Legislature(1997 - 1998)
01/29/1998 03:07 PM House HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 125 - PFD CONTRIBUTIONS TO CHILDREN'S TRUST Number 1435 CHAIRMAN BUNDE announced the next bill before the committee was HB 125, "An Act relating to contributions from permanent fund dividends to the Alaska children's trust; and providing for an effective date." He asked Representative Hudson to present his bill. Number 1460 REPRESENTATIVE BILL HUDSON, Alaska State Legislature, sponsor of HB 125, said the concept of the legislation has been around for some time. He recalled a few years ago there had been considerable interest in holding the Winter Olympics in Anchorage, and the people of Alaska were given an opportunity to help Anchorage secure the designation as the World Olympic Center by means of a checkoff on the permanent fund dividend (PFD) application. It was on a multi-year basis and, of course, ended when Anchorage lost the designation to the East Coast. REPRESENTATIVE HUDSON pointed out his interest in trying to do something for the Children's Trust Fund was sparked, in most part, because of his participation some years ago on the Blue Ribbon Commission for Youth. Commission members talked with people from all walks of life including teachers, ministers, business leaders, parents and children. Also, Alaska has the unfortunate distinction of leading the nation in the per capita rate of child abuse and neglect, a suicide rate four times higher than the national average, more than 10,000 preschoolers below the poverty line, over 2,200 school dropouts, and 3,500 children reported as runaways. Number 1600 REPRESENTATIVE HUDSON said over the summer, he had talked with individuals at the Johnson Youth Center, the Miller House, and the prison in Juneau to figure out the best way to attack the problem. He recognized the need for the Division of Family and Youth Services, as well as the institutional approach to the child abuse, sexual assault, et cetera, but those approaches are not succeeding. He looked at the Alaska Children's Trust and saw it as the sort of "science and technology" approach to tackling the problems confronting the young people of the state. He explained that it is basically unfettered with the standard institutional constraints; it moves more in the direction of allowing the board and the community, including volunteers, to have a voice in new types of approaches to preventing child abuse, improving parenting skills, eliminating the violence, et cetera. Number 1635 REPRESENTATIVE HUDSON said the Alaska Children's Trust received 56 proposals the first year they had funds to work with, but were able to fund only 12 projects. Currently, there's approximately $7 million cumulative, in the fund which is set up similar to the permanent fund, in that all the money goes into the corpus of the fund, and the grant programs function through the interest. The Alaska Children's Trust generated approximately $280,000 last year which funded the grants awarded to the 12 grantees. Number 1725 REPRESENTATIVE HUDSON deemed it was time once again to give the people of Alaska an opportunity to contribute a portion of their permanent fund dividend on a uniform basis. The optional $25 checkoff would bolster the $7 million fund and be tax deductible to those who participate. It could go on indefinitely or it could sunset at some future date. Number 1776 REPRESENTATIVE HUDSON concluded that he is hopeful this legislation will not have a "Christmas tree" effect. He pointed out the attached $22,000 fiscal note from the Permanent Fund Dividend Division drops down after the first year and comes out of the contributions. He is getting more and more support for this legislation and asked committee members for their favorable consideration. Number 1846 CHAIRMAN BUNDE acknowledged there were people in the audience who had signed up to testify. He asked Nanci Jones to come forward to present her testimony. Number 1882 NANCI JONES, Director, Permanent Fund Dividend Division, Department of Revenue, distributed a summary of Olympic donor checkoff activity for 1986 through 1989 PFD applications. She explained that in 1986 and 1987 the donation was $5, increased to $10 in 1988 and 1989 and raised a total of $2.3 million across the four years. Number 1920 CHAIRMAN BUNDE recalled that three or four years ago, a bill to provide funds for the state sport, dog mushing, had been introduced and the division had not been supportive of that legislation. Number 1937 REPRESENTATIVE TOM BRICE asked Ms. Jones to explain what all was involved if this legislation passed. MS. JONES prefaced her response by saying the forms specialist has advised that any item or question needs to be placed on the front of the PFD application in order for the public to recognize it. Unfortunately, the front of the application is already crowded. In response to Representative Brice's question, the contract forms designer would need to redesign the form and the division envisions the printing would just get smaller and smaller. Also, everything on the application is explained, so the Alaska Children's Trust would have an informational page in the booklet, which means it would share in the cost and postage. Number 2013 CHAIRMAN BUNDE thanked Ms. Jones for her testimony and asked Carol Brice to testify from Fairbanks. Number 2018 CAROL