Legislature(2023 - 2024)BARNES 124

02/13/2023 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:17:01 PM Start
03:17:33 PM Presentation(s): Child Care Overview in Alaska
04:16:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Child Care Overview in Alaska by TELECONFERENCED
Thread, CCPO, Help Me Grow Alaska, and Department
of Health
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 13, 2023                                                                                        
                           3:17 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jesse Sumner, Chair                                                                                              
Representative Justin Ruffridge, Vice Chair                                                                                     
Representative Mike Prax                                                                                                        
Representative Dan Saddler                                                                                                      
Representative Ashley Carrick                                                                                                   
Representative Zack Fields                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Stanley Wright                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S): CHILD CARE OVERVIEW IN ALASKA                                                                                  
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DAN BEUTEL, representing self                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave invited testimony during the                                                                        
presentation, titled "Child Care Overview in Alaska."                                                                           
                                                                                                                                
STEPHANIE BERGLUND, CEO                                                                                                         
thread Alaska                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Gave a PowerPoint, titled "Child Care-                                                                   
Then, Now, Next" during the "Child Care Overview in Alaska"                                                                     
presentation.                                                                                                                   
                                                                                                                                
ELIZABETH SCHULTZ, Community Relations Manager                                                                                  
Help Me Grow Alaska                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-offered  a PowerPoint presentation during                                                             
the  "Child Care  Overview in  Alaska" presentation  to introduce                                                               
Help Me Grow Alaska.                                                                                                            
                                                                                                                                
MARCY ASH, Community Relations Coordinator                                                                                      
Help Me Grow Alaska                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Co-offered  a PowerPoint presentation during                                                             
the  "Child Care  Overview in  Alaska" presentation  to introduce                                                               
Help Me Grow Alaska.                                                                                                            
                                                                                                                                
DEB ETHERIDGE, Director                                                                                                         
Division of Public Assistance                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Gave a  PowerPoint,  titled  "Child  Care                                                             
Program  Overview" during  the "Child  Care  Overview in  Alaska"                                                               
presentation.                                                                                                                   
                                                                                                                                
CHRISTINA HULQUIST, Public Assistance Programs Officer                                                                          
Alaska Department of Education and Early Development                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Answered questions on behalf  of the Alaska                                                             
Department  of   Education  and  Early  Development   during  the                                                               
presentation "Child Care Overview in Alaska."                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:17:01 PM                                                                                                                    
                                                                                                                                
CHAIR JESSE SUMNER  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:17  p.m.    Representatives                                                               
Carrick,  Fields,  Ruffridge,  Prax,   Saddler  and  Sumner  were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
^PRESENTATION(S): CHILD CARE OVERVIEW IN ALASKA                                                                                 
         PRESENTATION(S): CHILD CARE OVERVIEW IN ALASKA                                                                     
                                                                                                                                
[Contains discussion of HB 46.]                                                                                                 
                                                                                                                                
3:17:33 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the only order of  business would be                                                               
a presentation, titled "Child Care Overview in Alaska."                                                                         
                                                                                                                                
3:18:11 PM                                                                                                                    
                                                                                                                                
DAN BEUTEL,  representing self, stated  that he left his  job the                                                               
previous  year due  to his  inability to  find childcare  for his                                                               
three children.  The cost  of childcare outweighed the benefit of                                                               
having a  second income for his  family.  He offered  his opinion                                                               
that it is  unfair for childcare workers to not  be paid more for                                                               
the work that they do.                                                                                                          
                                                                                                                                
3:22:48 PM                                                                                                                    
                                                                                                                                
STEPHANIE BERGLUND,  CEO, thread Alaska, introduced  a PowerPoint                                                               
presentation  titled "Child  Care- Then,  Now, Next,"  [hard copy                                                               
included in the committee packet].                                                                                              
                                                                                                                                
3:23:18 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:23 p.m. to 3:25 p.m.                                                                       
                                                                                                                                
3:25:35 PM                                                                                                                    
                                                                                                                                
MS. BERGLUND  continued to slide  2 and  stated that the  goal of                                                               
thread  Alaska  is  to  promote  childcare  and  early  childhood                                                               
education.   On slide  3, she outlined  the services  provided by                                                               
thread  Alaska,  including  childcare referrals,  training  early                                                               
childcare  educators,   and  providing  childcare   advocacy  and                                                               
research.                                                                                                                       
                                                                                                                                
