Legislature(2001 - 2002)

01/24/2001 01:35 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                     ALASKA STATE LEGISLATURE                                                                                   
       SENATE HEALTH, EDUCATION & SOCIAL SERVICES COMMITTEE                                                                   
                         January 24, 2001                                                                                       
                             1:35 p.m.                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyda Green, Chair                                                                                                       
Senator Loren Leman, Vice Chair                                                                                                 
Senator Gary Wilken                                                                                                             
Senator Jerry Ward                                                                                                              
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All Members Present                                                                                                             
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW BY COMMISSIONER KAREN PERDUE OF THE DEPARTMENT OF HEALTH                                                               
AND SOCIAL SERVICES                                                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Commissioner Karen Perdue                                                                                                       
Department of Health &                                                                                                          
  Social Services                                                                                                               
PO Box 110601                                                                                                                   
Juneau, AK  99801-0601                                                                                                          
                                                                                                                                
Mr. Jim Nordlund, Director                                                                                                      
Division of Public Assistance                                                                                                   
Department of Health &                                                                                                          
  Social Services                                                                                                               
PO Box 110601                                                                                                                   
Juneau, AK  99801-0601                                                                                                          
                                                                                                                                
Ms. Angela Salerno                                                                                                              
Department of Health &                                                                                                          
  Social Services                                                                                                               
PO Box 110601                                                                                                                   
Juneau, AK  99801-0601                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-1, SIDE A                                                                                                             
Number 001                                                                                                                      
                                                                                                                                
CHAIR  LYDA GREEN  called  the  Senate Health,  Education  &  Social                                                          
Services  Committee  meeting  to order  at  1:35 p.m.  Present  were                                                            
Senators Leman, Wilken,  Ward and Green.  CHAIR GREEN noted that the                                                            
committee would  hear a presentation about the Department  of Health                                                            
and Social Services today.                                                                                                      
                                                                                                                                
COMMISSIONER KAREN PERDUE,  Department of Health and Social Services                                                            
(DHSS) reviewed  the information  provided  in both slide show  form                                                            
and  in booklet  form,  entitled,  "Welfare  Reform:  What's  Next,"                                                            
prepared by DHSS.  Following is a synopsis of that presentation.                                                                
                                                                                                                                
DHSS  has  been  holding  community  meetings   on  Welfare  Reform.                                                            
Meetings have  been held in Kenai, Fairbanks, Mat-Su  and Anchorage,                                                            
and the last meeting will be held in Juneau next week.                                                                          
                                                                                                                                
The Administration  and Legislature have been working  on this issue                                                            
for a number  of years.   In 1995, the first  blueprint for  welfare                                                            
reform was  developed.   That blueprint  contained five objectives.                                                             
DHSS held 14  meetings across the  state to ask people what  the new                                                            
state  law should  do.   One common  response was  that communities                                                             
wanted more  local responsibility  for managing  welfare reform  and                                                            
another was that welfare reform should encourage people to work.                                                                
                                                                                                                                
The blueprint was revised  in March, 1996 with a new theme of moving                                                            
Alaskans  from welfare into  jobs so that  they could support  their                                                            
families and to maintain a safety net for those truly in need.                                                                  
                                                                                                                                
Senator Green and DHSS  worked together on the issue and legislation                                                            
was  signed  into  law  in June  of  1996.    The  Alaska  Temporary                                                            
Assistance  Program (ATAP) was established.   The key components  of                                                            
that law  are a five-year  limit on benefits  for adults,  mandatory                                                            
work  activities, minor  parent  requirements;  benefit reductions,                                                             
child  support  provisions,   policies  to  "make   work  pay,"  and                                                            
establish  family  self sufficiency  plans  via contracts  with  the                                                            
families.  The  federal law was enacted shortly after  and it pretty                                                            
much  mirrored the  state  law.   The federal  law  established  the                                                            
Temporary Assistance for  Needy Families (TANF) program and did away                                                            
with  the Aid  to Families  with Dependent  Children.   The  federal                                                            
program  is now funded  through block  grants given  to the  states.                                                            
That way, if the programs  improved the states could keep the money,                                                            
if not, the states were  left with the risk.  The concept behind the                                                            
block grants was  to maximize the state's flexibility.   The federal                                                            
law will be reauthorized next year.                                                                                             
                                                                                                                                