BRICE, Chair, Alaska Children's Trust, testified in support of HB 125 via teleconference from Fairbanks. She said during the first year of the Alaska Children's Trust, the board had an opportunity to look at the approach it will take in putting the millions of dollars into the trust that will be necessary to really impact the current situation which Representative Hudson spoke to previously. She said that children are not a cause or an issue; they are a responsibility that everyone needs to take on. She stated, "Until we change the climate for our tolerance of maltreatment and neglect of children, we are going to continue to have the concern in the way that we have it now, and certainly we're not proud of our own statistics and some people would argue that while maybe it's the way we keep our statistics, I think that's all very beside the point." As long as there is one child who doesn't have what is needed to reach full potential, there will be concern. Number 2106 MS. BRICE said she was unaware of any other way to address the continued financial dilemma to fund public awareness and programs that communities can institute to begin approaching the problems, unless they look at ways to raise huge sums of money which won't come from individuals or small businesses. She views this legislation as a means for the Alaska Children's Trust to get a million dollars a year into the fund so it can begin to consider the requests for funds being received. She remarked that 57 requests were received prior to the public being totally aware that a Request for Proposal (RFP) had gone out. Now, many communities are aware of the existence of the Alaska Children's Trust and their intent on changing the tolerance for child abuse and neglect and on consciousness raising by making every individual in the state aware of and feeling some responsibility for changing what's going on with children. Number 2172 MS. BRICE further stated with respect to an ending date, she didn't envision the need ever going away. Hopefully, the large number of children in need will go away, but there will always be a need for prevention. She compared this to the Immunization 2000 campaign to ensure that children are protected. She commented that prevention monies have dried up and this is an opportunity statewide to attack the problem. She concluded, "I just want you to know how passionately I am pleading for this kind of a bill to at least get heard outside of this committee so we can begin to do some consciousness raising." Number 2232 CHAIRMAN BUNDE asked Ms. Brice how he could explain to other groups who feel as fervently about their issue, that they can't have a checkoff, but Ms. Brice can because her issue is special. MS. BRICE replied, "I think we are special. I think that's something we're all going to have to think about individually is how we'll approach that question. Again, I don't think children are an issue. Children are a very large percentage of the population here in the state of Alaska. I'm not sure there would be another issue that would affect the same percentage of our population." Number 2293 REPRESENTATIVE BRIAN PORTER asked Ms. Brice to explain the difference between the Alaska Children's Trust Fund and the Friends for Children's Trust. MS. BRICE responded the Friends of the Alaska Children's Trust is a nonprofit group that was organized for the purposes of fundraising and distributing information to accelerate the effectiveness of the Alaska Children's Trust. The Friends of the Alaska Children's Trust are actually the working office of the board. The Alaska Children's Trust is basically a fund that is administered and monitored by a seven-member board of trustees, of which she is a member. The board's primary job is to find ways of raising money and to monitor what happens to that money. She commented the board put a great deal of effort into the proposal last year, and then evaluating the 57 responses that came in. TAPE 98-2, SIDE B Number 0001 MS. BRICE continued the board is now monitoring the 12 grantees. There is a lot of other work that needs to be done, which is the reason for the Friends of the Alaska Children's Trust. CHAIRMAN BUNDE thanked Ms. Brice for her comments and asked Caren Robinson to come forward to testify. Number 0035 CAREN ROBINSON, Lobbyist for Alaska Women's Lobby, stated, "The Alaska Women's Lobby is comprised of citizen activists who, in 1982, formed a lobbying association dedicated to equality. We work primarily on issues affecting women and children and our members - we also have steering committee members that are in the three largest communities - Anchorage, Fairbanks and Juneau. "We're here today in strong support of House Bill 125. We believe that prevention is one of the keys to improving the lives of and opportunities for our children. One of the primary jobs of the Children's Trust is to develop and foster prevention strategies. This bill would allow Alaskans to voluntarily contribute to these important efforts and help support our families by simply giving back some of the permanent fund windfall. "It is a great idea and our members will be among the very first to check that box. When you ask 'why' and 'this issue' and 'should we have the Christmas tree approach' and we believe very strongly that all of us continue to say in this state that the number 1 priority are our children. And