Legislature(2015 - 2016)HOUSE FINANCE 519

02/19/2016 01:30 PM House FINANCE

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01:38:45 PM Start
01:41:10 PM Overview of Department of Health and Social Services; Maintenance of Effort and Formula Programs
03:03:20 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overview of Dept. of Health & Social Services; TELECONFERENCED
Maintenance of Effort & Formula Programs
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 19, 2016                                                                                          
                         1:38 p.m.                                                                                              
                                                                                                                                
1:38:45 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Neuman  called the House Finance  Committee meeting                                                                    
to order at 1:38 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mark Neuman, Co-Chair                                                                                            
Representative Steve Thompson, Co-Chair                                                                                         
Representative Dan Saddler, Vice-Chair                                                                                          
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative Lynn Gattis                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Cathy Munoz                                                                                                      
Representative Lance Pruitt                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Scott Kawasaki                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Sana  Efird, Assistant  Commissioner,  Department of  Health                                                                    
and   Social  Services;   Shawnda  O'Brien,   Administrative                                                                    
Operations   Manager,   Division   of   Public   Assistance,                                                                    
Department of  Health and Social Services;  Monica Mitchell,                                                                    
Policy  & Planning  Chief,  Division  of Public  Assistance,                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
OVERVIEW  OF  DEPARTMENT  OF  HEALTH  AND  SOCIAL  SERVICES;                                                                    
MAINTENANCE OF EFFORT AND FORMULA PROGRAMS.                                                                                     
                                                                                                                                
Co-Chair Neuman reviewed the agenda for the day.                                                                                
                                                                                                                                
1:41:10 PM                                                                                                                    
                                                                                                                                
^OVERVIEW  OF  DEPARTMENT  OF HEALTH  AND  SOCIAL  SERVICES;                                                                  
MAINTENANCE OF EFFORT AND FORMULA PROGRAMS                                                                                    
SANA  EFIRD, ASSISTANT  COMMISSIONER,  DEPARTMENT OF  HEALTH                                                                    
AND    SOCIAL    SERVICES,   introduced    the    PowerPoint                                                                    
Presentation:  "Maintenance  of Effort  Presentation"  dated                                                                    
February 19, 2016 (copy on file).                                                                                               
                                                                                                                                
Ms. Efird began with slide 2: "Definitions":                                                                                    
                                                                                                                                
        · Maintenance of Effort (MOE):  A requirement by the                                                                    
          federal government that the state continue                                                                            
          funding certain programs at a specified level.                                                                        
        · Match: State general funds  expended for the state                                                                    
          to receive federal receipts.                                                                                          
        · The  greatest  state  obligation for  MOE  in  the                                                                    
          department is in the Division of Public                                                                               
          Assistance budget.                                                                                                    
             · Temporary Assistance for Needy Families                                                                          
             · Adult Public Assistance                                                                                          
                                                                                                                                
Ms.  Efird indicated  that the  difference  between MOE  and                                                                    
match money was  that a match required the state  to spend a                                                                    
dollar to receive a dollar.                                                                                                     
                                                                                                                                
SHAWNDA   O'BRIEN,    ADMINISTRATIVE   OPERATIONS   MANAGER,                                                                    
DIVISION  OF PUBLIC  ASSISTANCE,  DEPARTMENT  OF HEALTH  AND                                                                    
SOCIAL SERVICES,  turned to  slide 3:  "Temporary Assistance                                                                    
for Needy Families":                                                                                                            
                                                                                                                                
        · The  program was  created under  the  name Aid  to                                                                    
          Families with Dependent Children (AFDC) by the                                                                        
          Social Security Act of 1935                                                                                           
        · Passed by  the 3rd State Legislature  in Alaska in                                                                    
          1964                                                                                                                  
        · Became  Temporary  Assistance for  Needy  Families                                                                    
          (TANF) in 1997                                                                                                        
                                                                                                                                
1:44:53 PM                                                                                                                    
                                                                                                                                
Ms. O'Brien  advanced to slide 4:  "Temporary Assistance for                                                                    
Needy Families":                                                                                                                
                                                                                                                                
        · Each  state  receives  a fixed  annual  amount  of                                                                    
          federal TANF, technically known as the State                                                                          
          Family Assistance Grant (SFAG) but generally                                                                          
          referred to as the TANF block grant.                                                                                  
        · The amount allocated to each state is in                                                                              
          accordance with the 1996 welfare law, based on                                                                        
          the amount of funding each state was receiving in                                                                     
          AFDC and related programs before 1996.                                                                                
                                                                                                                                
Ms. O'Brien explained that the  TANF funding was shared with                                                                    
the Native  Family assistance  programs. In  addition, seven                                                                    
tribal organizations also  received federal funding separate                                                                    
from the state and managed the programs themselves.                                                                             
                                                                                                                                
Ms.  O'Brien pointed  to  the chart  on  slide 5:  "Caseload                                                                    
Summary for  Temporary Assistance  for Needy  Families." She                                                                    
related that the chart contained  caseload history. In 1994,                                                                    
13,209  families  received  TANF   and  the  number  dropped                                                                    
significantly   to  3,170   in  2015;   about  10   thousand                                                                    
caseloads.                                                                                                                      
                                                                                                                                
Ms.  O'Brien scrolled  to slide  6:  "Alaska's FFY2016  TANF                                                                    
Award $63,609.1."  She noted that the  pie chart represented                                                                    
a visual interpretation of how the award was distributed:                                                                       
                                                                                                                                
   · FFY2015 State of Alaska TANF Award$44,607.4                                                                                
   · FFY15 Federal TANF Award to Tribes $19,001.7                                                                               
     29.8%                                                                                                                      
          Awards to Tribes beginning in FFY 1999                                                                                
                                                                                                                                
