04/03/1993 10:00 AM House FIN

  HB 67     An Act relating to eligibility for and payments of                 
            public assistance; and providing for an  effective                 
            date.                                                              
                                                                               
            CS HB 67 (FIN) was reported out of  Committee with                 
            "no recommendations" and with nine fiscal notes by                 
            the Department of Health and Social Services.                      
  HOUSE BILL 67                                                                
                                                                               
       "An Act  relating to  eligibility for  and payments  of                 
       public  assistance;  and  providing  for  an  effective                 
       date."                                                                  
                                                                               
  Representative Brown WITHDREW  the previous amendment  which                 
                                                                               
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  she provided at the last meeting.  There being NO OBJECTION,                 
  it was withdrawn.  She provided the Committee with three new                 
  amendments.  [Attachment #3 - #5].                                           
                                                                               
  SHERRY GOLL, ALASKA WOMEN'S  LOBBY, JUNEAU, ALASKA, provided                 
  the  Committee with  information regarding how  other states                 
  gauge  decisions relating to COLA.   Alaska's automatic COLA                 
  is  an  unique program  but not  unusual  in trying  to keep                 
  payments  level with the  inflation factor.   In 1992, there                 
  were seven other states which  increased their payment level                 
  due to inflation.                                                            
                                                                               
       Alaska              2.8%                                                
       Arizona & Hawaii    4%                                                  
       Washington          3%                                                  
       Alabama             10%                                                 
                                                                               
  She  noted  in  twenty-seven  other  states  there  are  two                 
  optional  programs  not existing  in  Alaska.   These states                 
  "special needs" include:                                                     
                                                                               
       1.   High shelter costs;                                                
       2.   High fuel or utility costs;                                        
       3.   Burial costs;                                                      
       4.   Clothing;                                                          
       5.   Expenses due to natural disasters or eviction.                     
                                                                               
  Ms. Goll added, thirty states operate "emergency assistance"                 
  programs designed  to provide short  term cash aid  to house                 
  holds in crisis.  Emergency assistance payments are used for                 
  such purposes as preventing eviction by paying rent arrears,                 
  preventing  utility  shot  off by  paying  past  due utility                 
  bills, deposits, repair  replacements, and enabling homeless                 
  families to move to an apartment.                                            
                                                                               
  States set their  own budget  priorities.  These  priorities                 
  can  reflect  a  commitment  to  protecting   their  poorest                 
  residents from  large cuts  or they  can plunge  those whose                 
  incomes  already  fail  to  meet  society's standard  for  a                 
  minimal level of subsistence still deeper into poverty.                      
                                                                               
  The federal government  has followed the explicit  principle                 
  of putting such  cuts off  limits, and in  1985, most  major                 
  low-income  benefit programs were  exempted from  the across                 
  the  board cuts  triggered  under the  Gramm-Rudman-Hollings                 
  balanced budget act when deficit targets are missed.                         
                                                                               
  Co-Chair  Larson questioned  the  State's responsibility  to                 
  those persons on  AFDC who  misuse their state  money.   Ms.                 
  Goll  stated  that  concern  would  be  dealt  with  by  the                 
  Department of Health and Social Services.                                    
                                                                               
                                                                               
                                5                                              
                                                                               
                                                                               
  JAN HANSEN, DIRECTOR, ADULT PUBLIC ASSISTANCE, DEPARTMENT OF                 
  HEALTH AND SOCIAL  SERVICES, commented that the  majority of                 
  the persons on AFDC  and APA are using their  monthly checks                 
  appropriately.   She stated that the Department  does not do                 
  anything  to  determine  how the  allowance  is  used.   The                 
  program is there to foster responsibility in individuals for                 
  managing their lives  and money.   She felt  that there  was                 
  little abuse of  the money, as  the Department is trying  to                 
  operate the most cost effective program.                                     
                                                                               
  Discussion followed regarding the possibilities establishing                 
  additional systems which would be more effective.                            
                                                                               
  Ms. Hansen noted that  the primary strategy has been  to cut                 
  costs by creating a rigorous eligibility program.                            
                                                                               
