05/06/2005 06:21 PM House FIN

CS FOR SENATE BILL NO. 150(HES)                                                                                               
                                                                                                                                
     "An Act relating to the Alaska children's trust grant                                                                      
     awards."                                                                                                                   
                                                                                                                                
JASON HOOLEY,  STAFF, SENATOR DYSON, related  that the Alaska                                                                   
Children's Trust  was created by  the Legislature in  1988 to                                                                   
help  fund programs  around  the  state aimed  at  preventing                                                                   
child abuse  and neglect.  Under  current law, the  trust may                                                                   
spend the  net income earned by  the trust to  fund community                                                                   
based prevention  programs.  However, current  statute limits                                                                   
the  size  of  grants to  $50,000  and  provides  a  specific                                                                   
formula  for  funding grants.    The  Board of  Trustees  has                                                                   
requested additional  flexibility in awarding  grants. SB 150                                                                   
removes  the $50,000  cap and  refines  the funding  formula.                                                                   
The  changes  proposed  by  the   bill  will  allow  trustees                                                                   
flexibility  in setting  grant  awards,  authority to  reduce                                                                   
grants and enforce requirements  for program performance, and                                                                   
authority   to   require   applicants    to   include   self-                                                                   
sustainability plans in their proposals.                                                                                        
                                                                                                                                
6:44:35 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze asked who the grant recipients are.                                                                          
                                                                                                                                
JOEL GILBERTSON, COMMISSIONER,  DEPARTMENT OF HEALTH & SOCIAL                                                                   
SERVICES, explained  that he is  sitting in for  the trustees                                                                   
who have previously testified  at every hearing.  He read the                                                                   
list of grant recipients: Bartlett  Regional Hospital; Center                                                                   
for  Community,  Sitka;  City   of  Saxman;  Covenant  House,                                                                   
Anchorage;  Fairbanks  Counseling   and  Adoption;  Fairbanks                                                                   
Resource  Agency;  Homer  Children's  Services;  Hoonah  City                                                                   
Schools; Juneau Family Birth Center;  REACH, Juneau; Resource                                                                   
Center   for   Parents  and   Children,   Fairbanks;   Sutton                                                                   
Elementary  School;   Talkeetna  Elementary   School;  Tundra                                                                   
Women's Coalition, Bethel; Seaview, Seward.                                                                                     
                                                                                                                                
Commissioner Gilbertson related  that the reason the trustees                                                                   
asked for this  legislation is because the  Alaska Children's                                                                   
Trust has  been set up so that  the grants are paid  from the                                                                   
earning  of the fund  and the  earnings have  been flat.   He                                                                   
explained  about the  trust  and the  recurring  grants.   He                                                                   
shared that there  would not be any new grants  for the third                                                                   
straight year if SB 150 does not pass.                                                                                          
                                                                                                                                
6:48:50 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze asked  if the  legislation would  prevent                                                                   
large  donations  to  the trusts.    Commissioner  Gilbertson                                                                   
responded  that individuals  could  still  contribute to  the                                                                   
trust.                                                                                                                          
                                                                                                                                
6:49:52 PM                                                                                                                    
                                                                                                                                
Representative  Hawker stated  that  one of  the problems  is                                                                   
that  there are  not  enough  sidebars when  issuing  grants.                                                                   
They become entitlement programs.   He said he is troubled by                                                                   
that and he called it an anti-accountability bill.                                                                              
                                                                                                                                
Commissioner  Gilbertson  disagreed.   He  stressed that  the                                                                   
bill  does the  exact opposite  because  it ends  "continuous                                                                   
grants"  and caps them  at four  years.   It would also  give                                                                   
greater authority to the trustees.                                                                                              
                                                                                                                                
Representative  Hawker concurred  with the  idea of  limiting                                                                   
grants.   Commissioner  Gilbertson explained  that Section  5                                                                   
adds  a plan  for sustainability  and self-sufficiency  after                                                                   
the grant  period, and it extends  authority to the  board to                                                                   
reduce or discontinue a grant.                                                                                                  
                                                                                                                                
6:52:49 PM                                                                                                                    
                                                                                                                                
Representative Croft  pointed out that,  in one way,  it does                                                                   
remove the  sidebars, but in  another way it  establishes new                                                                   
sidebars.   He asked  why the  $50,000 cap  is not  retained.                                                                   
Commissioner Gilbertson relayed  the current fiscal challenge                                                                   
of the trust.  The trust has received federal funding.                                                                          
                                                                                                                                
Representative Croft  asked if the federal money  is governed                                                                   
by these rules.  Commissioner  Gilbertson replied that it is.                                                                   
He described how  it was administered, including  a statewide                                                                   
media campaign.                                                                                                                 
                                                                                                                                
6:55:12 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze MOVED  to report  CSSB 150  (HES) out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSSB  150 (HES)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation" recommendation  and with a zero fiscal impact                                                                   
note by the Department of Health and Social Services.                                                                           
                                                                                                                                
6:56:11 PM