Legislature(1999 - 2000)

03/29/2000 01:42 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         SB  80-PUB.ASSISTANCE:PROGRAMS/GRANTS/CONTRACTS                                                                    
                                                                                                                                
MR. JIM  NORDLUND, Director of  the Division of  Public Assistance                                                              
in the Department  of Health and Social Services  (DHSS), made the                                                              
following comments about SB 80 on behalf of the Administration.                                                                 
                                                                                                                                
One of the main reasons for the success  of the Welfare Reform Act                                                              
of  1996  is   that  Congress  gave  states  a   great  deal  more                                                              
flexibility  with which  to operate  their welfare  programs.   In                                                              
exchange for  that flexibility, the  federal government  agreed to                                                              
give states a fixed-amount block  grant to operate their programs.                                                              
Since 1996,  states  have been able  to design  programs that  are                                                              
more suited to their local economies  and circumstances.  The 1996                                                              
federal act also  allows the 12 Alaska Native  regional non-profit                                                              
corporations and  the Metlakatla reservation to  operate their own                                                              
welfare programs.                                                                                                               
                                                                                                                                
Alaska's  version   of  welfare   reform,  the  Alaska   Temporary                                                              
Assistance Program  (ATAP), was created  by Alaska statute.   That                                                              
law  allows  DHSS  to coordinate  the  operation  of  its  welfare                                                              
program with those same 13 entities.                                                                                            
                                                                                                                                
To receive the  federal block grant, Alaska must  contribute state                                                              
funds, known  as a maintenance  of effort  (MOE), to  the program.                                                              
The state  currently contributes  approximately 40 percent  of the                                                              
cost of  the overall program.   Current  state law does  not allow                                                              
the state match to go to the Native-operated  programs; SB 80 will                                                              
allow the State to contribute State  funds to the operation of the                                                              
Native programs.  These state monies  are currently being spent on                                                              
Native clients, so instead that money  would be transferred to the                                                              
regional non-profit  organizations.  SB 80 has a  zero fiscal note                                                              
because  it  simply  changes  the entity  that  is  operating  the                                                              
program and does not increase funding for the programs.                                                                         
                                                                                                                                
One  other  provision in  the  federal  act, included  at  Senator                                                              
Murkowski's request, underscores  the need for SB 80 and is unique                                                              
to  Alaska.    It  requires  that  a  Native-operated  program  be                                                              
comparable to  the state's program;  however, if a  Native program                                                              
is operating with approximately 50  percent fewer dollars than the                                                              
State's program,  its program  could not be  comparable.   For all                                                              
practical   purposes,   without    state   funding,   the   Native                                                              
organizations  would be denied  the opportunity  to run  their own                                                              
welfare programs in Alaska.                                                                                                     
                                                                                                                                
The  Tanana  Chiefs  Conference (TCC)  is  currently  operating  a                                                              
welfare program  in the  Fairbanks area.   The only way  the state                                                              
can provide state  funds for the TCC program is if  TCC designed a                                                              
program identical  to the  state's.  TCC  wanted to reduce  client                                                              
benefits by five percent and use  that money to operate a drug and                                                              
alcohol treatment program.   TCC cannot do so  under current state                                                              
law; SB 80 would change that.  SB  80 is a local control bill.  It                                                              
allows a local entity to design and operate its own program.                                                                    
                                                                                                                                
CHAIRMAN MILLER  announced that a  quorum was present  as Senators                                                              
Pearce and Wilken had arrived.                                                                                                  
                                                                                                                                
Number 598                                                                                                                      
                                                                                                                                
SENATOR PEARCE  asked if  the state  will have approval  authority                                                              
over the program changes that differ from the state's program.                                                                  
                                                                                                                                
MR. NORDLUND  said the  bill lays  out some  of the parameters  by                                                              
which DHSS will provide state funding.   One part of the bill is a                                                              
reiteration  of  the  particular  criteria DHSS  and  the  federal                                                              
government  will  use  to  give   non-profits  state  money.    In                                                              
addition, the money would be granted  from DHSS to the Native non-                                                              
profit organizations  so the grants  will be audited  using DHSS's                                                              
auditing procedures.                                                                                                            
                                                                                                                                
