Legislature(2007 - 2008)SENATE FINANCE 532
04/16/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Bill and Melinda Gates Foundation: Sound Families Initiative | |
| SB89 | |
| SB69 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 89 | TELECONFERENCED | |
| + | SB 69 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
April 16, 2007
9:10 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:10:53 AM.
PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Joe Thomas
Senator Donny Olson
Also Attending: SENATOR BILL WIELECHOWSKI; DAVID WERTHEIMER,
Senior Program Officer, Pacific Northwest Program, Bill and
Melinda Gates Foundation; JEFF JESSEE, Chief Executive Officer,
The Alaska Mental Health Trust Authority; DWAYNE PEEPLES, Deputy
Commissioner, Department of Corrections; MARIT CARLSON-VAN DORT,
Staff to Senator Lesil McGuire; VANCE SANDERS, President, Alaska
Legal Services Corporation;
Attending via Teleconference: From Fairbanks: ANDY HARRINGTON,
Executive Director, Alaska Legal Services Corporation; From an
offnet location: CHRISTINE PATE, Attorney, Alaska Network on
Domestic Violence and Sexual Assault.
SUMMARY INFORMATION
Presentation: Sound Families Initiative
The Committee heard from the Bill and Melinda Gates Foundation
and The Alaska Mental Health Trust Authority.
SB 89-ELECTRONIC MONITORING OF GANG PROBATIONER
The Committee heard from the sponsor and the Department of
Corrections. A committee substitute was adopted and the bill was
held in Committee.
SB 69-CIVIL LEGAL SERVICES FUND
The Committee heard from the sponsor, Alaska Legal Services
Corporation, the Alaska Network on Domestic Violence and Sexual
Assault, the Alaska Mental Health Trust Authority, and a private
attorney. The bill was held in Committee.
^Bill and Melinda Gates Foundation: Sound Families Initiative
9:12:06 AM
Presentation by the Bill and Melinda Gates Foundation:
Sound Families Initiative
Co-Chair Stedman reminded of a presentation given to the
Committee by the Alaska Mental Health Trust Authority pertaining
to the Alaska Housing Trust and its relationship to the Bill and
Melinda Gates Foundation's Sound Families Initiative. The
Foundation accepted an invitation to address the Committee.
9:13:40 AM
JEFF JESSEE, Chief Executive Officer, The Alaska Mental Health
Trust Authority, introduced Dr. Wertheimer and relayed his
credentials and experiences improving mental health care
services.
9:14:43 AM
DAVID WERTHEIMER, Senior Program Officer, Pacific Northwest
Program, Bill and Melinda Gates Foundation, utilized a
PowerPoint presentation titled, "Sound Families and the
Washington Families Fund, Alaska Legislative Briefing, April 16,
2007" [copy on file]. He first told of a delegation from the
Alaska Mental Health Trust Authority (AMHTA) that traveled to
the state of Washington to meet with Foundation representatives
to learn about its programs.
9:15:25 AM
Page 2
Bill & Melinda Gates Foundation
· Our value: All lives have equal value
· Our goal: Every person gets the opportunity to live a
healthy, productive life
· What we do:
o Help harness advances to benefit people who need
them the most
o Encourage shared responsibility for all
· How we do it:
o Focus on a limited set of problems
o Promote innovative solutions
o Create partnerships with governments, businesses
and non-profits
o Share results and adjust our strategies as we
learn
Mr. Wertheimer outlined this information. He expressed that the
"value" of the Foundation, "which drives everything that we do
and has been a primary driver of our Sound Families initiative,
is that every life no matter where it is, not matter whose it
is, has equal value." Activities to "help harness advances" are
"usually very rigorous and very scientific," whether pertaining
to development of treatment of malaria or family homelessness in
Washington State. These efforts are rooted in science,
economics, and a strategic approach to problem solving.
Mr. Wertheimer stated that partnerships are also important.
Despite the breadth of the Foundation's activities, these
programs could not be accomplished without multiple partners.
The Sound Families Initiatives represents a significant
commitment and partnership from the government sector, the
business sector, the philanthropic sector, and the private non-
profit sector. The scopes of the systems are "so large that no
one system on its own can provide the solution." An integrated
system involving all the different systems "concerned about
homelessness" is necessary to effectively address the issue.
Mr. Wertheimer informed that the Foundation supports studying
its efforts. Much of the information presented would be derived
from "a very detailed evaluation" conducted by the University of
Washington. The results of evaluation are utilized to adjust
efforts as they progress.
9:17:22 AM
Page 3
Foundation Program Areas
· Global Development
o Agricultural Development
o Financial Services for the Poor
o Global Libraries
· Global Health
o Priority Diseases & Conditions
o Breakthrough Science
o Other Initiatives
· United States
o Education
o U.S. Libraries
o Special Initiatives
o Pacific Northwest (limited to Washington State
and the Greater Portland area)
Mr. Wertheimer directed attention to the Pacific Northwest
program areas.
9:17:38 AM
Page 4
The Sound Families Story:
Three Phases
· Launch (2000-2002)
· Going to Scale (2003-2005)
· Learn, Reflect, & Finish (2006-2008)
Mr. Wertheimer indicated the presentation would be divided into
these three phases.
9:17:53 AM
Page 5
Sound Families Origin, cont.