          -Tanana Chief's Council                                                                                               
          -Association of Village Council Presidents                                                                            
          -Cook Inlet Tribal Council                                                                                            
          -Bristol Bay Native Association                                                                                       
          -Kodiak Area Native Association                                                                                       
          -Maniilaq                                                                                                             
          -Central Council Tlingit Haida Indian Tribes                                                                          
                                                                                                                                
Ms.  O'Brien discussed  slide 7:  "State  of Alaska  FFY2016                                                                    
TANF Award  $44,607.4." She highlighted  the figures  on the                                                                    
pie chart:                                                                                                                      
                                                                                                                                
        · Child Care Block Grant $8,921.5                                                                                       
        · Social Service Block Grant $4,460.7                                                                                   
        · Balance for Program $31,225.2                                                                                         
        ·                                                                                                                       
                                                                                                                                
Ms. O'Brien  turned to  slide 8: "How  Alaska Uses  the TANF                                                                    
Funds":                                                                                                                         
                                                                                                                                
        · Basic Assistance Payment: 46% of total funding                                                                        
             · Benefits to meet a family's ongoing basic                                                                        
               needs    for    food,   clothing,    shelter,                                                                    
               utilities, household goods, etc.                                                                                 
        · Work Efforts 14.5% of total funding                                                                                   
             · Subsidized    employment,    education    and                                                                    
               training,   work  experience   and  community                                                                    
               services,  job  search   and  job  readiness,                                                                    
               transportation supports, etc.                                                                                    
        · Child Care 28.7% of total funding                                                                                     
             · Child care for families that need child care                                                                     
               to work or participate in work activities.                                                                       
        · Other Supports                                                                                                        
             · Domestic violence services, health, mental                                                                       
               health,   substance   abuse  and   disability                                                                    
               services,  housing  counseling services,  and                                                                    
               other family supports.                                                                                           
        · Administrative Cap 15% Cap                                                                                            
                                                                                                                                
Ms.  O'Brien  relayed that  the  spending  cap included  MOE                                                                    
spend  as  well  as  spending  on  federal  dollars.  Alaska                                                                    
historically,  spent below  the  15 percent  cap. The  state                                                                    
spent more than other states on work efforts funding.                                                                           
                                                                                                                                
1:49:42 PM                                                                                                                    
                                                                                                                                
Ms. O'Brien continued to slide 9: "Work Effort Requirements                                                                     
for TANF":                                                                                                                      
                                                                                                                                
        · The TANF program requires a family member to                                                                          
          participate in work activities in order to remain                                                                     
          eligible.                                                                                                             
        · Work Participation rates:                                                                                             
             · Requires states to engage 50% of all                                                                             
               families  and 90%  of two-parent  families in                                                                    
               work activities.                                                                                                 
             · Alaska    has    met    the    "all-families"                                                                    
               participation rate  for all years  since 2002                                                                    
               except 2012.                                                                                                     
                                                                                                                                
Ms. O'Brien explained that the state struggled with meeting                                                                     
the 90 percent participation rate requirement.                                                                                  
                                                                                                                                
1:50:23 PM                                                                                                                    
                                                                                                                                
Ms. O'Brien  discussed slide 10: "Maintenance  of Effort for                                                                    
TANF":                                                                                                                          
                                                                                                                                
     Defined as: "a requirement that  a State spend at least                                                                    
     a  specified   amount  of   State  funds   for  Federal                                                                    
     assistance program purposes."                                                                                              
                                                                                                                                
     45 CFR 263.8                                                                                                               
     A penalty is imposed on  State's for failing to satisfy                                                                    
     the Maintenance of Effort  requirements. The penalty is                                                                    
     equal  to the  amount  of MOE  that is  not  met and  a                                                                    
     reduction to the award in the following fiscal year.                                                                       
                                                                                                                                
Ms.  O'Brien  indicated  that   as  caseloads  declined  the                                                                    
division  was attempting  to find  ways to  satisfy the  MOE                                                                    
requirements  outside   of  GF  and  that   the  effort  was                                                                    
challenging.                                                                                                                    
                                                                                                                                
Ms.  O'Brien advanced  to slide  11:  "Federal Citation  for                                                                    
calculations of Maintenance of Effort":                                                                                         
                                                                                                                                
        · By   federal   regulation    the   minimum   basic                                                                    
          Maintenance   of   Effort    for   the   Temporary                                                                    
          Assistance for Needy Families is 80% of the                                                                           
          State's historic State expenditures.                                                                                  
             · Award to the State is reduced by the amount                                                                      
               awarded to the tribes.                                                                                           
                                                                                                                                
Ms.  O'Brien  discussed  Slide   12:  "Federal  Formula  for                                                                    
Determining Maintenance of Effort."                                                                                             
                                                                                                                                
     Alaska's   Maintenance  of   Effort  is   currently  at                                                                    
     $36,610.2  as per  the following  formula using  80% of                                                                    
     historic  state  spending  as  previously  defined  and                                                                    
     reduced  by  the  percentage that  is  awarded  to  the                                                                    
     Tribes:                                                                                                                    
                                                                                                                                
     $52,205.2 -1994 Historic State Spending                                                                                    
     -$15,595.0 - (29.8276% of $52,205.2)                                                                                     
     $36,610.2 Alaska's MOE Requirement for TANF                                                                                
                                                                                                                                
Ms.  O'Brien scrolled  to slide  13: "Maintenance  of Effort                                                                    
for Medicaid":                                                                                                                  
                                                                                                                                
