HB 263-EXTEND SENIOR BENEFITS PAYMENT PROGRAM  1:33:44 PM CHAIR STEDMAN announced the consideration of HB 263. [CSHB 263 (HSS) was before the committee.] CECILE ELLIOTT, Staff, Representative Mike Hawker, Alaska State Legislature, Juneau, Alaska, introduced HB 263 on behalf of the sponsor. She related that HB 263 extends the senior benefits program from June 2015 until June 2021. It is a needs-based program established in 2007, and provides monthly cash assistance to residents age 65 years or older. The beneficiaries receive monthly cash of $125, $175, or $250, depending on their income. Approximately 11,000 of Alaska's lowest income senior citizens will be served by this program in the current fiscal year. MS. ELLIOTT referred to a document in members' files from the Department of Health and Social Services (DHSS) that shows the history of senior benefits under various names. CHAIR STEDMAN requested a synopsis of that document. MS. ELLIOTT reported that from 1972 to present there have been four significant changes in senior benefits. The Longevity Bonus Program became the Senior Assistance Program, then the Senior Care Program, and currently, the Senior Benefits Program. Changes were made due to costs and prioritizing the most needy to receive a benefit. CHAIR STEDMAN noted the intent of the committee is to hear from the sponsor, take public testimony, and set HB 263 aside. 1:36:24 PM At ease 1:36:50 PM CHAIR STEDMAN asked the committee members if they have any questions. SENATOR MEYER recalled the history of changes in senior benefits programs. He asked how the current program is working out. MS. ELLIOTT said there are 11,000 seniors with the greatest needs benefiting from this program. SENATOR MEYER questioned if the money is meeting their basic needs. He asked if the seniors pay taxes on the benefits. MS. ELLIOTT said they do not. SENATOR MEYER asked if seniors in a state-subsidized facility receive senior benefits. MS. ELLIOTT said no. SENATOR MEYER asked if there are six employees working on the program. 1:38:58 PM RON KREHER, Director, Division of Public Assistance, Department of Health and Social Services (DHSS), Juneau, Alaska, answered questions related to HB 263. He related that there are six positions attached to the program that have been in the operating budget since the Senior Benefits Payment Program was established. MR. KREHER pointed out that the program is successful because it is helping seniors to be able to remain safely in their homes and in their communities, which is a priority of DHSS. About 56 percent of the recipients are on Adult Public Assistance and the program augments that funding. Another 30 percent are on food stamps. He concluded that the seniors who benefit by the program are truly needy. SENATOR MEYER recalled the tough decision when cutting the Longevity Bonus, which all seniors got. He asked if the seniors have to enroll every year. MR. KREHER said there is an annual renewal process. SENATOR MEYER asked if that is why six staff are needed. MR. KREHER said yes; the staff also monitor other programs. SENATOR MICCICHE asked why asset levels are not counted for eligibility. 1:42:00 PM MR. KREHER related that the program does not have an asset test because so many individuals are receiving benefits from other programs, such as Medicaid, food stamps, and public assistance. He noted that individuals in need are asset poor and often assets are dedicated to end-of-life events. SENATOR MICCICHE said he can understand why someone in a Pioneer Home or an Alaska Veteran's Home does not receive senior benefits. He asked why individuals in private nursing homes or in mental health institutions do not receive senior benefits. MR. KREHER said typically individuals that are in a care facility receive a stipend. When the Senior Benefit Program was reauthorized several years ago, an amendment included an increase in stipends for people in institutionalized settings. He stated that for most of the assistance programs, the level of care is being met. 1:44:29 PM SENATOR MICCICHE highlighted some of the supporting documents of the bill. He said in his district, the Kenai Peninsula Borough, there are over 1,000 recipients of senior benefits. He thought that number seemed high for a borough with 54,000 people, but concluded that there are income challenges in some of the communities. MR. KREHER opined that the ratio is representative of the senior population in each borough. He added that Alaska has an aging population. CHAIR STEDMAN noted a fiscal note from DHSS for $23 million in general funds for FY 15, already included in the Governor's budget. CHAIR STEDMAN opened public testimony. 1:46:24 PM MARIE DARLIN, Member, AARP, Juneau, Alaska, testified in support of HB 263. She related that she lives in Fireweed Place, housing for seniors of a variety of income levels. She said many seniors are not taking advantage of all the programs and many don't want state services. She maintained that many should be applying because they need help; any assistance for independent seniors helps keep them out of facilities. She said HB 263 is a way to provide much needed help for seniors. 1:48:49 PM DENISE DANIELLO, Executive Director, Alaska Commission on Aging, Department of Health and Social Services (DHSS), Juneau, Alaska, testified in support of HB 263. She referred to a letter from the Commission in members' packets. She said the Commission has supported the Senior Benefits Program from its onset. She stressed that the program really does make a difference. She shared that the average age of the recipient is 75 and the oldest is 107. She related that often with a married couple the husband gets sick, they spend down the family assets, and the wife is left a widow. She reported that about two-thirds of the recipients are women. SENATOR MICCICHE stated his support for HB 263 and the previous Longevity Bonus. He wanted to encourage seniors to remain in Alaska. CHAIR STEDMAN thanked Ms. Daniello for her testimony. He closed public testimony. 1:51:43 PM MS. ELLIOT thanked the committee for hearing the bill. CHAIR STEDMAN held HB 263 in committee.