It took  DHSS a  full year  to get the  new state  and federal  laws                                                            
implemented.  DHSS asked  the State to reinvest any savings in child                                                            
care assistance  and job  training programs.   DHSS started  doing a                                                            
lot  of  community  contracting  with  non-profit  agencies.    DHSS                                                            
adopted   a  "work   first"   policy,   which  has   been   somewhat                                                            
controversial.   Welfare  recipients are  given short-term  training                                                            
skills  with the  intent of  getting them  employed  quickly.   Once                                                            
employed, recipients  look at what  other kinds of skills  they want                                                            
to develop.                                                                                                                     
                                                                                                                                
DHSS did a  lot of work on job development.   It formed a  Work Star                                                            
committee,  which is an  employer directed  committee, to  recognize                                                            
employers for their contributions.   Separate offices for welfare no                                                            
longer exist -  they have been combined with other  service agencies                                                            
to  provide  "one-stop"  shopping.   Soon  after  came  the  federal                                                            
Workforce   Investment  Act,  which   continued  the  trend   toward                                                            
workforce investment boards at the local level.                                                                                 
                                                                                                                                
Three  organizations  have stepped  forward  and taken  the risk  of                                                            
welfare reform: the Tanana  Chiefs Conference (TCC), the Association                                                            
of Village Council Presidents  (AVCP), and the Tlingit-Haida Central                                                            
Council  (THCC).   Those organizations  are taking  care of  benefit                                                            
eligibility, payments and job placement.                                                                                        
                                                                                                                                
Regarding the demographics  of welfare recipients, while the overall                                                            
number has decreased, the  number of child-only cases has increased.                                                            
Those children  are generally in some sort of informal  foster care.                                                            
                                                                                                                                
CHAIR GREEN asked  if the number of child-only cases  is expected to                                                            
remain static.                                                                                                                  
                                                                                                                                
COMMISSIONER PERDUE  said it is and that those amount  to about 1200                                                            
cases.                                                                                                                          
                                                                                                                                
CHAIR GREEN asked  if there will be no reason for  those children to                                                            
go off of  the program until  they reach the  age of 18 unless  they                                                            
are adopted.                                                                                                                    
                                                                                                                                
COMMISSIONER PERDUE said that is correct.                                                                                       
                                                                                                                                
Regarding family  size, COMMISSIONER PERDUE said that  at least two-                                                            
thirds of the  cases are made up of  families of no more  than three                                                            
people, including  adults.  Single parent families  are also subject                                                            
to the work requirements.   She discussed distribution by geographic                                                            
area, age of children  and adults on the program,  ethnic origin and                                                            
the length of  time that recipients stay on the program.   She noted                                                            
that over 1,000 families are nearing the five-year time limit.                                                                  
                                                                                                                                
COMMISSIONER  PERDUE discussed the  results of welfare reform.   The                                                            
caseload  has  continually  declined  since  1994  in  almost  every                                                            
jurisdiction.   DHSS contracted with the University  of Alaska to do                                                            
a "leaver"  study.  About  700 people who  are no longer on  welfare                                                            
have been  interviewed  extensively.   About 30  percent of  leavers                                                            
have returned to the program  within two years.  The average wage of                                                            
a former welfare  recipient is $10.52.   More than one-third  of the                                                            
leaver  families  have a  second  working  adult in  the  household.                                                            
Community  support systems,  such as  churches and  food banks,  are                                                            
being used more  by recipients.  Alaska Native families  are leaving                                                            
at the same rate  and 71 percent agreed that there  should be a time                                                            
limit.                                                                                                                          
                                                                                                                                
Alaska ranks  eighth in the percent  of recipients who are  employed                                                            
and  seventh  in  the average  number  of  hours  those  people  are                                                            
employed.   No state ranks  higher when both  of those measures  are                                                            
combined.   Alaska ranks 15th in its  percentage of adults  involved                                                            
in all work  activities, which includes  volunteer work,  and 6th in                                                            
the number  of hours  spent at those  activities.   Again, no  state                                                            
ranks higher in both of those measures.                                                                                         
                                                                                                                                