        · In order to receive federal Medicaid funds,                                                                           
          Alaska must maintain Adult Public Assistance                                                                          
          (APA) expenditures consistent with 20 CFR                                                                             
          416.2099 section (c).                                                                                                 
        · The state may use one of two methods.                                                                                 
                                                                                                                                
Ms.  O'Brien explained  that expenditures  were historically                                                                    
declined as  caseloads lessened. The state  was obligated to                                                                    
continue to  spend the Adult Public Assistance (APA) general                                                                    
funds  in  order to  maintain  the  state's entire  Medicaid                                                                    
program.                                                                                                                        
                                                                                                                                
Ms. O'Brien continued to slide  14: "Medicaid Maintenance of                                                                    
Effort Options":                                                                                                                
                                                                                                                                
        · Method 1: Maintain prior year Adult Public                                                                            
         Assistance spending levels of $60,178.4.                                                                               
        · Method 2: Maintain payment levels at or above                                                                         
          1983 levels.                                                                                                          
        · Currently Alaska is using method 1 because it is                                                                      
          the most cost effective for the state.                                                                                
                                                                                                                                
1:54:44 PM                                                                                                                    
                                                                                                                                
Ms. O'Brien  discussed the  pie chart  on slide  15: "Public                                                                    
Assistance UGF $145,352.5."                                                                                                     
                                                                                                                                
     GF Not used for Matching or MOE $28,822.1 20%                                                                              
     GF Used for TANF MOE $31,974.0 22%                                                                                         
     GF used for APA MOE $59,436.5 41%                                                                                          
     GF used for Matching $25,119.9 17%                                                                                         
                                                                                                                                
     GF by Component used for Maintenance of Effort:                                                                            
    Alaska Temporary Assistance Program -$13,901.0 UGF                                                                          
     Child Care Benefits -$3,544.8 UGF                                                                                          
     Tribal Assistance Programs -$14,278.5 UGF                                                                                  
     Work Services -$249.7 UGF                                                                                                  
     Third Party Contributions for TANF MOE $4,218.1                                                                            
     (Non State)                                                                                                                
     Adult Public Assistance -$59,436.5                                                                                         
                                                                                                                                
Ms.  O'Brien informed  the committee  that the  division was                                                                    
able  to work  with non-profit  organizations to  find third                                                                    
party contributions  to help meet the  MOE requirement under                                                                    
the TANF program.                                                                                                               
                                                                                                                                
Ms. O'Brien turned  to slide 16: "Public  Assistance UGF not                                                                    
used for MOE or Matching $28,822.1:"                                                                                            
                                                                                                                                
        · Senior Benefits Program $20,029.3                                                                                     
        · Administrative Support to State Funded Programs                                                                       
          $5,056.1                                                                                                              
        · Women Infant and Children $391.8                                                                                      
        · Child Care Benefits $2,139.5                                                                                          
        · General Relief $1,205.4                                                                                               
                                                                                                                                
Ms. O'Brien pointed out that  the division's numbers changed                                                                    
slightly  since the  budget overview  due to  adjustments to                                                                    
the governor's amended budget.                                                                                                  
                                                                                                                                
Vice-Chair  Saddler  asked  whether   there  were  only  two                                                                    
programs  that  were  required  to  meet  MOE.  Ms.  O'Brien                                                                    
responded in the negative. She  elucidated that she spoke to                                                                    
the two programs that were residing in the division.                                                                            
                                                                                                                                
Ms.  Efird  explained  that  there were  only  a  few  other                                                                    
programs  in the  Department of  Health and  Social Services                                                                    
(DHSS) that required  a small amount of  MOE. She elaborated                                                                    
that  a small  amount  was required  in Senior  Disabilities                                                                    
Services, and a  piece in the Division  of Behavioral Health                                                                    
for the Behavioral  Health Division for a  federal grant for                                                                    
Substance Abuse  and Mental Health  Services Administration.                                                                    
She explained that the reason  the department focused on the                                                                    
public assistance  division because the programs  were close                                                                    
to not meeting  the TANF MOE. She reiterated  that the total                                                                    
MOE  was over  $36.6 million  and the  department identified                                                                    
roughly $31.2  million of  GF that the  state spent  on MOE.                                                                    
The  department  searched  for   funding  outside  of  state                                                                    
spending  that  was  allowed  under  federal  guidelines  as                                                                    
meeting MOE  requirements. The amount  totaled approximately                                                                    
$4.2 million.  The effort continued and  DHSS was attempting                                                                    
to identify  GF funding  used by  other state  agencies that                                                                    
could qualify as MOE funding.                                                                                                   
                                                                                                                                
1:59:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair Saddler  asked whether it was  difficult to track                                                                    
maintenance of effort spending.  Ms. Efird replied that DHSS                                                                    
was able  to track the  funding via codes in  the accounting                                                                    
system. Ms.  O'Brien explained  that the  department tracked                                                                    
expenditures  on  a  quarterly basis.  The  data  identified                                                                    
actual   expenditures   versus   projected   caseloads   and                                                                    
projected expenditures  based on caseloads  specifically for                                                                    
the  TANF  program. The  division  reported  to the  federal                                                                    
government  on a  quarterly basis.  The division  had fairly                                                                    
good data  that was  provided by  the research  and analysis                                                                    
unit  that helped  monitor the  amount  of expenditure  that                                                                    
should be spent at a given time.                                                                                                
                                                                                                                                