SENATOR PEARCE  noted that her concern  is how much a  Native non-                                                              
profit program could differ from a state program.                                                                               
                                                                                                                                
MR. NORDLUND  stated  it is hard  for DHSS  to anticipate  exactly                                                              
what Native organizations  might propose in a plan  so there is no                                                              
bright  line  in terms  of  what  they can  and  can't  do.   That                                                              
question revolves  around the definition  of comparability.   DHSS                                                              
has laid out  some of the things the Native  organizations must do                                                              
to be comparable.  His view is that  a five percent benefit cut is                                                              
not substantial  enough to  make TCC's  program incomparable.   It                                                              
will ultimately  be up to the  U.S. Secretary of Health  and Human                                                              
Services to define whether a program is comparable.                                                                             
                                                                                                                                
Number 805                                                                                                                      
                                                                                                                                
CHAIRMAN  MILLER asked  Mr.  Nordlund  to list  the  names of  the                                                              
Native non-profit  organizations along with Metlakatla  to clarify                                                              
where the  money will be  going.  He  also noted that  although he                                                              
understands the  benefit of creating  regional programs, he  has a                                                              
philosophical problem  with creating  a program for  Native people                                                              
and a program for others since over  the years the legislature has                                                              
tried to  break racial barriers down.   He asked Mr.  Nordlund for                                                              
his view of that issue.                                                                                                         
                                                                                                                                
MR.  NORDLUND  said  that  matter  has  been  dealt  with  in  the                                                              
legislation  itself  because  the  bill  allows  DHSS  to  set  up                                                              
regionally operated  public assistance  programs.  DHSS  could set                                                              
up a  program that is  for all of  the Doyon region,  for example,                                                              
including  Natives and non-Natives  if it  chose to  do so.   That                                                              
provision is in  the bill because the day may come  when DHSS will                                                              
want TCC to operate the program for  all recipients in the region.                                                              
DHSS will  most likely  contract with TCC  fairly soon  to operate                                                              
programs for  all recipients in  small villages because  there may                                                              
be only one non-Native recipient in that village.                                                                               
                                                                                                                                
SENATOR ELTON asked  if a Native resident of a region  will have a                                                              
choice between the Native regional  program and the state program.                                                              
                                                                                                                                
MR. NORDLUND said the simple answer  is "no."  Once DHSS contracts                                                              
out the operation  of the program to a local entity,  then that is                                                              
where the person will go to get services.                                                                                       
                                                                                                                                
CHAIRMAN MILLER asked  which program a member of  the Doyon region                                                              
who lives in Fairbanks would fall under.                                                                                        
MR. NORDLUND  replied a  Native person  living in Fairbanks  would                                                              
fall under TCC's program.                                                                                                       
                                                                                                                                
Number 1107                                                                                                                     
                                                                                                                                
SENATOR ELTON  asked about the  changes in the  proposed committee                                                              
substitute.                                                                                                                     
                                                                                                                                
MR. NORDLUND said  the main change in the committee  substitute is                                                              
that it deals with child support.   SB 80 was introduced last year                                                              
and ran into  a roadblock in terms  of how child support  would be                                                              
distributed to the state or the Native  organization.  DHSS worked                                                              
with  the  Attorney   General's  office  and  the   Child  Support                                                              
Enforcement  Division (CSED) over  the interim  on that  issue and                                                              
determined that  the child support collections should  be assigned                                                              
to the Native organization.  In the  past, the state collected the                                                              
child support payments and gave half  to the federal government as                                                              
a  reimbursement.   The  federal  government  does not  care  what                                                              
happens  with  those  distributions  anymore and  will  allow  the                                                              
Native  organizations  to  keep  all  child  support  collections.                                                              
Because  the state  will be  helping the  Native organizations  to                                                              
fund the  program, the  state will  be reimbursed  from the  child                                                              
support collections  by a reduction  in the amount granted  to the                                                              
Native organization.                                                                                                            
                                                                                                                                
