Legislature(1995 - 1996)

1995-06-27 House Journal

Full Journal pdf

1995-06-27                     House Journal                      Page 2294
HB 78                                                                        
The following letter dated June 16, 1995, was received:                        
                                                                               
"Dear Speaker Phillips:                                                        
                                                                               
Under the authority of art. II, sec. 15 of the Alaska Constitution, I have     
vetoed the following bill:                                                     
                                                                               
CONFERENCE CS FOR HOUSE BILL NO. 78                                           
"An Act relating to certain licenses and applications for licenses            
for persons who are not in substantial compliance with orders,                 
judgments, or payment schedules for child support; relating to the             
duty to support children of minor parents; relating to the program             
of aid to families with dependent children, including the payment              
of aid in the case of pregnant minors and minors who are parents;              

1995-06-27                     House Journal                      Page 2295
HB 78                                                                        
proposing special demonstration projects within the program of aid            
to families with dependent children and directing the Department               
of Health and Social Services to seek waivers from the federal                 
government to implement the projects; amending Alaska Rule of                  
Civil Procedure 90.3; and providing for an effective date."                    
                                                                               
I exercise my constitutional right of veto with considerable regret.  As       
you recall, this bill had previously passed the House of Representatives       
with unanimous bipartisan support and after extensive work with the            
Administration.  At the time, I hailed the House action as a significant       
step forward on the road to meaningful welfare reform in Alaska;               
reform that would train people for work--put them to work--keep them           
working--and make it pay to work.  Unfortunately, subsequent                   
amendments resulted in a bill that would be irresponsible and have             
drastic impacts on children in Alaska.                                         
                                                                               
This bill still includes some very positive ideas that deserve to be part      
of our long-term strategy for welfare reform. The provisions of the bill       
relating to revocation of occupational and drivers licenses for persons        
in arrears on their child support payments are particularly desirable.         
With the continued support of the legislature for strengthening our            
child support enforcement efforts, I look forward to signing legislation       
on this subject next year.                                                     
                                                                               
Unfortunately, the bill now includes some provisions that are ill-             
advised and premature, given pending Congressional action on federal           
welfare reform.  Some provisions of this bill require changes in federal       
law that may never occur.  Some of the benefit restrictions of the bill,       
like the lifetime limit on benefits, are more extreme than the most            
restrictive policies we are likely to see adopted by Congress or any           
other state because of the risks these policies would pose for children.       
                                                                               
I favor the use of time limits that are carefully crafted to encourage         
persons to move from welfare to work; but I am troubled by the                 
provisions of the bill which establish a 60 month lifetime limit on Aid        
to Families with Dependent Children  (AFDC) benefits. Although the             
lifetime limit included in the bill appears to be based on a related           
provision in federal legislation recently passed by the United States          
House of Representatives, there is a critical difference between the two       
provisions.                                                                    
                                                                               

1995-06-27                     House Journal                      Page 2296
HB 78                                                                        
The federal legislation, which may or may not become law, would                
place a cap on benefits for a "family of an individual, who, after           
attaining 18 years of age, has received benefits under the                   
program....for 60 months..."  In contrast, the bill before me today states     
that "a person is not eligible to receive benefits...for more than a total 
of 60 months..."  The effect of this provision bars a child whose              
parents use the program from ever receiving help again in his or her           
lifetime.                                                                      
                                                                               
                                                                               
This implies that it is the desire of the Legislature to limit children to     
a lifetime total of 60  months of benefits--regardless of the childs           
circumstances.  While I can  understand the logic of the federal               
legislation which is at least arguably designed to encourage able              
bodied adults to move off the welfare rolls to support their families, I       
cannot understand how this logic applies to children.  Surely the state        
should not punish children throughout their lifetime for the actions of        
their parents.                                                                 
                                                                               
                                                                               
The 60 month lifetime limit also fails to acknowledge the reality of the       
Alaskan economy.  While I am optimistic about the potential for                
economic growth in Alaska in the years to come, my optimism is                 
nevertheless firmly rooted in a  realistic assessment of where we are          
today.  Alaskan families who find themselves suddenly unemployed               
due to sudden changes in our basic industries--the recent closure of the       
Wrangell mill, for example-- should not find themselves ineligible for         
assistance due to inflexible time limits. An absolute time limit on            
public assistance benefits makes sense only if there are jobs available        
for people to support their families. Many rural communities suffer            
from chronic unemployment and urban Alaska, with its history of                
boom and bust economic cycles, cannot necessarily provide the number           
of new jobs needed to absorb a sudden increase of Alaskans who may             
have no means to support their children when they have exhausted               
their AFDC benefits.  It would likely fall to local governments and            
local taxpayers to deal with the consequences of this shortsighted             
policy.                                                                        
                                                                               
In addition, another provision of the bill establishes a 24 month limit        
on benefits for families participating in the JOBS program. Given the          
60 month lifetime limit, a significant disincentive is created for clients     

1995-06-27                     House Journal                      Page 2297
HB 78                                                                        
to engage in those activities most likely to result in long term self-         
sufficiency--vocational training and other educational activities.  This       
simply makes no sense.                                                         
                                                                               
The legislature also disregarded the fiscal implications of this bill.  The    
Department of Health and Social Services provided the legislature with         
a detailed analysis of the costs as well as the savings generated by the       
bill.  The legislature arbitrarily doubled the savings generated by the        
bill and reduced the costs of the bill by approximately one-half.  The         
fiscal notes approved by the legislature for the first year are simply         
inadequate to implement the program.                                           
                                                                               
Finally, I fully recognize the need to contain costs in our public             
assistance programs and I truly believe that those who are able to work        
should work.  However the underlying assumptions which seem to                 
have led the legislature to adopt this bill in its final form--the belief      
that our public assistance programs are the object of widespread abuse         
by able-bodied adults who simply will not work--prompt me to once              
again point out a simple fact that is all too often forgotten in the           
welfare reform debate.  The fact is that most of the people receiving          
AFDC benefits for food, shelter and clothing are children--26,000 of           
them.                                                                          
                                                                               
Next year, after reviewing Congressional actions, I plan to propose a          
comprehensive set of publicly debated and carefully considered                 
program recommendations on how best to contain the costs of the                
AFDC programs and encourage clients to seek, obtain and maintain               
employment,  while continuing to provide a safety net for our neediest         
children and families.                                                         
                                                                               
								Sincerely,                                                             
								/s/                                                                    
								Tony Knowles                                                           
								Governor"