· Gates Foundation approached cities, counties, and
state about entering into a collaborative effort to
address homeless family issues
· $40 million commitment made by Gates Foundation in
July 2000 was a catalyst to alignment of existing
resources and stimulation of new funding streams
· Strong partnerships established with local and
regional governments and housing authorities
· Goals: System change and creation of an unprecedented
number of housing units for homeless families
Mr. Wertheimer reported that the program actually began as an
effort to produce more housing. It was initially a "housing
production investment". However a significant need for
transitional and supportive housing for homeless families was
recognized in the Puget Sound greater metropolitan area of King,
Pierce and Snohomish counties.
Mr. Wertheimer remarked that to create an incentive to encourage
participation of interested parties, the Gates Foundation made
the $40 million donation.
Mr. Wertheimer continued outlining the information on this page.
9:19:03 AM
Page 6
1. Launch Phase
Goals and outcomes established
· System Improvement: leverage and coordinate capital
and service resources for homeless families across
multiple systems
· Organizational Impact: enhance capacity of
developers/service providers to develop and manage
1.500 units of service-enriched housing
· Family Benefit: increase ability of families to obtain
and sustain housing. Improve economic status and well-
being.
Mr. Wertheimer detailed the three impact levels in which change
was desired. In improving systems, the intent was to create a
cohesive system devoted to the issue of addressing family
homelessness rather than multiple groups, agencies,
organizations and providers working separately. In improving the
organizational level, the Foundation intended to strengthen
housing providers and service providers; including housing
authorities, quasi-governmental organizations and private non-
profit housing and service providers.
Mr. Wertheimer stressed "results at the family level" with
families benefiting from the investments made by the public and
private sectors, as likely the most important goal.
9:20:11 AM
Page 7
1. Launch Phase
Solidify Key Partnerships
· Memorandum of Understanding signed with public
jurisdictions
o Tacoma and Pierce County
o Seattle and King County
o Everett and Snohomish County
o State of Washington
· Memorandum of Understanding signed with housing
authorities
o Pierce, King, Snohomish, Everett, Seattle,
Tacoma, and Renton
Mr. Wertheimer explained the Foundation's intent to have formal
relationships with stakeholders. County executives and city
mayors, as well as state officials entered into agreements.
Agreements were also made with local housing authorities.
9:21:23 AM
Page 8
1. Launch Phase
The Sound Families "Incentive"
· Capital and service dollars from the foundation
provide critical leverage and promote alignment and
enhancement of existing funding streams
o Up to $20,000 per unit for capital expenses
o Up to $1,500 per unit per year for services for
five years, committed at the front end
o Capital funds plus five years of guaranteed
service funds lie near the core of the viability
and stability of Sound Families projects
Mr. Wertheimer stated that the Foundation's $40 million
investment was the "catalyst to making some of this happen."
While $1,500 was not sufficient to meet the needs of a family
"recovering from homelessness", it "helped to leverage
commitment of other service dollars that were attached to those
funds to create an adequate resource."
Mr. Wertheimer surmised that the five-year financial commitment
made by the Foundation "lies at the core of the viability of the
program" because "organizations were willing to come to the
table to say 'yes we want to play; we want to apply for these
funds and we'll be able to survive the economic ups and downs of
our communities over the next five years if we know that we have
a committed revenue stream to services.'"
9:22:47 AM
Page 9
1. Launch Phase
Partners deliver key resources
· Capital funders - aligned resource decisions
o Washington State Tax Credit Criteria revised to
prioritize homeless units and to allow set-aside
of transitional as part of larger project
o City, county and state housing trust funds made
substantial investments
o Total other resources leveraged by Gates
Foundation exceeds $175 million to date
Mr. Wertheimer remarked that other stakeholders also made "major
commitments to ensuring the success of the Sound Families
Initiative." The tax credit criteria were revised to "encourage"
applications for tax credits from developers working to create
units for homeless families. The State Housing Trust Fund was
created in 1988, has developed a "good track record", and has
invested a total of approximately $500 million in Washington
State's housing infrastructure for affordable housing. The funds
have been utilized to create approximately 32,000 units of
housing and leveraged an additional $2 billion of federal,
state, local and private funds. The amount leveraged by the
Gates Foundation is anticipated to exceed $200 million at the
conclusion of the program.
9:24:33 AM
Page 10
1. Launch Phase
Partners deliver key resources
· Housing authorities - delivered Section 8
o HUD waiver was secured to allow Section 8
allocation to Sound Families transitional housing
units and either Section 8 voucher or priority
for public housing upon exit
o Overall, PHA's committed 1,200 vouchers - an
exceptional level of project-based Section 8 for
supportive housing
o Section 8 adds revenue of $6-8K per unit per year
Mr. Wertheimer emphasized that housing authorities are critical
partners in the success of the Sound Families Initiative,
particularly with the delivery of Section 8 vouchers. The $6,000
to $8,000 has contributed substantial revenue that the
Initiative could utilize to support operations and some
services. These vouchers were also beneficial in assisting those
families "graduating" from the Sound Families program and moving
into independent housing. The commitment of 1,200 vouchers is a
"remarkable feat" on the part of the housing authorities. The
"project-based" categorization for some of the vouchers allows
for the voucher to be dedicated to the unit as different
families enter the transitional housing process.
