03/25/1993 08:37 AM House FIN

  HOUSE BILL NO. 67                                                            
                                                                               
       "An Act  relating to  eligibility for  and payments  of                 
       public  assistance;  and  providing  for  an  effective                 
       date."                                                                  
                                                                               
  VICKY  BORREGO,  LEGISLATIVE  LIAISON,   CATHOLIC  COMMUNITY                 
  SERVICE spoke in opposition to HB 67.  She stressed that  HB
 would:                                                                    
                                                                               
       *    Reduce  the  amount  of public  assistance  grants                 
            Alaskan families may receive.                                      
                                                                               
       *    Take out any  cost of living allowances  available                 
            through the law beginning January 1, 1994.                         
                                                                               
       *    Rollback public assistance  benefit levels to what                 
            was in effect on January 1, 1990.                                  
                                                                               
  Ms.  Borrego noted that  the most needy  senior citizens and                 
  disabled adults will be affected.  Seniors will lose as much                 
  as  $36 dollars  a  month.   An  estimated 23,000  dependent                 
  children will be affected.   She maintained that HB  67 does                 
  not  promote  greater   self-sufficiency,  independence   or                 
                                                                               
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  empowerment but  reduces an already spartan monthly benefit.                 
  She felt that  other options should be  sought before taking                 
  away basic benefits.                                                         
                                                                               
  RUTH GULYAS, OLDER ALASKANS COMMISSION  spoke against HB 67.                 
  She stressed  that poor  seniors and  disabled   adults will                 
  loose $36.00 dollars a month.  The Older Alaskans Commission                 
  (OAC)  is  concerned  about  the   bill's  effects  on  poor                 
  Alaskans, Children and  disabled adults.  She  stressed that                 
  nearly  14  percent  of Alaskans  over  the  age  of 65  are                 
  recipients of  old age assistance.   she observed  that many                 
  seniors and all disabled adults under age 65 are not covered                 
  by Medicare.  She noted that Alaska has a high percentage of                 
  persons who are  not eligible for social  security benefits.                 
  The Commission feels that seniors are  not likely to be able                 
  to reverse their current economic situations.                                
                                                                               
  SHERRIE GOLL, ALASKA WOMEN'S LOBBY spoke in opposition to HB
.  She asserted that HB 67 contains the "most sweeping set                 
  of cuts to  public assistance that has  ever been considered                 
  by the  Alaska  Legislature."   She  maintained that  HB  67                 
  contains everything  that can be done to  reduce benefits to                 
  poor people.                                                                 
  She  noted  that testimony  in  previous hearings  have been                 
  overwhelmingly against HB 67.  She  asserted that HB 67 will                 
  be particularly devastating to rural Alaskans.                               
                                                                               
  Ms. Goll  reiterated statistics  noted by  the previous  two                 
  speakers.  She  noted that there  are 5,438 disabled and  89                 
  blind adults that will be affected.   She denied that people                 
  move  to  Alaska  to  receive  higher  AFDC  benefits.   She                 
  maintained that the growth in caseload for public assistance                 
  programs has  remained constant in comparison  to population                 
  growth.  She  noted that  an additional  growth in  caseload                 
  resulted  from   federally  mandated   changes  in   program                 
  eligibility.  She stressed that the  standard of need is the                 
  standard  of basic decency and  health.  She maintained that                 
  the basic standard of  decency and health will no  longer be                 
  met if HB 67 is passage.                                                     
                                                                               
  Ms. Goll  noted that  AFDC is  designed to  help parents  of                 
  children to get back into the job market.  She asserted that                 
  adult  public  assistance  clients  have  little  chance  of                 
  improving their financial  picture.   She stressed that  the                 
  alternative  to  assistance  is institutionalization.    She                 
  noted  that  one in  five  children are  dependent  on AFDC.                 
  Eighteen percent  of Alaskan  children are  involved in  the                 
  program.  She emphasized that  other assistance programs are                 
  also being reduced.   There is a three year waiting list for                 
  assisted housing in  Juneau.  The  poor spend 70 percent  of                 
  their income on housing.  They will pay 78 percent if  HB 67                 
  passes.  She  asserted that  Permanent Fund Dividend  checks                 
                                                                               
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  are not spent on luxuries.                                                   
                                                                               
  Ms. Goll stated  that unemployed parents should  be targeted                 
  by jobs programs.   She urged the Committee to  consider the                 
  Adult Public  Assistance Program separate  from AFDC.    She                 
  stressed  that  CSHB   67  (HESS)  goes  further   than  the                 
  Administration   planned.      She   maintained   that   the                 
  Administration did not intend to delete the COLA.