Legislature(2007 - 2008)SENATE FINANCE 532
04/02/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| SB4 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 130 | TELECONFERENCED | |
| + | SB 4 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
April 2, 2007
9:06 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:06:44 AM.
PRESENT
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Joe Thomas
Senator Fred Dyson
Senator Donny Olson
Also Attending: DARWIN PETERSON, Staff to Senator Lyda Green;
GINNY AUSTERMAN, Staff to Senator Donny Olson; KARLEEN JACKSON,
Commissioner, Department of Health and Social Services; JANET
CLARKE, Assistant Commissioner, Finance and Management Services,
Department of Health and Social Services; ELLIE FITZJARRALD,
Director, Division of Public Assistance, Department of Health
and Social Services;
Attending via Teleconference: From an offnet location: DUANE
BANNOCK, Director, Division of Motor Vehicles, Department of
Administration
SUMMARY INFORMATION
SB 130-RANCH, FARM, DAIRY VEHICLE REGISTRATION
The Committee heard from the sponsor and the Department of
Administration. The bill was reported from Committee.
SB 4-SENIOR CARE PROGRAM
The Committee heard from the sponsor and the Department of
Health and Social Services. A committee substitute was adopted
and the bill was held in Committee.
9:07:41 AM
SENATE BILL NO. 130
"An Act relating to the registration of certain vehicles
owned by ranchers, farmers, or dairy workers."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman announced intent to report this bill from
Committee at this hearing.
9:08:30 AM
DARWIN PETERSON, Staff to Senator Lyda Green, sponsor of the
bill, testified that the need for this legislation was brought
to Senator Green's attention by a constituent who is also a
farmer. State statute provides for licensing classifications for
numerous types of vehicles. One such classification is farm
vehicles.
Mr. Peterson informed that prior to 1978 statute limited the
weight of vehicles registered as farm vehicles to no more than
15,000 pounds. At that time the weight limit was increased to
16,000 pounds to acknowledge that vehicles in general were
getting larger. This same rationale is the impetus for the
proposed increase in this legislation to a 20,000 pound limit.
Mr. Peterson reported that many owners of farm vehicles are
encountering situations in which new or replacement vehicles
would exceed the current weight limit. One farmer has been
repairing and refurbishing old vehicles to avoid the higher
registration fees imposed on non-farm commercial vehicles.
9:10:54 AM
Senator Dyson asked the difference in the licensure fee amounts
of farm vehicles and non-farm vehicles.
9:11:05 AM
Mr. Peterson replied that the biannual license fee for vehicles
registered as farm vehicles is $68.
9:11:27 AM
DUANE BANNOCK, Director, Division of Motor Vehicles, Department
of Administration, testified via teleconference from an offnet
location that the Division has no objection to this bill. The
State license fee for commercial vehicles weighing 20,000 pounds
or less is $240 biannually. Additional fees are assessed for
vehicles registered in some locations by local governments.
Senator Dyson asked the term of the license.
9:12:29 AM
Mr. Bannock answered that the licenses are valid for two years.
9:12:36 AM
Senator Thomas asked if the fees were the same regardless of the
number of axles on the vehicle.
9:12:47 AM
Mr. Bannock responded that the Division does not consider the
number of axles but rather the weight of a vehicle. State
statute contains no provisions pertaining to the number of
axles.
9:13:13 AM
Co-Chair Stedman pointed out the zero fiscal note prepared by
the Division and asked if this legislation would incur any
costs.
9:13:27 AM
Mr. Bannock replied that programming changes would be minimal
and would be made internally. Inputting of registration
information is done manually whether the amount is 16,000 or
20,000 pounds. Revenue amounts were not adjusted because only
approximately 600 vehicles are currently registered under this
provision and less than ten percent of that number would be
vehicles weighing between 16,000 and 20,000 pounds.
9:14:17 AM
Senator Olson understood that this bill would have no fiscal
impact to the Division of Motor Vehicles; however, he asked the
expense to other departments. He gave the Department of
Transportation and Public Facilities as an example, asking about
higher maintenance costs resulting from heavier vehicles
traversing the roadways.
9:14:53 AM
Mr. Bannock could not address this.
Senator Olson posed the question to the sponsor.
