Legislature(2005 - 2006)CAPITOL 124
02/03/2005 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB25 | |
| HB69 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 25 | TELECONFERENCED | |
| *+ | HB 69 | TELECONFERENCED | |
HB 69-PUBLIC ASSISTANCE PROGRAMS 8:54:59 AM CO-CHAIR THOMAS announced that the final order of business would be HOUSE BILL NO. 69, "An Act relating to contracts for the provision of state public assistance to certain recipients in the state; providing for regional public assistance plans and programs in the state; relating to grants for Alaska Native family assistance programs; relating to assignment of child support by Alaska Native family assistance recipients; relating to paternity determinations and genetic testing involving recipients of assistance under Alaska Native family assistance programs; and providing for an effective date." 8:55:33 AM KATHERINE FARNHAM, Director, Division of Public Assistance, Department of Health and Social Services (DHSS), began by explaining the Temporary Assistance for Needy Families (TANF) program, which is a federally funded program that is matched by state dollars at a maintenance of effort level. The TANF was revamped significantly after the welfare reform of 1996, which allowed for block grants to states for the monies that go to needy families in order to provide cash assistance and benefits into a welfare to work program. She referred to a chart that illustrated the success of that block grant program and the welfare reform initiative. She informed the committee that Alaska's program [TANF] has won three years of high performance bonuses based on the success of employing Alaskans who were on welfare. Since the peak [of welfare assistance] in April 1984, there has been a reduction of 58 percent in the number of cases on welfare. The aforementioned saves the state $66.1 million in cash benefits. MS. FARNHAM explained that the same law in 1996 allowed tribal organizations to run similar tribal or community/regional-based TANF programs. About 37 tribal TANF organizations are operating nationwide, of which three are in Alaska. In order for the tribal organizations to have a program that's fair and equitable to the state's program, the legislature decided to include a state component in the tribal programs, which is the Native Family Assistance Program (NFAP). In 2000, the legislature established NFAP with a sunset of June 30, 2005. The following four regions were designated as able to establish a tribal TANF program: Tanana Chiefs Conference, Tlingit-Haida Central Council, Association of Village Council Presidents (AVCP), and Metlakatla Indian Community. The first three have been running programs since 1999-2000. Ms. Farnham pointed out that the federal law allows all 12 regional nonprofits and Metlakatla Indian Community to run a tribal TANF program. However, state law only allows for the aforementioned four tribal organizations. MS. FARNHAM pointed out that the same state law required the division to submit a report to the legislature highlighting the relative merits and successes of the tribal TANF program. The report highlights the successes of the three programs and reinforces the notion that flexibility and local control - knowing the families and economies - make for a stronger, more successful program. In fact, the tribal organizations are doing a better job than the state in very rural areas where the economic challenge is very significant. Therefore, the administration is in support of making NFAP permanent in statute and offering it to all 12 regional nonprofits and Metlakatla, which would then match the federal legislation. MS. FARNHAM noted that HB 69 has a fiscal note that is based on new tribal organizations, specifically Cook Inlet Tribal Council, who have expressed a strong interest in running their own program. The Cook Inlet Tribal Council has been working with the state since May 2004 to prepare for a tribal TANF serving Alaska Native and American Indian residents in the Anchorage area. The aforementioned is a significant population and would form one of the nation's largest TANF programs. The fiscal note identifies how current federal funds going to the state for that population would be reduced because that money would go directly to Cook Inlet Tribal Council. She pointed out that since the federal block grant would drop, the state's maintenance of effort level would drop and produce general fund (GF) savings for the state. Ms. Farnham informed the committee that two other regions, Bristol Bay Native Association (BBNA) and Maniilaq Association, are seriously reviewing this and have issued letters to the federal government and the state. Therefore, with the passage of this legislation there could potentially be six regions with tribal TANF programs by the end of fiscal year 2006. 9:02:30 AM REPRESENTATIVE SALMON inquired as to the amount of the state match. MS. FARNHAM answered that the maintenance of effort level is 75 percent of the federal block grant, and offered to provide the committee with the specific amount after some staff work. 9:03:52 AM REPRESENTATIVE NEUMAN related his understanding that this legislation would lower the amount the state is providing, and then asked if the state will receive more federal money. MS. FARNHAM confirmed that this legislation reduces the maintenance of effort requirement, which is the GF match. The state will not increase the federal amount it receives. In fact, the federal amount the state receives would be reduced if Cook Inlet Tribal Council establishes a NFAP because it will go directly to Cook Inlet Tribal Council. Specifically, the GF reduction as a function of the Cook Inlet transfer would be about $2 million, and the federal reduction is $2.8 million and will go directly to Cook Inlet Tribal Council in the future. 