Legislature(2025 - 2026)BUTROVICH 205

03/25/2025 03:30 PM Senate HEALTH & SOCIAL SERVICES

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Audio Topic
03:33:23 PM Start
03:34:27 PM Presentation(s): All Alaska Pediatric Patrnership
04:04:55 PM SJR15
04:27:23 PM SCR2
04:39:39 PM SB95
04:58:35 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 95 CHILD CARE: ASSISTANCE/GRANTS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= SCR 2 SUPPORT CRISIS CARE & MEDICAID REFORM TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Presentation: All Alaska Pediatric Partnership
+= SJR 15 OPPOSE MEDICAID CUTS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled
              SB  95-CHILD CARE: ASSISTANCE/GRANTS                                                                          
                                                                                                                              
4:39:39 PM                                                                                                                  
CHAIR DUNBAR  announced the  consideration of  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."                                                                 
                                                                                                                                
4:40:26 PM                                                                                                                    
SONJA  KAWASAKI,  Senate  Majority  Legal  Council,  Alaska  State                                                              
Legislature, Juneau,  Alaska, presented  an overview of SB  95 and                                                              
offered  advice. She  stated that  the  legislation would  reenact                                                              
certain  provisions of  Senate Bill  189 (2024)  related to  child                                                              
care  assistance,  providing  a   procedural  fix  to  ensure  the                                                              
program remains  in effect  regardless of  a pending lawsuit.  The                                                              
lawsuit challenges  Senate Bill 189 under  Alaska's single-subject                                                              
rule, art. II, sec.  13, Constitution of the State  of Alaska, but                                                              
reenacting  the provisions  would give the  child care  assistance                                                              
program  a  separate  statutory  existence and  could  render  the                                                              
lawsuit  moot.  The   case  is  currently  in   motion,  with  the                                                              
plaintiff  having  filed  for  summary   judgment  and  the  court                                                              
awaiting a response.                                                                                                            
                                                                                                                                
CHAIR  DUNBAR  asked  if  the  committee   passes  SB  95  without                                                              
amendments, will  it strengthen the  case for mootness,  and would                                                              
amending it weaken that effort.                                                                                                 
                                                                                                                                
4:42:55 PM                                                                                                                    
MS. KAWASAKI replied  that enacting SB 95 in the  same form as the                                                              
relevant  parts  of  Senate  Bill  189  would  allow  the  lawsuit                                                              
parties to  present clear arguments  and enable the court  to more                                                              
efficiently determine mootness.                                                                                                 
                                                                                                                                
4:43:22 PM                                                                                                                    
SENATOR  HUGHES asked  whether  alternating  between "child  care"                                                              
and  "day  care"  in  SB 95  creates  any  issues  or  affect  the                                                              
lawsuit.                                                                                                                        
                                                                                                                                
4:43:45 PM                                                                                                                    
MS. KAWAKSAI deferred the question to Mr. Anderson.                                                                             
                                                                                                                                
4:43:54 PM                                                                                                                    
EVAN  ANDERSON, Staff,  Representative Zack  Fields, Alaska  State                                                              
Legislature,  Juneau, Alaska,  answered questions  and provided  a                                                              
sectional  analysis   for  SB  95.   He  replied  that   the  bill                                                              
intentionally reenacts  former statutes, alternating  between "day                                                              
care" and "child  care," as a repeated mechanism  to implement the                                                              
legislative changes.                                                                                                            
                                                                                                                                
4:44:35 PM                                                                                                                    
SENATOR HUGHES asked if the definition of child care in SB 95,                                                                  
Section 28, is narrow enough.                                                                                                   
                                                                                                                                
4:45:15 PM                                                                                                                    
SENATOR TOBIN stated that a previously released legal memo                                                                      
helped clarify the definition of child care, though it may not                                                                  
be included in the current bill packet.                                                                                         
                                                                                                                                
4:45:38 PM                                                                                                                    
SENATOR HUGHES asked if the definition was adequate.                                                                            
                                                                                                                                
4:45:44 PM                                                                                                                    
SENATOR TOBIN replied in the affirmation.                                                                                       
                                                                                                                                
