Legislature(1993 - 1994)

03/22/1994 01:35 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL NO. 409                                                           
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  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  project;  and                 
       providing for an effective date."                                       
                                                                               
  MARK GREENBERG, CENTER FOR LAW AND SOCIAL POLICY, WASHINGTON                 
  D.C.  spoke  in support  of three  features of  the proposed                 
  demonstration project:                                                       
                                                                               
       *    An  increase  in  work   incentives  for  Aide  to                 
            Families  with  Dependent  Children (AFDC)  family                 
            members;                                                           
                                                                               
       *    The waiver of  the 100  hour rule, that  currently                 
            disqualifies two parent families  with a full time                 
            worker regardless of the family's income's; and                    
                                                                               
       *    Waivers  of  vehicle  equity   which  disqualifies                 
            families who own a single  vehicle worth more than                 
            $2,500.                                                            
                                                                               
  Mr.  Greenberg  discussed  the  workfare  requirement.    He                 
  emphasized that  running a workfare program costs money.  He                 
  asserted that evidence implies that workfare programs do not                 
  dramatically raise  employment.   He  questioned if  funding                 
  would be better spent to improve job programs.                               
                                                                               
  Mr.  Greenberg questioned the  equality of reducing payments                 
  to all AFDC and Adult  Public Assistance (APA) recipients in                 
  order to fund a program available to a few.                                  
                                                                               
  Representative  Brown asked  if federal welfare  reform will                 
  include  waivers  allowed for  in  HB  409.   Mr.  Greenberg                 
  pointed  out  that  the   federal  administration  has   not                 
  introduced legislation.    He observed  that federal  policy                 
  encourages state  reform but  requires programs  to be  cost                 
  neutral to the federal government.                                           
                                                                               
  HB 409 was HELD in Committee for further discussion.                         
  HOUSE BILL NO. 409                                                           
                                                                               
       "An Act relating  to the  maximum amount of  assistance                 
       that may be  granted under the adult  public assistance                 
       program  and  the  program  of  aid  to  families  with                 
       dependent children; proposing  a special  demonstration                 
       project  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  project;  and                 
       providing for an effective date."                                       
                                                                               
  Representative Therriault provided members  with AMENDMENT 1                 
  (copy  on   file).     He  MOVED   to  ADOPT   AMENDMENT  1.                 
  Representative   Grussendorf   OBJECTED.      Representative                 
  Therriault  explained  that  Amendment  1  would  allow  the                 
  Fairbanks  North   Star  Borough  to   participate  in   the                 
  demonstration  project.    He maintained  that  the  cost of                 
  including  Fairbanks in  the demonstration project  will not                 
  exceed revenues anticipated to be raised by the legislation.                 
                                                                               
  REPRESENTATIVE TOM BRICE spoke in opposition to Amendment 1.                 
  He expressed concern that the workfare will not be effective                 
  in  achieving  the  desired  goal.   He  suggested  that the                 
  workfare program  will not result in the  gain of marketable                 
  jobs.                                                                        
                                                                               
  Representative Hanley disagreed that  workfare programs will                 
  not encourage marketable job skills.                                         
                                                                               
  Members  discussed   the  introduction   of  House   Finance                 
  Committee legislation.                                                       
                                                                               
  Representative Therriault  noted support  of individuals  in                 
  his district for  Amendment 1 to HB 409.   He clarified that                 
  Fairbanks  cannot be included  in the  demonstration project                 
  without the adoption of Amendment 1.                                         
                                                                               
                                6                                              
                                                                               
                                                                               
  A roll call vote was taken on the motion  to ADOPT AMENDMENT                 
  1                                                                            
                                                                               
  IN FAVOR: Foster,  Hanley,   Martin,  Parnell,   Therriault,                 
                 MacLean, Larson                                               
  OPPOSED:  Brown, Grussendorf, Hoffman                                        
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
  The MOTION PASSED (8-3).                                                     
                                                                               
  JAN  HANSEN,  DIRECTOR,  DIVISION   OF  MEDICAL  ASSISTANCE,                 
  DEPARTMENT OF HEALTH  AND SOCIAL SERVICES observed  that the                 
  adoption  of Amendment  1  would increase  the  cost of  the                 
  legislation by $300.0 thousand  dollars annually in FY  95 -                 
  99.                                                                          
                                                                               
  (Tape Change, HFC 94-69, Side 1)                                             
                                                                               
  Representative Brown provided members with AMENDMENT 2 (copy                 
  on file).   She  MOVED to  AMEND Amendment  2 by  including,                 
  Amendment to Amendment  1 (copy  on file).   There being  NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Brown explained that Amendment 2 would create                 
  the Healthy Families Program.  She stressed that the program                 
  would address a number  of social problems.  She  noted that                 
  section 5 would  provide that the program  is funded through                 
  the ratable reductions in  AFDC and APA.  She  observed that                 
  the sponsor may not support funding the program through  the                 
  ratable reduction.                                                           
                                                                               