9:14:59 AM
Mr. Peterson conveyed that the Department of Transportation and
Public Facilities had reviewed this legislation and expressed no
objection to its passage as the fiscal impact would be minimal.
9:15:36 AM
Senator Dyson asked if a farmer would testify.
9:15:43 AM
Co-Chair Stedman ascertained that no other parties were present
to testify either telephonically or in person.
9:15:56 AM
Senator Olson asked the opinion of those who would be affected
by this bill.
9:16:06 AM
Mr. Peterson told of testimony given before the Senate
Transportation Committee by the farmer who brought the issue to
Senator Green's attention. This farmer utilizes his farm vehicle
to travel to Canada to purchase hay for use on his ranch. The
Canadian government imposes a fee of $600 per trip for vehicles
not registered as farm vehicles. Farm vehicles are assessed no
such fee. He was currently traveling in Canada for this purpose
and was therefore unavailable to testify at this time.
Mr. Peterson continued relaying the testimony presented to the
Senate Transportation Committee from another farmer who
continually repairs older vehicles that are under the current
16,000 pound weight restriction. These vehicles do not have the
updated safety improvements available on newer vehicles.
9:17:24 AM
Senator Dyson announced that although the difference between
farm vehicle and commercial vehicle license fees is $85 per
year, he would support this legislation because of the
aforementioned $600 fee, an amount he deemed potentially
onerous.
9:17:56 AM
Senator Huggins offered a motion to report the bill, 25-
LS0755\C, from Committee with individual recommendations and
accompanying fiscal note.
There was no objection and SB 130 was REPORTED from Committee
with zero fiscal note #1 from the Department of Administration.
AT EASE 9:18:30 AM / 9:22:11 AM
9:22:14 AM
SENATE BILL NO. 4
"An Act extending the cash assistance benefit program for
seniors under the senior care program and increasing the
benefit amount; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
9:22:23 AM
Co-Chair Stedman announced that this bill would not be reported
from the Committee at this hearing. The sponsor would be given
an opportunity to present the bill. The fiscal note must be
addressed and the cost benefit analysis must be reviewed. This
legislation represents a substantial policy issue in addition to
a fiscal matter.
9:23:23 AM
Senator Olson, sponsor of the bill, testified that he had
prefiled this before the start of the Twenty-Fifth Legislature
to accompany another bill pertaining to the Longevity Bonus
Program, which he also sponsored. He had withdrawn that
legislation once Governor Sarah Palin introduced a similar
measure.
Senator Olson stated that the legislation before the Committee
is intended to assist senior citizens with high heating and
utility costs and other expenses related to maintaining a home.
He collaborated with Representative Mike Hawker to coordinate
this bill with the efforts of similar legislation under
consideration by the House of Representatives.
9:24:43 AM
Senator Olson offered a motion to adopt CS SB 4, 25-LS0056\C, as
a working document.
Without objection the committee substitute, Version "C", was
ADOPTED as a working document.
9:25:24 AM
GINNY AUSTERMAN, Staff to Senator Olson, read the sponsor
statement into the record as follows.
SB 4 extends the Senior Care Program which provides
financial assistance to Alaska's low income seniors.
SB 4 does three things to the Senior Care Program. It
extends the program's sunset date to June 30, 2011; removes
the underutilized prescription drug benefit; and increases
the monthly cash benefit based on their income related to
the federal poverty level guidelines adjusted for Alaska.
Monthly payments are:
· $175 per month if the individual's household income
does not exceed 100 percent of the federal poverty
guidelines for Alaska
· $150 per month if the individual's household income
does not exceed 135 but is above 100 percent of the
federal poverty guidelines for Alaska
· $100 per month if the individual's household income
does not exceed 150 but is above 135 percent of the
poverty guidelines for Alaska
The Senior Care Program is strictly a needs based program.
No Asset Test will be in place.
SB 4 covers eligible seniors who may have been part of the
Longevity Bonus Program prior to its funding being
eliminated, as well as individuals who meet the eligibility
criteria. The Department of Health and Social Services
estimates that the Senior Care Program currently serves
approximately 7,000 seniors with financial assistance. The
Department estimates an additional 1,800 seniors will
qualify for Senior Care under SB 4. The Senior Care Program
would run concurrently, but not in addition to any
Longevity Bonus Program that may be redeveloped. An
individual who is receiving a Longevity Bonus payment is
not eligible for the benefits of the Senior Care Program.
