03/21/2011 09:00 AM Senate FINANCE

SENATE BILL NO. 102                                                                                                           
                                                                                                                                
     "An Act relating to certain payments made under the                                                                        
     Alaska affordable heating program."                                                                                        
                                                                                                                                
9:45:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman stressed  that there  was a  high cost  of                                                                    
heating  in  many  areas  of   the  state,  because  of  the                                                                    
dependence on diesel fuel.                                                                                                      
                                                                                                                                
9:47:02 AM                                                                                                                    
                                                                                                                                
JAY LIVY, STAFF, SENATOR HOFFMAN,  presented SB 102 proposed                                                                    
changes  to  the  Alaska   Affordable  Heating  Program,  to                                                                    
clarify that  the Department of  Health and  Social Services                                                                    
may   prorate  benefits,   should   insufficient  funds   be                                                                    
available.                                                                                                                      
                                                                                                                                
Mr. Livy  pointed out  two changes. He  pointed to  line 11,                                                                    
which included the addition of  "and see." He explained that                                                                    
that change  would include the  benefit calculations  in the                                                                    
prorated areas. He  also looked at line 12,  which added the                                                                    
words "on a prorata basis."                                                                                                     
                                                                                                                                
Mr. Livy  stressed that  there were  no policy  changes, and                                                                    
the language was strictly technical.                                                                                            
                                                                                                                                
Co-Chair Stedman referred  to one zero fiscal  note from the                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
9:50:15 AM                                                                                                                    
                                                                                                                                
Senator  Olson referred  to a  50 percent  cut by  the Obama                                                                    
Administration in  the Federal  Low Income  Heating Program.                                                                    
He wondered if  that cut had been  taken into consideration.                                                                    
Mr. Livy replied  that the state received  about $18 million                                                                    
in  federal  funds, but  there  was  a  50 percent  cut.  He                                                                    
stressed that  Alaska could receive  up to $10  million less                                                                    
to spend  in the next year.  He explained that the  bill was                                                                    
drafted  based on  requirements  to fill  the benefit  need:                                                                    
either from the general fund or federal funds.                                                                                  
                                                                                                                                
9:52:06 AM                                                                                                                    
                                                                                                                                
Senator Olson pointed out that the  bill did not make up for                                                                    
the lost federal funds. Mr. Livy agreed.                                                                                        
                                                                                                                                
9:52:35 AM                                                                                                                    
                                                                                                                                
SB  102  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.