3:27:46 PM                                                                                                                    
                                                                                                                                
MS. BERGLUND  skipped to  slides 5  and 6  giving an  overview of                                                               
childcare access in  the state of Alaska.   She said that  1 in 5                                                               
working  families   were  inhibited   in  some  way   from  fully                                                               
participating in  the workforce due to  issues finding childcare,                                                               
and 61 percent of Alaska is  considered to be "in crisis" when it                                                               
comes to access  to childcare.  The definition  used to determine                                                               
this is 50 children 5 years of  age or older with no providers or                                                               
few  enough providers  that  the  ratio of  children  in need  of                                                               
childcare to childcare providers is 3:1.                                                                                        
                                                                                                                                
MS. BERGLUND  moved on  to slide  7 and gave  an overview  of the                                                               
issues  with  childcare  affordability.    She  stated  that  the                                                               
average  family  spent  17  percent   of  its  yearly  income  on                                                               
childcare, and  that for  families with 2  or more  children, the                                                               
cost was often greater than their  cost of housing.  Childcare in                                                               
Alaska is more expensive than in-state college tuition.                                                                         
                                                                                                                                
MS.  BERGLUND continued  to  slide 8  and  stated that  childcare                                                               
workers  are  some of  the  lowest  paid  workers in  the  state.                                                               
Although  childcare  providers want  to  pay  higher wages,  they                                                               
cannot  as  the  cost  would   be  pushed  onto  parents,  making                                                               
childcare  unaffordable.   She added  that reduced  working hours                                                               
during  the COVID-19  pandemic caused  childcare  to become  even                                                               
more unaffordable for some families.                                                                                            
                                                                                                                                
3:30:46 PM                                                                                                                    
                                                                                                                                
MS.  BERGLUND skipped  to  slides  11 and  12  and  gave a  brief                                                               
overview  of the  issues currently  facing the  childcare sector.                                                               
In  part because  of the  COVID-19 pandemic,  a fifth  of Alaskan                                                               
childcare  centers  have permanently  closed  and  90 percent  of                                                               
those that are operating are doing  so below their capacity.  She                                                               
added that low wages are  contributing to burnout among childcare                                                               
employees,  furthering  the  staffing  shortages  that  childcare                                                               
centers are already facing.   The lack of sufficient childcare is                                                               
a  contributing  factor to  slowing  economic  growth across  the                                                               
state: 77  percent of  parents across  the U.S.  reported missing                                                               
work due to  issues finding childcare; 36  percent have postponed                                                               
higher education or  training for the same reason;  and 7 percent                                                               
of families  have had a parent  leave their job in  order to stay                                                               
home and care for their children.                                                                                               
                                                                                                                                
MS.  BERGLUND  continued to  slide  13  and  said that  over  $50                                                               
million in  grants have been  distributed to  childcare providers                                                               
for the  purpose of helping  childcare centers remain open.   She                                                               
added that the  federal aid for childcare centers  is nearing its                                                               
sunset date and following that  the challenges faced by childcare                                                               
providers will  continue to grow.   She offered her  opinion that                                                               
public funding for childcare is  necessary to reduce outmigration                                                               
from the state.                                                                                                                 
                                                                                                                                
3:35:20 PM                                                                                                                    
                                                                                                                                
MS. BERGLUND continued  to slides 15 and 16 and  stated that only                                                               
one-third   of  children   are   considered  to   be  ready   for                                                               
kindergarten, and that childcare plays  a role in education.  She                                                               
added that there  is "a lack of respect"  for childcare employees                                                               
that underestimates  their role in preparing  children to succeed                                                               
in  school.   She  added  that  1 in  6  members  of the  state's                                                               
workforce  are   able  to  participate   because  of   access  to                                                               
childcare, earning a cumulative $1.9 billion in wages.                                                                          
                                                                                                                                
3:39:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  commented that  the state of  North Dakota                                                               
is pursuing  wage increases for  childcare workers  to complement                                                               
the increased training they are  receiving, and suggested that it                                                               
is a model that should be considered by Alaska.                                                                                 
                                                                                                                                
3:40:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  what  an  "ideal"  situation  for                                                               
childcare would look  like, and whether the state has  had such a                                                               
situation in the past.                                                                                                          
                                                                                                                                