Alaska has  done two things  with its child  care spending.   It has                                                            
replaced  all  of  the state  money  with  welfare  savings  and  it                                                            
provides  child care  for  applicants  so that  they can  go to  job                                                            
interviews.      Child  care   issues   are   numerous:   licensing,                                                            
availability  for different ages and  during different times  of the                                                            
day.                                                                                                                            
                                                                                                                                
DHSS estimates  349 families will  have reached the five-year  limit                                                            
in July, 2002.   By July 2003, about  1103 families will  exceed the                                                            
time limit.   The  law allows  for a  20 percent  exemption for  the                                                            
current caseload.   DHSS will be asking  the Legislature  whether it                                                            
should revamp  the 20 percent  and establish  criteria rather  use a                                                            
percentage.  A  portion of the 20 percent of recipients  who will be                                                            
exempted   will   most   likely   be   grandparents,   people   with                                                            
disabilities,  domestic violence victims,  and people with  disabled                                                            
children.   The  remainder  of the  20 percent  will be  made up  of                                                            
people  who need  extra time.   DHSS  wants to  discuss this  policy                                                            
question with the Legislature.                                                                                                  
                                                                                                                                
DHSS  wants to  continue to  reinvest the  federal  savings to  help                                                            
people  who are about  to hit the  time limit  but have substantial                                                             
barriers  to  employment,   such  as  mental  illness   or  learning                                                            
disabilities.                                                                                                                   
                                                                                                                                
CHAIR GREEN asked  if DHSS's request to reinvest federal  savings to                                                            
provide intensive  work services will  be a recurring request.   She                                                            
noted that  another group will be  meeting the time limit  next year                                                            
and  expressed concern  that  the Legislature  did  envision  saving                                                            
money from welfare reform.                                                                                                      
                                                                                                                                
COMMISSIONER  PERDUE said  there has been  a substantial savings  in                                                            
state  funds.   She pointed  out that  when reauthorization  of  the                                                            
federal law  comes up, Congress  will ask  what should be done  with                                                            
the block grant  money that is sitting in the states  and being used                                                            
for the other purposes.   How President Bush comes out on this issue                                                            
will be important.                                                                                                              
                                                                                                                                
CHAIR GREEN  asked if DHSS  has partnered  with the commission  that                                                            
supports employment  of people with disabilities and  similar boards                                                            
in  this  endeavor.    She asked  if  DHSS  duplicates  any  of  the                                                            
activities of those groups.                                                                                                     
                                                                                                                                
COMMISSIONER PERDUE said  DHSS has seen an increase in the number of                                                            
people who  have been designated  as disabled.   She said the  board                                                            
for  the employment  of  people  with disabilities  works  with  the                                                            
Department of Labor.  Their  direction is to promote work for people                                                            
with disabilities.    She said  there is  a lot of  overlap to  talk                                                            
about.   There has  been an effort  to allow  people, through  state                                                            
laws, to work without losing all of their benefits.                                                                             
                                                                                                                                
CHAIR GREEN  noted the Legislature  passed  a law a couple  of years                                                            
ago  that allows  people to  work  without losing  health  insurance                                                            
benefits.  She  commented that she was incredibly  disappointed when                                                            
she read a  recent article in the  Anchorage Daily News because  the                                                            
writer took some very good  information about the success of welfare                                                            
reform but zeroed  in on the 30 percent of recipients  who go on and                                                            
off of the program.                                                                                                             
                                                                                                                                
SENATOR LEMAN stated that  DHSS has expressed concern about the need                                                            
to maintain a safety net  for welfare recipients.  He noted that his                                                            
idea  of providing  for people's  needs is  that the  first wave  of                                                            
support should  be from family, neighbors,  friends, church  groups,                                                            
social clubs,  and that DHSS should be the backstop.   He asked what                                                            
DHSS is doing  to insure that when  people ask for assistance,  they                                                            
are  trying  to  use other  resources  available.    He  felt  other                                                            
resources are  often better because they are closer  to home and, in                                                            
many cases,  closer to self-responsibility.    He asked if  any such                                                            
effort occurs during the interview process.                                                                                     
                                                                                                                                
