Legislature(2011 - 2012)SENATE FINANCE 532
02/07/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB3 | |
| HB16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 3 | TELECONFERENCED | |
| + | HB 16 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 7, 2011
9:00 a.m.
9:00:16 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:00 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Cathy Giessel; Representative Mike Hawker; Christy
Harvey, Staff, Senator Wielechowski; Elizabeth Nudelman,
Director, School Finance, Department of Education and Early
Development; Robert Eason, Coordinator Food Services, North
Slope School District; Carl Rose, Association of Alaska
School Boards; William J. Streur, Commissioner, Department
of Health and Social Services; Denise Daniello, Executive
Director, Alaska Commission on Aging; Marie Darlin,
Coordinator, AARP Task Force.
PRESENT VIA TELECONFERENCE
Gary Baldwin, Bethel; Amy Rouse, Director of the AK School
Nutrition Association; Dolores Farrell, Self, Sitka;
Therese Ashton, Principal, Wrangell Public School; Carol
Comeau, Superintendent, Anchorage School District; Bob
Crumley, Superintendent, Chugach School District; Ron
Kreher, Director, Public Assistance, Department of Health
and Social Services.
SUMMARY
SB 3 FUNDING FOR SCHOOL MEALS
SB 3 was HEARD and HELD in Committee for further
consideration.
HB 16 EXTEND SENIOR BENEFITS PAYMENT PROGRAM
HB 16 was HEARD and HELD in Committee for further
consideration.
Senate Bill NO. 3
"An Act providing for funding for school lunch and
breakfast."
9:00:39 AM
CHRISTY HARVEY, STAFF, SENATOR WIELECHOWSKI, introduced the
PowerPoint presentation "Funding for Alaska's School
Meals,"(copy on file).
Ms. Harvey detailed Slide 2: "Three Goals for the School
Meals Bill,"
· More schools serving meals
· More kids in each school fed
· More nutritious meals served
Ms. Harvey quoted the statistic, "one out of every eight
Alaska families struggles to put enough food on the table
each year."
Ms. Harvey addressed Slide 5: "Hunger in Alaska 2010,"
· 74,000 Alaskans seek food assistance each year.
· 43 percent of households visiting food pantries in
Alaska have a child under the age of 18.
Ms. Harvey discussed Slide 6: "Students In Need Not Being
Reached,"
51,000 Alaskan Children are eligible for reduced or
free lunch.
However:
· Six school districts do not offer breakfast or
lunch.
· 15 percent of schools that do participate in the
school lunch program do not offer breakfast.
· Overall, 60 percent of lower-income kids are not
being reached by the school meals program.
9:03:56 AM
Ms. Harvey discussed the data on Slide 7: "Alaska in Bottom
10 for Participation." She pointed out that Alaska ranks
ninth from the bottom of all 50 states in the participation
of low-income children in the school meal programs. She
added that many children have access to real food only
through the school meal program.
Ms. Harvey continued with Slide 10: "Alaskan School
Breakfasts Served FY 09-10." She explained that Alaskan
schools served approximately 3.6 million breakfasts last
fiscal year. The federal reimbursement has not kept up with
the needs of the schools since the inception of the
program. Many schools are therefore dipping into their
operating budgets. The average cost to prepare a breakfast
or lunch does not match the federal reimbursement rates as
exhibited on Slide 11: "Current Breakfast Reimbursement
Rates" and Slide 13: "Current Lunch Reimbursement Rates."
Ms. Harvey explained Slide 14: "The Need." She explained
that despite federal subsidies, Alaska schools fall $9
million short. She hoped that the proposed program would
prevent the schools from dipping into their operating
budgets. She understood that the legislature is tasked with
stewarding Alaska's money. She wished to ensure that the
investment was a wise one for the state.
9:06:05 AM
Ms. Harvey discussed Slide 16: "Investing in School Meals
Provides a "Two-Fer" in returns." She explained that short-
term returns on the investment include better academic
performance, better behavior, better attendance, and better
health. The long-term returns include better attendance,
which equal lower dropout rates. Lower dropout rates equal
lower prison populations, higher graduation rates equal
higher incomes, and lower obesity rates equal lower health
care costs.
9:07:17 AM
Ms. Harvey mentioned that she had a bibliography of the
studies quoted in her presentation, for those interested.
She mentioned that various studies have shown that when
kids are fed they perform better on comprehensive testing
with better attention, memory and verbal fluency.