MS.  BERGLUND answered  that in  her 16  years working  at thread                                                               
Alaska  she had  not met  a  family that  had found  "accessible,                                                               
affordable care that meets their  needs."  She stated that access                                                               
to affordable childcare  has been a challenge  for decades across                                                               
the U.S.   In  response to  a follow-up  question, she  said that                                                               
there are other  places to look to for inspiration  when it comes                                                               
to achieving accessible and affordable childcare.                                                                               
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  Ms.  Berglund  who  she  believes                                                               
should pay for childcare.                                                                                                       
                                                                                                                                
MS. BERGLUND answered that thread  Alaska believes that it is the                                                               
responsibility   of  everyone.     Parents   bear  the   greatest                                                               
responsibility  for  the cost  currently,  but  thread Alaska  is                                                               
looking to businesses and the  government to help reduce the cost                                                               
to parents.   In  response to a  follow-up question,  she defined                                                               
"all of us" to mean all of the people of Alaska.                                                                                
                                                                                                                                
3:44:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CARRICK  noted   that  the   federal  government                                                               
contributes $84  million towards  childcare in Alaska,  while the                                                               
state  contributes  $36 million,  and  asked  whether there  were                                                               
other states where those two figures were closer.                                                                               
                                                                                                                                
MS.  BERGLUND answered  that Alaska  contributes relatively  less                                                               
than most other states towards childcare.                                                                                       
                                                                                                                                
3:45:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked what  size investment the  State would                                                               
need to make in order to "close the gap."                                                                                       
                                                                                                                                
MS. BERGLUND  answered that $30  million more would be  needed to                                                               
solve the problem in the short term.                                                                                            
                                                                                                                                
3:46:38 PM                                                                                                                    
                                                                                                                                
ELIZABETH  SCHULTZ, Community  Relations  Manager,  Help Me  Grow                                                               
Alaska, co-offered a PowerPoint  presentation [hard copy included                                                               
in  the committee  packet],  during the  Child  Care Overview  in                                                               
Alaska presentation, to introduce Help  Me Grow Alaska as a call-                                                               
center that  is a part  of the All Alaska  Pediatric Partnership.                                                               
The organization  talks to families  around the state  about what                                                               
challenges they  face when it  comes to accessing childcare.   On                                                               
slide  2,  she  stated  that  families  are  facing  difficulties                                                               
balancing  the  demands  of  their jobs  with  caring  for  their                                                               
children.                                                                                                                       
                                                                                                                                
3:49:03 PM                                                                                                                    
                                                                                                                                
MARCY ASH, Community Relations Coordinator, Help Me Grow Alaska,                                                                
continued with  the PowerPoint Presentation begun  by Ms. Schultz                                                               
to  slide 3,  and  gave  an overview  of  how  the difficulty  of                                                               
finding childcare affects military families.   She said that many                                                               
military  families  are  single-parent or  dual-income  families,                                                               
with the second parent working outside  of the home or also being                                                               
a member  of the military.   Both of the childcare  facilities on                                                               
Joint Base  Elmendorf Richardson  (JBER) have waiting  lists long                                                               
enough to  cause military families  to have to  consider off-base                                                               
childcare facilities.   She stated  that Alaska is  considered by                                                               
the military to be an  overseas assignment, meaning that military                                                               
dependents that require certain services  must be screened by the                                                               
Exceptional Family  Member Program (EFMP) to  receive a permanent                                                               
change of station  (PCS) in order to ensure that  the new station                                                               
will be  able to provide for  the needs of that  dependent.  This                                                               
results in  some families being unable  "to PCS" to the  state of                                                               
Alaska or  having to be reassigned  away from Alaska if  a sudden                                                               
change  in availability  for care  occurs.   She  added that  the                                                               
Valdez  Coast  Guard  base  is  at risk  of  losing  its  "family                                                               
friendly" designation due  to a lack of childcare  options in the                                                               
community.                                                                                                                      
                                                                                                                                
