Legislature(2023 - 2024)BUTROVICH 205
02/13/2024 03:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| SB149 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 149 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 149-FOOD STAMP PROGRAM ELIGIBILTY
3:32:24 PM
CHAIR WILSON announced the consideration of SENATE BILL NO. 149
"An Act relating to the supplemental nutrition assistance
program; and providing for an effective date."
3:32:47 PM
SENATOR GIESSEL, speaking as sponsor of SB 149, gave the
following bill introduction:
This bill would put in place a new way of authorizing
individuals to get food assistance by implementing a
broad-based categorical eligibility (BBCE) standard
for qualifying for nutritional supplementation. Right
now, we have what's known as the Supplemental
Nutrition Assistance Program (SNAP). It serves one in
eight Alaskans. As we all know, it's been in the paper
that there's difficulty with the Department of Health
in getting these SNAP payments out to Alaskans for
multiple reasons, none of which are due to any
untoward intent by that department. The department is
working hard to get those out but faces multiple
challenges.
By moving to the BBCE, we will be joining 42 other
states and two territories that use this method for
distributing nutritional supplements. It helps
streamline the administrative issues, decreases the
asset tests, and just makes it a whole lot easier for
the department and for the families to apply.
Now, Mr. Chairman, at some point, someone is going to
ask if this will cost us more since increased
eligibility might lead to more applicants. Of course,
we have a fiscal note. The fiscal note mentions
needing two additional people, but Mr. Chairman, I
would call your attention to the Senate Finance
Committee table, which got feedback from the
Department of Health. It points out the $3 million UGF
appropriation in supplemental appropriations to the
department for grant funding for food banks. The
ongoing backlog of SNAP payments leaves food banks
needing assistance. So, the supplemental budget
includes a $3 million UGF. The FY 25 budget has a
proposed one-time appropriation of $1.5 million to the
Department of Health to work toward bulk purchases for
food banks and pantries. Not doing this will cost us
millions and leave people without food.
3:35:58 PM
PAIGE BROWN, Staff, Senator Cathy Giessel, Alaska State
Legislature, Juneau, Alaska, Offered the following sectional
analysis for SB 149.
[Original punctuation provided.]
Senate Bill 149 (Vsn A)
Sectional Analysis
"An Act relating to the supplemental nutrition
assistance program; and providing for an effective
date."
Section 1. Amends AS. 47.25.980(a)(3):
This section updates the reference to the chapter of
United States code governing the Supplemental
Nutrition Assistance Program (SNAP). This section also
increases the household income limits for the SNAP
program from 130 percent to 200 percent of the Alaska
poverty standard and eliminates the household asset
test.
Section 2. Amends uncodified law by adding a new
section:
This section provides the authority for the Department
of Health to adopt the necessary regulations to
implement this Act.
Section 3. Provides for an effective date for Section
2:
Section 2 has an immediate effective date.
Section 4. Provides for an effective date.
Except as provided in sec. 3, the effective date of
this Act is July 1, 2025.
3:36:47 PM
CHAIR TOBIN asked how many department staff currently process
SNAP benefits.
3:37:07 PM
MS. BROWN deferred the question.
3:37:25 PM
DEB ETHERIDGE, Director, Division of Public Assistance,
Department of Health (DOH), Juneau, Alaska, replied that there
are approximately 229 individuals processing eligibility who
could handle a SNAP benefit.
3:37:46 PM
SENATOR TOBIN said the fiscal note indicates that the department
estimates needing two positions to implement BBCE changes. She
asked if the department anticipates the changes creating a
reduction in the number of positions required to process SNAP
applications.
3:38:04 PM
MS. ETHERIDGE replied that the change allows for administrative
simplification in the SNAP program and can decrease the error
rate by removing the asset requirement. However, the impact on
participation rates is unknown, making it difficult to project a
need for fewer eligibility technicians. The fiscal notes in SB
149 relate to the broad-based categorical eligibility being tied
to eligibility for a non-cash benefit through Temporary
Assistance for Needy Families (TANF), this is a new requirement.