9:25:56 AM
Page 11
2. Going to Scale Phase
Partnerships and funding changes
· New partnerships form
o Private housing owners/service providers
o Nonprofit housing owners/service providers
o Housing authorities/service providers
· Initiative evolves as early lessons are learned
o Service Reserves in lieu of Capital
o Advanced Funding Initiative
o Permanent Housing Pilot
Mr. Wertheimer outlined this information. Private housing owners
were "brought to the table" and worked with service providers
for the first time. This guaranteed a revenue stream for both
rent and guarantee of services. Nonprofit housing owners were
able to participate and expand their housing to allow them to
"service more challenging families with more significant
issues." Additionally, housing authorities were enabled to
"provide a richer array of services to offer their tenants."
Mr. Wertheimer noted the realization that a number of projects
did not require capital investment, such as the transition of
existing units into the Sound Families program, and that Service
Reserves could be created for those units. Several "strong
housing developers" approached the Foundation to request "the
upfront first dollar in support for projects that were not yet
completely baked but had very strong potential." Funding was
provided to "help push those projects forward".
9:27:20 AM
Page 12
2. Going to Scale Phase
Evaluation lessons emerge
· 2004 preliminary evaluation findings show Service
enriched housing promotes:
o Housing stability
o Increased economic self-sufficiency
· Public policy makers and advocacy community show
interest in findings
· Sound families findings and legislative interest
combine to create the Washington Families Fund
Mr. Wertheimer stated that by the year 2004, the program was
about three to four years in operation and preliminary
evaluation findings by the University of Washington "were very
promising". Participating families were experiencing a modest
level of wage progression and significant increases in
employment.
9:27:57 AM
Page 13
2. Going to Scale Phase
Washington Families Fund
· Created in 2005 to replicate Sound Families model
statewide
o Authorized by the Washington State Legislature in
2004
o The Fund expands availability of supportive
housing by providing stable long-term funding for
housing-based services across Washington State
o Services funding is committed for up to 10 years
at the front end of the granting process
o Operating costs of projects will be covered by
Section 8 Housing Choice Vouchers or other
sources through local housing authorities and
state rental assistance programs
o State and philanthropic sector commitments
mutually leveraged: Fund may total $12 million by
end of 2007
o Funds and grants are managed through a community-
based intermediary
Mr. Wertheimer reported that as a result of the findings, state
public policy makers and advocates created the Washington
Families Fund. He outlined the information on this page. The
legislature provided an initial investment of approximately $2
million and a secondary investment made last year of an
additional $4 million. The statewide program allows for the
delivery of "service enriched" housing in communities around the
state that apply for the funding. The ten-year commitment of
funding allows those communities experiencing the benefit of
combined housing and services for the first time to make the
investment. Increased state funding is contingent upon a
community match of private funds at a rate of one-to-one.
9:29:14 AM
Page 14
Where We Stand
Sound Families Snapshot in April 2007
· 42 unique Sound Families grantees, 78 separate grants
made, 100 unique projects
· King County: 706 units, $19.6 million
· Pierce County: 251 units, $6.5 million
· Snohomish County: 308 units, $8 million
· Average grant: $812,000
· 94% or 1,188 units funded by Sound Families to date
have included Section 8 awards from our Housing
Authority partners
Mr. Wertheimer listed the number of units and investments made.
9:29:47 AM
Page 15
3. Learn, Reflect & Finish
Evaluation findings
Latest Case Study Findings - January 2007
Methodology:
· Evaluator interviews with families
· One and two years after families leave service-
enriched housing programs
Mr. Wertheimer told of evaluations conducted.
9:30:21 AM
Page 16
Housing Two Years After Exit
Families sustain permanent housing
· 87% in permanent housing
· 8% living with family or friends
· 5% back in transitional housing
· 69% using Section 8
· 22% had moved in the past year
· "I'm pretty much on my own except for Section 8
support."
N=40 families with 2 year post-exit interviews
Mr. Wertheimer overviewed this information.
9:30:56 AM
Page 17
Housing Following Exit
Importance of Rent Assistance
· Median FMR in Washington state is $745/month*
· Six months after exit, families were paying a median
of $172/month for rent
· One year after exit, families were paying a median of
$271/month for rent
*Out of Reach, 2004, NLIHC, based on HUD FMR data
Mr. Wertheimer explained the percentage of fair market value
rents paid by former participants of the Sound Families
Initiative. These figures are not significantly dissimilar to
the situation experienced in Alaska.
9:31:42 AM
Page 18
Changes in Monthly Household Income
Progress still leaves families poor
[Bar graph showing the following:
Upon exit from program:
$1,000-$2,000: 32 percent
Greater than $2,000: 3 percent
1 year post-exit
$1,000-$2,000: 52 percent
Greater than $2,000: 15 percent
2 years post-exit
$1,000-$2,000: 55 percent
Greater than $2,000: 20 percent]
Mr. Wertheimer noted the data on the changes in monthly incomes
for families that had completed the Sound Families program.
9:32:13 AM
Page 19
Income and Employment
Median hourly wage increases
[Bar graph showing the median hourly wage at the time of
intake into the Sound Families program (at last job held)
as $8.40; at the time of exit from the program at $8.50;
six months after exit at $10.00; and one year after exit at
$11.50.]
Mr. Wertheimer outlined the data on wage progression, which
although significant, is not a family self-sufficiency wage
level. Addressing this issue is being considered. The wage
earners in these families are usually single mothers.
9:32:37 AM
Page 20
Changes in TANF Receipt
Decreasing TANF enrollment
[Bar graph showing the percentage decline of families
receiving federal Temporary Assistance for Needy Families
services from approximately 48 percent at the time of
exiting the program, to approximately 31 percent one year
post-exit and approximately 25 percent 2 years post exit.]
