02/09/2012 09:00 AM Senate STATE AFFAIRS

        SB 129-CHILD CARE CTRS: STATE EMPLOYEES & OTHERS                                                                    
                                                                                                                              
9:26:15 AM                                                                                                                    
CHAIR  WIELECHOWSKI   announced  that  SB  129   was  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR LESIL  MCGUIRE, sponsor,  introduced SB 129,  which would                                                               
allow child care  centers to be located in  office buildings that                                                               
are owned or leased by the  State of Alaska. The bill is designed                                                               
to help  address the child care  shortage in Alaska. It  does not                                                               
address child care facilities in  private businesses. She related                                                               
the number of  children, 35,000 under the age of  six, in need of                                                               
child  care.  Of  those  children,   only  16,000  will  have  an                                                               
opportunity  to receive  child care.  She spoke  of a  task force                                                               
eight years ago by the women in  the House and Senate to create a                                                               
day care  center in the state  capital. That center has  become a                                                               
model for  other state governments  wishing to  support employees                                                               
that have families.                                                                                                             
                                                                                                                                
SENATOR  MCGUIRE explained  that the  bill does  not require  the                                                               
state to  pay for child care.  She reported on businesses  in the                                                               
private sector that pay for  child care; however, this bill would                                                               
simply  authorize the  Department  of Administration  to take  an                                                               
application  for  consideration  of putting  child  care  program                                                               
start-up operations together.  The state would not  be paying any                                                               
costs; instead,  families would pay  for day care  services. Many                                                               
agencies agree with the benefits of on-site child care.                                                                         
                                                                                                                                
CHAIR WIELECHOWSKI pointed  out that the child  care center would                                                               
be open to all state employees, as well as to the public.                                                                       
                                                                                                                                
SENATOR MCGUIRE agreed. She addressed  the importance of Juneau's                                                               
facility to the  community. She recalled a time when  there was a                                                               
shortage of child care centers.                                                                                                 
                                                                                                                                
SENATOR PASKVAN asked if state  employees would be given priority                                                               
at  the child  care centers  in SB  129, similar  to how  federal                                                               
child care programs are run.                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE said  the bill  does  not address  who would  be                                                               
given  priority. The  federal requirements  dictate that  federal                                                               
employees  are given  a priority.  In Juneau's  day care  center,                                                               
state  employees and  staff have  first priority.  In this  bill,                                                               
state  employees   are  not   necessarily  given   priority.  The                                                               
committee could amend the bill to change that.                                                                                  
                                                                                                                                
SENATOR  MEYER  asked if  there  were  any legal  concerns  about                                                               
liability.                                                                                                                      
                                                                                                                                
GENEVIEVE  WOJTUSIK,  staff,   Senator  Lesil  McGuire,  sponsor,                                                               
answered Senator Meyer's question.  She said the current contract                                                               
states that  the business assumes all  liability and it has  a $1                                                               
million insurance policy.                                                                                                       
                                                                                                                                
9:34:45 AM                                                                                                                    
SENATOR MCQUIRE stressed  that the state is not  getting into the                                                               
child  care  business.  The  current  contract  was  obtained  by                                                               
putting  out  a  request  for  proposal.  Blue  Shibler  won  the                                                               
contract and carries insurance.                                                                                                 
                                                                                                                                
BLUE SHIBLER,  owner, Discovery Preschool, Juneau,  Alaska, spoke                                                               
in favor  of SB  129. She  echoed the  sentiments of  the sponsor                                                               
statement. She spoke of the  advantage of having maintenance paid                                                               
for  by  the state;  child  care  workers  are paid  higher  than                                                               
average  wages. Discovery  Preschool  serves  about 40  families,                                                               
most of which  are legislative and state employees,  but some are                                                               
also  public employees  and private  sector  families. Hours  are                                                               
extended to evenings and weekends, as well as drop-in care.                                                                     
                                                                                                                                
SENATOR GIESSEL asked if janitorial services are paid for.                                                                      
                                                                                                                                
MS.  SHIVELER  said  she  does   not  pay  for  rent,  janitorial                                                               
services,  or utilities;  therefore, she  can pay  workers higher                                                               
wages.                                                                                                                          
                                                                                                                                
9:38:50 AM                                                                                                                    
SARAH LEONARD, Director of Marketing  & Fund Development, thread,                                                               
Anchorage, Alaska, testified  in support of SB 121.   She related                                                               
that thread is Alaska's childcare  resource and referral network.                                                               
She shared what was contained  in thread's letter of support. One                                                               
of thread's  core missions is to  provide accessible, affordable,                                                               
and quality child care.                                                                                                         
                                                                                                                                