The two requested positions are for training and oversight of
eligibility technicians and internal quality case reviews, which
result in ongoing education and training for staff. This
additional oversight and training benefits not only eligibility
technicians but ensures the division appropriately administers
the SNAP program and provides the correct benefits.
3:39:44 PM
SENATOR TOBIN asked how many employees currently process TANF
applications.
MS. ETHERIDGE stated that most eligibility technicians work on
all programs, though a small number were brought on board
specifically to process Medicaid to assist with Medicaid
unwinding. These are single-program eligibility technicians. She
clarified that the non-cash TANF benefit isn't an eligibility
program they would process. Instead, it provides education and
training that meets the goals of TANF to SNAP participants.
There are four goals within TANF that they would have to provide
the non-cash benefit to, and in some states, this benefit could
be an education and training brochure with available resources
to individuals to meet the purpose of TANF.
3:41:24 PM
SENATOR TOBIN noted that the fiscal note projects ongoing
support and sought clarification. She asked if the need for
policy, training, and updates identified by the department would
continue in addition to the 229 existing positions. She
acknowledged that the SB 149 aims to streamline and decrease
complexity in processing applications and ease eligibility,
potentially increasing the number of qualifying Alaskans. She
expressed difficulty understanding the ongoing fiscal impact of
this program if potential cost savings could be realized and
asked for further explanation.
3:42:12 PM
MS. ETHERIDGE explained that this is a layered approach within
the division, additional work has a significant impact due to
the high turnover rate of eligibility technicians. The ongoing
requirement is necessary because training and education efforts
in the first year will not suffice for future years. Continuous
monitoring of quality is also essential. This approach aims to
build capacity within the division to properly administer the
program on an ongoing basis.
3:43:03 PM
CHAIR WILSON recalled Commissioner Hedberg's discussion about
the department's multiple backlogs. He asked if SB 149 became
law with an immediate effective date, what would be a reasonable
timeframe for its implementation.
MS. ETHERIDGE replied that the milestones timeframe involves
shifting the SNAP eligibility program from the current
eligibility information system to a cloud-based module. The
estimated date of implementation is July 1, 2025, which aligns
with the planned transition. She noted that no additional funds
were requested for system changes because the legislature
supported these changes last year.
3:44:17 PM
CHAIR WILSON announced a presentation on SB 147.
3:44:34 PM
MS. BROWN moved to slide 2 and said:
[Original punctuation provided.]
SNAP Background
• 1964, U.S. established the Food Stamp Program
• In 1971, Alaska joined SNAP (renamed 2008)
• The mission is to address food insecurity, and provide
financial assistance for low-income individuals and
families, as well as encourage economic stability
community-wide
3:44:59 PM
MS. BROWN moved to slide 3 and said there are three food
security issues in Alaska:
[Original punctuation provided.]
Food Security Issues in AK
• Food Supply in Alaska Transportation and
Distribution
• Dependency on Imports Vulnerable to supply chain
disruptions, lack of locally grown food
• SNAP Backlog Residents are waiting up to 10 months
for SNAP benefits, Old Computer System
3:45:34 PM
MS. BROWN moved to slide 4 and read the following:
[Original punctuation provided.]
Current SNAP requirements:
• Household Income Limit 130% of the current Alaska poverty
standard
• Household Resource Limit Asset Test
• Citizenship and Residency Resident of the state of Alaska
• Work Requirements Must register for work, accept offers
of employment, cannot quit a job.
3:45:56 PM
MS. BROWN moved to slide 5 and said broad based categorical
eligibility would provide the following:
[Original punctuation provided.]
Broad Based Categorical Eligibility (BBCE):
• Income Flexibility: Extends flexibility to households with
income up to 200 percent of the federal poverty guideline.
• Asset Simplification: Asset test is relaxed, focusing more
on income as a determinant.
• Streamlined Process: Reduces administrative burden with
less emphasis on asset documentation.
• Alignment with Federal Guidelines: Adopts guidelines to
streamline SNAP access
3:46:22 PM
MS. BROWN moved to slide 6 and said BBCE is used in 42 states
and 2 territories.
3:46:30 PM
MS. BROWN moved to slide 7 and shared the following benefits:
[Original punctuation provided.]