MS. ASH  continued to slide 4  and stated that lack  of access to                                                               
pulmonary treatment  is a challenge  for military  families going                                                               
to Fairbanks if they have a child  with asthma.  If a family must                                                               
travel  to Anchorage,  Alaska, to  see  a specialist,  it is  not                                                               
considered  to be  available care,  limiting the  people who  may                                                               
receive a PCS  to  Fairbanks, Alaska.   She said that  it is also                                                               
difficult to recruit doctors in  the state because they also have                                                               
issues with finding childcare.                                                                                                  
                                                                                                                                
3:55:04 PM                                                                                                                    
                                                                                                                                
MS. SCHULTZ skipped to slide 6  and stated that there are 3 steps                                                               
that the  Alaska State  Legislature should  take to  mitigate the                                                               
problem of  lack of childcare  access in  the state.   She stated                                                               
that  the legislature  should use  the data  provided by  Help Me                                                               
Grow  Alaska  regarding  the  needs  of  children  and  families,                                                               
establish a  legislative childcare policy workgroup,  and provide                                                               
additional  funding  for the  Head  Start  and Early  Head  Start                                                               
programs.                                                                                                                       
                                                                                                                                
3:58:24 PM                                                                                                                    
                                                                                                                                
DEB ETHERIDGE,  Director, Division  of Public Assistance,  gave a                                                               
presentation  titled "Child  Care  Program  Overview" [hard  copy                                                               
included in the committee packet]  that introduced the Child Care                                                               
Program Office.  On slide 2,  she stated its mission:  to support                                                               
families looking to  access childcare.  She continued  to slide 3                                                               
and gave an  overview of the Child Care  Development Fund (CCDF).                                                               
The fund  is authorized  through the  Child Care  and Development                                                               
Block  Grant  Act and  administered  by  the Child  Care  Program                                                               
Office.   The purpose  of the  fund is  to promote  healthy child                                                               
development  and  school  success, support  working  parents  and                                                               
parents  who  are continuing  their  education,  help low  income                                                               
families pay for childcare, and  provide support to the childcare                                                               
system.                                                                                                                         
                                                                                                                                
MS.  ETHERIDGE  continued  to  slides 4  and  5,  presenting  the                                                               
structure of the Child Care  Program Office.  The office provides                                                               
licensing for childcare  providers, administers subsidy programs,                                                               
and  works  to  improve  the quality  and  capacity  of  Alaska's                                                               
childcare programs.                                                                                                             
                                                                                                                                
4:01:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked what  the Childcare Development Fund                                                               
is and how it is funded.                                                                                                        
                                                                                                                                
MS. ETHERIDGE answered  that it is a block grant  provided to the                                                               
state by the federal government.                                                                                                
                                                                                                                                
4:02:38 PM                                                                                                                    
                                                                                                                                
CHRISTINA  HULQUIST, Public  Assistance Programs  Officer, Alaska                                                               
Department  of Education  and Early  Development, added  that the                                                               
amount  received for  fiscal  year  2023 was  $22  million.   The                                                               
amount  of  money  granted  by   the  federal  government  has  a                                                               
requirement  that the  state matches  the amount  received.   She                                                               
said that 70  percent of the grant must be  used to subsidize the                                                               
cost of childcare for low income families.                                                                                      
                                                                                                                                
4:03:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS commented  that the  Childcare Development                                                               
Fund is not  something that exists in Alaska; instead,  a plan is                                                               
submitted to the federal government  detailing how the state will                                                               
use the federal grants.                                                                                                         
                                                                                                                                
4:03:53 PM                                                                                                                    
                                                                                                                                
MS. ETHERIDGE  continued to slides 6  and 7 and gave  an overview                                                               
of the childcare  licensing and the different  types of childcare                                                               
licenses.   She stated  that the 3  types of  childcare providers                                                               
that the  department issues licenses  are: home  providers, which                                                               
is  a  single childcare  provider  that  cares  for up  to  eight                                                               
children  in a  home; a  childcare group  home, which  requires 2                                                               
providers and  can care for  up to  12 children; and  a childcare                                                               
center  which  cares for  13  or  more  children and  requires  a                                                               
qualified  administrator and  a caretaker  for every  30 children                                                               
enrolled in the  center.  She said that there  are two exceptions                                                               
to needing  a license  for childcare  while benefitting  from the                                                               
Childcare  Assistance Program,  which are  relatives and  in-home                                                               
providers.    Examples  include  a  grandparent  caring  for  the                                                               
grandchild and a provider who goes  into the home of the children                                                               
to care for  them, both of which would still  be required to meet                                                               
the  standards of  the Childcare  Assistance  Program to  benefit                                                               
from it.                                                                                                                        
                                                                                                                                