JOY LYON,  Executive Director, Association  for the  Education of                                                               
the Young Child, Southeast Alaska,  encouraged support of SB 121.                                                               
She spoke  of the advantages  of investing  in employer-sponsored                                                               
child care. She  shared statistics related to the  need for child                                                               
care  in order  for parents  to work.  She argued  that care  for                                                               
children is a priority. The state  would benefit in two ways from                                                               
this legislation; employers would  see returns on investments and                                                               
the problem  of inadequate  availability of  child care  would be                                                               
addressed. Less  than half of  children with parents in  the work                                                               
force have access to a licensed child care facility.                                                                            
                                                                                                                                
9:44:51 AM                                                                                                                    
LAUREN  BROOKS,  Family   Services  Coordinator,  Association  of                                                               
Education  of  Young  Children   and  thread,  Southeast  Alaska,                                                               
testified in  favor of  SB 121. She  shared statistics  about the                                                               
availability of child care centers.  She listed the problems when                                                               
quality child care is not  available. She encouraged the adoption                                                               
of SB 121.                                                                                                                      
                                                                                                                                
SENATOR PASKVAN  said asked  about the range  of costs  for child                                                               
care in Juneau.                                                                                                                 
                                                                                                                                
MS.  BROOKS said  she  did not  monitor  private facilities.  The                                                               
costs vary.                                                                                                                     
                                                                                                                                
SENATOR  PASKVAN asked  what the  minimum and  maximum costs  for                                                               
child care are.                                                                                                                 
                                                                                                                                
MS. BROOKS  said the maximum cost  is about $1,000 per  month and                                                               
the minimum cost is about $600 per month.                                                                                       
                                                                                                                                
SENATOR  MCGUIRE  offered  to provide  statistics  that  answered                                                               
Senator Paskvan's question.                                                                                                     
                                                                                                                                
SENATOR GIESSEL looked  at page 3, lines 9-11, and  asked if page                                                               
2, lines 22-24,  present a conflict. She said she  thought it was                                                               
saying   that   the   operator   was   not   assuming   financial                                                               
responsibility.                                                                                                                 
                                                                                                                                
SENATOR  MCGUIRE responded  that  in the  case  of a  legislative                                                               
building, such as  in Juneau, the costs are not  passed on to the                                                               
provider. She said  she does not know what the  fiscal note would                                                               
be in other cases. She offered to  find out if it costs the state                                                               
more to cover janitorial services at the Juneau day care center.                                                                
                                                                                                                                
SENATOR  MCGUIRE maintained  that page  3 of  the bill  was clear                                                               
that  the  operator  shall  comply   with  all  state  and  local                                                               
standards for  licensure of the  child care facility.  She stated                                                               
that  page 2  deals with  facilities.  If the  child care  center                                                               
occupies a state-owned building, there may be a cost.                                                                           
                                                                                                                                
9:53:57 AM                                                                                                                    
SENATOR GIESSEL spoke of extended  liability and higher standards                                                               
when  dealing  with  children  in   regards  to  maintenance  and                                                               
janitorial services. She  opined that the state may  be taking on                                                               
liability if high standards are not maintained.                                                                                 
                                                                                                                                
SENATOR   MCGUIRE  thought   Senator   Giessel's  comments   were                                                               
appropriate  considerations.  She  said  the  partnership  merits                                                               
value and  she thought it  was worth it.  An attempt was  made to                                                               
make  the bill  broad enough  to allow  for negotiations  to take                                                               
place.                                                                                                                          
                                                                                                                                
SENATOR  PASKVAN  understood the  policy  choice  of the  state's                                                               
absorbing costs. He  took issue with the potential  for a sliding                                                               
fee schedule on  page 3. He maintained that charging  fees on the                                                               
basis  of  household income  goes  beyond  operational costs.  He                                                               
wondered how competitive that was with private enterprise.                                                                      
                                                                                                                                
SENATOR MCGUIRE noted  that all sections are  subject to removal.                                                               
The cost  of care provisions are  "may's" not "shall's". It  is a                                                               
multi-tiered process  and is purposely  broad. The  sliding scale                                                               
is specifically for the public, not for state employees.                                                                        
                                                                                                                                
9:59:56 AM                                                                                                                    
SENATOR PASKVAN said he only wondered  if there was a template or                                                               
standard to follow.                                                                                                             
                                                                                                                                
SENATOR  MEYER  asked  if  private  sector  providers  have  been                                                               
contacted about this legislation.                                                                                               
                                                                                                                                
SENATOR  MCGUIRE   replied  that  the  private   sector  was  not                                                               
contacted, but  she said she sensed  that people in the  day care                                                               
community would be  in support of the bill because  there is such                                                               
a need  for child care  services. She thought the  questions were                                                               
fair. The  rates in  the bill are  competitive. She  stressed the                                                               
need for providing more day care services.                                                                                      
                                                                                                                                
CHAIR  WIELECHOWSKI  stated   that  SB  129  would   be  held  in                                                               
committee.