Mr. Wertheimer cited these declines as "promising".
9:32:51 AM
Page 21
Level of Social Support
Continues to increase after exit
[Bar graph showing 13 percent of caregivers Before program;
32 percent During program; 55 percent One year post-exit;
and 67 percent Two years post-exit. A notation reads:
Caregivers reporting feeling "very" supported by persons in
their lives.]
Mr. Wertheimer characterized this as one of the most significant
findings, yet one of the hardest to understand. Families are
connecting to support systems. Most families upon entering the
Sound Families program are dependant upon their case manager or
service providers for almost all the support they receive. Many
have "burned bridges" with relatives, have no neighbors and do
not necessarily have friends they could depend upon to provide
or exchange child care, etc. However, over time, these families
create and build social networks in their communities critical
to their recovery and stability. Caregivers in the context of
this graph are usually parents. This finding is also promising.
9:33:56 AM
Page 22
Children and School Stability
Fewer changes in schools
[Line graph showing family's oldest child attending more
than 2 schools in past year averages 20 percent at the time
the family entered the program; approximately 2.5 percent
upon transition from the program and zero percent six
months and one year after exiting the program.
Mr. Wertheimer expressed this as another promising finding. He
commented, "Homelessness really does a number on kids in a
variety of different ways." He explained, "Without a stable home
environment, children have a great deal of difficulty in their
developmental processes and achieving their developmental
milestones in a timely fashion. Those developmental milestones
often are delayed and then follow them all the way through their
school and adolescent lives." Prior to entering the Sound
Families program, homeless families experience a significant
amount of "movement", which often results in "great disruption"
in school attendance. He informed that some children were
attending five or more schools a year. Those children would not
learn much.
Mr. Wertheimer disclosed that parents, or caregivers, of
families transitioned from the program report that their
children were having fewer behavioral problems and are easier to
care for and manage at home. Children are also more involved in
school activities, which allows more time for the caregiver to
"take care of her needs" and to "connect with employment
opportunities."
9:35:42 AM
Page 23
3. Learn, Reflect, and Finish
Lessons learned
· Housing + services are effective in stabilizing
families in housing and improving other life outcomes
"(I was able) to find new personal strengths. I didn't
think I could finish school and could turn things
around…just having a hope that things could get better."
Mr. Wertheimer overviewed this information.
9:35:56 AM
Page 24
3. Learn, Reflect, and Finish
Lessons learned: family level
· Families require varying levels of support to succeed;
some require intensive services
· Few families are able to transition into market rate
housing; families typically continue to need some form
of rent assistance
· Families need access to mainstream services while
living in transitional housing and after moving to
permanent housing
Mr. Wertheimer informed that approximately 20 percent of
participating families do not complete the program and are
either evicted or asked to leave. Upon study of the clinical and
demographic profile, the needs of those families are
significantly higher in areas including addictive disorder,
mental illness, active domestic violence, etc. The Washington
Families Fund is creating a second tier of more intensive
supportive services to address those families "struggling the
most" to remain stable in housing.
Mr. Wertheimer overviewed the remaining bullet points.
9:37:18 AM
Page 25
3. Learn, Reflect, and Finish
Lessons learned: organizational level
· Building and enhancing the capacity of community-based
organizations to provide housing and services is
critical
· Case managers are central to family success
· Integrated, rather than fragmented, models of care are
essential, even when funding is adequate
· Partnerships take awhile to solidify, require a lot of
effort, and require a deep commitment to last
Mr. Wertheimer stressed that the case managers are cited as the
most critical component by families in the first six months to a
year involvement in the program. Additionally, even if funding
is adequate, if programs are fragmented they do little to
benefit the families.
9:38:07 AM
Page 26
3. Learn, Reflect, and Finish
Lessons learned: systems level
· Local responses depend on federal and state policies
related to housing subsidies and entitlements
· Braiding of resources further "upstream" creates
efficiencies for providers
· Housing, service and workforce systems are not yet
well aligned
· More progress is needed to secure and integrate
mainstream funds for housing-based supportive services
· Successful philanthropy collaborations require strong
philanthropic leadership, educating other potential
funders, and building in opportunities for "aligned"
funding
Mr. Wertheimer opined that none of the systems "exist in a
vacuum". He further outlined the bullet points.
9:39:28 AM
Page 27
3. Learn, Reflect, and Finish
Other lessons learned
· Sustainability of intermediary and grantee partners
must be considered from the beginning
· Leadership coordination takes a lot of effort and it
is difficult to incorporate funding to pay for this
type of work
· Reductions/uncertainty in government funding programs
makes private philanthropy nervous
· Shorter term interests of private philanthropy makes
government partners nervous
· Up-front, multi-year commitment of service funding
allows projects to achieve stability over time and
through periods of economic/funding uncertainty
Mr. Wertheimer detailed these additional findings.
9:40:54 AM
Page 28
3. Learn, Reflect, and Finish
On the horizon for Sound Families
· Final funding round of Sound Families funding in 2007
· WFF grows; could reach $12 million by end of 2007
· Working with Sound Families providers to describe and
develop strategies to promote sustainability and
capacity over time
Mr. Wertheimer noted the application deadline to receive grants
under the Sound Families program for 2007 was approaching. The
Foundation was collaborating with the 42 Sound Families
providers to determine future activities.
