04/09/2025 03:30 PM Senate EDUCATION

            SB  13-SUMMER EBT BENEFITS FOR CHILDREN                                                                         
                                                                                                                                
4:58:36 PM                                                                                                                    
CHAIR   TOBIN   reconvened   the  meeting   and   announced   the                                                               
consideration  of SENATE  BILL NO.  13  "An Act  relating to  the                                                               
summer electronic benefits transfer program for children."                                                                      
                                                                                                                                
4:58:57 PM                                                                                                                    
MIKE MASON, Staff, Senator Löki  Tobin, Alaska State Legislature,                                                               
Juneau,  Alaska, offered  an explanation  of changes  for SB  13,                                                               
version N to I:                                                                                                                 
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       SUMMARY OF CHANGES                                                                                     
            SB 13: SUMMER EBT BENEFITS FOR CHILDREN                                                                             
                     Version N to Version I                                                                                     
                          34-LS0141\I                                                                                           
                                                                                                                                
     Section 1                                                                                                                
      Version A had the Department of Family and Community                                                                      
     Services administering this program under AS 47.06.                                                                        
                                                                                                                                
          Version I makes it the responsibility of the                                                                          
     Department of Education and Early Development under AS                                                                     
     44.27.                                                                                                                     
                                                                                                                                
4:59:34 PM                                                                                                                    
SENATOR  BJORKMAN asked  what  is the  rational  for the  change,                                                               
since the  Department of Health  is the  agency in charge  of the                                                               
program.                                                                                                                        
                                                                                                                                
4:59:54 PM                                                                                                                    
RACHEL  LEVY,   Staff,  Senator  Forrest  Dunbar,   Alaska  State                                                               
Legislature,  Juneau, Alaska,  answered questions  on SB  13. She                                                               
replied  that  Department  of  Education  and  Early  Development                                                               
(DEED) was the only department willing to administer it.                                                                        
                                                                                                                                
5:00:18 PM                                                                                                                    
SENATOR KIEHL  stated that  interest in a  program is  one issue,                                                               
but  capacity, efficiency,  and  cost are  separate concerns.  He                                                               
noted  that  the SNAP  program  operates  with approximately  six                                                               
percent overhead,  possibly less.  Referring to the  fiscal note,                                                               
he observed that  the administrative costs appeared  to exceed 10                                                               
percent relative to the grants and  benefits line. He said it was                                                               
unclear  why the  state would  incur higher  administrative costs                                                               
under the proposal.                                                                                                             
                                                                                                                                
5:01:07 PM                                                                                                                    
SENATOR  FORREST DUNBAR,  District J,  Alaska State  Legislature,                                                               
Juneau, Alaska,  Sponsor of  SB 13.  He replied  that discussions                                                               
with  the  administration had  occurred  over  several months  to                                                               
coordinate  implementation  across  agencies. He  explained  that                                                               
practical considerations arose from  how the Pandemic EBT program                                                               
operated, particularly  regarding student data maintained  by the                                                               
Department of  Education and Early Development  (DEED). He stated                                                               
that  the  Department of  Health  had  indicated DEED  needed  to                                                               
administer the program due to  its access to school-based student                                                               
data. He  added that  a companion  bill in  the other  body still                                                               
lists the  Department of Health  as the administering  agency and                                                               
said  he  was  not  opposed   to  that  structure,  although  the                                                               
administration appeared to favor DEED.                                                                                          
                                                                                                                                
5:02:35 PM                                                                                                                    
GAVIN  NORTHEY,  Programs   Manager,  Child  Nutrition  Programs,                                                               
Department  of Education  and Early  Development (DEED),  Juneau,                                                               
Alaska,  answered  questions  on  SB   13.  He  stated  that  the                                                               
structure  of  the  Summer  Electronic  Benefits  Transfer  (EBT)                                                               
program   requires  significant   involvement   from  the   state                                                               
education agency because  eligibility determinations rely heavily                                                               
on  student  data  maintained  by DEED.  He  explained  that  the                                                               
Department of Health  indicated it would be less  burdensome if a                                                               
single agency administered the program  in full. However, because                                                               
the  program depends  on  school-based  eligibility data,  DEED's                                                               
involvement is necessary.                                                                                                       
                                                                                                                                