4:46:05 PM                                                                                                                    
MR. ANDERSON paraphrased the sectional analysis for SB 95:                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Section   1.  Amends   AS   47.05.030(a).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section   2.  Amends  AS   47.05.030(a).  Corrects   the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section   3.  Amends   AS   47.05.085(a).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section   4.  Amends  AS   47.05.085(a).  Corrects   the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section   5.  Amends   AS   47.25.001(a).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section 6.  Amends AS 47.25.001(a). Changes  the maximum                                                                 
     monthly   household  income   for  eligibility  to   105                                                                   
     percent  of  the  Alaska  Median  Income,  adjusted  for                                                                   
     family  size.  Also  replaces  "day  care"  with  "child                                                                   
     care."                                                                                                                     
     Section  7. Amends AS  47.25.011. This  is a  conforming                                                                 
     change.                                                                                                                    
     Section   8.   Amends   AS   47.25.011.   Corrects   the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section  9. Amends AS  47.25.021. This  is a  conforming                                                                 
     change.                                                                                                                    
     Section   10.   Amends  AS   47.25.021.   Corrects   the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section 11.  Amends AS 47.25.031.  This is a  conforming                                                                 
     change.                                                                                                                    
     Section   12.   Amends  AS   47.25.031.   Corrects   the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section 13.  Amends AS 47.25.041.  This is a  conforming                                                                 
     change.                                                                                                                    
                                                                                                                                
4:47:04 PM                                                                                                                    
MR. ANDERSON continued with the sectional analysis for SB 95:                                                                   
                                                                                                                                
     Section 14.  Amends AS  47.25.041. Establishes  that the                                                                 
     parent  or guardian  contribution  rate  for child  care                                                                   
     shall  not  exceed  7  percent  of  the  family  monthly                                                                   
     income.                                                                                                                    
     Section   15.  Amends   AS  47.25.051(a).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section  16.   Amends  AS  47.25.051(b).   Corrects  the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section   17.  Amends   AS  47.25.071(b).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section  18.   Amends  AS  47.25.071(b).   Corrects  the                                                                 
     terminology  in  existing  statute from  "day  care"  to                                                                   
     "child care."                                                                                                              
     Section   19.   Amends  AS   47.25.051.   Requires   the                                                                 
     Department  to  procure  a  cost-of-care  study  to  set                                                                   
     subsidy rates.                                                                                                             
     Section   20.  Amends   AS  47.25.071(b).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section 21.  Amends AS 47.25.071(b). Sets  a designation                                                                 
     as  a  "quality  child care  facility"  as  the  minimum                                                                   
     standard  for  the  Department  to  issue  grants.  Also                                                                   
     corrects the  terminology in existing statute  from "day                                                                   
     care" to "child care."                                                                                                     
     Section   22.  Amends   AS  47.25.071(g).   This  is   a                                                                 
     conforming change                                                                                                          
     Section   23.    Amends   AS   47.25.071(g).    Requires                                                                 
     prioritization  of  children  from  low-income  families                                                                   
     when filling available spaces in the facility.                                                                             
     Section   24.  Amends   AS  47.25.071(h).   This  is   a                                                                 
     conforming change                                                                                                          
     Section   25.  Amends  AS   47.25.071(h).  Directs   the                                                                 
     department to  promulgate regulations for  criteria used                                                                   
     to designate a facility as "quality."                                                                                      
                                                                                                                                
4:48:19 PM                                                                                                                    
MR. ANDERSON continued with the sectional analysis for SB 95:                                                                   
                                                                                                                                
     Section 26.  Amends AS 47.25.071. Allows  the Department                                                                 
     to  provide   grants  to   the  highest-performing   and                                                                   
     highest-quality  child  care  facilities in  the  state,                                                                   
     and  prohibits a  child  care facility  receiving  state                                                                   
     grants  from   denying  a  child  acceptance   based  on                                                                   
     disability or socioeconomic status.                                                                                        
     Section   27.  Amends   AS  47.25.095(2).   This  is   a                                                                 
     conforming change.                                                                                                         
     Section 28.  Amends AS  47.25.095(2). Adds a  definition                                                                   
     of "child care."                                                                                                           
     Section   29.  Amends  AS   47.25.095(3).  Updates   the                                                                 
     definition  of "child  care  facility"  to include  "day                                                                   
     care.                                                                                                                      
     Section   30.  Amends  AS   47.25.095(3).  Updates   the                                                                 
     definition   of  "child   care   facility"  to   include                                                                   
     establishments  recognized  by  the  federal  government                                                                   
     for the care of children.                                                                                                  
     Section 31.  Amends AS 47.25.095.  This is a  conforming                                                                 
     change.                                                                                                                    
     Section  32. Repeals  Section 31. This  is a  conforming                                                                 
     change                                                                                                                     
     Section 33. This is a conforming change.                                                                                 
     Section 34.  Repeals uncodified law associated  with the                                                                 
     passage  of SB  189 from  the  33rd Session.  This is  a                                                                   
     conforming change.                                                                                                         
     Section 35.  Codifies that the Department  shall receive                                                                 
     federal approval  for the state plan for  the child care                                                                   
     assistance program.                                                                                                        
     Section 36.  Sets a retroactive  effective date  to July                                                                 
     23, 2024.                                                                                                                  
     Section  37. Sets  an effective  date for  Section 6  as                                                                 
     January   1,  2026,   pending  approval   by  the   U.S.                                                                   
     Department of Health and Human Services.                                                                                   
     Section 39.  All other sections of the bill  take effect                                                                 
     immediately.                                                                                                               
                                                                                                                                