  Representative  Martin asserted  that the program  should be                 
  reviewed by the House Health,  Education and Social Services                 
  Committee.    Representative  Brown  noted  that  the  House                 
  Health, Education and Social Services Committee  declined to                 
  entertain  amendments  while  the   bill  was  before  their                 
  Committee.                                                                   
                                                                               
  Representative Hanley did not feel that the program could be                 
  funded at this  time.  Representative Brown  MOVED to delete                 
  section 5, Funding Intent, from AMENDMENT 2.  There being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  Representative Brown  WITHDREW AMENDMENT 2.   She  expressed                 
  her intention to offer Amendment 2 at another time.                          
                                                                               
  Representative Navarre MOVED to add a new paragraph to read,                 
  "(4)  an  area  consisting  of  a  home rule  city  that  is                 
  contained within the  boundaries of  a second class  borough                 
  located on a peninsula within a  hundred miles of Anchorage,                 
                                                                               
                                7                                              
                                                                               
                                                                               
  with a population of  65,000 persons or more and  the second                 
  class borough described in this paragraph."                                  
                                                                               
  Representative Navarre WITHDREW his MOTION.                                  
                                                                               
  Co-Chair MacLean provided members with  AMENDMENT 3 (copy on                 
  file).  She explained that Amendment 3 would allow the North                 
  Slope Borough to participate in the demonstration project.                   
                                                                               
  Representative  Hanley spoke in support  of Amendment 3.  He                 
  noted that the Department of  Health and Social Services has                 
  decided to allow all persons in rural areas to participate.                  
                                                                               
  There being NO OBJECTION, AMENDMENT 3 was adopted.                           
                                                                               
  Representative  Navarre asked if  the amendments  adopted by                 
  the Committee would  necessitate an increase in  the ratable                 
  reduction.   Representative Hanley stated  that Amendment  3                 
  would  not result  in an increase  to the  fiscal note.   He                 
  reiterated  that  Amendment  1  will not  result  in  a  net                 
  increase in the ratable reduction.                                           
                                                                               
  Representative Brown provided members with AMENDMENT 4 (copy                 
  on file).  She  explained that Amendment 4 would  delete the                 
  ratable reduction  to Adult  Public Assistance  (APA).   She                 
  argued that  the majority of  APA recipients are  elderly or                 
  disabled  persons.  She questioned if APA benefits should be                 
  reduced in  order to  fund the  demonstration project.   She                 
  pointed out that the APA  client group is not in a  position                 
  to benefit  from the  results of  the demonstration  project                 
  since they are unlikely to return to the work force.                         
                                                                               
  Representative Brice  spoke in support  of Amendment 4.   He                 
  raised the issue  of equality.    He did  not feel that  APA                 
  clients  should be asked to pay  for a program that will not                 
  benefit them.  Representative Brown MOVED to ADOPT AMENDMENT                 
  4.                                                                           
                                                                               
  In response to a question by Co-Chair Larson, Representative                 
  Hanley observed that APA payments are  at 110 percent of the                 
  poverty  level,  AFDC  payments are  at  74  percent  of the                 
  poverty level.   He explained that the  Department of Health                 
  and Social Services did not want the discrepancy between the                 
  two  recipients to increase.  He  acknowledge that there are                 
  inequities in the legislation.                                               
                                                                               
  Ms.  Hansen  reiterated that  the  Department of  Health and                 
  Social Services  desires that  any reduction  be across  the                 
  board.   She noted  that there  is a  disparity between  the                 
  level of payments for AFDC and APA.                                          
                                                                               
  Representative Brown emphasized that  there is little chance                 
                                                                               
                                8                                              
                                                                               
                                                                               
  that clients served  by APA will  be able  to return to  the                 
  work force.  She noted that APA clients are unable to work.                  
                                                                               
  Representative  Brown suggested  that  the program  could be                 
  funded  without  the inclusion  of  APA.   Members discussed                 
  anticipated  revenues.      Ms.   Hansen   noted   that   an                 
  appropriation from the legislature is needed  to fund FY 95.                 
  She acknowledged that the ratable reduction is in  excess of                 
  what is  need in  FY 95.   She  reiterated the  Department's                 
  position to  maintain an  across the  board reduction.   She                 
  clarified  that  APA  clients are  living  outside  of state                 
  institutions.                                                                
                                                                               
  Representative Hanley OBJECTED to the  adoption of AMENDMENT                 
  4.  A roll call vote was taken on the motion.                                
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Larson                       
  OPPOSED:  Hanley, Martin, Parnell, Therriault, MacLean                       
                                                                               
  Representative Foster was not present for the vote.                          
                                                                               
  The MOTION FAILED (5-5).                                                     
                                                                               
  HB 409 was HELD in Committee for further discussion.                         

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