Legislature(1993 - 1994)

01/28/1994 01:30 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     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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