04/28/1993 02:55 PM Senate FIN

                                                                               
  CS FOR HOUSE BILL NO. 67(FIN)(efd fld)                                       
                                                                               
       An  Act  relating to  eligibility  for and  payments of                 
       public assistance.                                                      
                                                                               
  Co-chair  Pearce  directed that  CSHB  67 (Fin)(efd  fld) be                 
  brought on for discussion and directed  attention to a draft                 
  SCS  CSHB 67  (Finance)  (8-GH1036\W, Lauterbach,  4/28/93).                 
  Co-chairman Frank MOVED for adoption of  work draft "W."  He                 
  explained  that it  adopts the  House approach  in  terms of                 
  rolling amounts back to the 1992  level rather than the 1991                 
  level proposed  by  the Governor.    It also  removes  House                 
  Finance  language  requiring an  increase  if funding  falls                 
  below  75% of  the poverty  line  for AFDC  and 100%  of the                 
  poverty  line  for  adult  public  assistance.    The  draft                 
  provides  for increases when  the legislature supplies money                 
  specifically for  that purpose.   A July 1,  1993, effective                 
  date was also added.                                                         
                                                                               
  In  response  to an  inquiry  from Senator  Rieger, Co-chair                 
  Frank explained that  the draft contains higher  numbers but                 
  less of a reduction than the  House or the Governor for both                 
  AFDC and public assistance.                                                  
                                                                               
  JAN HANSEN,  Director, Division of  Public Assistance, Dept.                 
  of  Health  and Social  Services,  came before  committee in                 
  response  to  questions raised  by  Senator Kerttula.   Mrs.                 
  Hansen explained that adult public assistance, including the                 
  elderly, the disabled, and the  blind, consists of a federal                 
  core  payment of $447.00  and a state  supplement of $374.00                 
  for a total of  $821.00.  Under the proposed  Senate Finance                 
  bill,  the  state supplement  would  be reduced  to $362.00,                 
  reducing the total  payment to  $809.00--a net reduction  of                 
  $12.00.                                                                      
                                                                               
  SHERRIE  GOLL,   Alaska  Women's  Lobby,  next  came  before                 
  committee.  She noted  the 35 groups and 65  individuals who                 
  previously  testified  in  opposition  to  the  bill  as  it                 
  traveled  through various  committees.   She  stressed  that                 
  while  the  proposed  reduction  might  merely  represent  a                 
  restaurant meal to many  people, to a poor mother  and child                 
  it represents much more.   It represents two weeks  worth of                 
  Pampers for a baby, a bag of groceries, etc.                                 
                                                                               
  Ms. Goll specifically noted changes in COLA that distinguish                 
  the  Senate  bill from  that  proposed  by the  House.   She                 
  acknowledged that the  automatic COLA  is unique to  Alaska.                 
  It is  not,  however, unusual  for states  to adjust  public                 
  assistance payments to cover inflation.   She stressed  that                 
  while the average Alaskan spends approximately 30% of his or                 
  her  income   on  housing.     An   AFDC  household   spends                 
  approximately 70%.   Ms. Goll voiced  a preference for  mere                 
  suspension  of  the  COLA  as  proposed  by  the  Governor's                 
  legislation.   She questioned  how far  into poverty  people                 
                                                                               
                                                                               
  should be allowed to fall  before public assistance payments                 
  are adjusted upward.                                                         
                                                                               
  Co-chair Frank referenced a fiscal note analysis  indicating                 
  that changes  would not become effective until October.  Jan                 
  Hansen explained that  because of  failure of the  effective                 
  date  in  the House,  the  earliest implementation  would be                 
  October 1, 1993.  A revised fiscal note references that date                 
  as well  as associated  additional costs.   The  legislation                 
  would  become  effective  90  days  after signature  by  the                 
  Governor.    While the  90-day  limit  may end  as  early as                 
  September  5,  the  earliest  the  department  could  effect                 
  changes for the entire caseload would be at the beginning of                 
  the next month.                                                              
                                                                               
  End, SFC-93, #69, Side 2                                                     
  Begin, SFC-93, #71, Side 1                                                   
                                                                               
  Senator   Kelly   inquired  concerning   a   definition  for                 
  "dependent child."   CURTIS  LOMAS,  Program Officer,  AFDC,                 
  Division of Public  Assistance, Dept.  of Health and  Social                 
  Services,  came before  committee.  Mr.  Lomas noted  that a                 
  definition currently exists in statutes.   He explained that                 
  "under eighteen" years of age would be removed from statutes                 
  and  "dependent  child"   substituted  therefore  to   cover                 
  eighteen year olds who are still in high school.                             
                                                                               
  In response  to an  additional question  from Senator  Kelly                 
  concerning monetary standards that  may be exceeded  through                 
  regulation, Mrs.  Hansen  explained that  setting  the  need                 
  standard higher than the payment  standard does not increase                 
  the payment to  the client.  It allows a client working at a                 
  low paying job to earn moneys to supplement the AFDC payment                 
  while the individual works his or her way off AFDC.                          
                                                                               
  Mrs.  Hansen subsequently  referenced AS  47.25.410  (3) and                 
  recited the definition for "dependent child."                                
                                                                               
  Co-chairman Frank MOVED that SCS CSHB 67 (Finance) pass from                 
  committee  with  individual recommendations  and appropriate                 
  fiscal notes.  No objection having  been raised, SCS CSHB 67                 
  (Finance) was REPORTED  OUT of  committee.  Co-chairs  Frank                 
  and Pearce and Senators Kelly, Rieger,  and Sharp signed the                 
  committee report with  a "do pass" recommendation.   Senator                 
  Kerttula signed "Do not pass."  Senator Jacko was absent and                 
  did not  sign.   The following  Dept. of  Health and  Social                 
  Services fiscal notes accompanied the bill:                                  
                                                                               
       AFDC                          ($3,914.9)                                
       AFDC                          ( 1,944.4)                                
       AFDC                          ( 2,107.3)                                
       APA                           (   607.7)                                
       APA                           (   973.9)                                
       APA                                0                                    
                                                                               
                                                                               
       PFD                               414.0                                 
       Medicaid Facilities           (   106.8)                                
       Medicain Non-Facilities       (   106.9)