Co-Chair Neuman  cited the department's efforts  to identify                                                                    
funds  from  third parties.  He  mentioned  that the  Alaska                                                                    
Housing   Finance   Corporation   (AHFC)  had   a   homeless                                                                    
assistance program.  He wondered whether the  department had                                                                    
inquired  with  AHFC  to   determine  whether  it's  funding                                                                    
qualified as MOE funding.  Ms. Efird responded affirmatively                                                                    
and noted  that it  appeared positive.  She noted  that DHSS                                                                    
must prove and  meet the qualification that  the funding was                                                                    
used  for TANF  families or  recipients. The  department was                                                                    
currently working  on verifying that the  criterion was met.                                                                    
Co-Chair Neuman asked Ms. Efird  to further explain the AHFC                                                                    
program.  Ms.  Efird explained  that  DHSS  would engage  in                                                                    
follow-up meetings  along with the division's  research unit                                                                    
to ensure  AHFC data  matched federal  government guidelines                                                                    
on  reporting MOE  funding. She  was extremely  certain that                                                                    
the  AHFC  program  was  serving  the  same  population  but                                                                    
emphasized that confirmation was necessary.                                                                                     
                                                                                                                                
Representative  Wilson referred  to slide  6 regarding  TANF                                                                    
awards to  tribes. She asked  whether the  tribal recipients                                                                    
were  also eligible  for TANF  through  the department.  Ms.                                                                    
O'Brien  responded that  the tribal  organization maintained                                                                    
its own  TANF programs. The  program was similar  except for                                                                    
slight  differences  in   its  work  activity  requirements.                                                                    
Representative Wilson  asked whether the native  awards were                                                                    
exclusively  comprised  of   federal  funding.  Ms.  O'Brien                                                                    
responded   in   the  affirmative.   Representative   Wilson                                                                    
referred to slide 8 and  the work efforts. She wondered what                                                                    
the results  were regarding gaining employment.  Ms. O'Brien                                                                    
did  not  have  the  exact figures  but  reported  that  the                                                                    
program  was successful  in "getting  people back  to work."                                                                    
Representative  Wilson   requested  an  accounting   of  the                                                                    
expenditure  for  training and  the  number  of people  that                                                                    
found  work and  left the  TANF program.  She also  inquired                                                                    
what  the dollar  amount  of  the 15  percent  cap was.  Ms.                                                                    
O'Brien  needed   to  provide  the  information   after  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
2:05:48 PM                                                                                                                    
                                                                                                                                
Representative  Wilson asked  what the  actual qualification                                                                    
criteria for the TANF program  was. Ms. O'Brien relayed that                                                                    
she was  not the expert  on eligibility. She  mentioned that                                                                    
the  program handout  contained the  details. Representative                                                                    
Wilson noted that the application  had dollar amounts rather                                                                    
than  percentages.  She was  looking  for  a percentage  and                                                                    
whether   or   not   the   percentage   was   over   federal                                                                    
requirements.                                                                                                                   
                                                                                                                                
2:07:22 PM                                                                                                                    
                                                                                                                                
MONICA  MITCHELL,  POLICY  &  PLANNING  CHIEF,  DIVISION  OF                                                                    
PUBLIC  ASSISTANCE, offered  to provide  the information  to                                                                    
the committee after the meeting.                                                                                                
                                                                                                                                
Representative Wilson asked about  a provision that required                                                                    
the TANF  funding [for recipients]  to end after  five years                                                                    
that provided for many exceptions.  She wondered whether the                                                                    
division had  data regarding the  number of  recipients that                                                                    
received  state  TANF  funds   over  5  years.  Ms.  O'Brien                                                                    
answered that  approximately 148  cases were  receiving TANF                                                                    
funding over 60 months. She  would provide the committee the                                                                    
dollar figures subsequent to the meeting.                                                                                       
                                                                                                                                
In  response to  a  question by  Representative Wilson,  Ms.                                                                    
Mitchell  responded  that  the division  performed  research                                                                    
since   a  prior   meeting  with   the  representative   and                                                                    
discovered that  no cases over  60 months existed  in exempt                                                                    
villages. Representative Wilson  inquired whether the reason                                                                    
was the  recipients were under  the TANF tribal  awards. Ms.                                                                    
Mitchell did not know due to lack of access to tribal data.                                                                     
                                                                                                                                
Co-Chair  Neuman  asked  if  she   could  provide  any  more                                                                    
information   regarding   levels  of   qualifications.   Ms.                                                                    
Mitchell did not remember the dollar amounts from memory.                                                                       
                                                                                                                                
Vice-Chair Saddler  referenced the  148 cases  exceeding the                                                                    
60  month  limit  and  wondered   whether  "the  cases  were                                                                    
exclusive of  exemptions in  villages that  are specifically                                                                    
because of  their economically disadvantaged  villages." Ms.                                                                    
Mitchell  replied  in  the affirmative.  Vice-Chair  Saddler                                                                    
asked  her to  help  members understand  the exempt  village                                                                    
concept from the 60 month  cap and how many people qualified                                                                    
for  the  exemption.  Ms.   Mitchell  explained  there  were                                                                    
several  exempt villages  but she  did not  have the  census                                                                    
information. She recounted  that the villages had  to meet a                                                                    
certain  level of  unemployment and  were located  a certain                                                                    
distance from  other areas with a  specific low unemployment                                                                    
rate to qualify for the exemption.                                                                                              
                                                                                                                                
2:10:53 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Saddler asked  what  the  justification was  for                                                                    
exempting  recipients from  the lifetime  cap. Ms.  Mitchell                                                                    
responded  that the  unemployment rate  was so  high it  was                                                                    
extremely difficult for residents to  find jobs and that the                                                                    
rate was  determined by  the federal  government. Vice-Chair                                                                    
Saddler asked whether there were  villages that exceeded the                                                                    
cap  by  over  two  years.  Ms.  Mitchell  answered  in  the                                                                    
affirmative and  elucidated that  the TANF  manual contained                                                                    
the names of the villages and the length of the exemption.                                                                      
                                                                                                                                