COMMISSIONER  PERDUE said  that during  the interview  process,  the                                                            
temporary nature  of welfare is stressed,  as well as the  fact that                                                            
applicants  should be thinking  about getting  a job and getting  on                                                            
their feet  right away.   The intake workers  can also use  a system                                                            
called "diversion"  in which people  can choose not to get  involved                                                            
in the whole process  of welfare but instead can get  assistance for                                                            
a  specific  problem, such  as  a  utility bill  or  temporary  food                                                            
stamps.  She pointed  out that her reaction is that  assistance is a                                                            
complicated enough  system that people with another  alternative use                                                            
it.                                                                                                                             
MR. JIM  NORDLUND, Director  of the Division  of Public Assistance,                                                             
DHSS,  explained that  DHSS tries  to divert  clients initially  but                                                            
doesn't directly  ask clients  about their  use of faith based,  and                                                            
other,  organizations.   One very  good organization  is named  Love                                                            
Inc. in Fairbanks.   It has a car  give-away program for  people who                                                            
need transportation.  He  noted that President Bush is interested in                                                            
pursuing  that approach  so more  activity  may take  place in  that                                                            
area.                                                                                                                           
                                                                                                                                
SENATOR LEMAN  encouraged Mr. Nordlund to pursue that  route because                                                            
he believes that welfare  works best when help is close to home.  He                                                            
believes  that the DHSS  program should  take the  best features  of                                                            
other  successful programs.   He  then asked  if DHSS  has done  any                                                            
comparisons  of the contract  services in  the Fairbanks and  Bethel                                                            
areas  to see if  the results  from  the intakes  are comparable  to                                                            
those in  other areas.   He questioned whether  those providers  are                                                            
trained equally and whether the results are comparable.                                                                         
                                                                                                                                
MR. NORDLUND  said the  TCC program  is only two  years old  and its                                                            
caseload has declined in  a similar manner to the rest of the state.                                                            
The new  programs have  had some  start up issues  but overall  they                                                            
have done amazingly well.                                                                                                       
                                                                                                                                
SENATOR LEMAN asked if  the employees in the intermediate management                                                            
level have some experience in this field.                                                                                       
                                                                                                                                
MR.  NORDLUND said  that some  of  the organizations  have  actually                                                            
hired employees from DHSS and paid them more.                                                                                   
                                                                                                                                
SENATOR  LEMAN said  he hopes  the net result  is a  savings to  the                                                            
State.                                                                                                                          
                                                                                                                                
COMMISSIONER  PERDUE said she thinks  welfare reform is challenging                                                             
because it  is not easy to find great  jobs for recipients  and also                                                            
contractors  must wrestle with the  reasons for dependency  and with                                                            
economic development  issues.  She  noted it will not be  easy to do                                                            
welfare reform in rural Alaska.                                                                                                 
                                                                                                                                
CHAIR GREEN noted that Senator Taylor joined the committee.                                                                     
                                                                                                                                
SENATOR WILKEN  asked what barriers prevent recipients  from getting                                                            
a job.                                                                                                                          
                                                                                                                                
COMMISSIONER PERDUE responded  substance abuse, lack of basic skills                                                            
and low self esteem.                                                                                                            
                                                                                                                                
SENATOR WILKEN asked if  the problem is not that the door is closed,                                                            
it is that  the door is open but it  is difficult for people  to get                                                            
through it.                                                                                                                     
                                                                                                                                
COMMISSIONER PERDUE agreed.                                                                                                     
                                                                                                                                
SENATOR  WILKEN asked  Commissioner  Perdue to speak  about a  slide                                                            
entitled "Post Employment Exchange."                                                                                            
                                                                                                                                
COMMISSIONER  PERDUE  explained  that the  idea  behind  that is  to                                                            
prevent the 30 percent  return rate by trying to provide people with                                                            
some support after  they have been in the job place  for a period of                                                            
time.  There  may come a  time when those  people are having  second                                                            
thoughts  about their skill  levels.  She  pointed out that  some of                                                            
the  challenges   of   getting  up   in  the   morning,  having   no                                                            
transportation, getting  a child to childcare and getting to work on                                                            
time are difficult.                                                                                                             
                                                                                                                                