9:41:17 AM
Page 29
Moving Forward Based On What We Have Learned
· The foundation will examine the most effective
responses to family homelessness, and build any new
strategies utilizing existing knowledge
· Our activities will continue to be focused on
effective partnerships with other key stakeholders,
including the public sector
· Our work in the area of family homelessness will
remain focused in Washington State
· We are committed to sharing with others the lessons we
have learned and the strategies that have worked well
Mr. Wertheimer concluded his presentation by speaking to these
future plans.
9:41:48 AM
Senator Elton asked how easily this program could be replicated
in other regions. The significant funding provided by the
Foundation "got the attention" of government agencies. Without
such "seed money" he asked how other programs could proceed.
9:42:16 AM
Mr. Wertheimer answered that the issue could be a "question of
scale." The Sound Families Initiative was able to accomplish the
largest supportive housing initiative of its type in the
country, in part as a result of the Bill and Melinda Gates
Foundation commitment of resources "up front". The capital
funding provided through the Washington Housing Trust fund was
critical to the success of the program. Multiple opportunities
exist in Alaska through the Alaska Mental Health Trust Authority
to undertake a similar program.
9:43:19 AM
Mr. Jesse furthered speaking to the many opportunities available
in Alaska for "creating this synergy". In the visits to the
Seattle area, Trust representatives were relieved that Alaska
does not have the "huge number of players" involved as exists in
Washington. In Alaska the parties "know everybody that we need
to engage".
Mr. Jesse reported over 70 different organizations support the
creation of the Alaska Housing Trust, including entities in the
banking industry, mortgage industry, construction industry,
housing development, service providers. If Governor Palin signs
a proposed administrative order to dedicate the Council on
Homelessness to provide the overall leadership, efforts to
"advance our cause quite significantly" would be achievable.
9:44:25 AM
Senator Olson asked how long Section 8 funding assistance would
continue for those families transitioned from the Sound Families
program to permanent housing.
9:44:43 AM
Mr. Wertheimer responded that the housing authorities are
committed to maintaining the Section 8 vouchers for those
families as long as needed. The question is how long the
vouchers would be needed.
Mr. Wertheimer stated that a primary focus of the Foundation has
become the issue of providing for families to achieve greater
economic capacity on their own to pay rent, pay taxes and become
participating members of society to an extent they would no
longer be dependant upon a housing subsidy. This would allow for
other families "not as far developed in the pipeline to benefit
from that resource". Accomplishing this would require
collaboration with workforce development partners in determining
what activities would be successful.
Mr. Wertheimer informed that an "interim step" currently under
discussion is the establishment of "shallower housing subsidies"
that would decrease the amount of housing subsidies as a
family's income increased.
9:46:16 AM
Senator Thomas asked how the Foundation convinces potential
partners that this effort is beneficial in ways other than "just
getting people off the street". He asked if it was difficult to
convey that the long term impact of the Sound Families
Initiative is reduced impact on social services and that "up
front" investments would save money in the long term.
9:47:08 AM
Mr. Wertheimer responded that such arguments represent the
"core" of the Initiative. Almost all of the Foundation's
activities are "driven by data and by what the science tells
us". Evaluation of the Sound Families program has determined
that as families "move toward stability in housing", which he
acknowledged "has a price attached to it", utilization of other
publicly funded sectors decreases, including the correction
system, criminal justice "arena", child welfare system, child
protective services, crisis services for emergency medical,
psychiatric and substance abuse, decreases. Emergency medical
room treatment is the most expensive method of health care
delivery.
Mr. Wertheimer reported that examination of this program as well
as studies of other programs indicate that when stable housing
is provided, utilization of the "other very expensive sectors of
service" decreases.
Mr. Wertheimer disclosed that a significant reduction in costs
does not occur. Instead, revenues are "shifted" from
homelessness programs to other sectors and "hopefully creating
healthier families that will become economically more self-
sufficient."
Mr. Wertheimer emphasized the goal of interrupting the multi-
generational cycle of homelessness and crisis "that becomes the
permanent burden on the public sector. A parent who is homeless
is at greater risk of losing custody of her children. Those
children, when they enter the foster care system, "at least in
Washington State are entering a system that over the long term
will more likely result in their being homeless as adults." This
results in a "cost center" in government programs for a
population. The social services cost to "interrupt the cycle of
homelessness" is about the same as the cost of homelessness
itself. The benefit is that the next generation would be "a much
healthier group of young adults who are not going to be as
dependant upon the public sector resources and services as
perhaps their parents and grandparents had been over time."
9:50:17 AM
Senator Huggins commented that a model similar to the Sound
Families Initiative exists in Anchorage and is operated through
the veterans' home. Although the Alaska program is directed
toward individuals rather than families, it includes
transitional housing, substance abuse, job search and placement,
skills training and other components.
9:51:05 AM
Co-Chair Stedman thanked the Bill and Melinda Gates Foundation
for the presentation. The Committee would collaborate with the
Alaska Mental Health Trust Authority to assist Alaskan residents
to "move forward". He anticipated that Mr. Jesse would be
invited to return to the Committee in January 2008 to present
"the next step".
AT EASE 9:51:58 AM / 9:56:06 AM
9:56:13 AM
CS FOR SENATE BILL NO. 89(JUD)
"An Act relating to requiring electronic monitoring as a
special condition of probation for offenders whose offense
was related to a criminal street gang."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman informed that his staff as well as the sponsor
had been preparing a new committee substitute.