Ms.  Efird  added  that  the information  was  sent  to  the                                                                    
committee.                                                                                                                      
                                                                                                                                
Vice-Chair Saddler  asked whether the department  could find                                                                    
other   third-parties  to   assist   in   meeting  the   MOE                                                                    
requirement.  He  asked   how  additional  assistance  would                                                                    
benefit the  program. Ms. Efird replied  that the department                                                                    
was  engaged  in an  effort  to  identify other  third-party                                                                    
contributions  and had  retained a  contractor to  help. She                                                                    
shared that she  had been with the department  for more than                                                                    
three years and each  year maintaining MOE efforts increased                                                                    
in difficulty. She furthered  that additional MOE assistance                                                                    
in GF from  other agencies would also  enable the department                                                                    
to  access  more  of  the  federal  TANF  grant  money.  The                                                                    
department's  GF MOE  dollars were  required before  federal                                                                    
TANF  funds could  be  accessed,  therefore employing  other                                                                    
agencies GF for  MOE would free up the  departments GF funds                                                                    
for other items.                                                                                                                
                                                                                                                                
2:14:20 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Saddler  asked her  to  repeat  the answer.  Ms.                                                                    
Efird explained that  the state of Alaska had  a $36 million                                                                    
spend that it  had to prove in order to  access the states $                                                                    
44  million   in  TNAF  federal  funds.   Historically,  the                                                                    
department  accomplished   the  MOE   spending  requirements                                                                    
through the  expenditures in the public  assistance funding.                                                                    
She detailed that if the  department could find other agency                                                                    
state spending  that could qualify for  the MOE expenditures                                                                    
DHSS could reduce its MOE  UGF spending and utilized federal                                                                    
funds to  fill the GF  that the  department did not  have to                                                                    
utilize  for MOE.  She exemplified  that if  $10 million  of                                                                    
AHFC  GF  spending qualified  for  MOE  then the  department                                                                    
would  count AHFC  funding to  meet MOE,  reduce the  public                                                                    
assistance UGF funding and backfill it with federal funds.                                                                      
Vice-Chair Saddler asked whether  the result would mean more                                                                    
federal dollars  or would it  mean more flexible in  the use                                                                    
of  existing  federal  funding.  Ms.  Efird  reiterated  her                                                                    
explanation of  how meeting the MOE  requirement worked. She                                                                    
restated that if  the department could meet some  of the MOE                                                                    
requirements  outside  of  the  departments  GF  money,  the                                                                    
department  could access  more of  the TANF  federal funding                                                                    
dollars.                                                                                                                        
                                                                                                                                
Co-Chair  Neuman  wondered  what   kind  of  match  the  MOE                                                                    
required. Ms.  Efird specified that  it was not a  match but                                                                    
rather than  designated MOE requirement of  $36.6 million in                                                                    
state  or other  allowable  funds in  order  to utilize  the                                                                    
total pot of  federal TANF funds that  was awarded. Co-Chair                                                                    
Neuman asked whether  the state had ever not  used the total                                                                    
pot of  money available.  Ms. Efird  responded affirmatively                                                                    
because caseloads were  lessening. Co-Chair Neuman commented                                                                    
that people  considered federal funds the  public's money as                                                                    
well and  perhaps DHSS should  be satisfied with  the amount                                                                    
that was necessary.  Ms. Efird clarified that  the state was                                                                    
at risk of losing the  federal funding and would be required                                                                    
to pay a penalty.                                                                                                               
                                                                                                                                
2:20:02 PM                                                                                                                    
                                                                                                                                
Representative Gara  thought it  sounded like the  state was                                                                    
leaving  a level  of federal  money  on the  table but  also                                                                    
achieving an amount of MOE  and was not receiving a penalty.                                                                    
Ms.  Efird responded  in the  negative.  She clarified  that                                                                    
with  the caseload  dropping the  funding expended  for TANF                                                                    
was  reducing  and  DHSS   was  experiencing  difficulty  in                                                                    
meeting  the   MOE  required  amount  of   GF  dollars.  The                                                                    
department  was   seeking  other  outside   expenditures  to                                                                    
qualify for  MOE GF. The  result would allow DHSS  to expend                                                                    
more federal  TANF dollars and  less in  UGF. Representative                                                                    
Gara wondered whether more federal  funds would be available                                                                    
or  whether  the  state  would  use  them  differently.  Ms.                                                                    
O'Brien explained that  the amount of money  the state spent                                                                    
on the program  in total had decreased. The goal  was to use                                                                    
more federal  dollars as opposed  to state GF.  The required                                                                    
MOE amount did  not change so the state wanted  to enlist GF                                                                    
dollars that were  already being spent on  programs in other                                                                    
agencies that met the TANF requirements for MOE funding.                                                                        
                                                                                                                                
2:23:40 PM                                                                                                                    
                                                                                                                                
Representative  Gara  suggested  that the  state  would  not                                                                    
achieve additional  federal dollars but could  use the money                                                                    
for other programs. Ms. Efird  agreed with the first part of                                                                    
his statement. Representative  Gara reiterated his question.                                                                    
Ms.  Efird responded  that the  number of  caseloads dropped                                                                    
but  the MOE  requirement remained  the same.  She clarified                                                                    
that the department  was spending more GF money  to meet the                                                                    
MOE  requirement  that  was   historically  set  in  federal                                                                    
regulation.  She  related  that  the agency  was  trying  to                                                                    
identify  other  state  agency  GF  expenditures  that  were                                                                    
already  being spent  that would  meet the  MOE requirements                                                                    
and be counted for DHSS which  would allow access to more of                                                                    
the federal TANF money.                                                                                                         
                                                                                                                                