  Co-Chair  MacLean  questioned  the impact  of  the  proposed                 
  amendments  to  the  legislation.    Ms.  Hansen   addressed                 
  Amendment #2, Attachment #4, which would establish a minimum                 
  floor from which AFDC payments would not fall.  This payment                 
  would be determined as a  percentage of the federal  poverty                 
  guideline.                                                                   
                                                                               
  (Tape Change, HFC 93-92, Side 1).                                            
                                                                               
  Ms.  Hansen  stated  the poverty  guideline  in  the federal                 
  statutes at this  time would provide the Alaskan  AFDC claim                 
  81% of the poverty level.  The bill would provide a floor of                 
  75%.   She continued, for  the Adult Public  Assistance, the                 
  poverty guideline for one person is $725  dollars per month.                 
  The payment made  at the FY  92 level would  be 108% of  the                 
  federally established poverty level.                                         
                                                                               
  Ms.  Hansen  pointed   out  that  Amendment  #4,   the  COLA                 
  provisions in current  statute remain with the  exception of                 
  an appropriation  made specifically  for it.   The  language                 
  states that the state "shall" award  the COLA if the federal                 
  government makes an increase subject to appropriation funds.                 
                                                                               
  The  Committee  discussed if  Amendment  #2 or  Amendment #4                 
  would be best  for the poor  of the State while  maintaining                 
  the budgetary cap  and economic development in  rural areas.                 
  Representative Brown reiterated that  the APA program  often                 
  suffices as  the  rural Alaskan  retirement program  because                 
  those people  worked at  jobs in  which retirement  benefits                 
  were not available.  She urged the Committee not  to cut the                 
  COLA adjustments  for the poorest.   An APA  recipient often                 
  pays  70% of their  income for  rent.   Representative Brown                 
  requested the Committee to adopt  Amendment #2 and Amendment                 
                                                                               
  MARY  GUTHRIE,  ALASKA NATIVE  SISTERHOOD,  KLAWOCK, ALASKA,                 
                                                                               
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  spoke in opposition  to HB 67.   She noted her concern  with                 
  alleviating the COLA for the Adult Public Assistance.                        
                                                                               
  BARBARA C. LEWIS, ALASKA NATIVE SISTERHOOD, HAINES,  ALASKA,                 
  spoke in opposition to  HB 67, representing the small  rural                 
  minority areas.                                                              
                                                                               
  (Tape Change, HFC 93-92, Side 2).                                            
                                                                               
  JENNY  BELL,  DIRECTOR,  AWARE,  CAMP  -  2,  ALASKA  NATIVE                 
  SISTERHOOD, JUNEAU,  ALASKA, noted that  subsistence was the                 
  pension plan for  the older  rural Alaskans.   She spoke  in                 
  opposition to HB  67.  She  urged the Committee to  consider                 
  other solutions than  cutting the COLA and  instead offering                 
  incentive programs to help the poor.                                         
                                                                               
  Representative Brown  MOVED Amendment  #2.   Co-Chair Larson                 
  OBJECTED  for further discussion.  Representative Therriault                 
  OBJECTED.                                                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown,  Foster,   Grussendorf,  Hoffman,                 
                      Martin, Navarre, Larson, MacLean.                        
                                                                               
       OPPOSED:       Therriault, Parnell.                                     
                                                                               
  Representative Hanley was not present for the vote.                          
                                                                               
  The MOTION PASSED, (8-2).                                                    
                                                                               
  Representative Hoffman  MOVED Amendment #4.   Representative                 
  Martin OBJECTED.                                                             
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown,  Foster,  Grussendorf,   Hoffman,                 
                      Navarre, Parnell, Therriault, MacLean.                   
                                                                               
       OPPOSED:       Martin, Larson.                                          
                                                                               
  The MOTION PASSED, (8-2).                                                    
                                                                               
  Representative Hoffman MOVED to report CS HB 67 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS  HB   67  (FIN)  was  reported  out   of  Committee  with                 
  "individual recommendations" and with  nine fiscal notes  by                 
  the Department of Health and Social Services.