4:49:31 PM                                                                                                                    
STEPHANIE BERGLUND, Chief Executive Officer (CEO), Thread,                                                                      
Anchorage, Alaska, testified by invitation on SB 95 and read the                                                                
following:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Thank  you Mr. Chair  and members  of the committee  for                                                                   
     hearing SB 95.                                                                                                             
     My name is  Stephanie Berglund, CEO of  Thread- Alaska's                                                                   
     Child  Care Resource and  Referral organization.  Thread                                                                   
     is   a   39-year-old   nonprofit,   providing   services                                                                   
     statewide to  strengthen access to affordable  and high-                                                                   
     quality early  childhood education, with focus  on child                                                                   
     care. We  serve more than  10,000 families,  2,000 early                                                                   
     educators,  and  over  400   early  childhood  education                                                                   
     programs each year.                                                                                                        
                                                                                                                                
4:49:57 PM                                                                                                                    
MS. BERGLUND continued with her testimony of SB 95:                                                                             
                                                                                                                                
     Today I  am testifying on behalf  of Thread but  want to                                                                   
     share  that we  are  also proud  members  of the  Alaska                                                                   
     Early  Childhood Advocacy  Group  in support  of SB  95.                                                                   
     The  Alaska Early Childhood  Advocacy  Group is a  group                                                                   
     of  nine non-profits  from  across the  state that  have                                                                   
     joined  together to  advocate  for increased  investment                                                                   
     and improved  policies to support Alaska's  children and                                                                   
     families.                                                                                                                  
                                                                                                                                
     The  child care  sector  is fragile.  It's  long been  a                                                                   
     sector  with  institutional  deficiencies-  for  decades                                                                   
     but  has seen increased  challenges  over the last  five                                                                   
     years.                                                                                                                     
                                                                                                                                
     Since  2020,  we  have  seen  over  25  percent  of  the                                                                   
     licensed  child care  programs  close  across the  state                                                                   
     and of those  that are open, they are not  able to serve                                                                   
     all  the   children  they   would  like  due   to  staff                                                                   
     shortages. Thread  anticipates more child  care programs                                                                   
     closing  if we  do not  see  sustainable and  meaningful                                                                   
     investment  from the  state  for child  care. The  child                                                                   
     care workforce  is struggling due  to low wages  and few                                                                   
     benefits   at  the   same  time  when   there  is   high                                                                   
     competition    for   qualified   workers    in   Alaska.                                                                   
     Currently,  fewer  families  can access  affordable  and                                                                   
     quality child care services than ever before.                                                                              
                                                                                                                                
     When we  don't have a strong  child care sector,  we see                                                                   
     our  economic  infrastructure struggle.  Businesses  are                                                                   
     not  able to recruit  and retain  quality employees  and                                                                   
     families are  not able to  participate in the  workforce                                                                   
     as  they  want.  Our  most   recent  research  and  data                                                                   
     conducted  in partnership  with the  Alaska Chamber  and                                                                   
     the  Mckinley  Group  has   shown  that  businesses  are                                                                   
     greatly  impacted  by  families  struggling  with  child                                                                   
     care-   including   poor    attendance   and   loss   in                                                                   
     productivity.   Child   care  challenges   for   working                                                                   
     families  resulting in  absences  and employee  turnover                                                                   
     cost  businesses   an  estimated  $152M/annually.   When                                                                   
     Alaskans  can't  work,  they don't  have  the  financial                                                                   
     security  to support  their families,  they aren't  able                                                                   
     to  achieve  their  self-sufficiency  goals  and  aren't                                                                   
     able  to  contribute  to  the  economy.  This  not  only                                                                   
     stifles  the  quality of  life  for families,  but  this                                                                   
     also stalls Alaska's growth.                                                                                               
                                                                                                                                
4:51:51 PM                                                                                                                    
MS. BERGLUND continued with her testimony of SB 95:                                                                             
                                                                                                                                