9:05:16 AM MS. FARNHAM returned to Representative Salmon's question, and specified that the current maintenance of effort, GF, is $41 million, which is 75 percent of the federal amount. The federal amount the state receives is roughly $60 million. In further response to Representative Salmon, Ms. Farnham specified that the GF component to Tanana Chiefs Conference is $2.4 million annually, Tlingit-Haida Central Council is about $2.6 million, and AVCP is about $3.7 million. The annual cost for the NFAP for those three organizations is $8.7 million in state funds. 9:06:49 AM CO-CHAIR THOMAS surmised then that the four fiscal notes total $8.7 million. MS. FARNHAM explained that the four fiscal notes are the result of different components of money changing. For example, one of the fiscal notes reflects the fact that the federal money will be taken out of the state and given directly to Cook Inlet Tribal Council. Another fiscal note pertains to taking state funds and moving those to the NFAP for Cook Inlet Tribal Council. Furthermore, there is a fiscal note pertaining to child support collections, which is built in to the funding of the some of the TANF programs. There is also a fiscal note pertaining to child care benefits. Ms. Farnham noted that no fiscal note is necessary for the three existing tribal TANF programs, assuming continuation of the legislation. 9:08:10 AM REPRESENTATIVE CISSNA surmised that this successful model, the TANF program, is replicated in other communities, and the state saves money in terms of the fact that the state doesn't perform what is now done by the local entities. She asked if there is also a savings because the state is dealing with Native organizations. She recalled that the federal government increases its participation if [the state] works with Indian Health Service (IHS) entities. MS. FARNHAM confirmed that it's a reduction in funds to the state, but not an increase in the shift to the federal government. The amount of the block grant to the Native organizations is based on the 1994 families on welfare. The exact amount the state would've received for that block grant is passed on to the Native organization on a dollar-for-dollar basis. Ms. Farnham related that the model is to provide as much wrap around, family-oriented services as possible, which has been better done by the tribal organizations. 9:10:26 AM REPRESENTATIVE LEDOUX related her understanding that [those communities with a NFAP] would provide all the welfare services. MS. FARNHAM answered that in the three regions that currently have NFAP, the tribal organization serves all of its tribal, Native families. In the western region where AVCP operates, AVCP is contracted by the state to serve all Native and non- Native needs in the region. The same approach is anticipated in Bristol Bay, she related. However, the Cook Inlet Tribal Council will serve all Alaska Natives and American Indians in the region. In further response to Representative LeDoux, she reiterated that to whom the tribal organization provides services would vary by region. 9:13:13 AM REPRESENTATIVE KOTT related his understanding that two Native nonprofits are in the process of being authorized to provide assistance under the Native Family Assistance grant. He inquired as to who those Native nonprofits are. MS. FARNHAM reiterated that currently there are three Native regional nonprofits [providing assistance under the Native Family Assistance grant]. She specified that [the division] has been working with Cook Inlet Tribal Council cooperatively since May while [the division] has just begun to work with BBNA and Maniilaq Association over the last couple of months. 9:14:26 AM SHARON OLSEN, Director, Employment and Training, Tlingit-Haida Central Council, related that Tlingit-Haida Central Council serves all of Southeast Alaska. Tlingit-Haida Central Council serves the health, education, employment, and human and public service needs of more than 25,000 tribal members, of which about 4,000 are under age 18. She informed the committee that the Tlingit-Haida Central Council TANF program was the second such program to be in operation. The organization averages 360 cases per month. She noted that less than 18 percent of households Tlingit-Haida Central Council served are two-parent households. The Tlingit-Haida Central Council TANF program estimates an additional 300 potential clients due to child support. Although there may be increases in case loads, there are measures in place to thwart that burden, which is a very effective diversion program. She related that one reason there are increased caseloads is because the organization is present in every community in the region. Tlingit-Haida Central Council has been able to operate the program with existing funds, she noted. Ms. Olsen said that it has been a challenge to operate a TANF program in an area with such high unemployment. She mentioned the lack of training and meaningful employment. MS. OLSEN turned to the flexibility that the Native programs bring to TANF. For example, the fatherhood initiative attempts to reconnect fathers with children and meet their responsibilities in supporting their children. She pointed out that Tlingit-Haida Central Council recently received a two-year planning grant to offer a tribal support unit to undertake the [child] support services for the region. The aforementioned is important to add, she opined. She informed the committee that of the 13 regions in Alaska, only one hasn't consolidated the U.S. Department of Labor, Bureau of Indian Affairs, and Health and Human Services funds into one program, one grant, and one reporting system. That consolidation means an organization can do more, which was noted in a recent Office of Management & Budget report which rated the Public Law 102-477 tribes were higher than all other programs within the Department of Interior. Furthermore, Tlingit-Haida Central Council received the Chiefs Award from the Department of Labor [& Workforce Development] because of the ability to provide thorough reports in a timely fashion. She mentioned that Alaska grantees have worked closely through the Alaska Native Coalition on Employment and Training. 