Representative  Gara  asked  about  the  qualifications  for                                                                    
adult  public  assistance.  Ms. Mitchell  replied  that  the                                                                    
resource  limit for  adult public  assistance was  $2000 and                                                                    
the  individual must  be determined  as  disabled by  social                                                                    
security, blindness,  or 65 years  of age. The  income limit                                                                    
was about 98 percent of the federal poverty level.                                                                              
                                                                                                                                
Co-Chair Neuman clarified that the  state had to provide the                                                                    
MOE of $36  million but could be reduced if  the state found                                                                    
other   third-party  funds   or  outside   funds,  but   the                                                                    
department had to  use the $36 million in  state funds first                                                                    
before federal funds could be  accessed. He voiced that DHSS                                                                    
currently  used approximately  $10  million out  of the  $44                                                                    
million  in  federal funding.  Ms.  Efird  responded in  the                                                                    
affirmative.  She  made  and additional  clarification  that                                                                    
money identified  from another agency  to help meet  the MOE                                                                    
requirement could not  meet another type of  MOE required of                                                                    
the other  agency. She stated  that double counting  was not                                                                    
permitted.                                                                                                                      
                                                                                                                                
Representative  Wilson asked  about the  98 percent  poverty                                                                    
level for  adult public assistance  and wondered  whether it                                                                    
was a federal guideline. Ms.  Mitchell answered that APA was                                                                    
a  state  program although  an  MOE  agreement existed  with                                                                    
Social Security.  The agreement required the  state to spend                                                                    
the same  amount of  money as  in the  previous year  or the                                                                    
state lost all of its Medicaid funding.                                                                                         
                                                                                                                                
2:28:44 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked whether other  state exemptions                                                                    
existed beside the  5 year TANF limit in  state statute. Ms.                                                                    
Mitchell   asked  whether   she  was   referring  to   other                                                                    
exemptions  for the  60 month  limit. Representative  Wilson                                                                    
replied in the affirmative.  Ms. Mitchell indicated that the                                                                    
villages were exempt purely based  on the unemployment rate.                                                                    
Recipients  not   residing  in  the  exempt   villages  were                                                                    
exempted via  a disable child,  or a medical  condition that                                                                    
prevented  full time  work. She  furthered  that a  doctor's                                                                    
note was required for  the medical exemption. Representative                                                                    
Wilson asked  about the "hold  harmless" funds  amounting to                                                                    
$15  million  that  were  not  counted  as  income  for  the                                                                    
Permanent  Fund Dividend.  She  wondered  whether the  funds                                                                    
were "tied to  the TANF funds." Ms.  Mitchell responded that                                                                    
hold   harmless  funds   were  mainly   tied  to   the  SNAP                                                                    
(Supplemental  Nutritional  Assistance Program)  food  stamp                                                                    
program. A  waiver through the  Food Nutrition  Service with                                                                    
the state  allowed up to a  four month suspension of  a case                                                                    
if  a recipient  was  over  income. The  state  paid a  hold                                                                    
harmless instead of  the federal food stamp  money. The hold                                                                    
harmless  payments met  a state  statute  that prohibited  a                                                                    
public  assistance recipient  to  be  adversely affected  by                                                                    
receiving  the   Permanent  Fund   Dividend.  Representative                                                                    
Wilson  wondered why  the state  would have  to pay  the $15                                                                    
million in  hold harmless money. Ms.  Mitchell indicated the                                                                    
requirement  was   state  statute.   The  family   would  be                                                                    
adversely affected  by the suspension  of food  stamp money.                                                                    
Representative  Wilson  understood  the  recipient  received                                                                    
more  than  just  food  stamp  hold  harmless  funding.  Ms.                                                                    
Mitchell  explained that  there was  another provision  that                                                                    
replaced a  month suspension in  social security  low income                                                                    
insurance money  due to the dividend.  Representative Wilson                                                                    
requested that  the legislature should look  more closely at                                                                    
hold harmless provisions.                                                                                                       
                                                                                                                                
2:32:45 PM                                                                                                                    
                                                                                                                                
Vice-Chair Saddler asked if the  state could draw more money                                                                    
from the $44  million in federal funds if  it was successful                                                                    
in finding more  third-party or other money for  the MOE. He                                                                    
wondered whether the  state was leaving money  on the table.                                                                    
Ms. Efird responded  in the affirmative. She  added that the                                                                    
state  retained the  money but  was  not able  to spend  it.                                                                    
Vice-Chair Saddler  wondered how  the federal  dollars could                                                                    
be  spent. Ms.  Efird  responded the  funds  could be  spent                                                                    
under TANF  guidelines. Vice-Chair Saddler deduced  that the                                                                    
department's  UGF  funding freed  up  by  outside MOE  money                                                                    
could be  used for  other purposes.  Ms. Efird  responded in                                                                    
the affirmative.                                                                                                                
                                                                                                                                
2:35:00 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg wondered  if the  state would  be                                                                    
able to  maintain its efforts  in the short-term.  Ms. Efird                                                                    
explained  that the  state was  working to  identify outside                                                                    
funding to  maintain the  TANF federal  program at  the same                                                                    
amount. The historic grant of  $44 million was predicated on                                                                    
the  state's  ability  to  maintain  the  $36  million  MOE.                                                                    
Representative  Guttenberg recounted  that  the program  was                                                                    
projected to  be status quo.  Ms. Efird relayed that  he was                                                                    
correct. She  stressed that the  outside assistance  for MOE                                                                    
had to meet the federal requirements.                                                                                           
                                                                                                                                
