Legislature(2007 - 2008)CAPITOL 106
03/20/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HB135 | |
| HB178 | |
| HB113 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 135 | TELECONFERENCED | |
| *+ | HB 178 | TELECONFERENCED | |
| *+ | HB 113 | TELECONFERENCED | |
| *+ | HB 173 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 135-TUITION FOR CERTAIN CHILDREN 3:03:08 PM CHAIR WILSON announced that the first order of business would be HOUSE BILL NO. 135 "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." 3:05:00 PM ROBERT FOOTE-JONES, Staff to Representative Bill Stoltze, Alaska State Legislature, introduced HB 135 on behalf of the sponsor. Mr. Foote-Jones informed the committee that HB 135 is a companion bill to SB 76, sponsored by Senator Johnny Ellis. The bill will assist children in foster care to attain higher education through the ASPIRE program, which is an acronym for Alaska's youth Succeed when People Invest Resources in Education. This legislation will allow churches, community organizations, nonprofits, businesses, and individuals to establish education savings accounts for children in foster care. The bill authorizes the Office of Children's Services (OCS), Department of Health & Social Services (DHSS), to release necessary information to the Alaska Office of Faith-Based and Community Initiatives (FBCI) in order to open a state sponsored University of Alaska (UA) Section 529, Internal Revenue Service college saving plan in the name of the foster child. MR. FOOTE-JONES explained that the funds can be used for educational or vocational training, in addition to tuition. The beneficiaries of this program will be chosen by OCS for their age and the length of time, over a minimum of two years, that they have been in foster care. Mr. Foote-Jones explained that a foster child is "aged out" of the state's custody at the age of 18, without further support from the state. He pointed out that children in foster care most likely have no chance to further their education. 3:07:42 PM REPRESENTATIVE CISSNA asked whether the sponsor has been in contact with the Annie E. Casey Foundation or the Alaska Court System, which is working on a related program. MR. FOOTE-JONES replied no. 3:08:42 PM REPRESENTATIVE GARDNER stated that this could be a very important program. Reaching the age of 18 does not mean that a child is ready for independence. She asked whether the FBCI or the OCS has issued an opinion on this bill. MR. FOOTE-JONES replied that the FBCI is represented at the hearing. 3:09:41 PM REPRESENTATIVE CISSNA asked whether the savings account could be used at an institution of higher learning other than the University of Alaska. MR. FOOTE-JONES answered that this fund is available for any educational purpose until the beneficiary reaches the age of 30. 3:10:37 PM JIM LYNCH, Associate Vice President, Statewide Administration, University of Alaska (UA), stated his support for HB 135. He noted that the acronym for the program is ASPIRE, and it holds a similar goal as the general UA college savings program for Alaska youth and their families. Mr. Lynch expressed his hope that all Alaska students expect to continue to post secondary education after graduation from high school. He relayed that 50 percent of the children in foster care are from middle income families and many of these children come from families with lower incomes, and where the parents may not have been to college. It allows the student, from an early age, to plan to go to college. Mr. Lynch concluded by pointing out that if the funds are not utilized by one student, the account will be re- directed to another foster child. 3:13:36 PM MICHAEL CURRAN, Program Coordinator, Office of Faith-Based and Community Initiatives (FBCI), Office of the Commissioner, Department of Health & Social Services (DHSS), stated his support for HB 135, paraphrasing from a prepared statement, which read as follows [original punctuation provided]: As a worker for social justice and community building, an ordained priest, and former teacher for over twenty years in the rural, remote, and small communities of Alaska, I am very aware of the challenges that face our youth in out-of-home care. Prior to my position with the Alaska Office of Faith- Based and Community Initiatives I was an Associate Coordinator to the Program Director for the State of Alaska, Head Start program with the Department of Education and Early Development. A great deal of my time was spent doing research concerning the transition of young foster children's care in foster homes and out-of-home care to their lives of self- sufficiency. As a teacher, there were many students in my classrooms that were living in foster care and were about to, or had transitioned to, independent living outside their small communities. In my life as a parish priest I had opportunities in private, congregational and community ministries to pastor families who cared for foster children and also to the foster children who "aged-out" of foster care. My experiences and my research revealed that those youth who did age out of foster care versus their counterparts who were not a part of the foster care system, all faced higher risks and the actual