability to maintain our own domestic food supply should be paramount to the new Department, and Alaska's role in its production is key. The safeguarding of these fishing vessels falls to the capable men and women of the U.S. Coast Guard, one of the new Department of Homeland Security's essential agencies. Although only 4 percent of the Coast Guard is stationed in Alaska, the Kodiak Coast Guard base is the largest single Coast Guard installation in the country. It is imperative, for maritime law enforcement, search and rescue, and oil spill response that the Coast Guard maintains its mission in Alaska. The focus of Homeland security is not limited to water, however, but encompasses all ports of entry. As an international hub, the Ted Stevens Anchorage International Airport is the busiest cargo airport in the country. Nine hours to most major destinations, the airport's location makes it an ideal crossroads for international trade, as well as for domestic travel and commerce. Airport security continues to be of great importance to this and other airports throughout Alaska. Likewise, Alaska is home to four military bases---two air force bases, and two army bases--and new missile defense facilities. Protecting our military assets for national defense and future military engagements will require comprehensive planning with Governor Ridge and the new Department of Homeland Security. I look forward to working with the new Secretary to provide for the security of this great Nation as well as for the State of Alaska.

Ms. MURKOWSKI

Ms. MURKOWSKI. Mr. President, I rise today to speak and honor a great Alaskan, and long time family friend, Jim Binkley of Fairbanks. Jim, one of the State's great riverboat captains, died last Friday after a long and painful illness. I join all Alaskans in expressing my deepest condolences to his family and all of his friends across the State. Jim was born in Wrangell in southeast Alaska 82 years ago and was raised in California after his father's death. After high school, Jim moved back to Wrangell and worked as a river guide with him uncle, learning his craft on riverboats and gaining his love of the water. After a few years he moved to Fairbanks to attend the University of Alaska. It was there during the long Fairbanks summers that he learned the ways of interior rivers, working on steamboats, hauling supplies to Eskimo and native villages along the Yukon River. While his schooling at the University was interrupted by a tour of duty in the U.S. military during World War II, he returned to school in Fairbanks after the war. There he met his future wife of 55 years, Mary Hall, and they were married in June 1947. In 1950, Jim and Mary were asked to run riverboat cruises in Fairbanks by Alaska tourism pioneer Chuck West. Using the Episcopal Church vessel, ``Godspeed'' they began offering tours of the Chena and Tanana Rivers. As their business expanded, they needed a bigger boat. So in 1955, Jim and Mary, along with their original partner Bill English, built the first Riverboat Discovery in their backyard on the Noyes Slough in Fairbanks. Over his 45 years in the riverboat business, Jim built two more boats, helping to launch the modern era of tourism in Alaska's interior. But he launched much more for Alaska. He helped create Alaskaland, Fairbanks' historic major municipal park. He was a founder of the Alaska Visitors Association and the Fairbanks Convention and Visitors Bureau. And he showed his commitment to public service by serving two terms in the Alaska House of Representative in Juneau from 1961 through 1964. He was also a pioneer in improving communications in Alaska, serving on the boards of Alascom, Pacific Corp. and later Pacific Telecom, helping switch telecommunications in Alaska from an era of Government- controlled long-distance phone service to the modern era of satellite communication that included the arrival of live television to all parts of the State. He received numerous awards, including being named the Alaskan of the Year and the Business Leader of the Year. While I have lived in Anchorage for the past 25 years, I can never forget sitting in my parents' backyard along the Chena River in Fairbanks. You could almost tell time by when Captain Binkley would pilot the Discovery past our house, always waving his warm welcome as we tooted a fog horn in reply as the sternwheeler rounded the small bends heading for the junction with the Tanana. Alaska has lost a great pioneer and an even greater leader. I want to express my deepest condolences to his wife, Mary, to his son Johne, himself a former leading member of the Alaska Legislature, to his sons Jim, Jr. and Skip and to all his grandchildren. All of Alaska mourns his passing.