Ms. Harvey discussed Slides 22 and 23: "Better Behavior in
School."
· Researcher noted a significant decrease in
behavioral "oppositional scores" for students eating
school breakfast. "Oppositional scores" measure
whether or not students are likely to break the
rules, have problems with authority or are quick to
anger than most individuals in their age groups.
· Researchers found low-income students who ate meals
at school were less likely to be hyperactive and had
fewer behavioral or attention problems than their
hungry peers.
· Researchers conclude that classroom breakfast works
and that a pilot program in New York resulted in
decreased hunger and improvements in factors
critical to student learning such as tardiness and
disciplinary referral rates.
· Increased school breakfast participation is
associated with fewer emotional or behavioral
problems. Teacher at school that increased
participation in their school breakfast programs
reported a positive change in student behavior (60%)
and improved in student attentiveness (63%).
9:09:24 AM
Ms. Harvey discussed Slide 25: "Better Attendance."
· Higher Rates Of Attendance
o Studies show that universal school breakfast
program participation is associated with higher
rates of attendance and declines in tardiness.
· Lower Rates Of Tardiness
o Schools with increased participation in school
breakfast programs had their proportion of
children chronically tardy decreased by 67
percent.
Ms. Harvey addressed Slides 27 and 28: "Better Health."
· Lower Obesity Rates
o Girls from "food insecure" households are
significantly less likely to become overweight
(68 percent) if they participate in school
lunch and breakfast programs.
· More Physically Active
o Students who ate breakfast daily were more
likely to participate in physical activity
three or more times a week than breakfast
skippers.
· Alaskan Obesity
o 25.4 percent of Alaskans are currently
considered "obese."
· The High Cost of Obesity
o Recent studies project that, if our national
weight problem continues as it has been,
obesity will cost the USA about $344 billion in
medical-related expenses by 2018, eating up
about 21 percent of health-care spending.
9:11:00 AM
Ms. Harvey discussed the proposal of an increase of $.35
for breakfast and $.15 for lunch. She provided Slide 31:
"Examples of Support," exhibiting all of the many
supporters of the proposal.
9:11:48 AM
Ms. Harvey discussed Slide 33: "The Bottom Line,"
Senate Bill 3 is a solid investment in Alaska's
future, providing both short-term and long-term
payoffs for Alaska's students.
We spend a great deal of money on education in Alaska.
This comparatively small investment will help our
students reap the maximum benefits from our schools.
By setting our kids up for success now, we may be able
to avoid costly problems in the future.
9:12:15 AM
Senator Thomas asked to know the threshold for both the
reduced and supplemented rates. Ms. Harvey responded that
the rate for a household size of 2 is $33 thousand per year
for reduced lunch and $23 thousand per year for free lunch.
She quoted $51 thousand for the reduced price for a family
of 4 and $35 thousand for free meals. She explained that
the figures exhibit the federal poverty level adjusted for
Alaska.
Senator Olson expressed dismay at the figures presented
which display children's lack of access to food. He asked
about the distribution of these children throughout the
state. Ms. Harvey responded that rural areas suffer greatly
as the shipping is quite pricey. She pointed out one
component of the bill which adjusts the numbers through the
district cost factors to address the needs of rural
schools.
Senator Olson commented on the sponsor statement and the
proposed increases. He opined that an increase of 15 cents
in rural areas was insignificant when compared to the high
cost of transportation. Ms. Harvey agreed and responded
that she wanted to add the necessary funds for the rural
areas.
9:16:11 AM
Senator Thomas wondered if the federal maximum
reimbursement was in literal form. Ms. Harvey explained
that the quoted figure is the maximum amount based on need
and reimbursed by the federal government. She added that a
$9 million gap exists between what is required and what is
provided by the federal government.
9:17:24 AM
ELIZABETH NUDELMAN, DIRECTOR, SCHOOL FINANCE, DEPARTMENT OF
EDUCATION AND EARLY DEVELOPMENT, explained the different
components of the fiscal plan regarding the school lunch
and breakfast program. She noted that the bill creates a
new state program to provide supplemental state funding for
the existing breakfast and lunch programs. Currently,
districts receive approximately $32 to $36 million in
federal funding for the school lunch program. The total
expenditures are approximately $58 million. The required
federal match for the program is $492 thousand, which is
met from the $9 million transferred from school operating
funds. The bill would not increase the number of students
participating, but would provide approximately $2 million
to school districts to use for breakfast and lunch programs
or to offset the $9 million transferred from operating
funds.
