Legislature(2025 - 2026)ADAMS 519
05/13/2025 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB95 | |
| SB96 | |
| SB97 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 95 | TELECONFERENCED | |
| += | SB 96 | TELECONFERENCED | |
| += | SB 97 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 95
"An Act relating to the child care assistance program
and the child care grant program; and providing for an
effective date."
3:25:54 PM
SENATOR FORREST DUNBAR, CHAIR, SENATE HEALTH AND SOCIAL
SERVICES COMMITTEE, relayed that the fundamental reason the
bill was before the committee was due to the single subject
rule litigation. He commented that the underlying substance
of the bill expanded childcare to roughly 18 thousand
children. He added that the bill aligned with the
Governor's Task Force on Child Care recommendations. He
reminded the committee that the bill was currently in
statute and SB 95 was a separate bill in case the lawsuit
struck down SB 189. He added that the funding was included
in the current governors requested budget. He summarized
that the bill reenacted a portion of SB 189 passed in the
prior year in hopes it rendered the lawsuit moot.
STEPHANIE BERGLUND, CEO, THREAD, ANCHORAGE (via
teleconference), thanked the committee for hearing the
bill. She shared that Thread was a 39 year old non-profit
organization providing services to strengthen access to
affordable, quality early childhood education with a focus
on childcare serving families, educators, and over 4
hundred programs each year. She delineated that the
childcare sector was fragile and had seen increased
challenges in the past five years. Since 2020, over 25
percent of licensed childcare centers closed. The childcare
workforce was struggling with low wages, few benefits, and
a highly competitive workforce. The state was ranked low in
state investments in childcare and in efforts to recover
post-pandemic. She commented that when the state lacked a
strong childcare sector, its economic infrastructure
struggled. Recent research and data, conducted in
partnership with the Alaska Chamber and the McKinley Group,
had shown that businesses are greatly impacted by families
struggling with childcare - including poor attendance and
loss in productivity. She communicated that childcare
challenges for working families result in absences and
employee turnover that cost businesses an estimated $152
million annually. She stressed that when Alaskans cannot
work, they lack the financial security to support their
families, and unable to achieve self-sufficiency goals nor
contribute to the economy. She believed that the situation
not only stifled the quality of life for families, but also
stalled Alaska's growth. The bill added incentives for
businesses to support childcare and strengthens the
childcare assistance and subsidy programs.
Ms. Berglund continued that while many areas of the
childcare system need support, SB 95 aimed to strengthen
childcare assistance by allowing more families, those
earning up to 106 percentile of median household income, to
participate in the program and created flexibility in
childcare resources and support programs with the targeted
supports they need. She emphasized that changes in
childcare assistance were needed. She related that
currently, too few families participate in the program
because they do not qualify or cannot access resources
under the current structure. She suggested changes like
increasing childcare assistance access and capping co-
payments required for families. She pointed out that the
bill allowed more families to qualify for assistance and
thus more families gain access to quality childcare. These
and other barriers were impacting families ability to
participate in the workforce. She detailed that just over
half of families (51 percent) report that household
members' ability to be employed or work more hours was
impacted by the quality, availability, or cost of
childcare, representing 25 thousand Alaskan parents who
could be working. The percentage demonstrated a large
change from the same survey conducted in 2019, where only
22 percent of families surveyed reported that childcare
barriers were impacting their ability to be employed
resulting in a 29 percent increase. The findings
underscored the need for the bill. The bill created a
program that partnered with businesses to create incentives
in developing onsite or near site childcare. Additionally,
childcare businesses were reimbursed at childcare
assistance program rates set by a market rate survey based
on the amount providers charge for care, not what the
actual costs were to provide quality care. Thread was
encouraged to see current research underway to understand
the true cost of care. She wanted to analyze the data to
determine how it can be used in conjunction with market
rate prices in policy and fiscal planning for childcare
support. She was pleased to see that the bill included
consideration of childcare reimbursement rates based on a
market rate survey and the true cost of care. Considering
the true cost of providing childcare in our policies would
inform a more stable childcare system. She relayed that
Thread endorsed SB 95 and SB 96 because the bills
represented a key step toward more affordable access to
childcare for families. Thread encouraged legislators to
support the bills with urgency. She requested that the bill
pass simply and move forward in recognition that it passed
with strong support in the prior session. She noted that
the fiscal note was already included in the governor's
budget. She urged passage of the bill.
3:33:24 PM
Co-Chair Foster OPENED public testimony.
Co-Chair Foster CLOSED public testimony.
Co-Chair Foster requested a review of the fiscal note. OMB
component 1897 from the.
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
reviewed the fiscal note. He detailed that the Department
of Health (DOH) fiscal impact note (FN1(DOH) was allocated
to Child Care Benefits. He reiterated that the fiscal note
was reflected in the FY 26 budget. He reported that the
Personal Services line was $203.8 thousand, the Services
line was $28 thousand, Commodities were $2 thousand, Grants
and Benefits were $5.858.4 million totaling $6.092.2
million. The fund sources were as follows: Federal Receipts
$225.1 thousand, General Fund Match was $225.1 thousand,
and General Fund was $5.642 million. He referenced the
fiscal note's analysis on page 2 that showed the creation
of two positions. He delineated the following costs:
Services: $28 thousand annually or $14 thousand per
position for chargeback costs. Commodities: $2. thousand
annually or $1 thousand per position. Grants: $216.5
thousand to support grantee staffing to process additional
applications and $5,642 million additional increased
subsidy benefit.
3:36:36 PM
Representative Tomaszewski asked how a range 12 cost
$83,000 per year. He also wanted the hourly rate for a
range 18. Mr. Anderson replied that the amount included
base salary, and benefits.
LEAH VAN KIRK, POLICY ADVISOR, DEPARTMENT OF HEALTH, JUNEAU
(via teleconference), affirmed Mr. Anderson's answer.
Representative Tomaszewski asked what the hourly wage
amounted to.
3:39:09 PM
Ms. Van Kirk replied that the hourly rate for a range 12
was $24.15 per hour. She added that the hourly rate for a
range 18 was $36.30 per hour.
Co-Chair Josephson asked whether there was initially $29
million in federal funding. He deduced that the federal
investment was eliminated for whatever reason and the
department substituted the amount with mostly state
dollars.
Ms. Berglund responded that Co-Chair Josephson was
referring to three different Congressional appropriations
of COVID 19 relief funding that was granted in an effort to
stabilize childcare in Alaska. She affirmed that all of the
three appropriations had been exhausted. She added that
childcare overall was primarily federally funded and
required additional state investment like the funding in SB
95 and SB 96.
3:42:27 PM
Representative Allard thought there were quite a few
vacancies in the department. She asked why they wanted to
add two new positions instead of using existing vacancies.
Ms. Van Kirk replied that the bill created a new program
and required new positions. She stressed that the Division
of Public Assistance needed to utilize all of its existing
allocated positions. The childcare program office was
separate and had a low vacancy rate. Representative Allard
asked for verification that there were no existing
vacancies in the specific office. Ms. Van Kirk replied that
there was a low vacancy rate in the Childcare Program
Office. The department had assessed its needs and because
it was a new program, new PCNs were required.
Co-Chair Schrage MOVED to REPORT SB 95 out of committee
with individual recommendations and the accompanying fiscal
note.
There being NO OBJECTION, it was so ordered.
SB 95 was REPORTED out of committee with six "do pass"
recommendations and four "no recommendation"
recommendations and with one previously published fiscal
impact note: FN1 (DOH).
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 97 Public Testimony Rec'd by 051325.pdf |
HFIN 5/13/2025 1:30:00 PM |
SB 97 |