9:27:31 AM
Senator Olson summarized that this bill would extend the lapse
date of the Senior Care Program to 2011, would establish the
Program as needs-based with no asset test requirement, and
provide benefits in amounts ranging from $100 to $175 per month
depending on the recipient's income in comparison to the federal
poverty level guidelines. Additionally, if the Alaska Longevity
Bonus Program was reinstated, recipients of that benefit would
not be eligible to receive Senior Care Program benefits.
9:28:18 AM
Senator Elton asked for a comparison of the committee substitute
to the original version of the bill.
9:28:51 AM
Senator Olson spoke of several differences. The original version
contained no lapse or "sunset" provision. This would ensure that
in the event of unanticipated occurrences, the Program could be
reviewed and changed or eliminated if necessary. The committee
substitute also provides for graduated payment amounts in
correlation to the amounts under consideration by the House of
Representatives in similar legislation. Additionally, no asset
test is required to allow those seniors with investments to
retain those funds for purposes such as future funeral costs.
9:30:11 AM
Ms. Austerman added that the original version of this bill would
have continued the current practice of utilizing the federal
policy level figures established for 2005. The committee
substitute contains no such "freeze".
9:30:44 AM
Senator Huggins asked the federal poverty income amounts
utilized for this legislation.
9:31:00 AM
Ms. Austerman deferred the Department of Health and Social
Services.
9:31:05 AM
Co-Chair Stedman cited analysis language in the fiscal note
listing the federal poverty level in 2005 as $16,133 for an
individual and $21,641 for a two-person household.
9:31:21 AM
Senator Huggins asked if this figure represented 100 percent of
the federal poverty level.
Co-Chair Stedman answered it did.
9:31:37 AM
KARLEEN JACKSON, Commissioner, Department of Health and Social
Services, offered the Department's assistance.
9:31:58 AM
Co-Chair Stedman asked the federal poverty guidelines.
9:32:07 AM
JANET CLARKE, Assistant Commissioner, Finance and Management
Services, Department of Health and Social Services, listed the
2007 federal poverty annual income levels as $12,770 for a
single person household and $17,120 for a two income household.
9:33:20 AM
Senator Huggins supported this legislation, as the Senior Care
Program "serves a useful purpose". However, many senior citizens
do not want to be characterized as "needy". He asked the
Department's opinion on this.
9:33:50 AM
Commissioner Jackson agreed that some senior citizens and some
Alaskans in general, share this sentiment. However, other
federally administered benefit programs are also needs based.
Like those programs, the Senior Care Program is needs based and
participation is optional.
9:34:27 AM
Senator Huggins assumed that information about participants is
not public.
9:34:41 AM
Ms. Clarke replied that although information on participants in
the Alaska Longevity Bonus Program was deemed to be public,
information pertaining to participants of federally administered
needs-based programs is subject to some measure of
confidentiality. The Senior Care Program is State administered
and she was therefore uncertain of the confidentiality
requirements for its information.
9:35:37 AM
ELLIE FITZJARRALD, Director, Division of Public Assistance,
Department of Health and Social Services, testified that
information regarding individual participants is confidential
for State administered needs-based programs such as the Senior
Care Program. Data listing the number of participants
categorized by community that does not contain any personal
identifiers is not confidential.
9:36:18 AM
Senator Elton asked the estimated number of participants in the
Senior Care Program who would otherwise participate in the
Alaska Longevity Bonus Program in the event it was reinstated,
although at less than the maximum benefit amount of $250
provided for in the Bonus program.
9:36:57 AM
Ms. Clarke replied that the Department had conducted an analysis
to the original version of this bill. An updated analysis had
not been prepared for the committee substitute. She predicted
that a participant eligible to receive a Longevity Bonus payment
of $150 for example, would not chose to participate in the
Senior Care Program if the benefit would be reduced to $100. She
offered to prepare a scenario.
9:37:51 AM
Senator Olson asked if the Department was prepared to make
preliminary comments on the revised fiscal note just distributed
to Members.
