Legislature(1997 - 1998)
1997-03-05 Senate Journal
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Full Journal pdf1997-03-05 Senate Journal Page 0573 SB 116 was read the first time and referred to the State Affairs, Health, Education and Social Services and Finance Committees. Fiscal note published today from Department of Revenue. Zero fiscal notes published today from Department of Labor, Department of Health and Social Services. Governors transmittal letter dated March 4: Dear President Miller: Last year I signed into law a bill commonly referred to as welfare reform, but I called it a bill to put Alaskans to work. Today I am sending to the Legislature part two of that effort to take people off the welfare rolls and put them on the payrolls. With this bill I am launching my Alaska Business Investment Incentive Plan which will include several measures to be presented over the next two weeks. This bill establishes the Alaska welfare to work program which offers a tax credit to corporations that hire people who receive public assistance. The tax credit will provide an incentive to corporations to hire public aid recipients which will assist in the states effort to move people off of welfare. This new program would offer an employer a tax credit of 15 percent of an employees eligible wages, capped at $1,000 per employee. Additional credit of up to $500 may be earned if the employer provides training that qualifies as a work activity under last years reform bill. To compare that with our current costs under welfare, the average public assistance payment is $778 per month, or $4,668 over six months--far exceeding the $1,000 to $1,500 tax credit proposed in this legislation. In order for an employer to earn the credit, the employee must remain in the job for 180 days or 400 hours. The employment does not, however, have to be uninterrupted or within a year of initial hire. This ensures that employers who experience a need for a temporary layoff, or work in seasonal industries, are eligible for the tax credit.