Benefits of BBCE
• Simplified Application Process long-term cost
savings in administration
• Economic Stimulus directs funds into local
economies
• Eliminates the "Benefits Cliff" less risk of
losing more value of benefits than raise in income
• Eliminates the asset test saves time on
application
3:46:54 PM
SENATOR TOBIN said she noticed that 42 other states have moved
to broad-based eligibility. She asked if there is any anecdotal
or quantitative data on whether this change increased
departmental needs to support applications and if there was an
increase in usage that created an undue burden on the
departments processing these applications.
3:47:32 PM
MS. BROWN deferred the question.
3:47:57 PM
CHAIR WILSON announced invited testimony on SB 149.
3:48:12 PM
RON MEEHAN, Director, Government Affairs, Food Bank of Alaska,
Anchorage, Alaska, stated he is also the manager of the Alaska
Food Coalition. The Alaska Food Coalition represents more than
180 food banks, food pantries, tribal organizations, faith-based
groups, and educational groups across the state. He stated that
he supports of SB 149 and the implementation of broad-based
categorical eligibility (BBCE) because it could significantly
increase government efficiency, allow Alaskans to save and get
off the program, and provide economic security to hardworking
Alaskan families.
He stated that SNAP is the most effective food assistance
program in the United States, helping more than 92,000 Alaskans,
or 1 in 8, put food on the table. The program stimulates the
economy, particularly for local businesses and rural
communities, with the U.S. Department of Agriculture estimating
that for every federal $1 spent in SNAP benefits $1.50 is
generated in economic activity. He emphasized that during the
recent SNAP backlog, Alaskans in need turned to food banks and
food pantries, which are already stretched thin and seeing
record levels of use.
3:50:12 PM
MR. MEEHAN argued that SB 149 would improve the SNAP program.
SNAP, a federal program administered by the state, allows
significant latitude in administration. BBCE would enable the
state to eliminate the asset test and raise the eligibility
threshold from 130 percent to 200 percent of the base poverty
level. Asset verification is time-consuming, error-prone, and
difficult, involving items like homes, properties, bank
accounts, equipment, vehicles, and subsistence tools.
MS. MEEHAN said eliminating the asset test would reduce
administrative time, save money, and allow the division to
process applications faster. Currently, households cannot have
more than $2,750 in the bank, or $4,250 for those with at least
one elderly or disabled family member. Allowing people to save
without losing benefits helps them become self-sufficient. He
noted that Alaska is one of only nine states that do not use
BBCE, while 41 states and two U.S. territories have effectively
utilized it to help people get out of poverty and off the
program.
MR. MEEHAN said raising the income limit and removing the asset
test would enable SNAP participants to achieve financial
security by accepting pay raises, saving for the future, and
gradually reducing benefits rather than facing a benefits cliff.
This approach would prevent the state from punishing working
Alaskans for becoming more economically independent, raise the
income level, and provide targeted assistance to low-income
working families and seniors, enhancing government efficiency
and program functioning.
3:52:16 PM
CARA DURR, CEO, Food Bank of Alaska, Anchorage, Alaska, said
broad-based categorical eligibility (BBCE) is a state option
that will help reduce administrative costs and incentivize long-
term economic security for families and individuals. BBCE allows
the state to do two things: eliminate the asset test and raise
the gross income limit for certain households. She focused first
on the benefits of removing the asset test, noting it would
provide significant cost savings to the state, especially as the
SNAP agency struggles with capacity issues.
She said assets are difficult and time-consuming to verify,
which is why 40 states, regardless of political affiliation,
have eliminated the SNAP asset test to reduce administrative
burdens. The only recent exception is Iowa, which required an
asset test in 2023. Iowa's fiscal note estimated it would take
an additional 28 minutes per case to verify assets. Given their
caseload of 135,000 households, they would need 47 new full-time
employees (FTEs) at a cost of over $2.8 million per year.
Applying this logic to Alaska's caseload of about 22,000
households, she estimated Alaska could spend at least $450,000
annually in staff time to check assets for SNAP households.
MS. DURR said while Alaska might have initial costs for staff
training, long-term savings are likely to accrue, allowing FTE
time to be redeployed to critical casework like preventing
future application backlogs and reducing the state's payment
error rate.