Ms. Nudelman discussed the fiscal note. Page one of the
fiscal note shows $2.1 million in 2012, $2.3 million in
2013, $2.3 million in 2014, $2.4 million in 2015, $2.5
million in 2016 and $2.6 million in 2017. She continued to
detail the fiscal note.
9:21:44 AM
Co-Chair Stedman asked about the fiscal impact of the six
schools that do not offer the lunch or breakfast program.
Ms. Nudelman responded that the six schools currently not
offering the program are small schools and would require
necessary equipment. She listed the various schools
totaling 490 students.
Co-Chair Stedman asked if the schools that offer lunch
alone might begin to offer breakfast if the legislation
passes. Ms. Nudelman responded that additional hurdles must
be overcome to provide the addition of breakfast programs
for those schools currently without.
9:23:43 AM
Senator McGuire stated that she supports the bill sponsor's
intention. She wondered about the methods used to encourage
new interest in the program for schools not yet
participating. She asked about including new children by
providing for a state match. She asked about the potential
of increasing the programs without additional students. She
recommended that state and agriculture programs grow as a
result of the program. She requested creative alternatives
regarding the food choices in the program.
Co-Chair Stedman requested the percentages of students
involved in the program for the various school districts.
Co-Chair Stedman asked about the administration's position
on the bill. Ms. Nudelman answered that the administration
does not have a position on the bill.
9:26:41 AM
Senator Olson recalled that the presentation listed that
six districts did not offer either lunch or breakfast. He
assumed that the entire district did not offer the program.
Ms. Nudelman clarified that six school districts do not
offer either breakfast or lunch. An additional ten
districts do not participate in the breakfast program.
9:27:56 AM
Co-Chair Stedman pointed out the new fiscal note from the
Department of Education and Early Development (DEED)
reflecting a $2,143,000 appropriation in FY 12. Funding for
the program is not in the governor's budget.
9:28:48 AM
GARY BALDWIN, SUPERINTENDENT, LOWER KUSKOKWIM SCHOOL
DISTRICT, BETHEL (via teleconference), discussed the need
for Bethel to have access to the program. Many children
would not eat any food until lunch if not for the breakfast
program. Much of the current funding is intended for
instruction purposes. He mentioned his district's
comprehensive nutrition policies.
9:32:12 AM
AMY ROUSE, DIRECTOR OF THE AK SCHOOL NUTRITION ASSOCIATION
(via teleconference), testified in support of the
legislation. She pointed out the many children who are
either homeless or in transition in our district. Each day,
many children receive their only meal on school grounds.
The funds included in SB 3 would help to provide the meals
that many children have come to expect.
9:35:15 AM
DOLORES FARRELL, SELF, SITKA (via teleconference) testified
in support of the legislation. She applauded the previous
testimony. She opined that information regarding nutrition
and supplementation of student nutritional needs must be
offered prior to supplementation. She supported education
and the preparation of foods on site. She asked about the
hurdles encountered by the schools wishing to provide
breakfast to needy children. She proposed a method of
reaching the children who need the food without
compromising their self esteem.
9:37:48 AM
THERESE ASHTON, PRINCIPAL, WRANGELL PUBLIC SCHOOL (via
teleconference), testified in support of the legislation.
She noted that the Wrangell district superintendent was
responsible for the student breakfast and lunch program.
She stated that 60 percent of the school's students qualify
for free or reduced prices. She pointed out that one
complaint from students is that the portions are too small.
9:40:38 AM
CAROL COMEAU, SUPERINTENDENT, ANCHORAGE SCHOOL DISTRICT
(via teleconference), echoed the prior testimony. She noted
that 41 percent of the Anchorage School District's students
qualify for free or reduced lunch. She pointed out the need
for additional fruits and vegetables in the meals provided
to the students. She opined that additional fruits and
vegetables would make the meals more palatable for the
students. She added that Anchorage has a system where they
are able to provide occasional funds out of their general
fund to students who do not qualify for free or reduced
lunch. Students in her district are not identified as a
free or reduced lunch recipient, which eliminates the
embarassment factor.
9:43:26 AM
BOB CRUMLEY, SUPERINTENDENT, CHUGACH SCHOOL DISTRICT (via
teleconference), testified in support of the legislation.