I think that you can hear from us that we won't be in here asking for anything else. We believe that by giving us the opportunity to check off and make it easier for us to donate to a very important cause that it will actually take a lot of money that is being spent right now, we hope in the future, off the table. So for a lot of the other very important issues that we do need to address that you maybe have a little surplus. So, we ask you today to assist Representative Hudson. Move this bill forward; get it to the floor; get a vote on it this year; help get it to the Senate." CHAIRMAN BUNDE thanked Ms. Robinson for her comments and asked Shari Paul to present her comments. Number 0128 SHARI PAUL, Special Assistant, Alaska Children's Trust, Department of Community & Regional Affairs, testified in support of HB 125. She noted the Friends of the Alaska Children's Trust is completely nonprofit, and as such receives no state funding. Much of their fundraising comes from seeking donations from the various businesses. In addition, they've published a book which is now available in bookstores and the sales go directly to the Alaska Children's Trust. A fundraiser is planned for April in Fairbanks for which support is being sought from different hotels in Fairbanks as well as private businesses. Number 0171 REPRESENTATIVE PORTER observed there had been some confusion about fundraising activities in that people who were asked to donate to Friends to Alaska Children's Trust thought they were donating to the Children's Trust. To the extent that differentiation can be made, he thought it would be helpful. MS. PAUL responded that's being clarified. REPRESENTATIVE FRED DYSON recalled the expenditures for the Alaska Children's Trust were to be on the earnings of the Trust not the principal. MS. PAUL responded that was correct. REPRESENTATIVE DYSON surmised there had been no expenditures from the principal. MS. PAUL responded that was correct, also. Number 0203 CHAIRMAN BUNDE asked about the success of the fundraising efforts by the Friends of the Alaska Trust. He noted the legislature had appropriated $6 million, so he surmised the trust had generated about $1 million from private sources. MS. PAUL indicated that was true, and added that inasmuch as it was the first year, a lot of time was spent getting word out about the Alaska Children's Trust. This being the second year, more time will be devoted to fundraising. Number 0235 CHAIRMAN BUNDE asked what the administrative overhead was for the Children's Trust. MS. PAUL replied that it was mostly her salary and paying some travel expenses for board members. It's actually very minimal; just under $40,000 which includes printing RFPs, printing public notices, postage, et cetera. Number 0275 CHAIRMAN BUNDE asked Ms. Paul to comment on the Christmas tree effect. MS. PAUL echoed Ms. Brice's comments in that children are the state's precious resource who need to grow up healthy and safe in order to become productive members of society. It must start with prevention. Number 0319 CHAIRMAN BUNDE asked if there were any questions for Ms. Paul. Hearing none, he asked Ms. Jones at what point did she think it would no longer be practical to have a checkoff on the PFD application. MS. JONES reiterated the current PFD application contains about as much information as it can and still be read with relative ease. A checkoff would call for a redesign of the application which is reflected in the fiscal note; it also assumes the continuation of a paper-type application. She noted that with the Christmas tree effect, one option would be for the PFD application booklet to become an advertising catalog whereby everyone would buy a page. The division is looking toward the future of information technology whereby the public will be filing applications telephonically, over the Internet, et cetera. Number 0412 REPRESENTATIVE HUDSON said the issue of child abuse and assault could be elevated and highlighted by its inclusion in the PFD booklet because it goes to everyone in the state. It would provide everyone an opportunity to participate in this important issue. Number 0459 CHAIRMAN BUNDE thanked Representative Hudson for his concern and sincerity. Number 0463 REPRESENTATIVE PORTER said, "I would suggest -- I doubt that we could get from Leg Legal the kind of opinion that we'd want as regard to single subject -- single subject being the Children's Trust and not anything else -- that might be stretching it, but I would suggest that we try to create a letter of intent, if that's the proper vehicle or purpose or whatever -- that basically says this committee recognizes the vulnerability of this bill and would ask the rest of the members of the legislature that if they would like to champion a cause to file a bill -- that this is not intended to have anything but a vote on this issue in the Senate and in the House." Number 0505 REPRESENTATIVE BRICE echoed Representative Porter's statement. He offered a technical amendment changing the effective date from January 1, 1998, to January 1, 1999. CHAIRMAN BUNDE asked if there was objection to the technical amendment. Hearing none, it was adopted. CHAIRMAN BUNDE announced that HB 125 would be held in committee and scheduled for another hearing when the letter of intent would be discussed.
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