Legislature(1993 - 1994)
1993-02-05 Senate Journal
Full Journal pdf1993-02-05 Senate Journal Page 0260 SB 101 SENATE BILL NO. 101 by the Senate Rules Committee by request of the Governor, entitled: "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." was read the first time and referred to the Health, Education and Social Services, Judiciary and Finance Committees. Fiscal notes published today from Department of Health and Social Services (5). Governor's transmittal letter dated February 5: Dear Mr. President: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to eligibility for and payments of 1993-02-05 Senate Journal Page 0261 SB 101 public assistance. The bill represents the Administration's proposal to control the growth of expenditures in formula welfare programs. Section 1 of the bill would amend AS47.25.320(a) to require that the maximum monthly amount of aid-to-families-with-dependent- children (AFDC) assistance for a second adult in a two-parent AFDC household be the same as for a second dependent child in a home where there is one adult. Currently, the monthly amount for a three- person household composed of two adults and one child is $88 more than for a three-person household composed of one adult and two children; this difference increased to $90 on January1, 1993. Section 1 also amends the standards for families that include one or more dependent children living with a nonneedy relative, to bring the AFDC program into conformity with federal requirements that the increment for a second child be the same as the increment for any additional children. The maximum grant amounts in AS47.35.320(a) were last amended in 1982. However, under AS47.35.320(d) those maximum amounts have been increased a number of times to reflect cost-of-living increases. Section 1 amends the maximum grant amounts, starting July1, 1993, to roll back those amounts to the 1991 benefit level. Section 2 of the bill amends AS47.25.320(d) to provide that the department may not increase those monetary maximums based on an increase in benefits that takes effect anytime during the calendar year that begins on January 1, 1994, nor on an increase in benefits that took effect on or before January 1, 1993. Section 3 of the bill would allow DHSS to adopt regulations to establish a monthly need standard for AFDC that equals or exceeds the monthly payment standard for AFDC. In combination with the reduction of AFDC grant amounts in sec. 1 of the bill, this provision will provide an incentive for an AFDC family to augment its income within limits without automatically jeopardizing eligibility. Section 4 would amend AS47.25.430(b), relating to cost-of-living increases in the adult public assistance program, to provide that the 1993-02-05 Senate Journal Page 0262 SB 101 department will not increase the maximum state contribution to recipients by any cost-of-living increase that takes effect during the calendar year beginning on January 1, 1994, and to conform to the changes made by sec. 5 of the bill. Section 5 of the bill requires DHSS to reduce the maximum state contribution to recipients in the adult public assistance program to the 1990 level and to adjust monthly grants of assistance accordingly. Section 6 of the bill would amend AS47.25.455 to provide for reimbursement for interim assistance and to eliminate retroactive adult public assistance payments to interim assistance recipients. The existing statute requires DHSS to pay $280 per month to eligible individuals while the Social Security Administration (SSA) is processing their disability applications; once an individual is determined eligible, the SSA makes a retroactive payment to that person. With this change in AS 47.25.455, an applicant for interim assistance would have to agree at the time of initial application to have retroactive SSI benefits paid to DHSS to reimburse the state for the interim assistance received by the applicant. Section 7 repeals AS47.25.320(e) to conform to the change made in sec. 1 related to reducing grant amounts for two-parent households. Section 8 provides transitional authority to allow DHSS to adopt regulations before July 1, 1993, but the regulations cannot take effect before that date. This provision should facilitate timely implementation of the new statutory changes. Sections 9 and 10 provide for an effective date for the bill. 1993-02-05 Senate Journal Page 0263 SB 101 I urge your serious consideration of these proposals to control the growth of the state budget. Sincerely, /s/ Walter J. Hickel Governor