He stated that his district chose not to participate in the
free and reduced lunch program. The district has instead, a
free breakfast program funded out of their general fund. He
stated that the breakfast is sometimes the only nutritious
meal received by a student all day. He noted that the
program increases attendance.
9:45:15 AM
ROBERT EASON, COORDINATOR FOOD SERVICES, NORTH SLOPE SCHOOL
DISTRICT, testified in support of the legislation. He
explained that the current program is regulated well in his
district. He noted that reauthorization will take place
July 1, 2012 that will increase the cost of the lunch
programs because of increased fruits and vegetables. The
need for state support is thus increased.
9:47:25 AM
CARL ROSE, ASSOCIATION OF ALASKA SCHOOL BOARDS, stated that
research suggests that hunger is a large distraction for
students. He echoed the comments made by the sponsor at the
meeting's onset. He spoke in support of the legislation. He
mentioned a recent article from the Chicago Tribune
regarding a free and reduced lunch and breakfast program.
9:50:46 AM
Senator Olson expressed concern regarding the palatability
of the meals provided. He asked if the children were eating
the meals or throwing them away. Mr. Rose responded that
many different situations exist in schools regarding the
nutrition provided. He mentioned fundraising efforts such
as concession stands that might be in competition with
school lunches. He felt that the majority of options
including free and reduced lunches provide palatable
choices. He commented that some of the school districts are
unable to provide the food as they lack the necessary
facilities.
9:52:27 AM
Senator Thomas asked about the identification of students
regarding fee or reduced lunches. Mr. Rose answered that
many school districts are aware of the potential
embarrassment factor and remedy it in an appropriate
manner.
9:53:55 AM
Co-Chair Stedman asked about the 35 percent of food that is
rumored to be thrown away. He discussed the need for a
Consumer Price Index (CPI) and sunset date for the program.
He asked about the bill's effective date.
Senator McGuire asked about the communities that do not
offer breakfast and lunch. Ms. Harvey offered to provide
answers to the committee.
SB 3 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 16
"An Act extending senior benefits."
9:57:42 AM
REPRESENTATIVE MIKE HAWKER stated that HB 16 extends the
Alaska senior benefits payment program for an additional
four years. The program was established in 2007 and will
sunset June 30, 2011 without affirmative action during this
legislative session. He stated that 10,093 elder Alaskans
currently benefit from the program. The oldest recipient of
the benefits is 105 years old. The established program
provides monthly cash assistance to Alaska residents age 65
or older whose household income is less than 175 percent of
the federal poverty guideline for Alaska. He explained the
various tiers of the program. He stressed that HB 16 does
not alter the current benefits; it merely extends the
program four years. The program costs $20 million per year
and the legislation is a maintenance commitment. If the
money appropriated by the legislature were deemed
insufficient to meet the needs of the program, the
Department of Health and Social Services (DHSS) is
authorized in statute to reduce or eliminate the benefit
available to the recipient in order to meet the most
pressing needs of the state.
10:03:41 AM
Representative Hawker referred to a convincing handwritten
constituent letter (copy on file). He believed that the
bill should pass out of committee.
10:05:02 AM
Senator Thomas referred to the sectional analysis stating
that the department may reduce or eliminate the cash
benefit available to recipients based on the
appropriations. He asked if the benefits would be reduced
on a prorated basis. Representative Hawker responded that
regulations regarding potential manifestations of the
mentioned section have not yet been established.
Historically, ratable reductions are implemented as early
as possible in a fiscal year, eliminating the need to
prorate.
Co-Chair Stedman requested a department's perspective, and
remarked that he did not anticipate any shortfall. He
expressed interest only in a hypothetical answer.
WILLIAM J. STREUR, COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, replied that he would provide the
information at a later time.
10:08:38 AM
AT EASE
10:09:50 AM
RECONVENED
Senator Thomas asked about the "see delayed repeal note."
Representative Hawker referenced the Alaska statutes. He
noted the footnote known as the "delayed repeal," which is
the four year sunset addressed in committee.
Co-Chair Stedman asked if the administration supports the
legislation. Mr. Streur replied that the administration
supports the extension.
Co-Chair Stedman asked why there are six positions needed
to extend the program. Commissioner Streur responded that
the six positions are a continuation of the current
staffing allocated to the program. Representative Hawker
reminded that the program is an eligibility based program,
which includes 10 thousand beneficiaries. The eligibility
is dynamic and the number of employees is reflective of the
amount of work necessary to manage the eligibility status
of the beneficiaries.