9:38:07 AM
Co-Chair Stedman directed the explanation to also reference the
original fiscal note.
9:38:16 AM
Ms. Clarke explained that the original fiscal note contained
negative cost estimates because it assumed the extension of the
Senior Care Program and reinstatement of the Alaska Longevity
Bonus Program. This caused some confusion and also the situation
had changed. Therefore a new fiscal note was prepared to the
original version of the bill to demonstrate the estimated
expense of only the Senior Care Program. However, the estimates
were calculated utilizing assumptions that had been changed and
as a result the new fiscal note was not valid to the committee
substitute.
9:39:38 AM
Co-Chair Stedman indicated the Committee would receive an
updated fiscal note.
9:39:55 AM
Ms. Clarke pointed out that the Department had provided a
spreadsheet containing preliminary information, including the
benefit costs and the administrative expenses. The total cost to
implement the provisions of the committee substitute would be
$17,398,900, an amount over $4 million higher than the cost to
implement the original version of the bill.
9:40:27 AM
Senator Dyson, referring to the last paragraph of the sponsor
statement commenting on the correlation between the Senior Care
Program and the Longevity Bonus Program, surmised that an
otherwise eligible senior citizen could not participate in both
programs concurrently.
9:40:58 AM
Senator Olson deferred to Ms. Austerman.
9:41:28 AM
Ms. Austerman affirmed Senator Dyson's assumption.
9:41:39 AM
Co-Chair Stedman reminded the Committee that no action would be
taken on this legislation during this hearing. He established
that no additional testimony was forthcoming.
9:42:18 AM
Ms. Austerman reported that the Alaska chapter of AARP is in
support of this bill.
9:42:29 AM
Senator Dyson disclosed his efforts of the past three years to
implement a process to develop a long-range fiscal plan for
operating and capital expenditures. Until such a system was
established, he would be reluctant to support legislation such
as the bill before the Committee. Caution should be exercised
when considering "institutionalizing" a program into the
operating budget.
9:43:31 AM
Senator Elton remarked that the Executive Branch has been
skillful in estimating expenses for the first years following
enactment of legislation. However projected benefits of a
program are not reported. Elders, in retirement and with no
further employment connection to Alaska, economically impact
local businesses and service providers when they move out of the
state. Those who leave are spending their retirement investments
and health care funds elsewhere. The economic consequence of
encouraging seniors to move away must be understood.
9:45:45 AM
Co-Chair Stedman contributed that operating budget increases
were problematic. Costs must be contained and although reducing
spending to amounts less than that of the previous year would be
difficult to accomplish, efforts are necessary to address
formula-driven programs to avoid a "runaway train". He had been
collaborating with Senator Olson to ensure that the Senior Care
Program would have a minimal fiscal impact in balance with the
"social issues that we're faced with our seniors."
9:47:34 AM
Senator Dyson expected this effort from the Co-Chair, as Senator
Stedman understood the fiscal issues more than others. Most
legislators are sympathetic to the needs of seniors. Senator
Dyson warned that in three to five years, the State's fiscal
condition could be "if not desperate, at least difficult" and
that either "draconian cuts" to this and other programs would be
necessary, or that State taxes would be levied. A sales tax
would have a disproportionate impact on those "living on the
margin" and an income tax would have a disproportionate impact
on those who are employed and whom should be encouraged and
retained as residents.
Senator Dyson remarked that failing to consider the future would
be "irresponsible". The FY 08 operating budget would be at least
$600 million higher than the previous year's budget, despite
efforts of Governor Palin. The Legislature has a responsibility
to address not just individual needs but the total future impact
as well.
9:50:01 AM
Senator Olson appreciated the views expressed. He cautioned
however that someday, Members could be in a similar situation to
those this program intends to assist. His concern was less on
the issue of supporting the local economy and more on those
elders barely able to financially maintain their independence.
Seniors want to remain in their homes for as long as possible.
The cost of institutionalization is significantly higher than
the cost of the Senior Care Program.
9:51:29 AM
Co-Chair Stedman ordered the bill HELD in Committee.
AT EASE 9:52:42 AM
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 9:52:46 AM
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