9:57:02 AM
Senator Huggins offered a motion to adopt CS SB 89, 25LS0644\L,
as a working document.
[Note: Although the motion was not formally passed no objection
was made and the intent of the Committee was that committee
substitute Version "L" be ADOPTED.]
9:57:35 AM
SENATOR BILL WIELECHOWSKI, Sponsor of the bill, outlined the
changes included in the committee substitute. The title was
changed to reflect the expansion of the program to include
parolees, as initially provided for in the Senate Judiciary
Committee substitute. Language of Version "S" was inserted to
provide for participants to pay a portion of the costs
associated with their monitoring system.
Senator Wielechowski reminded that the Committee had also
requested a "more solid understanding" of the cost of the
program. A revised fiscal note was prepared, which the
Department of Corrections could address.
9:59:29 AM
Co-Chair Stedman deduced the Committee had no questions of the
sponsor. He requested the Department speak to the revised fiscal
note.
10:00:04 AM
DWAYNE PEEPLES, Deputy Commissioner, Department of Corrections,
testified that the original indeterminate fiscal note was
amended at the request of the Committee to provide an estimate
of the costs. However, an error was made in that the figures
listed for FY 08 would not actually be incurred until FY 09. He
explained that little expense is anticipated for FY 08, as the
program would have few participants in its inception. The
Department would apprise both finance committees of any actual
expenses and if unable to absorb those costs in the FY 08
operating budget, a supplemental funding appropriation would be
requested.
Mr. Peeples spoke to the decision rendered in Blakely v.
Washington pertaining to mandatory sentencing guidelines that
prohibited judges from enhancing criminal sentences based on
facts not presented to the jury. He stated that the ruling would
require a second determination in court that the aggravating
factor existed. The Department concluded therefore that few
would participate in the proposed program in FY 08.
Mr. Peeples informed that the Department would submit a
corrected fiscal note in which FY 08 expenditures would be
changed to indeterminate and subsequent expenditures would be
moved "one year out."
AT EASE 10:01:37 AM / 10:02:07 AM
10:02:17 AM
Senator Thomas asked if the forthcoming fiscal note would
reflect "any significant impact" from participant's
contributions toward expenses.
10:02:53 AM
Mr. Peeples replied that the language of the committee
substitute is reflected in the calculations of the fiscal note.
No additional impact is expected.
10:03:14 AM
Co-Chair Stedman announced that although his intent had been to
report this bill from Committee at this meeting, such action
would be delayed until a corrected fiscal note was obtained and
reviewed. He also requested additional detail on the anticipated
revenue and likelihood of collection from parolees and
probationers ordered to pay a portion of the cost.
10:04:23 AM
Mr. Peeples apologized for the error in the revised fiscal note.
10:04:38 AM
Co-Chair Stedman accepted the apology. He established that no
other testimony was forthcoming.
10:05:01 AM
Co-Chair Stedman ordered the bill HELD in Committee.
10:05:23 AM
SENATE BILL NO. 69
"An Act relating to the creation of a civil legal services
fund."
This was the first hearing for this bill in the Senate Finance
Committee.
10:05:35 AM
MARIT CARLSON-VAN DORT, Staff to Senator Lesil McGuire,
presented the bill, listing "talking points" into the record as
follows.
· SB 69 is designed to provide a financial mechanism
whereby the legislature may make appropriations to
organizations that provide civil legal services to
low-income Alaskans.
· SB 69 would create a civil legal services account
funded by provisions required under AS 09.17.020(j), a
section of Alaska law requiring 50% of all punitive
damage awards be given to the state and deposited into
the general fund.
· SB 69 logically calls for the funds needed to assist
the disadvantaged in civil legal matters flow out of
the civil legal system itself.
· These low-income Alaskans can unduly strain and make
inefficient the court system. Often self-represented
litigants find themselves unable to effectively
represent their interests. This pro-Senator Elton
representation costs the system time and money,
placing additional burdens on the legal system.
· Necessary efficiencies are achieved throughout the
entire process by working these cases through a non-
profit entity such as the Alaska Legal Services
Corporation.
· ASLC was founded in 1966 and handles cases involving
family law issues, landlord/tenant, public
entitlements, health, probate and consumer issues.
· SB 69 identifies an ongoing source of funding designed
to aid the ASLC in its efforts to provide civil legal
assistance to low-income Alaskans.
· SB 69 does not create a mandatory expenditure. Each
legislature possesses an option to appropriate these
monies to a civil legal services fund.
10:07:47 AM
Co-Chair Stedman announced intent that this bill would not be
reported from Committee at this meeting, but rather public
testimony would be taken and the Committee would review the
legislation.
10:08:26 AM
Co-Chair Hoffman asked if a similar program exists in other
states.
10:08:44 AM
Ms. Carlson-Van Dort could not speak to the programs of other
states but indicated she would research the matter.
10:08:57 AM
Senator Olson asked for a comparison of the current general
budget of the Alaska Legal Services Corporation (ALSC) to that
at the agency's inception in 1966.
10:09:07 AM
Ms. Carlson-Van Dort answered that the budget has decreased from
the budget at the agency's formation.
10:09:15 AM
Senator Huggins asked the amount of civil damages awarded over
the past several years.
10:09:44 AM
VANCE SANDERS, President, and former Staff Attorney and
Supervising Attorney, Alaska Legal Services Corporation,
testified that Mr. Harrington could provide figures of amounts
collected by the State in civil damages.