MR.  NORTHEY addressed  the  concern  about administrative  costs                                                               
exceeding  six  percent noting  that  SNAP  likely benefits  from                                                               
economies of  scale because it  distributes a much  larger volume                                                               
of   benefits.  In   contrast,   the  Summer   EBT  program   has                                                               
approximately  a  $10  million  benefit  rate,  which  creates  a                                                               
smaller base over which to  spread fixed administrative costs. As                                                               
a result, the administrative  percentage appears higher, slightly                                                               
over 10  percent. He added that  DEED plans to minimize  costs by                                                               
coordinating with  the Department  of Health.  Approximately half                                                               
of  the   administrative  costsabout   $1.01   millionrelate   to                                                               
issuing  EBT  cards.  DEED  intends  to  use  the  Department  of                                                               
Health's  existing  EBT contract  and  build  the summer  program                                                               
within that framework. The cost  for the program was derived from                                                               
DOH's current contract.                                                                                                         
                                                                                                                                
5:04:59 PM                                                                                                                    
SENATOR KIEHL replied that the  explanation was helpful and asked                                                               
whether additional elements of the  program could be coordinated.                                                               
He   specifically  referenced   development  of   an  eligibility                                                               
platform and  asked whether  the state  could use  a reimbursable                                                               
services  agreement to  utilize  an  existing eligibility  system                                                               
rather than creating a new one.                                                                                                 
                                                                                                                                
5:05:24 PM                                                                                                                    
MR. NORTHEY  replied that the  eligibility platform  required for                                                               
the Summer  EBT program  is highly specific  to student  data. He                                                               
stated  that  he   does  not  have  detailed   knowledge  of  the                                                               
Department of  Health's eligibility system but  noted that during                                                               
the  Pandemic  EBT  program,  the  Department  of  Health  relied                                                               
heavily on the  Department of Education and  Early Development to                                                               
support  eligibility  determinations   because  they  were  based                                                               
largely  on  school  enrollment  and  student-specific  data.  He                                                               
explained that this differs from  the eligibility system used for                                                               
traditional  Supplemental  Nutrition  Assistance  Program  (SNAP)                                                               
benefits.                                                                                                                       
                                                                                                                                
5:06:13 PM                                                                                                                    
SENATOR  KIEHL thanked  the department  for  the explanation  and                                                               
said   he   still   had  questions   about   whether   additional                                                               
efficiencies could  be achieved. He  suggested there may  be ways                                                               
for DEED  to provide  necessary student  data while  allowing the                                                               
Division of  Public Assistance (DPA)  to administer  the program,                                                               
thereby  spreading administrative  costs over  a larger  base and                                                               
reducing overall  overhead. He noted  that while student  data is                                                               
privacy-protected,  public  assistance  programs  already  manage                                                               
HIPAA-protected information  and are experienced  in safeguarding                                                               
sensitive data.  He expressed interest  in continuing to  work on                                                               
potential efficiencies  as the bill moves  forward, including the                                                               
possibility  of DEED  certifying  eligibility  while DPA  handles                                                               
administration to lower costs.                                                                                                  
                                                                                                                                
5:07:00 PM                                                                                                                    
CHAIR TOBIN agreed that  exploring administrative efficiencies is                                                               
worthwhile.                                                                                                                     
                                                                                                                                
5:07:15 PM                                                                                                                    
CHAIR TOBIN solicited a motion.                                                                                                 
                                                                                                                                
5:07:16 PM                                                                                                                    
SENATOR STEVENS moved to adopt  the committee substitute (CS) for                                                               
SB 13, work order 34-LS0141\I, as the working document.                                                                         
                                                                                                                                
5:07:29 PM                                                                                                                    
CHAIR TOBIN  found no objection  and CSSB  13 was adopted  as the                                                               
working document.                                                                                                             
                                                                                                                                
5:07:46 PM                                                                                                                    
SENATOR DUNBAR thanked the committee  for hearing SB 13 and hopes                                                               
the funds will reach the children that need and desire it.                                                                      
                                                                                                                                
5:08:18 PM                                                                                                                    
CHAIR TOBIN solicited the will of the committee.                                                                                
                                                                                                                                
5:08:21 PM                                                                                                                    
SENATOR STEVENS moved to report  CSSB 13, work order 34-LS0141\I,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
5:08:36 PM                                                                                                                    
CHAIR TOBIN found no objection and CSSB 13(EDC) was reported                                                                    
from the Senate Education Standing Committee.