Representative  Gara  clarified  that DHSS  only  spent  $10                                                                    
million of the $44 million  in federal TANF funds. Ms. Efird                                                                    
responded  in  the  affirmative. Representative  Gara  asked                                                                    
whether $34  million was the  remainder of the  funding. Ms.                                                                    
O'Brien referred  to slide  7 and pointed  to the  amount of                                                                    
$31 million  [$31,225.2.] identified as the  amount spent on                                                                    
program  benefits.  The  $10  million  currently  spent  was                                                                    
deducted  from  the  $31  million.  She  detailed  that  the                                                                    
department  transferred $8.9  million  to  Child Care  Block                                                                    
Grants [$8,921.5]  and roughly $4 million  to Social Service                                                                    
Block  Grant [$4,460.7].  Representative Gara  asked whether                                                                    
the amount  of TANF funds DHSS  was not able to  utilize was                                                                    
$31  million. Ms.  O'Brien answered  that approximately  $20                                                                    
million in federal TANF funds  was carried forward each year                                                                    
and the  balance continued to  either grow or maintain  at a                                                                    
certain level due to caseload decline.                                                                                          
                                                                                                                                
2:40:14 PM                                                                                                                    
                                                                                                                                
Representative Gara  asked how  much of  the $44  million in                                                                    
federal  TNAF  funding  was spent  each  year.  Ms.  O'Brien                                                                    
responded   the    state   spent   roughly    $20   million.                                                                    
Representative  Gara asked  for the  balance of  rolled over                                                                    
funding.   Ms.  O'Brien   replied  that   the  balance   was                                                                    
approximately $63 million.                                                                                                      
                                                                                                                                
Co-Chair Neuman asked whether the  excess federal funds were                                                                    
due to decreased caseloads and  opined that the decrease was                                                                    
"a good thing." Ms. O'Brien replied in the affirmative.                                                                         
                                                                                                                                
Representative Gara  asked whether  the TANF funds  could be                                                                    
spent on  other items.  Ms. Efird  responded that  the money                                                                    
had to meet the federal TANF guidelines.                                                                                        
                                                                                                                                
Co-Chair  Neuman  asked  whether inmates  recently  released                                                                    
were  able to  receive  assistance.  Ms. Mitchell  responded                                                                    
that there  were some prohibitions  depending on  the crimes                                                                    
committed.  She  delineated  that  drug  felonies  committed                                                                    
after 1996  were ineligible for  SNAP benefits and  for TANF                                                                    
benefits  as   well.  Co-Chair  Neuman  asked   whether  the                                                                    
department worked  with the Department of  Corrections (DOC)                                                                    
to  help ex-convicts  that were  eligible for  assistance to                                                                    
attain it.  Ms. Mitchell responded that  DHSS recently began                                                                    
to renew its efforts.                                                                                                           
                                                                                                                                
Co-Chair Neuman asked  Ms. Efird for monthly  updates on the                                                                    
progress of  the efforts. He  reported that  the legislature                                                                    
was  working on  the  issue  for the  last  three years  and                                                                    
wanted better results  than 68 percent of  the 6000 thousand                                                                    
inmates that  qualified for assistance  and did  not receive                                                                    
it. Ms. Efird agreed to supply the information.                                                                                 
                                                                                                                                
2:45:29 PM                                                                                                                    
                                                                                                                                
Co-Chair Neuman  referred to slide  10. He  wondered whether                                                                    
the penalty for failing to  meet the MOE requirements lasted                                                                    
for one  year. Ms. O'Brien  replied in the  affirmative. Co-                                                                    
Chair Neuman asked  whether the MOE would  be adjusted down.                                                                    
Ms. O'Brien  responded in  the negative  and added  that the                                                                    
amount would  remain the same.  She elaborated that  the MOE                                                                    
amount  would  remain  unchanged  but  the  award  would  be                                                                    
reduced.  Co-Chair  Neuman  asked  whether  the  state  ever                                                                    
failed to  meet the  MOE requirement. Ms.  O'Brien responded                                                                    
in the negative.                                                                                                                
                                                                                                                                
Representative  Wilson asked  if both  single men  and woman                                                                    
qualified for  the programs  under discussion.  Ms. Mitchell                                                                    
answered in  the affirmative for APA.  Representative Wilson                                                                    
inquired  whether the  individuals fell  under the  60 month                                                                    
limit. Ms. Mitchell  replied that the 60 month  rule was not                                                                    
applicable   to  APA.   Representative  Wilson   asked  what                                                                    
specific  programs a  single man  or woman  ex-convict would                                                                    
qualify for. Ms. Mitchell responded  that they qualified for                                                                    
food stamps or Medicaid.                                                                                                        
                                                                                                                                
Co-Chair Neuman  interjected that the  individuals qualified                                                                    
for  food  stamps  unless  they were  convicted  of  a  drug                                                                    
offense. Ms. Mitchell concurred with the statement.                                                                             
                                                                                                                                