10:10:43 AM
Ms. Carlson-Van Dort informed that a spreadsheet was included in
the supporting documentation for this bill provided to Members.
10:10:52 AM
Mr. Sanders understood that less than $600,000 was collected
over the last three fiscal years. He had expected the Alaska
Court System to provide exact figures.
10:11:13 AM
Co-Chair Stedman shared that the aforementioned spreadsheet was
included in a memorandum addressed to Representative Jay Ramras
from the Department of Law dated January 22, 2007 [copy on
file.]
AT EASE 10:11:43 AM / 10:12:13 AM
10:12:44 AM
Mr. Sanders stated that his knowledge of the ALSC budget dates
to 1984. In that year the agency's budget was approximately $3.5
million and included $1.2 million appropriated by the
legislature. During that period, the ALSC had offices located in
Nome, Kotzebue, Dillingham, Kodiak, Juneau, Ketchikan,
Anchorage, Fairbanks, and Barrow.
Mr. Sanders reminded that the agency received no State funding
for FY 07. Although federal funding had been "relatively
constant", U.S. Senator Ted Stevens has warned that funds
received for "Native allotment work" would likely no longer be
available and therefore the agency would experience a decrease
in federal funding.
Mr. Sanders advised that the concept to utilize revenues
generated from punitive damages was suggested by the Alaska
Court System in a study it conducted on equal access to justice.
The Alaska Court System decided against including civil legal
services funding in its budget and offered this option.
Mr. Sanders spoke of the "serious funding issue" of the ALSC.
The offices located in Kodiak and Barrow had been closed, and
although the Nome office had been recently reopened after being
closed, future operation of that location was uncertain.
Mr. Sanders communicated efforts undertaken by the ALSC to
secure funding from private attorneys in the State. Donations
had been received and a "gifting program" was established.
Approximately $300,000 had been raised for the purpose of
creating a foundation with the intent that the agency would
eventually become self-sufficient.
10:15:01 AM
Senator Olson asked if the ALSC primarily represented plaintiffs
or defendants.
Mr. Sanders answered that the parties represented varies, with
the constant being "poor people". In some cases these are
plaintiffs and in others they are defendants. Approximately one-
third of the cases pertain to domestic relations, with
approximately two-thirds of those cases involving victims of
domestic violence.
10:15:30 AM
Senator Olson pointed out one case listed in the documentation
involving a business and asked if the ALSC represented that
party.
Mr. Sanders clarified that the list of cases Senator Olson
referenced was cases in which punitive awards were obtained. The
ALSC "would never be involved in a case where punitive damages
were awarded."
10:15:56 AM
Senator Huggins directed attention to the aforementioned
spreadsheet detailing punitive damage awards made in the years
2005 through 2007. Determining the actual amount of the awards
was difficult given the notation of "minus attorney fees".
10:16:15 AM
Ms. Carlson-Van Dort did not have a cumulative total, but noted
the spreadsheet is intended to demonstrate the "variability in
the punitive damage awards" and relay the difficulty in
collecting the monies.
10:16:32 AM
Senator Huggins assumed that funds could be allocated to the
ALSC directly from the general fund since such appropriations
would not be limited to a funding source. Because the collection
of punitive damages was not "lucrative", the zero fiscal note
was inaccurate and that a "debit from the general fund" would
occur.
10:17:30 AM
Ms. Carlson-Van Dort corrected that this legislation would
provide "an additional avenue to gain funds in the event that
the general funds were unavailable." She reiterated that the
ALSC had received no general funds in the last several years.
10:17:50 AM
Senator Huggins reposed his assertion that punitive damage
awards "does not appear to be a very robust source to gain money
from."
10:18:14 AM
Mr. Sanders characterized punitive awards as a "windfall to the
State". However, such judgments were "pretty rare" with a
cumulative total of $586,000 awarded by juries in Alaska.
10:18:54 AM
ANDY HARRINGTON, Executive Director, Alaska Legal Services
Corporation, testified via teleconference from Fairbanks that
during calendar year 2004 the State received $167,000 in
punitive damages, $300,000 in 2005, and $333.00 in 2006. This
demonstrates that the amount received by the State from this
source "are a bit of a roller coaster ride." However, "all of
these numbers are greater than zero," the amount received by the
ALSC from the State for the past few years. For this reason he
was appreciative of Senator McGuire for sponsoring the bill.
10:20:39 AM
Mr. Harrington gave examples of a commercial fisherman not paid
for fish delivered to a large seafood producer headquartered in
another state; a patient traveling out of state for emergency
medical treatment whose Medicare and Social Security disability
claims are denied; and a young family locked out of their
apartment. Similar situations are experienced by many Alaskans
but are especially difficult for the poor. The ASLC attempts to
assist these people.
Mr. Harrington spoke to efforts to establish offices in
additional communities in which population increases and other
factors have created a need for services.
10:25:00 AM
CHRISTINE PATE, Attorney, Alaska Network on Domestic Violence
and Sexual Assault, testified via teleconference from an offnet
location in Sitka and characterized this bill as "a critical
piece of legislation in helping to end the cycle of violence in
the lives of many Alaskans." She told of a study conducted by
two economists that found that legal services are "the most
effective means of ending the violence in the victims' lives." A
victim deciding to leave her batterer for immediate safety is
"just the beginning of her journey for safety for her and her
children." To maintain safety, several resources are necessary
and include economic help to support her family from child
support or spousal support, a protection order to maintain
physical safety, a custody order granting custody of her
children, and permanent housing. Only an attorney could assist
in securing all these elements.