     SB95   adds   needed   support  for   child   care   and                                                                   
     strengthens  the  child  care   assistance  and  subsidy                                                                   
     programs. While  there are many areas of the  child care                                                                   
     system  that  need  support,  SB95  aims  to  strengthen                                                                   
     child   care  assistance  by   allowing  more   families                                                                   
     (earning  up  to the  105  percent of  median  household                                                                   
     income)  to  participate  in the  program  and  creating                                                                   
     flexibility  in   child  care  resources  with   aim  to                                                                   
     support child  care programs with the  targeted supports                                                                   
     they need.                                                                                                                 
                                                                                                                                
     Changes   in   child   care   assistance   are   needed.                                                                   
     Currently, too  few families participate in  the program                                                                   
     as they  don't qualify or  can't access resources  under                                                                   
     the  current structure.  Families  utilizing child  care                                                                   
     assistance  pay a  co-pay for  services  in addition  to                                                                   
     the cost differential of tuition fees.                                                                                     
                                                                                                                                
     These   and  other  barriers   are  impacting   family's                                                                   
     ability  to  participate  in the  workforce.  Just  over                                                                   
     half  of families  (51  percent) report  that  household                                                                   
     members' ability  to be employed or work  more hours was                                                                   
     impacted  by quality,  availability,  or  cost of  child                                                                   
     care.  This  is a  large  change  from the  same  survey                                                                   
     conducted  in 2019,  where only 22  percent of  families                                                                   
     surveyed   reported  that   child   care  barriers   are                                                                   
     impacting their  ability to be employed or  work as much                                                                   
     as they  would like.  This is a  29 percent increase  in                                                                   
     families  not able  to  work due  to  child care.  These                                                                   
     findings underscore  the need  for child care  change to                                                                   
     strengthen  our collective  workforce and economy.  This                                                                   
     bill  would  also  create  a  program  to  partner  with                                                                   
     businesses  to create incentives  and support them  with                                                                   
     developing onsite or near site child care.                                                                                 
                                                                                                                                
4:53:18 PM                                                                                                                    
MS. BERGLUND continued with her testimony of SB 95:                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     One  lever of  change  is  through SB95  and  increasing                                                                   
     Child  Care  Assistance access  and  capping  copayments                                                                   
     required  for  families.  This   bill  will  allow  more                                                                   
     families  to  qualify  and   thus  allow  more  families                                                                   
     access to quality child care.                                                                                              
                                                                                                                                
     Additionally,   child  care  businesses   are  currently                                                                   
     reimbursed  at child care  assistance program rates  set                                                                   
     by  a market rate  survey that  is based  on the  amount                                                                   
     child  care  businesses charge  for  care, not  what  it                                                                   
     actually  costs to provide  quality care and  education.                                                                   
     This creates  an unstable foundation for the  child care                                                                   
     system. Thread  encourages policy makers to  keep moving                                                                   
     toward the true  cost of care to be used  in conjunction                                                                   
     with market  rate prices in  policy and fiscal  planning                                                                   
     for child  care supports. Considering  the true  cost of                                                                   
     providing  child  care in  our  policies will  inform  a                                                                   
     more stable child care system.                                                                                             
                                                                                                                                
     SB95  is  a  great and  necessary  step  for  supporting                                                                   
     family's affordability.                                                                                                    
                                                                                                                                
     Thread  is endorsing  SB95 as  it is a  key step  toward                                                                   
     more  affordable access  to  care for  families.  Thread                                                                   
     encourages  legislators to consider  and pass this  bill                                                                   
     this  session  as  it was  already  passed  with  strong                                                                   
     support  last  session.  This positive  change  for  the                                                                   
     child care sector cannot come soon enough.                                                                                 
                                                                                                                                
     I  appreciate   the  sponsor  for  bringing   this  bill                                                                   
     forward   and  thank   the  chair   and  committee   for                                                                   
     considering this bill.                                                                                                     
                                                                                                                                
     Thank you for  the opportunity to testify  and thank you                                                                   
     for your  time and  support for  the young children  and                                                                   
     families in Alaska.                                                                                                        
                                                                                                                                