3:54:42 PM
MS. DURR said currently, Alaska uses the federal baseline for
asset which is $2,750 for most households. This doesn't allow
for meaningful savings or emergency funds. For example, someone
with $5,000 in the bank trying to save for a car would be denied
SNAP benefits but could qualify if they spent the money down.
This system discourages savings, which is critical for
transitioning out of poverty. Without BBCE, low-income Alaskans
are disincentivized to save, encouraging temporary assistance
over financial stability.
She said the second benefit of BBCE is the ability to raise the
gross income limit, which primarily benefits low-income working
families with children. Without BBCE, SNAP recipients face a
benefit cliff where a small raise at work could disqualify them
from benefits, leaving them at a net loss. BBCE eliminates the
benefit cliff by tapering down SNAP benefits as income rises,
incentivizing work and career advancement.
MS. DURR acknowledged the Division of Public Assistance's
efforts to clear the backlog and commended Commissioner Hedberg,
Director Etheridge, and their team for their thoughtful and
transparent work. However, she noted that many positive changes
would take time to show results and that additional
administrative burdens remain when interviewers are
reimplemented. BBCE will create efficiencies, reduce the burden
for DPA eligibility workers, and help Alaskans in need find
relief. She encouraged the committee to move SB 149 forward.
3:56:46 PM
SENATOR TOBIN asked when broad-based categorical eligibility
(BBCE) was first introduced and if there is data showing whether
it resulted in an increased need for additional staff to process
applications in the departments responsible for it in states
where it has been enacted. She also inquired if there was a
significant increase in eligibility and the associated costs
borne by the populous.
3:57:22 PM
MS. DURR replied that she didn't have a definitive answer
regarding when BBCE was first implemented and suggested it might
have been a state option all along, noting that there are many
state options for SNAP. She said she wasn't sure about the
impact on enrollment but mentioned that the population
benefiting from BBCE is typically narrow, primarily working
families with children who have significant expenses. BBCE is
not expected to "open the floodgates" since recipients still
must meet the net income limit.
MS. DURR mentioned that while there is some data indicating that
SNAP recipients generally do not have significant assets, she
could gather more information for the committee. Seniors are
hesitant to disclose assets, even when not substantial. There
could be a small increase in enrollment, but she argued that
those needing benefits would receive them, which would be
positive for the overburdened network. She concluded by saying
that BBCE is largely seen as a cost-saving measure and concerns
about increased enrollment have not been a major point of
discussion.
MR. MEEHAN added that the assistance provided to new recipients
under BBCE is very targeted. He noted that, in the long term,
this would enable people to save and eventually get off the
program. This potential outcome should be considered when
evaluating the number of people utilizing BBCE.
3:59:27 PM
SENATOR TOBIN said she took a quick glance at the MIT Living
Wage Calculator, which indicates that a family of four in the
Anchorage Municipality needs to earn a little over $60,800 to
make a living wage. She asked for thoughts on how BBCE would
help families currently earning less than $60,000 in Anchorage.
4:00:41 PM
MS. DURR replied that BBCE would help low-income families who
are working but currently earn above the income level to qualify
for SNAP benefits. She acknowledged that SNAP benefits have a
low qualification threshold and are supplemental, meaning they
are not sufficient by themselves. While more could certainly be
done to support these families, she sees BBCE as a good start.
It helps those with significant expenses who are working by
opening the door for them. She emphasized the importance of
finding ways to support those who fall into the gap where they
are over the income limit for many benefits but still need
assistance, which unfortunately represents a significant portion
of the population.
4:01:28 PM
MR. MEEHAN responded that the current structure of SNAP
disincentivizes work. By allowing families to save to get off
the program and eliminating the benefits cliff, BBCE will
incentivize and enable working families to take a second job or
accept raises. Currently, earning even $1 more can result in
losing benefits and ultimately leaving families worse off.
4:02:03 PM
CHAIR WILSON concluded invited testimony on SB 149.
4:02:16 PM
CHAIR WILSON opened invited testimony on SB 149.