experiences of homelessness, unemployment, financial hardships, diminished physical health, criminal behaviors, psycho-social disorders, suicide and lower achievements in education. Most of these precious children (young adults) want to pursue (ASPIRE to) education beyond high school but the financial roadblocks are too great for them to even begin, let alone complete a higher educational degree. Many studies have shown that nearly 75 percent of these young adults must abandon the idea of pursuing a degree or complete it. This proposed House Bill, HB 135, and its program would effectively address this challenge that these young people face. It is a program that would bring the guiding principal of real community together. It would give the ability and opportunity for individuals, faith-based organizations, businesses, civic groups and other organizations to invest in our most precious commodity, the youth of our State. They are our future. This proposal will enable them to fulfill their dreams and live productive lives. These youth are our future investment who will in turn, fulfill the visions of our great State. 3:18:06 PM REPRESENTATIVE SEATON asked how much of the total budget of $41,000 will be targeted for television advertising. MR. CURRAN responded that the administration of the program will take 25 percent of the time of the existing program coordinator. He stated that $20 per year is estimated for contractual funds to print brochures and support a promotional effort. REPRESENTATIVE SEATON observed that the amount should be $20,000. MR. CURRAN agreed that there must be a misprint. REPRESENTATIVE SEATON again asked whether the television advertising is included. MR. CURRAN said that he did not know. 3:19:48 PM CHAIR WILSON pointed out that the fiscal note indicates $20,000 per year for contractual funds. 3:20:13 PM CHIP WAGONER, Executive Director, Alaska Conference of Catholic Bishops, stated his organization's support for HB 135. He informed the committee that, as an advocate for many children's services, he has testified in support of many state funded programs for the poor. Mr. Wagoner acknowledged that the government can not provide all of the services to the poor that are needed and that this bill will provide an opportunity for individuals, under the obligation of their faith, to support the poor. It is very important, Mr. Wagoner added, to market this program so individuals are aware of the opportunity to participate in supporting educational goals for foster children. 3:22:25 PM MIKE LESMANN, Community Relations Manager, Office of Children's Services (OCS), Department of Health & Social Services (DHSS), stated support for HB 135 on behalf of the department, paraphrasing from a prepared statement, which read as follows [original punctuation provided]: The department supports HB 135 and would like to thank the sponsor for introducing this idea to members of the House. We have worked closely with Senator Ellis and his staff on the language of the Senate's version of this bill. Children that become wards of the State are sometimes not financially prepared to enroll in post-secondary educational opportunities. The ASPIRE program would create the potential for their community to assist them in that endeavor. If you believe that the young are our future, this is important legislation to all Alaskans. 3:23:32 PM CHAIR WILSON asked whether a foster child's Permanent Fund Dividend (PFD) will be deposited to the savings account. MR. LESMANN replied that children in state custody have their PFD directed to a trust fund each year. When the child is emancipated or released to their family, guardian, or adoptive family, the PFD is released to them. He opined that the PFD will not be deposited to the college savings account. 3:24:45 PM REPRESENTATIVE NEUMAN referred to the fiscal note and asked whether the estimated cost is just to keep a central office open. MR. LESMANN opined that one FBCI staff person will be administering the program and the $20,000 will be dedicated to marketing. REPRESENTATIVE NEUMAN asked how many young adults will be affected by this bill. MR. LESMANN answered that approximately 2,100 children are placed in state custody outside of their homes. Of those children, he said, 96 will attain the age of 18 as of 08/01/07. 3:27:05 PM CHAIR WILSON noted that this would be approximately 100 per year. MR. LESMANN affirmed that the number of children in state custody changes daily, but it could be around 100 per year who age-out of the system. 3:27:30 PM REPRESENTATIVE GARDNER asked whether a provision will be made to allow the beneficiary of the program to meet his/her sponsor. MR. LESMANN answered that the bill directs FBCI, OCS, and the Division of Juvenile Justice (DJJ), to administer the program. He opined that this idea has been discussed and will require the agreement of the donor. 3:29:16 PM REPRESENTATIVE SEATON asked whether these savings accounts will be held for children who are adopted, and whether the adoptive parents will have access to the savings. MR. LYNCH responded that a determination on this issue would be made by the director of the department at the time. He advised that the state is the owner of the account. CHAIR WILSON asked whether the details are still fluid because the regulations have not been written. MR. LYNCH replied that the state will be the owner of the account and UA will follow the directions, provided by DHSS, regarding the distribution of the funds. 