Legislature(2005 - 2006)HOUSE FINANCE 519
04/18/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB51 | |
| SB93 | |
| SB155 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 51 | TELECONFERENCED | |
| + | SB 93 | TELECONFERENCED | |
| + | SB 155 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 51(FIN)
"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."
KATHERINE FARNHAM, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, related the background of the
Temporary Assistance for Native Families (TANF) program.
She described the results of the Welfare to Work bill.
Twelve regional native non-profit organizations and
Metlakatla were designated to run temporary assistance
programs. State funds were made available along with the
federal funds. She explained the Alaska Native Family
Assistance Program and the sunset date. SB 51 would allow
this program to become permanent and would expand it from
the four initial organizations, to the thirteen designated
by the federal government. The end results have been great
successes with a 66 percent caseload reduction.
1:52:39 PM
Ms. Farnham addressed the fiscal notes. She described the
efforts of Cook Inlet Tribal Council to take on 600 new
families. This would change the funding scenario starting
July 1. There would be a reduction of $2 million in general
fund match, as well as a reduction of $2.8 million in the
federal receipt authority. She referred to a chart "FY06
Budget Impact for State-CITC Transfer", which showed the
effects of the fiscal notes (copy on file.) The federal
share goes directly to Cook Inlet and reduces the state's
federal temporary assistance receipts. The state has to
match 75 percent of the federal block grant with maintenance
of effort general funds. As the federal floor lowers, so
does the state match. She highlighted the advantages of the
Cook Inlet program. Maniilaq and Bristol Bay Native
Association are also planning to start up their own
programs. She urged passage of SB 51.
1:57:19 PM
Representative Kelly noted that tribal governments are not
recognized in Alaska. He asked why they are included in
this funding. Ms. Farnham explained that the language used,
"tribal TANF program", is from the federal level, and in
Alaska they are regional Native non-profit programs. Each
receiving grantee waives sovereignty immunity.
Representative Kelly asked if it has no impact on the
sovereignty issue. Ms. Farnham replied yes. Representative
Kelly suggesting calling them 501(c)(3)'s. Ms. Farnham
replied that they are. Representative Kelly maintained that
it is a misuse of federal language. Ms. Farnham pointed out
that in the actual statutory language "regional Native non-
profits" is used.
2:00:33 PM
Representative Croft stressed that Alaska does recognize
tribes, just not as governmental entities, for the purposes
of receiving federal monies. Representative Kelly expressed
concern about allowing Indian Reservations to be established
in Alaska.
2:02:20 PM
Ms. Farnham noted that "tribal" is used appropriately in the
bill.
Representative Kelly clarified that he is not commenting
negatively on the merits of the program.
2:03:29 PM
Representative Holm asked why Metlakatla is mentioned
separately. Ms. Farnham explained that it was a late
addition to the program. She noted that not all regional
non-profits have the capacity to participate in a program.
Representative Holm asked if Sealaska Corporation is a
participant. She replied that Tlingit & Haida serves this
area and the state serves Metlakatla. Representative Holm
noted that Metlakatla is a federal reservation.
2:05:33 PM
In response to a question from Co-Chair Chenault, Ms.
Farnham reported that "fair and equitable" is a process that
examines caseloads for what the state currently spends on
those families for work services, child support, etc. Co-
Chair Chenault asked if that is for the three largest
grantees. Ms. Farnham replied it is for the three current
grantees and will be used for Cook Inlet, also. Co-Chair
Chenault asked if race is a factor. Ms. Farnham replied
that the aim is to assure that native nonprofits can serve
the families in a way that is at least as well financed as
when it was run by the state.
2:08:14 PM
MOLLY MERRITT DUREN, EMPLOYMENT & TRAINING SERVICES, COOK
INLET TRIBAL COUNCIL (CITC), pointed out that her program
has been providing case management services for eight years.
She referred to the handout "Cook Inlet Tribal Council"
(copy on file.) She described the reductions since the 1994
caseload. She related the mission of the tribal council and
the services they provide. She indicated that CITC is ready
to assume this responsibility.
2:11:44 PM
Representative Hawker endorsed the program and thanked Ms.
Merritt Duren for her hard work.
2:12:34 PM
DON SHIRCEL, DIRECTOR OF FAMILY SERVICES, TANANA CHIEFS
CONFERENCE, spoke with pride about the work done by the
tribes of the interior. He testified in support of SB 51
because it allows for continuation and expansion of these
programs.
2:15:48 PM
Co-Chair Chenault asked for an explanation of fiscal note #1
by the Department of Health and Social Services. He
wondered if some of the money is federal money that goes
back to the grant recipient. He suggested there might be
general fund savings. He wondered if any state employees
would be lost.
