Legislature(2007 - 2008)HOUSE FINANCE 519
05/02/2007 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB192 | |
| SB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 76 | TELECONFERENCED | |
| + | HB 192 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 76(HES)
"An Act establishing a higher education savings program
for eligible children who were placed in out-of-home
care by the state; and providing for confidentiality of
identifying information of a beneficiary under the
program."
SENATOR JOHNNY ELLIS, sponsor, related that SB 76
establishes the ASPIRE program, an acronym for Alaska's
youth Succeed when People Invest Resources in Education.
The ASPIRE program is designed to connect churches,
community groups, non-profits, businesses and individuals
with Alaska's foster children in a confidential way to
provide them with the educational opportunities beyond high
school. This program will give foster children in the state
of Alaska an opportunity to pursue education and vocational
training after high school. Senator Ellis reported that
there are about 2,000 children in out-of-home placements in
Alaska. Every year over 100 of those children "age out" of
foster care. The studies and statistics are not great for
the outcomes with these children. Other states are moving
in this direction. He termed the bill "the government can't
do everything" bill.
Senator Ellis noted that the bill is a collaboration between
the Office of Faith-Based and Community Initiatives, Office
of Children's Services, and the private sector to make good
things happen for foster children.
Vice Chair Stoltze noted that SB 76 is a companion to a
House bill.
9:01:41 AM
Co-Chair Chenault asked if the bill would open 529 savings
accounts for individual foster children. Senator Ellis said
that option is already available, but the legislation would
give statutory authority for the Office of Children's
Services to, on a confidential basis, make information about
these foster children available for the setting up of the
accounts. He mentioned the award-winning 529 college
savings account program pioneered by Jim Lynch. There is
not a tax advantage to individual contributors today, but as
more states take this on, there is that possibility.
Co-Chair Chenault asked what happens to the funds if the
child does not want to pursue a higher education.
GABE ACEVES, STAFF, SENATOR JOHNNY ELLIS, explained that a
foster child would not have direct access to the account.
UAS would control the funds. At the age of 30 the state has
the option to change the name on the account to another
child's.
Co-Chair Chenault noted that UA funds have certain
stipulations. He wondered if they apply to 529 accounts.
Mr. Aceves replied that the state is the account holder and
will decide how the money is to be used, such as for tuition
and board.
Co-Chair Chenault asked if the 529 funds would affect the
child's ability to receive other financial aid. Mr. Aceves
said it would not.
9:05:41 AM
MIKE LESMANN, COMMUNITY RELATIONS MANAGER, OFFICE OF
CHILDREN'S SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, reported that he has worked closely with the
sponsor. The Department of Health and Social Services
supports SB 76. Children who are wards of the state often
do not have the financial ability to go on to higher
education. This program would give their community the
potential to help them in this endeavor. He spoke strongly
in support of SB 76.
9:07:41 AM
MICHAEL CURRAN, PROGRAM COORDINATOR, OFFICE OF FAITH BASED
AND COMMUNITY INITIATIVES, testified in support of SB 76.
He shared his experience with working with foster children
in the past. He related that foster children often do not
have the same advantages as other children. He shared a
personal story about one gifted child who met with tragedy
due to no future after foster care. He maintained that this
bill is a chance for community building and for foster
children to fulfill their dreams.
9:12:11 AM
JIM LYNCH, VICE PRESIDENT OF FINANCE, UNIVERSITY OF ALASKA,
discussed how the UA college savings plan would be used.
The only requirement is that the schools or institutions be
qualified for federal financial aid. The ASPIRE program is
closely aligned with the purposes of the UA college savings
program, and was designed to create the aspiration that
individuals will be going to college.
Representative Nelson mentioned that foster children usually
are removed from their families. She wondered if a child
reunited with their family would be eligible for this
savings account. Mr. Aceves replied that if the child is in
state custody for two years they are eligible for the
program.
Representative Gara spoke in support of the bill.
9:16:26 AM
Senator Ellis summarized that this program fits in perfectly
with the mission of the Office of Faith-Based and Community
Initiatives. The bill brings people together across the
political spectrum and harnesses the compassion and
generosity of the private sector.
Representative Joule shared a personal story about his
grandfather who was raised outside of the immediate family.
A person from the Episcopal Church mentored him in his
education, which resulted in his grandfather being able to
contribute to the community of Point Hope as a teacher. He
compared his story to that of one that could happen due to
this legislation.
Co-Chair Meyer drew attention to the two fiscal notes.
9:21:18 AM
Representative Gara MOVED to REPORT CSSB 76 (HES) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 76 (HES) was REPORTED out of Committee with a "do pass"
recommendation and with zero fiscal note #1 by the
University of Alaska and with fiscal note #2 by the
Department of Health and Social Services.
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