4:02:52 PM
SCOTT LINGLE, CEO, Beans Café, Anchorage, Alaska, testified in
support of SB 149. He expressed strong support for SB 149,
stating that it would bring significant positive changes and
benefit communities. He shared stories of families losing SNAP
benefits due to minor income increases, emphasizing that these
small amounts could help with unexpected expenses. He urged the
committee to support SB 149, highlighting its potential to make
a lasting impact on many individuals in the state.
4:07:16 PM
AUTUMN SMITH-AMY, Owner, Northwest Regional Relative and Kinship
Providers, Anchorage, Alaska, testified in support of SB 149.
She said Northwest Regional Relative and Kinship Providers is a
grassroots community group serving BIPOC families. The group
provides representation in administrative appeals for denied
SNAP benefits and supports broad-based categorical eligibility
(BBCE). She emphasized that eliminating asset limits encourages
families to save, increases economic independence, and improves
employment retention. Highlighting successful BBCE
implementation in Virginia and Colorado, she argued that Alaska
could save millions and reduce the backlog. She expressed
concern about potential financial liabilities for Alaska due to
overpayment errors and urged support for BBCE to enhance fiscal
responsibility and reduce long standing challenging backlogs.
4:12:20 PM
MILENA SEVIGNY, Executive Director, Kids Cupboard, Wasilla,
Alaska, testified in support of SB 149. She said she wanted to
highlight some differences that might not have been discussed,
particularly concerning communities off the road system or those
with limited access. For example, in areas like Skwentna on the
Yentna River, people rely on boats or snowmachines to reach town
and get food. Owning these modes of transportation could
disqualify them from SNAP due to the asset test. She emphasized
that this issue also affects those on the road system, where
poor road conditions in the spring force residents to use four-
wheelers instead of cars. She argued that Alaska has unique
asset needs and urged the implementation of Senate Bill 149 as a
unique solution for the state.
4:14:06 PM
GREG MEYER, Executive Director, Kenai Peninsula Food Bank,
Soldotna, Alaska, testified in support of SB 149. He said that
his food bank has worked hard to keep neighbors fed during the
backlog, covering the entire Kenai Peninsula through 46
different pantries and a direct service center. He noted the
struggle many neighbors face in accessing services, especially
older adults who struggle with technology. The goal is to help
families move toward sustainability, but the asset test creates
setbacks. He shared an example of a family where the mother quit
her job after receiving a car, which pushed them over the asset
limit so she quit her job. He argued that eliminating the asset
test would help families save for necessities like rent and
still feed their families. He urged support for changes that
would help Alaskan families and improve service efficiency.
4:15:57 PM
EDDIE EZELLE, Executive Director, Mat-Su Food Bank, Wasilla,
Alaska, testified in support of SB 149. He said that although
his food pantry does not handle SNAP sign-ups or coupons, they
are distributing more food to more people. Currently, they serve
about 149 people a day, five days a week. The number of people
served has increased, recently reaching around 9,500. This
rising demand affects their operations, and he urged support for
SB 149. He offered his pantry's assistance in any further
efforts and emphasized that the impact extends beyond those
directly handling SNAP.
4:17:43 PM
ERIN WALKER-TOLLES, Executive Director, Catholic Community
Services (CCS), Juneau, Alaska, testified in support of SB 149.
She said that Catholic Community Service (CCS) provides hot
meals for seniors free of charge five days a week, serving over
2,000 seniors and delivering over 131,000 meals last year in
Southeast, Alaska. Many seniors rely on these meals due to fixed
incomes and rising costs, sometimes having to choose between
food and other essentials. She emphasized that broad-based
categorical eligibility (BBCE) would help more seniors access
SNAP benefits, improve their health, and save communities money.
She also mentioned her 14 years of experience with the State of
Alaska Division of Public Assistance, working five years as the
SNAP director. Supporting BBCE is a simple policy change that
would simplify eligibility work and save the state money.