Co-Chair Stedman asked how seniors are notified that the
program exists. Commissioner Streur responded that the
program is advertised on the state website and in local
division of public assistance offices. He believed that
both rural and urban accesses are similar.
10:14:05 AM
Co-Chair Stedman asked about qualifying issues for seniors
in the Pioneer Home. Mr. Streur responded that seniors in
the Pioneer Home are not eligible due to the establishment
of the Pioneer Home fee. Since the majority of the
residents in the Pioneer Home are Medicaid eligible, it is
essential to maximize Medicaid. If a resident receives a
subsidy, the money is then used to offset the Medicaid
payment.
Co-Chair Stedman asked if seniors in the Pioneer Home who
pay their own bills are included. He asked about those
residents fortunate enough to have the liquidity to pay the
substantial bills each month. He wondered if the Medicaid
issue was impacted for those individuals. Mr. Streur
offered to provide future information.
Co-Chair Stedman asked about those residents of the Pioneer
Home who are without the additional funds needed for small
luxuries.
10:16:30 AM
Senator Olson asked if benefits were granted to those
people living out of state. Mr. Streur believed that the
checks were for residents only.
Senator Olson asked about provisions regarding transport
out of state for medical reasons. Representative Hawker
stated that beneficiaries must be Alaskan residents. He
explained that eight unidentified recipients were
identified last year for leaving the state and the cases
are currently in review.
Representative Hawker added that the program statutorily
provides for recovery provisions for any benefits that were
paid inappropriately as stated in AS 47.45.308.
Senator Thomas asked about electronic advertising methods
in regard to seniors and low income seniors in rural areas.
He expressed concern regarding the distribution of
information.
10:19:30 AM
Co-Chair Stedman discussed the fiscal note from DHSS and
the addition of $1,968,000 in general funds. The
administration is aware of the true cost of the program. He
believed it appropriate for the governor to bring foreword
a budget amendment to fund the item. He mentioned the two
page spreadsheet exhibiting case summaries and the
expenditure forecast.
RON KREHER, ACTING DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES (via teleconference) offered
to respond to questions.
10:21:32 AM
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, expressed support for the legislation. She noted
that the bill provides funding for basic necessities for
the seniors in Alaska. She noted that the commission
supports this legislation and the extension for the
benefits payment program. She stated that greater than
10,000 senior citizens receive benefits from the program.
She stated that several areas in the state, including the
North Slope borough, have citizens participating in the
program.
MARIE DARLIN, COORDINATOR, AMERICAN ASSOCIATION OF RETIRED
PERSONS (AARP) TASK FORCE, emphasized that the senior
benefits program allows seniors to remain in Alaska. She
spoke in support of the legislation.
10:25:34 AM
Representative Hawker repeated one question raised by
Senator Olson regarding those senior citizens currently
living out of state. He explained that the question is
addressed in the existing statute, Section 47.45.304. He
recognized that the situation exists for certain seniors
and did not want the limiting factor to lead to denied
access. He noted that when a person leaves the state, they
lose their benefits. The exceptions to that rule include
receiving medical treatment out of state, the accompaniment
of an individual's family member while receiving medical
treatment outside of the state, and the ability for the
department to make exceptions on a case by case basis.
10:28:27 AM
HB 16 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:29 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 3 Explanation of Changes.docx |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SB 3 Sponsor Statement.docx |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SB3 Fact Sheet Need.docx |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SB3 Federal Payment Chart.pdf |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SB3 District Cost Factors.pdf |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SB0003-1-8-013111-EED-Y.PDF |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| HB 16 Fact Sheet-DHSS.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Background-Related Statutes.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Sponsor Statement.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Support-AARP.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Support-Alaska Food Coalition.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Support Letter.doc |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 DPA SB Projections FN Back up 2-4-11 (2).xlsx |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| NEW SB3-EED-TLS-2-4-11.pdf |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| SenFin Slide Show Funding For Alaska’s School Meals.pptx |
SFIN 2/7/2011 9:00:00 AM |
SB 3 |
| HB16 Support-Alaska Commission on Aging.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB16 Support-Public letters.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |
| HB 16 Senate Committee Response.pdf |
SFIN 2/7/2011 9:00:00 AM |
HB 16 |