Legislature(2009 - 2010)SENATE FINANCE 532
03/11/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB116 | |
| SB13 | |
| SB32 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 13 | TELECONFERENCED | |
| + | SB 32 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 116 | ||
SENATE BILL NO. 116
"An Act making a special appropriation for energy
assistance for rural communities; and providing for an
effective date."
9:04:29 AM
Co-Chair Hoffman MOVED to ADOPT work draft LS0600\R, Kane
3/3/09. There being NO OBJECTION, it was so ordered.
Co-Chair Hoffman stated that the initial approach to bring
energy relief to rural Alaskan communities was the
establishment of a separate entity under the title "Energy
Assistance for Rural Communities." A broad approach followed
a review with the administration for energy assistance
without the establishment of a second entity. The
legislation allows energy assistance through the Low Income
Home Energy Assistance Program (LIHEAP) and the Alaska
Heating Assistance Program (AKHAP). The funds were increased
from $5 million to $9 million in an effort to broaden the
program and to assist all Alaskans qualifying under the
LIHEAP program.
9:07:21 AM
JAY LIVEY, STAFF, SENATOR HOFFMAN, explained the changes in
the bill. He referred to the PowerPoint presentation "Alaska
Heating Assistance Programs" (Copy on File):
Mr. Livey discussed Slide 3, "Program Participants":
• Program is statewide
• Directly serves 162 communities
• Through contracts with Native organizations serves 114
more communities
• Outside of tribal areas, 47% of households using the
program live in 6 communities - Anchorage, Wasilla,
Fairbanks, Palmer, North Pole, Homer
9:10:49 AM
Mr. Livey discussed Slide 4, "Eligibility":
• Resident of the State
• Living in the home in which the heating costs occur
• For LIHEAP have income (family of four) less than
$39,750
• For AkHAP have income (family of four) less than
$59,750
• For heating costs incurred from November 1st through
April 30
9:12:11 AM
Mr. Livey discussed Slide 5, "Program Mechanics":
• Individual must apply on behalf of a household
• Household is assigned points based on application
information
• Number of applications is estimated
• Based on state and federal appropriations and estimate
of the number of applications, a dollar amount is
assigned to each point
• Initial grant is made on behalf of household to vendor
in community
• Supplemental assistance is provided if available
9:13:38 AM
Mr. Livey discussed Slide 6, "Amounts of Assistance":
• Based on household points
• Fuel cost and climatic conditions
• Size and type of housing
• Household size and income
• If elderly, disabled or young children are in the
household
• Federal and state appropriations
9:15:27 AM
Mr. Livey explained Slide 7, "Sample Calculation":
• Based on application, household has 15 points.
• Based on available funds and estimate of total number
of applications - each point is worth $220.
• Applicant would receive $3300
• Based on heating oil prices of $6.50 per gallon user
could purchase 507 gallons or 84 gallons per month
• Assuming each household uses 150 gallons per month,
only 56 per cent of household's fuel needs are
recognized by the program
9:17:24 AM
Mr. Livey explained the document "Average Monthly
Temperatures for Bethel Alaska" (Copy on File). The document
intends to communicate that temperatures for March and April
are still quite low, illustrating the ongoing need for
heating assistance.
Mr. Livey addressed the document "Estimated Impact of $9
Million Appropriation for Heating Assistance Programs" (Copy
on File). The communities' average fuel oil cost determines
eligibility. The estimates illustrate the impacts on
households participating in the state-operated heating
assistance programs. The program does not discriminate
between fuel types, although natural gas is less expensive
than oil.
9:20:29 AM
Co-Chair Stedman reminded the public that the Senate Finance
Committee hearing followed a huge escalation in oil prices.
Some areas, particularly in Western Alaska do not have the
ability to benefit from the lower gas prices. The
legislation is an effort to help people around the state
afford to heat their homes this winter.
Co-Chair Hoffman stated that between November of 2005 and
November of 2008 a reduction in costs was calculated in many
regions of Alaska, excluding Western Alaska. He stated that
Western Alaska has yet to receive reductions although the
cost of living has increased.