CHAIRMAN  MILLER said  because the  proposed committee  substitute                                                              
was submitted  to staff  at the last  minute he cannot  receive it                                                              
too well.                                                                                                                       
                                                                                                                                
MR.  ELMER LINDSTROM,  Special Assistant  to  the Commissioner  of                                                              
DHSS,  said  he  brought  the document  to  committee  staff  this                                                              
morning,  and the  document reflects  exactly the  version of  the                                                              
bill that  passed out  of the  House HESS  Committee earlier  this                                                              
session.  The  bill was heard in the House Finance  Committee late                                                              
last week and it  was unclear whether it would be  amended by that                                                              
committee.  He  waited until the bill moved from  House Finance to                                                              
bring it to committee staff.  He  apologized for the short notice.                                                              
                                                                                                                                
CHAIRMAN  MILLER  noted  that committee  members  would  have  the                                                              
weekend to look at it.                                                                                                          
                                                                                                                                
MR. DON  SHIRCELL, the Director  of TCC's Family  Service Division                                                              
for the past 16 years, said Alaska's  unique size makes regionally                                                              
designed and  administered temporary assistance  programs logical.                                                              
SB 80 is consistent  with the same rationale from  which state and                                                              
federal welfare  reform emerged.   Programs  closer to  the people                                                              
are  more  responsive,  relevant,  effective  and  efficient  than                                                              
large, centrally-operated  one-size-fits-all programs  planned and                                                              
administered  outside  of  the  community.     This  January,  TCC                                                              
completed its  first year administering  a regional  Native family                                                              
assistance pilot  program.  While it  is still too early  to fully                                                              
assess the  project, some of  the preliminary statistics  indicate                                                              
that TCC is  headed in the right  direction.  In January  of 1999,                                                              
when the state  fully transitioned its program to  TCC, there were                                                              
440 cases.   This January, the  monthly caseload consisted  of 356                                                              
families.   Like the state's  temporary assistance  program, TCC's                                                              
caseload is  the lowest it has  been in three years.   Preliminary                                                              
statistics  also  indicate  that more  Native  families  receiving                                                              
temporary  assistance are  working  for the  checks they  receive.                                                              
Village leaders feel good about that.   Alaska's rural communities                                                              
and  their regional  non-profit corporations  have been  designing                                                              
programs that fit the needs of their  families, and many have also                                                              
been developing local and regional  infrastructures that now rival                                                              
the  state's  capacity to  provide  a  comparable level  of  local                                                              
service delivery, especially in remote  areas.  TCC feels it could                                                              
get more bang for  the buck if it is allowed  to incorporate other                                                              
regional variations within its temporary assistance program.                                                                    
                                                                                                                                
SB 80 would allow Native family assistance  programs the degree of                                                              
flexibility  needed to  do more  with  its program  dollars.   For                                                              
example, the  state's temporary  assistance program  plan includes                                                              
one-stop centers which  offer a wide range of  employment training                                                              
and counseling  services to help people  get off of welfare.   The                                                              
state  has   financed  such   centers  in   a  handful   of  urban                                                              
communities.  Over  the course of the first six months  of the TCC                                                              
pilot  program, it  financed  a community-based  service  delivery                                                              
infrastructure  that includes  community based  offices and  staff                                                              
located in  one-stop centers in each  of the 38  rural communities                                                              
of TCC's service  area.  These were created at  no additional cost                                                              
to the  consolidation  of state and  federal program  funds.   The                                                              
shared  staff and  facilities  were  funded through  the  combined                                                              
resources   of   other   existing   TCC   programs   to   minimize                                                              
administrative costs and maximize  the level of collaboration with                                                              
other support  services needed  by families  seeking to  enter the                                                              
labor  market.    These  small  community  based  service  centers                                                              
service locally  acceptable, culturally appropriate  single points                                                              
of  entry for  families  needing  assistance,  as well  as  single                                                              
points of contact  for employers.  The small size  of the one-stop                                                              
centers  allows for personal  attention  and monitoring to  ensure                                                              
progress.  People work with people and not paper.                                                                               
                                                                                                                                