SENATOR WARD asked what  percentage of recipients will never get off                                                            
of  welfare  and  whether  there   is a  proposal   to  treat  those                                                            
recipients differently  so that the 20 percent exemption can be used                                                            
differently.                                                                                                                    
                                                                                                                                
COMMISSIONER PERDUE thought  that would be a good discussion to have                                                            
because  there is  a percentage  of recipients  who  need more  than                                                            
temporary  assistance.    Many  other states  are  asking  the  same                                                            
question.   DHSS would like to have  that dialogue but right  now it                                                            
is trying to give itself  more flexibility within the five-year time                                                            
limit.                                                                                                                          
                                                                                                                                
SENATOR WARD  expressed concern that  if five percent of  recipients                                                            
will never be able to get  off of welfare, that group's needs should                                                            
be addressed  so that it can be removed  from the 20 percent  limit.                                                            
                                                                                                                                
COMMISSIONER  PERDUE said one  idea would be  to take people  out of                                                            
the 20 percent who will never get off of welfare.                                                                               
                                                                                                                                
SENATOR WARD said  yes because otherwise, others will  be shoved out                                                            
in order to  keep people out who would  never get out anyway.   That                                                            
group should be put in a different program.                                                                                     
                                                                                                                                
CHAIR GREEN said she understood  that DHSS is working on legislation                                                            
to address that issue and would bring it to the Legislature.                                                                    
                                                                                                                                
COMMISSIONER  PERDUE said  that is correct.   She  said that  it has                                                            
been difficult  for DHSS  to accept the idea  that some people  will                                                            
have  to drop  off  of the  program.   Each  month, people  will  be                                                            
dropping off  and there will be cases  that DHSS will wish  it could                                                            
have done more about.   DHSS is looking for recipients who are doing                                                            
everything they  can to comply but for one reason  or another cannot                                                            
get on their feet so that those cases can be exempted.                                                                          
                                                                                                                                
SENATOR WARD  repeated that  if the exemption  limit is 20  percent,                                                            
then the permanent recipients  should be placed elsewhere to free up                                                            
that money for others.                                                                                                          
                                                                                                                                
MR.  NORDLUND  commented  that other  states  have  approached  that                                                            
problem  by moving  the permanent  recipients  into another  program                                                            
that is not considered  temporary.  DHSS is finding that some of the                                                            
folks should be placed  in the federal social security program (SSI)                                                            
for disabled people because that program is not temporary.                                                                      
                                                                                                                                
COMMISSIONER PERDUE pointed  out that the SSI program is not easy to                                                            
qualify for.                                                                                                                    
                                                                                                                                
CHAIR GREEN asked if the SSI payments are comparable to TANF.                                                                   
                                                                                                                                
COMMISSIONER PERDUE said they are.                                                                                              
                                                                                                                                
SENATOR  TAYLOR  said that  the SSI  program  is very  difficult  to                                                            
qualify for - it turns  down about 75 percent of all applicants.  He                                                            
has worked  with constituents who  try to get on that program.   The                                                            
process is lengthy and difficult.                                                                                               
                                                                                                                                
SENATOR  TAYLOR said  he has two  concerns.   First, he understands                                                             
that Senator  Stevens came  up with  a waiver for  the program.   He                                                            
asked  if that  waiver  is  based on  the  economic viability  of  a                                                            
community and how a community gets the waiver.                                                                                  
                                                                                                                                
COMMISSIONER  PERDUE explained that  a community can be exempt  from                                                            
the five-year limit if  unemployment is at 50 percent or more in the                                                            
community.                                                                                                                      
SENATOR TAYLOR  asked how unemployment  is counted.  He said  in his                                                            
community  a person  fell  off of  the  unemployment  roll after  18                                                            
months and  disappeared as  a number.  He  asked if a village  never                                                            
had employment how a survey would be done.                                                                                      
                                                                                                                                
