Legislature(1993 - 1994)
01/28/1994 01:30 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE January 28, 1994 1:30 p.m. TAPE HFC 94-19, Side 1, #000 - end. TAPE HFC 94-19, Side 2, #000 - 494. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:30 P.M. PRESENT Co-Chair Larson Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf Co-Chair MacLean and Representative Hoffman were not present at the meeting. ALSO PRESENT Mike Greany, Director, Legislative Finance Division; Carl L. Rosier, Commissioner, Department of Fish and Game; Kevin Brooks, Director, Division of Administration, Department of Fish and Game; Frank Homan, Commissioner, Commercial Fisheries Entry Commission; Frank Rue, Director, Division of Habitat and Restoration; Margaret Lowe, Commissioner, Department of Health and Social Services; Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services; Kimberly Busch, Director, Division of Medical Assistance; Jan Hansen, Director, Division of Public Assistance, Department of Health and Social Services. SUMMARY INFORMATION AGENCY BUDGET OVERVIEW: DEPARTMENT OF HEALTH AND SOCIAL SERVICES DEPARTMENT OF FISH AND GAME AGENCY BUDGET OVERVIEWS: (*Copies meeting tapes and handouts are on file with the Legislative Finance Division. Contact #465-3795). Log # DISCUSSION DEPARTMENT OF HEALTH AND SOCIAL SERVICES 1 HFC 19-1 Social Services provided members with a written overview of the Department's budget (Attachment 1). She read her remarks to the Committee. She noted that the Department has not included a FY 95 COLA increase for recipients of the Aid to Families with Dependent Children Program. The Department is requesting increases for formula driven programs in the Medical Assistance Division. The Department is also requesting increased funding for the Foster Care Program. Aid to Families with Dependent Children (AFDC) Program has increased. She asked for a break down of new applicants. Department of Health and Social Services noted that 13 percent of new applicants to AFDC have been in the State of Alaska for 1 to 3 months and 18 percent have been in the State for less than one year. She noted that only approximately 50 percent of new applicants are eligible for the program. there were fewer applicants in FY93 than FY92. applications for the AFDC Program. She noted that rural areas have experienced an increase in applicants without a corresponding increase in population growth. She suggested that caseload increases occur as a result of economic distress. increased applications, in Sitka, after the mill closed. She observed that most applicants came from businesses servicing the mill employees. also eligible for medicaid. Assistance discussed medicaid eligibility and claim increases. She noted that client costs are higher for elderly patients than for children. envisioned modifying existing statutes to allow cost control in the medicaid services list. 2 options be reduced. services for medicaid must be reevaluated. He noted that the Legislature may not want to drop the last service added, midwifery, since it may be more cost effective than other services. Assistance Program has operated with supplemental requests. Ms. Busch replied that the program does not generally operate with cost over runs. She noted that the Department has requested a FY95 supplemental as result of litigation settlements. She noted that the Governor and legislative intent have indicated that services should not be dropped off. Hansen reiterated reasons for increased growth in the AFDC Program. She noted that Anchorage, Matsu and Kenai have experienced the greatest growth in applications to the program. She observed that the Unemployed Parent Program has grown in rural areas. their PFD's held harmless. He asked if dividends paid by Native corporations are also held harmless. Ms. Busch noted that under federal law a portion of the dividends paid by Native corporations are exempt from calculations for medical assistance. Program (APA) has an increased enrollment. She added that some new recipients may have moved to the State in order to receive longevity bonus checks. dropped off the AFDC Program than came on to the program. health insurance would reduce welfare recipients. Ms. Hansen agreed that health insurance would impact the welfare system. She noted that questionnaires of clients listed health care for dependents as the primary reason for remaining on AFDC. pursuing cases of fraud. She observed that federal laws allow a pregnant woman to quit a job to go on to 3 welfare. Grussendorf, Ms. Hansen noted that the average AFDC recipient is a single unemployed parent. Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services explained that a technical change of PCN allocations is responsible for the number of new position requests. (Tape Change, HFC 94-19, Side 2) Institute (API). She noted that there has been a funding shift. Harbor View facility. Ms. Clarke discussed the Day Treatment Program for Harbor View. DEPARTMENT OF FISH AND GAME Game presented members with an overview of the Department's FY 95 budget. He noted the importance of the fishery resource to the State of Alaska. achieved efficiencies through reorganization. The Department's divisions have been reduced from nine to six. and wildlife resources as Alaska's second largest revenue source. receives 40 percent of their budget as general fund dollars. He stressed that the FY 95 proposed budget represents a 16 percent reduction in general funds from FY 92. He asserted that further cuts will result in an increase risk to fish and game populations. requesting a $500.0 thousand dollar increment for the Arctic/Yukon/Kuskokwim Chum Salmon Fishery in the Division of Commercial Fisheries Management and Development. The Department is also requesting a $200.0 thousand dollar base adjustment for health insurance coverage. 4 separate Division of Habitat. Commissioner Rosier emphasized the importance of habitat resource management. He observed that there are no endangered fish stocks in the State of Alaska. Frank Rue, Director, Division of Habitat and Restoration, discussed 470 funding. He noted that the Department receives approximately $190.0 thousand dollars from the 470 Fund to review contingency plans. He provided members with a summary of 470 funding within the Department of Fish and Game (copy on file). p.m. 5
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