MS.  ETHERIDGE  moved  to  slide   8  and  gave  an  overview  of                                                               
eligibility  for  the subsidies  and  benefits  of the  Childcare                                                               
Assistance Program.  There are  2,832 children in Alaska enrolled                                                               
in  childcare  services  between  379 licensed  providers  and  9                                                               
approved  providers.    She  said   that  the  grants  cover  the                                                               
subsidies   for   eligible   families,  providers   that   accept                                                               
subsidized  children, and  providers who  care for  children with                                                               
special needs.                                                                                                                  
                                                                                                                                
4:07:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked for  clarification of the difference                                                               
between the approved and licensed providers.                                                                                    
                                                                                                                                
MS. ETHERIDGE  answered that an  approved provider is  a provider                                                               
that  is eligible  for the  Childcare Assistance  Program but  is                                                               
covered by the exceptions for family and in-home providers.                                                                     
                                                                                                                                
4:09:40 PM                                                                                                                    
                                                                                                                                
MS. ETHERIDGE  continued with slide  8 and stated  that childcare                                                               
providers have  multiple ways to  use the grant for  the purposes                                                               
of  improving their  programs.   She said  that Alaska  Inclusive                                                               
Child Care  Program provides grants  to childcare  providers that                                                               
care  for children  with special  needs  in order  to help  those                                                               
providers better care for those needs.                                                                                          
                                                                                                                                
MS. ETHERIDGE  moved to  slide 9 and  stated that  the department                                                               
has a  goal of  improving the quality  and capacity  of childcare                                                               
programs in the state.   This is done through promoting childhood                                                               
development,   supporting  parents   that   are  working   and/or                                                               
continuing education, supporting  childcare employee training and                                                               
professional development, and increasing  education to the public                                                               
on the subject.                                                                                                                 
                                                                                                                                
4:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked if  the number  of providers  given in                                                               
the   presentation  included   those  not   accepting  subsidized                                                               
children.                                                                                                                       
                                                                                                                                
MS. ETHERIDGE answered  that it did.  In response  to a follow-up                                                               
question, she  said that  that number  did not  include providers                                                               
that cared for  four or less children, as those  providers do not                                                               
require licensure.                                                                                                              
                                                                                                                                
MS. HULQUIST added  that the State of Alaska does  not have a way                                                               
of knowing  the number of  children being cared for  by providers                                                               
that do not require licensure.                                                                                                  
                                                                                                                                
4:15:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK asked if the  state currently has an early                                                               
childhood strategic plan,  and if so, who is part  of putting the                                                               
plan together.                                                                                                                  
                                                                                                                                
MS.  ETHERIDGE answered  that there  is a  comprehensive plan  in                                                               
place for early childhood care.                                                                                                 
                                                                                                                                
MS. HULQUIST  added that private  and public  stakeholders across                                                               
the state  participated in putting  the plan  together, including                                                               
state government agencies, parents, and childcare providers.                                                                    
                                                                                                                                
4:16:39 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Committee of Labor and Commerce meeting was adjourned at 4:16                                                                   
p.m.                                                                                                                            

Document Name Date/Time Subjects
DOH DPA CCPO Overview 02.13.23.pdf HL&C 2/13/2023 3:15:00 PM
Legislative Testimony Feb 13 SB.pptx HL&C 2/13/2023 3:15:00 PM
HB 46 Letter of Support.pdf HL&C 2/13/2023 3:15:00 PM
HB 46
A2P2 HMG-AK ECN Testimony on Child Care Needs.pdf HL&C 2/13/2023 3:15:00 PM
HMG-AK Program Director Testimony.pdf HL&C 2/13/2023 3:15:00 PM
House L&C Hearing FEB 13 - Read-Only.pdf HL&C 2/13/2023 3:15:00 PM
AK Childcare Fact Sheet 3.0.pdf HL&C 2/13/2023 3:15:00 PM
L&C February 13 Klouda.pdf HL&C 2/13/2023 3:15:00 PM
HB 46 Supporting Document - UA Center for Economic Development Nolan Klouda.pdf HL&C 2/13/2023 3:15:00 PM
HB 46