MR. NORDLUND explained  that the federal law says the states can use                                                            
their own  data to determine  that unemployment  rate.  The  federal                                                            
data does  not measure the  number of discouraged  workers  who move                                                            
away because  there is  no employment.   DHSS  has asked the  Alaska                                                            
Department  of Labor to use  the census data  to calculate  what the                                                            
true  unemployment  rate is.   They  will  determine  the number  of                                                            
people unemployed  compared to the number of working  aged adults in                                                            
a village.                                                                                                                      
                                                                                                                                
SENATOR TAYLOR asked if  he could request that such a survey be done                                                            
on his town.                                                                                                                    
                                                                                                                                
MR. NORDLUND said yes.                                                                                                          
                                                                                                                                
SENATOR TAYLOR  commented that there seems to be a  tremendous split                                                            
in the  way this law is  being interpreted.   Southeast communities                                                             
have  been hard  hit  by the  loss of  the  timber economy  and  the                                                            
downturn  in the  fishing economy.   Those  people  are expected  to                                                            
leave  and find a  job elsewhere.   They  are no  longer counted  as                                                            
unemployed.    Those  people  just  disappear  so  consequently  his                                                            
community is down to about seven percent unemployment right now.                                                                
                                                                                                                                
TAPE 01-1, SIDE B                                                                                                               
Number 2500                                                                                                                     
                                                                                                                                
SENATOR TAYLOR said the  people of Wrangell are expected to move and                                                            
find a job  elsewhere while people  in a rural village are  expected                                                            
to stay there and get an  exemption from the five-year limit because                                                            
they have never  worked in the village.  He said he  finds that dual                                                            
system  difficult  in a  society that  is  supposed  to be  treating                                                            
everyone equally.                                                                                                               
                                                                                                                                
CHAIR GREEN  asked if that  waiver contains  a population factor  or                                                            
whether it is determined only by prosperity and location.                                                                       
                                                                                                                                
MR. NORDLUND's response was inaudible.                                                                                          
                                                                                                                                
COMMISSIONER PERDUE  said she didn't believe any of  the communities                                                            
on the list were the size of Wrangell.                                                                                          
                                                                                                                                
MR. NORDLUND  said communities  like Bethel  are not exempt  but the                                                            
surrounding villages are.                                                                                                       
                                                                                                                                
SENATOR TAYLOR  said that  the core of the  problem is jobs  and the                                                            
economy.  If  no jobs are available,  welfare reform will  not work.                                                            
Awhile back, the State  of Massachusetts aggressively invested state                                                            
general funds  to set up infrastructure  and recruiting businesses.                                                             
The  number  of  welfare  recipients  in  the  greater  Boston  area                                                            
decreased significantly.   The amount invested was far less than the                                                            
amount  saved.   He  asked  when  this  State is  going  to  develop                                                            
resources or assist  resource based industries, other  than big oil.                                                            
He pointed  out that the folks in  the villages selected  particular                                                            
lands under ANILCA because  of the timber on the lands but no one is                                                            
building  roads to those  lands, building  fish hatcheries  or doing                                                            
anything to enhance mining  in those areas.  In the meantime we have                                                            
passed  the welfare  reform act  and insisted  that  everyone go  to                                                            
work. He noted  the single biggest cry he has heard  in the villages                                                            
for ten years is: when will you bring some jobs here?                                                                           
                                                                                                                                
COMMISSIONER  PERDUE  replied  that DHSS  has  never said  that  the                                                            
success  of  welfare  reform  could have  happened  to  this  degree                                                            
without  a strong economy.   She noted  that the  THCC has a  finite                                                            
amount of money  to work with, they  have clients that are  reaching                                                            
the five-year  limit,  they have a  growing birth  rate and  only so                                                            
many slots  so they have to get on  an economic development  agenda.                                                            
                                                                                                                                
SENATOR TAYLOR  commented that if  people want to get serious  about                                                            
this issue,  they need to  look at the education  budget across  the                                                            
state and  how many individual  checks are  being written by  school                                                            
districts  that employ  the whole  village when  there really  isn't                                                            
enough work  to carry one  person yet they  have 10 or 15  employed.                                                            
He said he differs with  the Commissioner on one subject, that being                                                            
the health  of the economy.  Had Alaska's  economy been much  worse,                                                            
it would have  ranked at the bottom in the U.S.  Personal  income in                                                            
Alaska ranks 28th.  It  was always number one.  Now it ranks 48th in                                                            
growth of personal  income.  He applauded DHSS for  what it has done                                                            
with an  impossible task  and he  offered to help  but he  cautioned                                                            
that it will take courage to find solutions next year.                                                                          
                                                                                                                                
