Legislature(2007 - 2008)HOUSE FINANCE 519

04/11/2008 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 231 LOW-INCOME HOUSING; HOMELESSNESS TELECONFERENCED
Moved HCS CSSB 231(FIN) Out of Committee
+= SB 218 CHILD SAFETY SEATS & SEAT BELTS TELECONFERENCED
Moved Out of Committee
+= SB 120 UNEMPLOYMENT COMP: BENEFITS/RECORDS TELECONFERENCED
Moved Out of Committee
+= SB 259 EFFECTIVE DATE: MEDICAL ASSISTANCE LAWS TELECONFERENCED
Moved Out of Committee
+= SB 201 PUBLIC FINANCE WEBSITE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
8:54:48 AM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 231(HES)                                                                                               
                                                                                                                                
     An Act relating to the Alaska housing trust fund and                                                                       
     to the Alaska Council on the Homeless; and providing                                                                       
     for an effective date.                                                                                                     
                                                                                                                                
Vice-Chair Stoltze  MOVED to  ADOPT work  draft 25-GS2006\M,                                                                    
Cook,  4/10/08  as  the  version  of  the  bill  before  the                                                                    
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
BRYAN  BUTCHER,   PUBLIC  AFFAIRS  DIRECTOR   &  LEGISLATIVE                                                                    
LIAISON,   ALASKA   HOUSING  FINANCE   CORPORATION   (AHFC),                                                                    
ANCHORAGE,  explained   the  bill.    He   stated  that  the                                                                    
legislation  creates a  housing  trust fund  within AHFC  to                                                                    
address  concerns of  homelessness in  the State  of Alaska.                                                                    
The  bill increases  AHFC's flexibility  in addressing  long                                                                    
term solutions  for homelessness.   SB 231 would  codify the                                                                    
role of  the Governor's Council  on the Homeless,  which has                                                                    
been  operating under  Administrative Order.   The  original                                                                    
bill is  the culmination  of many years  of work  by several                                                                    
statewide  advocacy groups  and is  a recommendation  of the                                                                    
Governor's Council on the Homeless.                                                                                             
                                                                                                                                
Mr.  Butcher noted  that  homelessness is  one  of the  most                                                                    
important social issues facing Alaska.                                                                                          
                                                                                                                                
       3,500 Alaskans are homeless on any given night,                                                                       
        including 1,600 people in families with children;                                                                       
       4,000 Alaskan households are on the waiting list for                                                                  
        public housing programs, most are families with                                                                         
        children; and                                                                                                           
       20,000 low-income Alaskan households spend more than                                                                  
        half their income on housing, placing them at risk                                                                      
        of homelessness.                                                                                                        
                                                                                                                                
Mr.  Butcher pointed  out that  the  development of  housing                                                                    
alone  is  not  enough  to provide  permanent  solutions  to                                                                    
homeless  crisis.   People who  are homeless  or at  risk of                                                                    
becoming  homeless, frequently  need supportive  services to                                                                    
be  successful,  such  as  treatment,  crisis  intervention,                                                                    
tenant  education, financial  literacy,  job counseling  and                                                                    
life skills training.   Placing a housing  trust within AHFC                                                                    
expands  the   services  of  the  State   without  expanding                                                                    
government's size.  SB 231  provides AHFC the flexibility to                                                                    
address homelessness in Alaska.                                                                                                 
                                                                                                                                
Mr.  Butcher concluded  that  the  Governor's proposed  FY09                                                                    
capital  budget includes  a $10  million dollar  request for                                                                    
the  establishment  of the  Housing  Trust  Fund.   The  $10                                                                    
million is made up of funds from four different sources:                                                                        
                                                                                                                                
       AHFC dividends                                                                                                        
       Mental Health Trust Authority receipts                                                                                
       State General Funds                                                                                                   
       Contributions from other private sources                                                                              
                                                                                                                                
8:57:00 AM                                                                                                                    
                                                                                                                                
Representative Hawker asked how  the draft differed from the                                                                    
original version of the bill.   The original request was for                                                                    
a $150 million dollar commitment for a ten year project.                                                                        
                                                                                                                                
Mr.  Butcher explained  that the  State  currently offers  a                                                                    
Homeless Assistance  Program.   AHFC has  been administering                                                                    
the residential  side of that  program.  AFHC is  the agency                                                                    
for the  State in  dealing with homelessness.   The  bill no                                                                    
longer  includes  putting  the  Governor's  Council  on  the                                                                    
Homeless into statute.   That action is  not necessary since                                                                    
it was created by an Administrative Order.                                                                                      
                                                                                                                                