Ms. Pate identified the insufficient number of attorneys
providing these legal services. The Network, comprised of a
coalition of the domestic violence shelters located in Alaska,
has repeatedly surveyed its legal advocates, which report that
"civil legal representation is one of the most important things
and the highest priority they see as an ongoing need for their
clients."
Ms. Pate daily administered a volunteer attorney program for
those entering the domestic violence shelter. This is a separate
program from that operated by the Alaska Legal Services
Corporation. Many attorneys accept one or more cases per year,
donating up to 100 hours per case. In the past seven or eight
years the program has been in existence, approximately $2
million in legal services has been donated to the Network.
Despite these efforts, almost one-half of those in need of legal
assistance could not receive services due to lack of adequate
funding.
Ms. Pate told of the consequences to a victim of domestic
violence who is unable to secure legal representation, including
losing custody of children, not being awarded child support or
spousal support, and denial of a protection order. In this
event, some victims return to the abuser uncertain if "they
could not make it on their own."
Ms. Pate reported that the Alaska Court System informed her that
70 percent of those "going to court in family law proceedings"
were pro se. Many of those "are people who have domestic
violence and sexual assault issues in their lives." Therefore,
the Alaska Legal Services Corporation must have the resources to
provide services to "the most needy Alaskans".
10:28:52 AM
ALLEN BAILEY, Family Lawyer, testified via teleconference from
Anchorage that he serves as an advocate for victims of domestic
violence, in civil legal proceedings. He listed his positions
and memberships in professional and service organizations,
including the Alaska Bar Association (ABA), Commission on
Domestic Violence; Chair, ABA Family Law Section; and Co-chair
of a joint workgroup between the ABA and the American
Psychological Association on abuse issues.
Mr. Bailey read from the report conducted by the economists as
referenced by Ms. Pate. The report said, in part, "The
availability of legal services has a significant negative effect
on the incidence of abuse." Additionally it found, "The
continued expansion of the availability of civil legal services
will likely continue to lower of incidence of intimate partner
abuse in the future." This research was conducted to identify
the reasons that domestic violence has declined in the United
States over the past several years. He qualified,
"Unfortunately, Alaska has the distinction of having the highest
rate of rape in the United States and one of the top five rates
of domestic violence."
Mr. Bailey stressed that victims of domestic violence must have
legal assistance necessary to "get to safe places, to achieve
safety for their children, their families, and to obtain support
for the future." He averred, "The first step is to get out of
the abusive home and, for many people, the second step is simply
not there; they have no help." This legislation would "at least
contribute a small amount" towards rectifying this.
10:32:20 AM
JEFF JESSEE, Chief Executive Officer, The Alaska Mental Health
Trust Authority, testified as follows.
I came to Alaska in 1980 as a Vista Volunteer and worked
part time for Alaska Legal Services and part time for, what
now is, the Disability Law Center. I thought it would be
helpful for the Committee to know that for many of the
Mental Health Trust beneficiaries, access to civil legal
help is really very essential to their well being. They are
uniquely unable to actually do any of this work on their
own.
I'll give you a couple of examples. Mr. Harrington referred
to Social Security disability. That's huge for many of our
beneficiaries, not only because of being eligible for the
SSI payment, but that's the gateway to Medicaid. If you're
unable to get SSI eligibility and you don't have Medicaid,
then you end up in the emergency room to get your care.
That's uncompensated care that all the rest of us pay for.
I'll give you an example of how difficult this can be. Back
in the 80s there was a period of time where the Social
Security Administration on re-determination kicked
thousands of people off of SSI. And they actually found a
memo coming out of the Social Security Administration that
said, "You know, we should kick a bunch of people off of
SSI and only a fraction of those people will appeal. Now
most of them that appeal will get back on because in fact
they are eligible, but in the end we'll save money because
a lot of people won't appeal and they won't end up with any
benefits." For our beneficiaries there's really no recourse
for them. I'm not saying that that's going on today, but
that's just one example of how difficult it can be for our
beneficiaries if they don't have access to some sort of
civil legal representation.
10:34:40 AM
Co-Chair Stedman established that no other testimony was
forthcoming.
10:35:00 AM
Senator Thomas asked the number of the recommendations made on
page 31 of the "Access to Civil Justice Task Force Report and
Recommendation" had been implemented.
10:35:28 AM
Ms. Carlson-Van Dort could not answer.
10:35:53 AM
Mr. Harrington responded that the Alaska Court System
established a "follow-up committee" to address the
recommendations. Most recommendations pertaining to the Alaska
Court System had been implemented. Additionally a separate
agency was established to handle those civil cases in which the
Alaska Legal Services Corporation was prohibited from accepting
under "Congressional restrictions". This agency is called the
Alaska Pro Bono Program Incorporated.
Mr. Harrington informed that the recommendation that the ALSC
required a budget of approximately $5 million to achieve "the
minimum access" that "should be the goal." The current budget of
the ALSC is approximately $3.4 million, of which approximately
$300,000 to $400,000 represents volunteer services donated by
private attorneys handling cases pro bono.
10:38:04 AM
Co-Chair Stedman ordered the bill HELD in Committee.
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 10:39:27 AM
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