3:31:41 PM MR. LESMANN added that two possibilities have been envisioned. One is the possibility that the donor will know the recipient. The donor could be a neighbor of the foster parent. Thus, the donor may specify a certain child as the recipient. Another possibility is of a child who is aging out of the state system, who has been achieving academically, and who does not have a sponsor. This child could be identified by the state and become a recipient. He opined that there is not an age or time specified for the release of the savings account. 3:33:49 PM REPRESENTATIVE SEATON called the committee's attention to page 2, lines 19 and 20, of the bill and said that there is no indication that the account is only to be used for educational purposes. He suggested that, as this bill goes forward, it should be made clear that these funds can only be used for education, and the donor should be confident of that purpose. 3:35:38 PM CHAIR WILSON asked whether a group of people could donate to a child, even if the program was not already established. MR. LESMANN told the committee that community members can specify a child as a recipient and donations can be directed to that child. However, information about the child, or donors, can not be disclosed unless HB 135 passes and amends the existing statute. 3:37:03 PM REPRESENTATIVE CISSNA commented that it is important that educational opportunities are made available to children in foster care. She then asked what safeguards have been put in place to ensure that foster children aging out of the system have the educational "pieces" in place to benefit from this type of program. She advised that children in state custody need extra oversight due to unintended consequences that can be brought to bear by foster parents with ill will. Representative Cissna said that, in her experience, foster children are known targets and are vulnerable to abuse by adults. She asked whether the department will be able protect them, and direct the savings accounts to them, simultaneously. 3:40:39 PM MR. LESMANN said that he could not answer that question. REPRESENTATIVE CISSNA stated that her confidence in this bill would be raised if the sponsors consult with the Annie E. Casey Foundation and the judicial system. 3:41:40 PM CHAIR WILSON observed that the money does not go into the hand of a recipient or a foster parent, but directly to the educational institution. 3:42:05 PM REPRESENTATIVE ROSES added that there is also the question of what happens to the money if the recipient does not attend the school. He then called the committee's attention to page 3, line 1 and 2, that defines "out-of-home care" as care at the residence or facility at which a child is placed by the state. Representative Roses clarified that this definition does not include every child attending the residential program at Mt. Edgecumbe High School. MR. LESMANN said, "That is correct." 3:43:20 PM REPRESENTATIVE GARDNER added that a child is not placed at Mt. Edgecumbe, but is accepted or enrolled. She went on to say that marketing the needs of a child may result in many donations for that child. In addition, the needs of a child in a small community may be well known to community members. In those cases, a child may be over sponsored, and others may be eligible but not have sponsors. The distribution of donations should be fair under any circumstances. MR. LESMANN acknowledged that the details of administering the program are not fully established. However, if an individual has an account which is already well endowed, the department will need to inform the donor. 3:45:45 PM REPRESENTATIVE FAIRCLOUGH asked whether there are contribution incentives for the donors. MR. LYNCH replied that if a contribution is properly made it would qualify for a federal tax deduction. 3:46:40 PM REPRESENTATIVE CISSNA observed that many foster children are placed in the Lower 48 with relatives. She asked whether a foster child housed outside of Alaska is considered a resident. MR. LESMANN expressed his understanding that a ward of the state of Alaska remains a resident, even when placed outside of the state. 3:47:53 PM CHAIR WILSON closed public testimony. 3:48:06 PM REPRESENTATIVE SEATON asked that the sponsor ensure that the donations can only be used for educational purposes. [The sponsor indicated his agreement from the gallery.] REPRESENTATIVE CISSNA asked for confirmation that the sponsor will contact the Annie E. Casey Foundation. [The sponsor indicated his agreement from the gallery.] 3:50:17 PM REPRESENTATIVE FAIRCLOUGH moved to adopt CSHB 135, 25-LS0592\C, as the working document. [Although not formally stated, Version C was before the committee.] 3:50:35 PM REPRESENTATIVE GARDNER moved to report CSHB 135, Version C, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 135(HES) was reported out of the House Health, Education and Social Services Standing Committee.
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