Representative  Hawker offered  his continued  assistance in                                                                    
addressing  homelessness  in  the   State  of  Alaska.    He                                                                    
proposed a greater buy-in from  the Department of Health and                                                                    
Human Services.  He encouraged  that the Mental Health Trust                                                                    
Authority (AMHTA) expand their  outreach to legislators.  If                                                                    
embarking  on a  $150 million  dollar building  program, the                                                                    
entire legislature will  need to accept it.   He pointed out                                                                    
that  the capital  budget added  $6 million  dollars to  the                                                                    
homeless programs at AHFC for foundation building.                                                                              
                                                                                                                                
9:02:30 AM                                                                                                                    
                                                                                                                                
Mr.  Butcher  added  that Jeff  Jesse,  Executive  Director,                                                                    
Alaska Mental Health Trust Authority,  was supportive of the                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair  Chenault directed  comments  to the  conversations                                                                    
his  office  has had  with  the  Mental Health  Trust  Board                                                                    
funding  for  the program.    He  acknowledged the  outreach                                                                    
needs.                                                                                                                          
                                                                                                                                
Representative Kelly  indicated that  he was not  in support                                                                    
as  the program  appears to  be a  State "entitlement".   He                                                                    
noted for  the record that  he is "very concerned   with the                                                                    
long-term effect the program will have on the State.                                                                            
                                                                                                                                
9:04:40 AM                                                                                                                    
                                                                                                                                
Representative  Gara understood  from  testimony that  there                                                                    
would be  no funding included  for the Housing Trust  in the                                                                    
current  budget.    Mr.  Butcher  explained  that  yesterday                                                                    
[5/10/08],  during the  Mental  Health Conference  Committee                                                                    
meeting  established  a  Homeless  Assistance  Program  that                                                                    
would operate  on $2 million  dollars per year.   The amount                                                                    
would be  generated from $1  million AHFC  dividend dollars,                                                                    
$500 hundred thousand dollars of  General Fund Mental Health                                                                    
and $500  thousand from the  AMHTA receipts.   Funding would                                                                    
have  ceased if  the  $10  million for  the  Trust had  been                                                                    
funded.   The Conference Committee moved  $6 million dollars                                                                    
of that amount to $2 million  and moved $2.5 million of AHFC                                                                    
raised funds  from private sources, which  moves the program                                                                    
from  $2  million  funding dollars  to  $8  million  funding                                                                    
dollars.   Next  year, AHFC  will come  back to  revisit the                                                                    
situation.    He  added, the  Governor's  Council  has  been                                                                    
increased to a membership of an additional five members.                                                                        
                                                                                                                                
9:06:14 AM                                                                                                                    
                                                                                                                                
Representative Gara emphasized that  the work draft puts the                                                                    
Housing Trust  on hold for  another year.  Mr.  Butcher said                                                                    
yes.   Representative  Gara  strongly  disagreed with  that,                                                                    
noting that the  Housing Trust has been  deliberating on the                                                                    
issue for  a long  time.   The intent  is to  transition the                                                                    
homeless  into  permanent housing.    He  stressed that  the                                                                    
program is good and that  he strongly disagrees with putting                                                                    
it off for another year.                                                                                                        
                                                                                                                                
Co-Chair Meyer responded it is  an attempt to transition the                                                                    
program.                                                                                                                        
                                                                                                                                
9:07:59 AM                                                                                                                    
                                                                                                                                
MARIE DARLIN, CAPITAL CITY TASK  FORCE, AARP, voiced support                                                                    
for the intention  behind the bill.  The  bill addresses the                                                                    
situation  from a  long-term  plan  at providing  supportive                                                                    
services.   She  maintained  it is  important to  accomplish                                                                    
addressing  the  concerns  with  homelessness.    She  urged                                                                    
passage of the bill from the Committee.                                                                                         
                                                                                                                                
9:09:49 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                         
                                                                                                                                
                                                                                                                                
RECESS:        9:10:13 AM                                                                                                     
RECONVENE:          10:49:52 AM                                                                                               
                                                                                                                                
                                                                                                                                
SUZANNE  ARMSTRONG,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                    
addressed the  fiscal note, which enumerates  information on                                                                    
the  additional  funds  added  to HB  312  for  the  current                                                                    
program.  HB 231 allows AHFC  to expand the general power of                                                                    
limitations.    The additional  funds will be used  for that                                                                    
expansion.                                                                                                                      
                                                                                                                                
10:51:36 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stoltze MOVED to REPORT  HCS CSSB 231(FIN) out of                                                                    
Committee  with  individual  recommendations  and  with  the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CS  SB 231(FIN)  was REPORTED  out of  Committee with  a "do                                                                    
pass" recommendation and  with a new zero note  by the House                                                                    
Finance   Committee   for   the   Alaska   Housing   Finance                                                                    
Corporation,  zero  note  #2 by  the  Department  of  Public                                                                    
Safety, zero note #3 by  the Department of Health and Social                                                                    
Services and zero note #4 by the Department of Corrections.                                                                     
                                                                                                                                

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