Vice-Chair  Saddler referred  to  slide 8.  He thought  that                                                                    
about 12  percent of TANF  block grants were used  for other                                                                    
supports such  as substance  abuse and  disability services.                                                                    
He  relayed  that  many  other   social  needs  existed.  He                                                                    
wondered about restrictions  on the use of  TANF funding for                                                                    
use  on   programs  for   substance  abuse   and  disability                                                                    
services.  Ms.  O'Brien  responded   that  as  long  as  the                                                                    
services were covered  under the purposes of  TANF and under                                                                    
the  state plan  other support  programs could  be expanded.                                                                    
Vice-Chair  Saddler asked  whether some  of the  funding for                                                                    
work  efforts  could  be  shifted  to  substance  abuse  and                                                                    
whether the division had any  metrics showing better results                                                                    
if the money was shifted.  Ms. O'Brien thought that the work                                                                    
effort funding was needed to  achieve the participation rate                                                                    
that was federally required.  Vice-Chair Saddler stated that                                                                    
it  was  not possible  to  easily  shift between  the  block                                                                    
grants  due to  requirements. Ms.  O'Brien responded  in the                                                                    
positive. She reiterated that the  participation rate was 50                                                                    
percent  for all  families  and 90  percent  for two  parent                                                                    
families   and  indicated   the  funding   was  needed   for                                                                    
compliance.                                                                                                                     
                                                                                                                                
2:50:30 PM                                                                                                                    
                                                                                                                                
Vice-Chair Saddler deduced that  "a more delicate balance in                                                                    
the commitment of resources"  existed when spending "welfare                                                                    
money" than he was previously  aware of. He referenced slide                                                                    
7. He clarified that the  state was spending $10 million out                                                                    
of  the $31  million  balance. Ms.  O'Brien  replied in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative Guttenberg  cited slide 8 and  mentioned that                                                                    
the  state was  leaving money  on the  table. He  noted that                                                                    
other programs  around the state  had waiting lists  for its                                                                    
services. He asked whether the  state could expand a service                                                                    
and the  funding would  count towards  the MOE.  He inquired                                                                    
whether "the  support for filling  those needs, let's  say a                                                                    
University program,  count towards  those funds  [MOE]." Ms.                                                                    
O'Brien understood  that Representative  Guttenberg wondered                                                                    
whether  the state  could leverage  federal funds  under the                                                                    
TANF program  to benefit  other programs  in the  state. She                                                                    
answered  that it  was possible  if the  funds were  serving                                                                    
recipients   of   the    TANF   population.   Representative                                                                    
Guttenberg   wondered   whether   currently  there   was   a                                                                    
"concerted"  effort with  other  agencies to  figure out  if                                                                    
other  programs qualified  for TANF  funding.  He thought  a                                                                    
coordinated effort should  be in place to  ensure people had                                                                    
services.  Ms. Efird  replied that  there  was currently  "a                                                                    
concerted effort between  agencies to look for  many ways to                                                                    
coordinate and  collaborate on programs." She  revealed that                                                                    
the effort in  the TANF program over the last  two years was                                                                    
to  identify   funding  that  would  qualify   for  the  MOE                                                                    
requirements.  She  emphasized  that   in  other  areas  "an                                                                    
absolute  concerted  effort"  among   all  agencies  was  in                                                                    
progress    attempting   to    identify   shared    services                                                                    
possibilities.                                                                                                                  
                                                                                                                                
2:56:59 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg observed that  on "the native side                                                                    
of the  equation" a number  of services were  available that                                                                    
were not under TANF  because double counting was prohibited.                                                                    
He suggested  using some of  the funds he mentioned  as part                                                                    
of the MOE.                                                                                                                     
                                                                                                                                
Vice-Chair Saddler  asked a  general question  about whether                                                                    
there were other standards or  criteria besides the MOE that                                                                    
created  a  similar  situation. Ms.  Efird  guaranteed  that                                                                    
similar  circumstances  in  other  areas  of  federal  grant                                                                    
awards probably existed.  She remarked that she  was not the                                                                    
expert  on  each  grant and  reported  that  the  department                                                                    
received  220 federal  grants.  Vice-Chair Saddler  inquired                                                                    
whether the  TANF was the  largest federal grant.  Ms. Efird                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Representative Gara asked whether a  father or a mother with                                                                    
a dependent child qualified for  TANF. Ms. Mitchell answered                                                                    
in  the  negative.  Representative  Gara  asked  whether  an                                                                    
individual with  a child in  foster care or  someone leaving                                                                    
prison  with   children  count  as  people   with  dependent                                                                    
children  under TANF  qualifications. Ms.  Mitchell did  not                                                                    
believe  so.  Representative  Gara provided  a  hypothetical                                                                    
scenario  in which  a prisoner  was released  from jail  but                                                                    
parental rights  were not terminated.  He asked  whether the                                                                    
person qualified. Ms. Mitchell  responded that if the parent                                                                    
was not  living with the  child the person did  not qualify.                                                                    
Representative  Gara asked  that  once  reunited and  living                                                                    
with  the  child  the person  would  qualify.  Ms.  Mitchell                                                                    
answered in the affirmative.                                                                                                    
                                                                                                                                
3:01:43 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  interjected  that  if  a  child  was                                                                    
removed from the  home by the Office  of Children's Services                                                                    
(OCS)  all of  the parent's  services were  revoked for  the                                                                    
length of  time the  child was  living under  OCS placement.                                                                    
Ms. Mitchell answered that for  the programs that required a                                                                    
dependent child in  the home she affirmed  that the benefits                                                                    
were revoked.  She could not  speak for other  programs such                                                                    
as housing. Representative Wilson  relayed that parents that                                                                    
have their  children removed  from the  home under  OCS lost                                                                    
all  benefits including  medical and  housing benefits.  She                                                                    
understood concerns about prisoners,  but was more concerned                                                                    
with  families that  lose benefits  under the  circumstances                                                                    
and can only get the  children returned if they have medical                                                                    
and housing benefits.                                                                                                           
                                                                                                                                
3:02:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Thompson  reviewed the  schedule for  the following                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
3:03:20 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:03 p.m.                                                                                          

Document Name Date/Time Subjects
DHSS HFIN MOE Powerpoint SFY2017.pdf HFIN 2/19/2016 1:30:00 PM