9:21:41 AM MS. OLSEN highlighted Tlingit-Haida Central Council's Tribal Vocational Rehabilitation (TVR) program, which furthers what it's doing with TANF families. A recent study related that one- third of individuals receiving employment-related services from other programs such as TANF have specific learning disabilities. As the TVR program partners more extensively with TANF, the number with disabilities served by TVR is expected to increase. She informed the committee that Alaska Natives rank second highest in the state with children with disabilities. She related that those students who can't pass their exit exam at high school will be TANF and TVR clients in the future. Therefore, it's important to continue what Tlingit-Haida Central Council has begun. She noted that the Tlingit-Haida Central Council TVR center was built to prepare for welfare reform and offers life, office, basic computer, financial planning skills, as well as other specialized training. In conclusion, Ms. Olsen urged the passage of HB 69, and encouraged the state to work directly with [the tribal organizations'] TANF and child support programs in order to ensure families receive the assistance necessary and more families become self-sufficient. 9:23:59 AM REPRESENTATIVE NEUMAN highlighted [from Ms. Olsen's written testimony] that all regions in Alaska, save Maniilaq are not operating under Public Law 102-477. MS. OLSEN pointed out that it's a voluntary program, and noted that Maniilaq will be consolidated and [operating under Public Law 102-477] very soon. She opined that they weren't [operating under Public Law 102-477] because they were much smaller than other regions. 9:24:48 AM REPRESENTATIVE KOTT turned to Tlingit-Haida Central Council's child support enforcement program. He surmised that Ms. Olsen wasn't suggesting that the Child Support Enforcement Division would decentralize its functions to the Native entity, but he requested she comment. MS. OLSEN specified that a [federal] law recently passed allowing tribes in the U.S. to operate their own child support enforcement programs. First, up to a two-year grant was offered to allow tribes to research and prepare for the implementation of a child support enforcement program. Tlingit-Haida Central Council is in the first-year planning grant stage and will be meeting with the state next week to review memorandum of agreements. If this program enhances what is already being done [by Tlingit-Haida Central Council], then it will be pursued. 9:26:33 AM REPRESENTATIVE KOTT surmised then that the current state system could be decentralized and the tribal organizations could take over child support enforcement. MS. OLSEN replied yes, and highlighted that the organization is already working with these families. 9:27:34 AM MOLLY MERRIT-DUREN, Director, Employment Training Services, Cook Inlet Tribal Council (CIRI), informed the committee that Cook Inlet Tribal Council serves the Anchorage area and the CIRI villages. She reviewed the services CIRI provides, including those related to employment and training, child and family, substance abuse, and education. Ms. Merrit-Duren said that CIRI is poised and would like to become a temporary assistance provider for tribal families. She highlighted that many of the Native nonprofits, such as CIRI, have been providing case management for welfare to work participants. In fact, CIRI has been doing the aforementioned for over eight years, with an average case load of 600-800 participants. By becoming a tribal TANF, CIRI would add the eligibility piece. She noted that CIRI has worked closely with AVCP, Tlingit-Haida Central Council, and TCC, and have been encouraged that this is the right thing to do. She noted that CIRI is also a consolidated Public Law 102- 477 provider, which provides additional flexibility. MS. MERRIT-DUREN informed the committee that the original 1994 caseload in Anchorage for Alaska Natives and American Indians was 1,123. As of November 2004, the caseload was 692. During this timeframe Anchorage has experienced a large influx of Alaska Natives and American Indians. Also during this timeframe, CIRI was able to help to decrease the Native American and American Indian caseload by 62 percent. She highlighted that many Native nonprofits are sophisticated organizations. In fact, CIRI is a provider of accounting services for 39 nonprofits in the community of Anchorage. Furthermore, CIRI has no financial single audit findings. Additionally, CIRI provides information technology services for five nonprofits in the Anchorage area. 9:33:25 AM REPRESENTATIVE NEUMAN moved to report HB 69 out of committee with individual recommendations [and the accompanying fiscal notes]. There being no objection, HB 69 was reported from the House Community and Regional Affairs Standing Committee.
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