Legislature(2023 - 2024)SENATE FINANCE 532
01/29/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB127 | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 127 | TELECONFERENCED | |
| *+ | SB 170 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 170
"An Act extending the Alaska senior benefits payment
program; and providing for an effective date."
9:49:39 AM
Co-Chair Olson relayed that it was the first hearing for SB
170.
9:50:01 AM
JOE HAYES, STAFF TO SENATOR SCOTT KAWASAKI, read from a
Sponsor Statement (copy on file):
Senate Bill 170 would extend the Senior Benefits
program to 2032, ensuring another eight years of
support for low-income seniors across Alaska. The
successor to the Longevity Bonus created in 1972, the
Senior Benefits Program would end in June 2024 without
legislative action.
The Senior Benefits Program protects low-income
seniors by providing them with modest monthly cash
assistance to pay for expenses like food, heating,
electricity, transportation and prescription
medication. The program was established in 2007 and
currently aids nearly 9,000 Alaskans aged 65 and older
with incomes at 75, 100 and 175 percent of federal
poverty level. Subject to appropriation from the
Alaska State Legislature, assistance can range from
$76 to $250 a month for eligible seniors.
In September 2017, the House Health and Social
Services Committee held a statewide listening session
for Senior Benefit recipients and their advocates.
Hundreds of Alaskans spoke of the need to preserve
this program to enhance their way of life. This
program protects seniors who have spent a lifetime
building our great state. It lends a hand to low-
income seniors who need assistance to help make ends
meet.
Terminating this program would put thousands of
seniors at risk of losing their means for maintaining
a healthy lifestyle. I respectfully request your
support to continue this vital program.
Co-Chair Hoffman thought the arguments Mr. Hayes made were
quite valid and that the program needed to be extended. He
suggested that instead of delaying it for another six
years, the committee might want to put a period on line 7
after the word repeal, in order to make the program
permanent. He understood that the bill was put into place
as a replacement program.
Mr. Hayes thought Co-Chair Hoffman had an excellent idea.
He noted that Senator Kawasaki had been a sponsor of the
bill in 2017, and would support extending the program
fully.
Senator Wilson wondered if the bill could clean up the
statute. He thought there were dueling statutes between the
Longevity Bonus and the Senior Benefits Program.
Mr. Hayes did not believe the sponsor would have any issue
with Senator Wilson's suggestion.
9:54:28 AM
GRIFFEN SUKKAEW, STAFF FOR SEN. KAWASAKI, addressed a
Sectional Analysis (copy on file):
Page 1, line 7
Deletes "2024" and replaces with "2032"
Page 1, Line 8
The Act takes effect immediately under AS
01.10.070(c).
Mr. Sukkaew relayed that as of December 2023, the program
aided more than 10,000 Alaska seniors aged 65 and older.
The benefit was based on income at 75 percent, 100 percent,
and 175 percent of the federal poverty level. By statute,
those that qualified received benefits ranging from $125 to
$250 per month subject to legislative appropriation.
Because of constrained budget in recent years, the highest
tier currently received $76 per month instead of $125 per
month. Qualifying seniors must be residents of the state, a
citizen of the United States, or a qualified alien and
could not be incarcerated at a private or public
institution or a resident of a nursing home, Pioneer Home,
or Alaska Veterans Home.
Mr. Sukkaew continued that income eligibility was based on
gross annual income before taxes. Assets were not counted
towards income. He cited the number of participants in the
program, and noted that more figures were in the document
entitled "Senior Benefits Fact Sheet" (copy on file). He
asserted that the program had a long bipartisan history of
protecting seniors who had spent a lifetime building the
state.
9:57:16 AM
VALERIE ROSE, FISCAL ANALYST, FISCAL NOTE COORDINATOR,
LEGISLATIVE FINANCE DIVISION, spoke to a fiscal note from
the Department of Health, OMB Component 2897. Beginning in
FY 25, the department would be funded at a level that would
allow them to provide full funding of the benefits as
allocated in statute to the three-tiered income levels. She
reiterated that in recent years the highest-level tier had
been funded at $76 per month rather than $125 per month,
although the other tiers had been funded at the amount
allocated in statute.
Co-Chair Hoffman asked about federal poverty limits, and
asked if the limits took a cost-of-living allowance (COLA)
into account.
Ms. Rose did not have the information.
Senator Kiehl asked if Ms. Rose could help with the
discrepancy between the fiscal note and the department's
Senior Benefits fact sheet. He thought one identified about
140,000 participants a year, and one identified 11,000
participants per year.
Ms. Rose thought the question would be best addressed by
the department.
9:59:59 AM
MARGE STONEKING, ASSOCIATE DIRECTOR OF ADVOCACY, AMERICAN
ASSOCIATION OF RETIRED PERSONS, ANCHORAGE (via
teleconference), explained that the American Association of
Retired Persons (AARP) was a non-partisan, non-profit
member organization serving the age 50-plus population. She
relayed that AARPs purpose was to empower people to choose
how they lived as they aged, and it had a strong commitment
to protecting financial resilience for older adults. She
identified that some seniors in the state needed assistance
to remain independent. She noted that programs like the
Senior Assistance Program helped seniors remain in their
homes and communities and to stay out of more costly levels
of care. She cited that those seniors that qualified for
the largest senior benefit amount of $250 per month could
have income of no greater than $1,139 per month.
Ms. Stoneking cited that in Alaska, the average Social
Security retired worker benefit was $1,485 per month. The
older Alaskans most likely to benefit from an extension of
the program were women. Historically the majority of the
beneficiaries of the program were women, who earned less
over the course of their lives, made up the majority of
family caregivers, and often outlived male spouses. She
discussed lower wage workers and the high cost of living in
the state. She mentioned rural Alaska, and those that lived
a subsistence lifestyle. The loss of the benefits program
would hurt many older Alaskans living in remote areas of
the state. She cited that the states oldest citizens were
the most likely to spend the most on increased healthcare
costs, which could result in financial instability. She
asserted that any loss of income to the senior population
could result in loss of independence.
10:03:33 AM
DEB ETHERIDGE, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF
HEALTH, introduced herself.
Senator Kiehl wanted to clarify how many Alaskans benefited
from the program. He thought the fact sheet showed one
number of participants and the fiscal note showed another.
He asked how many Alaskans were participating in the
program.
Ms. Etheridge relayed that there were over 11,000 Alaskan
seniors on the program.
Senator Kiehl mentioned the federal poverty level threshold
and asked if the amount varied by the area of the state and
cost of living.
Ms. Etheridge relayed that the federal poverty level was
adjusted every year, and the Senior Benefit was then
adjusted, but not necessarily by region.
SB 170 was HEARD and HELD for further consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 127 Americand For Tax Reform Opposition .pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 127 |
| AARP Supports Senior Benefits Reauthorization.pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 170 |
| SB 170 DOH SBPP 012224.pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 170 |
| SB 170 Sectional Analysis. 1.12.24.pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 170 |
| SB 170 Sponsor Statement 1.12.24.pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 170 |
| Senior Benefits Fact Sheet.pdf |
SFIN 1/29/2024 9:00:00 AM |
SB 170 |