Senator Huggins asked for a contrast between the $5 million
and the $9 million appropriation. Co-Chair Hoffman answered
that the original piece of legislation was targeted at
Western Alaska. The new legislation addresses the entire
state including Anchorage, Fairbanks, Homer, and the Matsu
valley. The expansion of the program requires an increase in
funds.
9:23:26 AM
Senator Huggins asked how many people currently participate
in the program. Mr. Livey answered that there are 14,000
Alaska households participating in LIHEAP and AKHAP
combined. An additional 4500 members receive services from
tribal organizations. The expectation is 19,000 Alaskan
households participating in the two programs by the end of
the year.
9:24:32 AM
RON KREHER CHIEF OF FIELD SERVICES, DIVISION OF PUBLIC
ASSISTANCE, responded that the number of households served
is only an estimate. Currently the Division of Public
Assistance has received approximately 13,000 applications,
which is 30 percent more than the year prior. Only 6,000
applications have been processed. He informed that 200-300
applications are received each week.
Mr. Livey discussed a planned supplemental check run. The
appropriation would be attached to the run. The vendor will
have a credit account established on the behalf of an
individual. The appropriation would ensure that the vendor
is paid later. The individual could then extend their credit
line with the vendor, knowing that money will be available
to pay for the oil.
9:27:07 AM
Senator Huggins asked if heating oil for senior housing was
eligible for assistance within the program. Mr. Kreher
answered that individuals living in residential housing are
not eligible for heating assistance. Individual residences
are covered by the program, but citizens living in shelters
or residential housing do not qualify for heating
assistance. Senator Huggins encouraged a mechanism to
accommodate senior citizens who face the same demographic
challenges as individuals qualifying for the program.
Co-Chair Hoffman stated that he would like to modify the
LIHEAP program with separate legislation. Mr. Kreher stated
that the elderly and disabled are a priority population for
AKHAP, however, individuals in residential or subsidized
housing have minimal heating costs.
Co-Chair Stedman asked if the administration supports SB
116. Mr. Kreher stated that the administration does not
oppose SB 116. Co-Chair Stedman asked if Mr. Kreher is
stating that the administration supports SB 116. Mr. Kreher
stated that he was informed only briefly by the
administration and has not had the opportunity to consult
about the position, but his understanding was that the
administration does not oppose SB 116.
9:29:17 AM
Co-Chair Stedman asked how many Alaskan citizens were
considered in the Emergency Relief Appropriation Bill. Mr.
Livey estimated between 15,000 or 18,000 Alaskan households.
Co-Chair Hoffman concluded that he wanted to approach the
issue earlier, but he felt that the new approach allows
broader assistance to many low income households. The
fairness of the bill is amplified by the increased cost.
Senator Huggins highlighted that when rent is raised due to
increased fuel cost, some senior citizens are forced out of
their housing arrangements. He did not want to see senior
citizens excluded.
Co-Chair Hoffman MOVED to report CSSB 116 (FIN) out of
Committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSSB 116 (FIN) was REPORTED out of Committee with a "do
pass" recommendation.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2009-02-25 Denali KidCare, CHIP.PDF |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| Alaska Heating Assistance Programs.ppt |
SFIN 3/11/2009 9:00:00 AM |
SB 116 |
| sectional.pdf |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| Repercussions.pdf |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| Poverty Guidelines.pdf |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| Background of SCHIP.pdf |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| ANHB Support Letter.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 116 |
| AVERAGE MONTHLY TEMPERATURES FOR BETHEL ALASKA.doc |
SFIN 3/11/2009 9:00:00 AM |
SB 116 |
| SB 116 - gallons by comunity.xls |
SFIN 3/11/2009 9:00:00 AM |
SB 116 |
| SFIN letters of support addendum.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 32 |
| SFIN explanation of changes.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 32 |
| sb13_2009 summary 3-9-09.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| SFIN letters of support.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 32 |
| SFIN sponsor statement.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 32 |
| SFIN supporting information.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 32 |
| sponsor statement.pdf |
SFIN 2/25/2009 9:00:00 AM SFIN 3/11/2009 9:00:00 AM |
SB 13 |
| Work Draft CS for SB116(Fin) 031109.pdf |
SFIN 3/11/2009 9:00:00 AM |
SB 116 |