SENATOR WARD  asked how  the Denali Commission  is interacting  with                                                            
welfare reform efforts regarding jobs.                                                                                          
                                                                                                                                
COMMISSIONER PERDUE said  DHSS has not briefed the Denali Commission                                                            
on welfare reform but it would be a good idea to do that.                                                                       
                                                                                                                                
SENATOR  WARD said  it seems  to him  that  the role  of the  Denali                                                            
Commission is to create  jobs where there were none.  He felt DHSS's                                                            
effort should  be tied in with the  Denali Commission.  He  asked if                                                            
the three Native agencies  are going through the same drill DHSS has                                                            
gone through with its providers.                                                                                                
                                                                                                                                
COMMISSIONER  PERDUE said  she believes  they are  in some  fashion.                                                            
She noted some of them only started in October.                                                                                 
                                                                                                                                
SENATOR WARD said if this  effort is not working in conjunction with                                                            
the Denali Commission whose  charge it is to create jobs, then there                                                            
is a real possibility  that the project will fail.  Legislators will                                                            
then be criticized for  not helping people who cannot get off of the                                                            
welfare program.  He felt a larger discussion is important.                                                                     
                                                                                                                                
COMMISSIONER PERDUE  said the jobs that DHSS is looking  at are jobs                                                            
for actual  people with specific  skills, rather  than jobs  for the                                                            
community.   Therefore,  the  economic  health  of a  community  may                                                            
improve but  the jobs may  not be suitable  for the person  reaching                                                            
the five-year limit on welfare.                                                                                                 
                                                                                                                                
MR. NORDLUND  stated  the Denali Commission  does  have a charge  to                                                            
help reduce  welfare dependency.   He noted  DHSS has research  from                                                            
the Denali  Commission and  hopes it does  well because any  sort of                                                            
economic  development  in  rural Alaska  is  bound to  benefit  DHSS                                                            
clients to some degree.                                                                                                         
                                                                                                                                
SENATOR  WARD  stated there  doesn't  seem  to be  any coordination                                                             
between  the two.   He has  talked to  Bruce [indisc.]  who is  very                                                            
sympathetic  to those people who cannot  find jobs, yet that  is his                                                            
charge, as well as the  charge of others.  He expressed concern that                                                            
we  have  that  opportunity   and  the  Denali  Commission   is  not                                                            
restricted  to one physical area of  Alaska.  They can expend  funds                                                            
anywhere in Alaska.                                                                                                             
                                                                                                                                
CHAIR GREEN asked  if the block grant program has  been a good thing                                                            
for Alaska and whether  DHSS's budget may be tighter if that funding                                                            
method changes.                                                                                                                 
COMMISSIONER  PERDUE  said it  has been  beneficial  for Alaska  for                                                            
several reasons.   First,  Alaska had a high  population bump.   The                                                            
second  issue is  what would  happen if  there was  a huge  economic                                                            
downturn.   There  is a  rainy day  account  but it  has never  been                                                            
appreciably used nationally.   That question will come up during the                                                            
reauthorization discussions.                                                                                                    
                                                                                                                                
MR. NORDLUND  explained that the high  population increase  is a big                                                            
issue for Alaska.   The high population increase is  2.5 percent per                                                            
year since  the block  grant began  in 1998.   According to  federal                                                            
law, it  will be  revert to  the original  level in  the federal  FY                                                            
2000.  Therefore,  next year's block  grant will be $7 million  less                                                            
than this  year's.   DHSS would  like to  appeal to  Congress  to at                                                            
least hold it at the FY01  level.  If DHSS loses that $7 million, it                                                            
will mean programs in place will have to be defunded.                                                                           
                                                                                                                                
CHAIR GREEN  asked if the amount had  a time limit because  Congress                                                            
expected the number of participants to decrease.                                                                                
                                                                                                                                
COMMISSIONER  PERDUE  said  she  thinks  it  was  a  compromise  and                                                            
Congress knew  it was going to reauthorize  the law so could  review                                                            
it.                                                                                                                             
                                                                                                                                