Under SB 80, the TCC program could  impose the following standards                                                              
not permissible under current Alaska  statute.  All applicants for                                                              
assistance  could be  required to  undergo  alcohol and  substance                                                              
abuse  evaluations.    More importantly,  they'd  be  required  to                                                              
follow  the  recommendations   of  their  evaluation   or  lose  a                                                              
percentage  of their  benefits.   For  those who  comply with  the                                                              
treatment  plan  recommended  within six  months,  their  benefits                                                              
would be  restored and any  percentage withheld would  be returned                                                              
upon successful completion of their  treatment plan.  TCC would be                                                              
able to assertively approach the  problem of alcohol and substance                                                              
abuse  and create  bonus  incentives for  compliance  on the  same                                                              
dollar.                                                                                                                         
                                                                                                                                
TCC  could require  all  parents who  receive  benefits to  attend                                                              
their  children's parent  teacher  conferences  and include  their                                                              
children in  regular health  screenings and immunization  clinics.                                                              
TCC cannot  impose many  sanctions under  current law.   SB  80 is                                                              
about less  government,   local control,  and  more "bang for  the                                                              
buck."                                                                                                                          
                                                                                                                                
Number 1661                                                                                                                     
                                                                                                                                
SENATOR ELTON  said SB 80 presents  a more holistic approach.   He                                                              
asked what  process TCC goes  through to determine  which programs                                                              
it will mandate and what the sanctions will be.                                                                                 
                                                                                                                                
MR. SHIRCELL  replied the TCC engaged  in a planning  exercise for                                                              
about four  years which preceded  the introduction  and submission                                                              
of its  federal welfare  reform plans  to the federal  government.                                                              
During  three TCC  conventions  each  condition  and sanction  was                                                              
hashed out.  TCC  initially did a survey in 1996  to flesh out the                                                              
kinds of  things that tribes  were willing  to do.   The sanctions                                                              
were agreed upon by consensus.                                                                                                  
                                                                                                                                
SENATOR ELTON  asked who  would be in  charge of making  sure that                                                              
public assistance  dollars are not being used  to supplement other                                                              
programs  that  TCC  may  be  offering   -  whether  it  be  anger                                                              
management or alcohol  and drug abuse.  He asked  whether TCC, the                                                              
federal government, or the state government would do that.                                                                      
                                                                                                                                
MR.  SHIRCELL  said  TCC has  contractual  arrangements  with  the                                                              
various federal agencies and with the state divisions.                                                                          
                                                                                                                                
Number 1869                                                                                                                     
                                                                                                                                
MS.  BARBARA MIKLOS,  Director of  the  Child Support  Enforcement                                                              
Division, said Mr. Nordlund described  CSED's role in this process                                                              
very well and that she was available to answer questions.                                                                       
                                                                                                                                
SENATOR  ELTON asked  MS. MIKLOS  if  she was  satisfied with  the                                                              
regime DHSS set up to accomplish the child support requirements.                                                                
                                                                                                                                
MS. MIKLOS said  she was and that it took DHSS  and CSED two years                                                              
to figure out how to resolve the child support issue.                                                                           
                                                                                                                                
CHAIRMAN MILLER asked if the House  version was heard by the House                                                              
Finance Committee.                                                                                                              
                                                                                                                                
MR. NORDLUND said it was.                                                                                                       
                                                                                                                                
CHAIRMAN MILLER announced that he  would bring up SB 80 again next                                                              
week after  committee members  had time to  digest the  changes in                                                              
the  bill.    He  asked  Mr.  Darryl   Hargraves  to  address  the                                                              
committee.                                                                                                                      

Document Name Date/Time Subjects