4:54:58 PM                                                                                                                    
JEN GRIFFIS, Vice President, Policy and Advocacy, Alaska's                                                                      
Children Trust, Anchorage, Alaska, testified by invitation on SB
95. She read the following:                                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     As  the  statewide  lead  organization  focused  on  the                                                                   
     prevention  of child  abuse  and neglect,  ACT  supports                                                                   
     policies  that increase economic  security for  families                                                                   
     and  provide foundational  early  education support  for                                                                   
     children.  Senate  Bill  95   does  both  by  increasing                                                                   
     access to  quality, affordable  child care for  Alaska's                                                                   
     families.                                                                                                                  
     As  you  know,  the policies  in  SB95  were  originally                                                                   
     found  in HB89, which  passed the  legislature last  May                                                                   
     as  part  of  SB189.  My  task  today  is  to  walk  the                                                                   
     committee through  the legislative process of  this bill                                                                   
     over the past two years.                                                                                                   
     Early  childhood advocates,  including  the nine  member                                                                   
     organizations  of the  Alaska  Early Childhood  Advocacy                                                                   
     Group,  as well  as  representatives  from the  business                                                                   
     community  and the administration,  worked closely  with                                                                   
     legislators  on  the  development and  passage  of  HB89                                                                   
     during the last legislative session.                                                                                       
     HB89 was  sponsored by  Rep. Julie  Coulombe and  had 15                                                                   
     co-sponsors,  including members  from both the  majority                                                                   
     and minority  caucuses. It  also had the strong  support                                                                   
     of   advocates   including  Alaska   Children's   Trust,                                                                   
     thread, Alaska  Chamber of  Commerce and child  care and                                                                   
     after school providers from across the state.                                                                              
     The  bill  had two  hearings  in  the House  Health  and                                                                   
     Social  Services committee  in March  and April of  2023                                                                   
     and was  moved out of  committee with unanimous  Do Pass                                                                   
     recommendations.  It  received   one  hearing  in  House                                                                   
     Finance before the end of the session.                                                                                     
     The sponsor  met with  the administration and  advocates                                                                   
     during the  interim and information from  those meetings                                                                   
     was  incorporated   into  an  updated  version   of  the                                                                   
     legislation  which was  introduced in  House Finance  at                                                                   
     the beginning of the 2024 session.                                                                                         
                                                                                                                                
4:56:38 PM                                                                                                                    
MS. GRIFFIS continued with her testimony of SB 95:                                                                              
                                                                                                                                
     In January  and February  of 2024  the legislation,  the                                                                   
     legislation was  heard in House Finance where  it passed                                                                   
     out of  committee, where it  quickly moved to  the House                                                                   
     floor  and passed  the House  35  to 5  on February  28,                                                                   
     2024.                                                                                                                      
     After being  introduced in  the Senate, the  legislation                                                                   
     was  heard in Senate  Health and  Social Services  three                                                                   
     times  in  March  and  April   where  it  received  some                                                                   
     amendments  before being  moved out  of committee.   The                                                                   
     bill  was then  referred  to  Senate Finance,  where  it                                                                   
     received one hearing.                                                                                                      
     On  the  final  day  of the  session  May  15  2024  the                                                                   
     language from  HB89 was amended into SB189  on the floor                                                                   
     of the  House. This bill passed  the House 33 to  7, was                                                                   
     transmitted to  the Senate and  passed the Senate  17 to                                                                   
     3. It was not  vetoed by the Governor and  became law on                                                                   
     October  9, 2024.  The funding  in the  fiscal note  was                                                                   
     included in  the Governor's budget that was  released in                                                                   
     December 2024.                                                                                                             
     Alaska   Children's  Trust,   along  with  our   partner                                                                   
     organizations  in the  Alaska  Early Childhood  Advocacy                                                                   
     Group, remain  supportive of the policies of  HB89 which                                                                   
     are  now   represented  in   SB95.  We  appreciate   the                                                                   
     opportunity  to share  more about  this legislation  and                                                                   
     are happy to answer any questions.                                                                                         
                                                                                                                                
4:58:10 PM                                                                                                                    
CHAIR DUNBAR held SB 95 in committee.                                                                                           

Document Name Date/Time Subjects
SHSS Presentation IECMH 2025.03.25.pdf SHSS 3/25/2025 3:30:00 PM
SCR 2 Version A 3.12.25.pdf SHSS 3/25/2025 3:30:00 PM
SCR 2
SCR 2 Sponsor Statement 3.13.25.pdf SHSS 3/25/2025 3:30:00 PM
SCR 2
SB 95 Supporting Documents- Historic Document Packet.pdf SFIN 4/25/2025 9:00:00 AM
SHSS 3/25/2025 3:30:00 PM
SB 95
SB 95 Sectional Analysis 3.25.25.pdf SFIN 4/25/2025 9:00:00 AM
SHSS 3/25/2025 3:30:00 PM
SB 95
SJR 15 Version A 3.19.25.pdf SHSS 3/25/2025 3:30:00 PM
SJR 15
SJR 15 Sponsor Statement 3.25.25.pdf SHSS 3/25/2025 3:30:00 PM
SJR 15