4:21:16 PM
ROBIN DEMPSEY, CEO, Catholic Social Services, Anchorage, Alaska,
testified in support of SB 149. She said that Catholic Social
Services supports vulnerable Alaskans on their path to permanent
stability and self-sufficiency. In 2023, they assisted over
16,000 children and adults through various programs, including
St. Francis House, one of the state's largest food pantries. She
noted a significant rise in food insecurity, with a 30 percent
increase in individuals served in FY 2023. Implementing broad-
based categorical eligibility (BBCE) for SNAP would expand
access, primarily benefiting working families and seniors by
removing the asset test and reducing administrative burdens. She
urged support for the bill.
4:23:36 PM
CLAY VENETIS, Representative, Alaska Food Coalition, Fairbanks,
Alaska, testified in support of SB 149. He said he represents
small farmers and previously represented SNAP beneficiaries at
Alaska Legal Services in Anchorage, Bethel, and Fairbanks. He
emphasized the urgent need to address food insecurity, sharing
that many Alaskans are struggling, including a client who
couldn't feed her daughters on Christmas Eve due to delayed SNAP
payments. SB 149 would help by allowing beneficiaries to save
and reducing administrative burdens. He concluded by expressing
his desire to live in a state that ensures everyone has enough
to eat, supporting broad-based categorical eligibility (BBCE) as
a vital step.
4:25:52 PM
KEVIN KNOWLTON, Emergency Preparedness Specialist, Kawerak Inc.,
Nome, Alaska, testified in support of SB 149. He said Kawerak,
Inc. represents 20 tribes in the Bering Straits region, from
Shishmaref down to Stebbins, and supports Senate Bill 149. He
emphasized that broad-based categorical eligibility (BBCE) would
streamline application processes by combining information from
different programs like Medicaid and SNAP, saving time for
individuals and departments. He noted that while one in eight
families in Alaska are on SNAP, the number is much higher in
western Alaska, where six or seven out of eight families rely on
SNAP because there are no alternatives and limited job
opportunities. Delayed SNAP benefits force families to find
alternative resources, often making them choose between heating
their homes and buying food. He urged support for SB 149 to help
resilient Alaskans who face increasing challenges with food
insecurity.
4:30:31 PM
SUMMER SWEET, Representative, Alaska Food Coalition, Anchorage,
Alaska, testified in support of SB 149. She said she also works
at the University of Alaska Anchorage as a health promotion
specialist, focusing on health and wellness, including food
insecurity and lack of basic needs. Surveys at the university
show that 43 to 45 percent of students face food insecurity and
10 percent face homelessness. The campus food pantry and
emergency food bags provide short-term relief but rely on
multiple fund-raising efforts plus donations, which will
eventually run out. This situation forces students to consider
taking multiple jobs or dropping out. Many students, supporting
families or working multiple jobs, may not qualify for SNAP or
other assistance. She highlighted the struggles younger
populations face in meeting basic needs and the importance of
support and education.
4:33:28 PM
CHAIR WILSON closed public testimony on SB 149.
4:33:52 PM
SENATOR GIESSEL expressed thanks to everyone who testified,
appreciating their stories and the data shared. She noted that
the testimonies highlighted the widespread need for support,
affecting all Alaskans, from seniors to college students. She
mentioned that the fiscal note for SB 149 is less than $300,000
a year but will serve a large population. She also highlighted
that the state is already appropriating $4.5 million over the
next two fiscal years to address SNAP issues, suggesting that
implementing broad-based categorical eligibility (BBCE) could
save money by ensuring food security for everyone. She thanked
the chairman and committee members for hearing the bill.
4:35:12 PM
CHAIR WILSON held SB 149 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 149 Version A.pdf |
SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB149 Sponsor Statement Version A 2.2.24.pdf |
SFIN 4/22/2024 1:30:00 PM SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 Sectional Analysis version A 2.2.24.pdf |
SFIN 4/22/2024 1:30:00 PM SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 DOH FN DPA Quality Control.pdf |
SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 DOH FN DPA PAFS.pdf |
SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 Supporting Document - Alaska Food Coalition.pdf |
SFIN 4/22/2024 1:30:00 PM SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 Letters of Support as of 2.2.24_Redacted.pdf |
SHSS 2/13/2024 3:30:00 PM |
SB 149 |
| SB 149 SHSS Presentation 2.12.24.pdf |
SHSS 2/13/2024 3:30:00 PM |
SB 149 |