CHAIR  GREEN  asked how  the  faith-based  organizations  that  have                                                            
worked with DHSS so far get involved.                                                                                           
                                                                                                                                
COMMISSIONER  PERDUE  stated  that  one of  DHSS's  most  successful                                                            
collaborations  is Love Inc.,  which is a  conglomeration of  all of                                                            
the churches.                                                                                                                   
                                                                                                                                
CHAIR GREEN asked how to "grow" more programs like that.                                                                        
                                                                                                                                
COMMISSIONER PERDUE said  that the United Way in Mat-Su is extremely                                                            
interested and  plans to get in touch with Love Inc.   She said, "We                                                            
need to  take that kind of  spirit that they  have and expose  it to                                                            
other communities."                                                                                                             
                                                                                                                                
SENATOR  WARD asked for  the name  of the person  in charge  of Love                                                            
Inc.                                                                                                                            
                                                                                                                                
COMMISSIONER PERDUE  replied, "Terry Reichert (ph)."   She said that                                                            
people can donate  their cars to Love Inc. and get  a tax exemption.                                                            
Then,  mechanics  donate time  and fix  the  cars and  the cars  are                                                            
donated  to individuals.   She said  it is a  very popular  program.                                                            
She said  DHSS helps  Love Inc.  a little bit  with equipment,  like                                                            
radios, but they do not want a lot of help.                                                                                     
                                                                                                                                
CHAIR  GREEN  commented  that she  thought  that  Alaska's  original                                                            
welfare reform  legislation  had a provision  that allowed  a person                                                            
finishing a  college degree to consider  that as work hours  for the                                                            
welfare program.                                                                                                                
                                                                                                                                
MR. NORDLUND  said it  is not specifically  written  in the  law but                                                            
DHSS does  give a certain  amount of flexibility  to case  managers.                                                            
If a person  was in the fourth year  of a four year degree  program,                                                            
the case  worker would not  insist that person  quit school  to meet                                                            
the work requirements for welfare.                                                                                              
                                                                                                                                
COMMISSIONER  PERDUE  cautioned that  the federal  work requirement                                                             
doesn't count  that as an accountable work activity.   She said that                                                            
one of the  big gaps she sees in welfare  reform program  is that it                                                            
has no  stipends for  people to go  to school.   There may be  money                                                            
available  for tuition, but  there is nothing  available for  living                                                            
expenses.                                                                                                                       
CHAIR  GREEN  noted  the  amount for  an  Alaska  student  loan  was                                                            
increased  to  $8500 per  year.   She  asked  if the  Department  of                                                            
Education now oversees childcare.                                                                                               
                                                                                                                                
COMMISSIONER PERDUE said that is correct.                                                                                       
                                                                                                                                
CHAIR  GREEN asked,  had welfare  reform had  not been implemented,                                                             
what the total number of participants would be today.                                                                           
                                                                                                                                
COMMISSIONER  PERDUE said  that in  the 1980s, when  more jobs  were                                                            
available, the welfare rolls didn't decline.                                                                                    
                                                                                                                                
CHAIR GREEN agreed that  the results have been even greater than had                                                            
the status  quo remained.   She asked if other  states have  had the                                                            
same difficulty with the 20 percent exemption.                                                                                  
                                                                                                                                
MR.  NORDLUND  said  many  states  have  but they  do  not  have  an                                                            
expressed  five-year  limit in  state law  so they  can spend  state                                                            
funds beyond the five-year limit.                                                                                               
                                                                                                                                
There being  no further  questions, CHAIR  GREEN announced  that the                                                            
Senate HESS Committee would  hear SCR 2 and SB 19 (pending referral)                                                            
on Monday,  January 29.  On January  31, the committee will  hear an                                                            
overview  by  the  Department  of  Education   and  Early  Childhood                                                            
Development  and,  on Saturday,  January  27,  Senate  HESS will  be                                                            
joining the  House Special Committee  on Education for a  hearing on                                                            
the  competency  test.   There being  no  further business  to  come                                                            
before the committee, CHAIR GREEN adjourned the meeting.                                                                        

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