2:17:40 PM
Ms. Farnham responded that some federal money is leaving the
department's budget and going directly to Cook Inlet. She
explained the transfer and real savings. The first
component is the Native Family Assistant Program, which
increases by $4 million. She pointed out that each fiscal
note has a summary.
Ms. Farnham explained that the second fiscal note, the work
services component related to case management, shows a
reduction of $1.3 million because of a move from grants to
contracts.
Ms. Farnham explained that the third fiscal note relates to
childcare benefits. It will no longer be spent directly,
but will be part of the Cook Inlet program. This note does
the best job of integrating the whole story. It shows the
reduction of federal receipts because of high performance
success. The match is at 75 percent. It is a $5.7 million
general fund reduction.
2:24:16 PM
Representative Croft questioned that number. Ms. Farnham
replied that the net numbers show that the general fund
reduction is actually $2 million. Cook Inlet is the largest
one that will be operating this way. Representative Croft
asked how the difference between the $5.7 million and the $2
million is reconciled. Ms. Farnham replied that the largest
difference is that $3.6 million is being transferred to the
native family assistance component. Representative Croft
summarized that it is not a savings of $5.7 million. Ms.
Farnham replied that the $2 million is the net savings.
Representative Foster asked how non-native families are
served in rural areas. Ms. Farnham replied that there is a
contract to serve both natives and non-natives. She termed
it valuable to work with AVCP as a partner. This may work
for Bristol Bay as well. Representative Foster asked if
there is an administrative fee. Ms. Farnham related that
there is an acceptable small fee. It funds only two things:
cash benefits to the family and administrative expenses.
2:28:16 PM
Representative Holm noted that CITC numbers have gone from
1,000 to 600. He inquired if there is true savings in
employment and if those in state employment are considered
unbiased and those in corporations, biased. He wondered if
state and federal funds should be put into facility
providers that would have a bias. Ms. Farnham addressed the
impact to state workers. She reported that there would be
no reduction in state employees and personnel. Caseloads
are changing post-welfare reform dramatically, and a study
needs to be done to track the increases and decreases. Some
staff rearrangements are being considered. The department
will do an analysis to better understand the trends.
Ms. Farnham addressed the fairness issue. She explained
that native corporations use multiple funding strands and
focus them on the family. The department is trying to
integrate services more like Cook Inlet. The native
organizations can provide a more integrated program. The
department is looking at marketing family centered services.
2:35:23 PM
Representative Holm expressed appreciation for the
presentation. He addressed a concern about an increase in
staff when services are reduced. Ms. Farnham explained the
success of the program depends on taking the savings and
putting it back into services. Some of the families on
public assistance still have serious needs, and at the end
of the 5-year time limit would need more resources. Another
reason is that the agency receiving the funds can use them
in a variety of ways, some of which need more employers.
2:39:08 PM
Representative Kelly asked whether a person employed in a
job out of the region counts, in areas with a 50 percent
unemployment rate. Ms. Farnham responded that employment is
employment; the end game is employment and self-sufficiency.
Representative Kelly asked for statistics on out-of-region
jobs. Ms. Farnham said they are not tracked once they exit
the program and are employed.
2:41:37 PM
ELLIE FITZGARRALD, PROGRAM DEVELOPMENT, DIVISION OF PUBLIC
ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
explained the successes of the Leaver's Study. She related
that there is no data kept after six months. Representative
Kelly suggested those would be interesting numbers to track.
2:43:05 PM
Representative Kelly asked about the permanence of the
program. He wondered if the direction is wrong due to the
loss of federal funds. Ms. Farnham clarified that this
federal program is not on the "down slope" and has wide
national support. She spoke about safeguards and explained
that Senate Finance did add language to the bill that would
protect Alaska from backfilling future holes. She referred
to page 9, line 19, which addresses this concern. Each
grant is negotiated annually, and the program is not
destined to be cut.
Representative Foster thanked the department for the
presentation. He MOVED to report CSSB 51 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
Representative Kelly OBJECTED. He explained that he wants
the word "tribal" out of the statutes. Ms. Farnham
indicated that tribal is only referenced in conjunction with
the federal tribal assistance program.
2:47:26 PM
Representative Croft noted that the 12 references to tribal
in the bill are all in the context of a federally approved
tribal family assistance program.
Representative Kelly referred to page 3, line 17, a
reference to operating a tribal assistance program. He
suggested "federal" should be added. Ms. Farnham explained
the meaning of the line, noting that the intent is clear.
Representative Foster noted that it is easy to confuse
sovereign and tribal. He related that the 13 native
corporations are tribal organizations.
Representative Kelly WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
2:50:16 PM
At ease.
2:52:03 PM
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