Legislature(2005 - 2006)HOUSE FINANCE 519

04/21/2005 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 13 SCHOOL CONSTRUCTION BOND REIMBURSEMENT TELECONFERENCED
Heard & Held
<Rescheduled from 4/20>
+= HB 187 AMERADA HESS INCOME; CAPITAL INCOME ACCT. TELECONFERENCED
Heard & Held
+ HB 31 WORKERS' COMP: DISEASE PRESUMPTION TELECONFERENCED
Moved CSSSHB 31(FIN) Out of Committee
+ HB 231 HUMAN SERVICES GRANT ELIGIBILITY TELECONFERENCED
Heard & Held
+ HB 101 SEX TRAFFICKING AND TOURISM TELECONFERENCED
<Bill Hearing Postponed>
+ HB 53 CHILDREN IN NEED OF AID/REVIEW PANELS TELECONFERENCED
<Bill Hearing Postponed to 4/22>
Bills Previously Heard/Scheduled
HOUSE BILL NO. 231                                                                                                            
                                                                                                                                
     "An Act relating to the definition of 'municipality'                                                                       
     for purposes of human services community matching                                                                          
     grants."                                                                                                                   
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON explained that HB  231 addresses                                                                   
human services  community matching grants, which  total about                                                                   
$1.2  million  annually.    Qualified   communities  have  to                                                                   
provide  a 35  percent match  to  receive a  grant, and  only                                                                   
three communities  are now qualified.   This bill  would make                                                                   
it  possible for  other communities  to  form consortiums  to                                                                   
pool  money   to  receive  these   grants.    Any   group  of                                                                   
communities totaling  35,000 could apply.  She  referred to a                                                                   
Talking Points handout (copy on  file.)  It is not the intent                                                                   
of  the   bill  to   take  away   from  the  original   three                                                                   
communities.  The  deadline for applying for  these grants is                                                                   
October.  She described the process,  which would not go into                                                                   
effect until 2007.  The Southeast  Conference would assist in                                                                   
the development of consortiums.                                                                                                 
                                                                                                                                
3:17:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer asked  for clarification of the  intent of the                                                                   
bill.   Representative  Wilson repeated  that it  is not  the                                                                   
intent to take away services from anyone else.                                                                                  
                                                                                                                                
Representative    Croft   asked    about   geographic    area                                                                   
definitions.     Representative   Wilson  replied   that  the                                                                   
geographic areas were purposely  not defined.  Representative                                                                   
Croft   asked    whether   diverse    areas   could    apply.                                                                   
Representative  Wilson  said that  is fine.    Representative                                                                   
Croft  asked if  the  bill  might delay  harming  communities                                                                   
receiving current services.                                                                                                     
                                                                                                                                
Co-Chair Meyer clarified  that the intent is  to increase the                                                                   
amount appropriated in the future.                                                                                              
                                                                                                                                
3:20:49 PM                                                                                                                    
                                                                                                                                
Representative  Hawker related  that  there is  no intent  to                                                                   
take funding  away, presuming  the same  level of funding  is                                                                   
maintained.  He  suggested that more funding  would be needed                                                                   
in  the future.   Representative  Wilson  said that  decision                                                                   
would be made in a HESS subcommittee.   Representative Hawker                                                                   
disagreed with  the zero fiscal note.   Representative Wilson                                                                   
referred   Representative   Hawker   to   the   second   page                                                                   
explanation of the fiscal note.                                                                                                 
                                                                                                                                
Co-Chair  Meyer  suggested another  option.    Representative                                                                   
Wilson said some of it has already been done.                                                                                   
                                                                                                                                
3:22:40 PM                                                                                                                    
                                                                                                                                
Representative  Joule  asked about  population  requirements.                                                                   
Ms. Wilson implied that the numbers could be changed.                                                                           
                                                                                                                                
3:24:25 PM                                                                                                                    
                                                                                                                                
MARLEEN NORTON,  HUMAN SERVICES,  MUNICIPALITY OF  ANCHORAGE,                                                                   
ANCHORAGE, (via teleconference)  spoke to the user's matching                                                                   
grants.   She requested that  sufficient funding  be provided                                                                   
for services.                                                                                                                   
                                                                                                                                
3:27:18 PM                                                                                                                    
                                                                                                                                
ROB ALLEN, SOUTHEAST CONFERENCE,  SITKA, (via teleconference)                                                                   
spoke in support  of the legislation.  It adds  an additional                                                                   
category to  the definition of  areas that would  be eligible                                                                   
to receive state grant funds for  human services.  He pointed                                                                   
out that the population of Southeast  Alaska is declining and                                                                   
fewer   contributions   are  flowing   to   nonprofits   from                                                                   
businesses and communities.  He  urged passage and support of                                                                   
the bill.                                                                                                                       
                                                                                                                                
3:30:14 PM                                                                                                                    
                                                                                                                                
JANET  CLARKE, ASSISTANT  COMMISSIONER,  DIVISION OF  FINANCE                                                                   
AND  MANAGEMENT SERVICES,  DEPARTMENT  OF  HEALTH AND  SOCIAL                                                                   
SERVICES,  addressed  the  fiscal  note.   There  is  nothing                                                                   
mandating holding  harmless of the grantees.   Representative                                                                   
Hawker agreed.                                                                                                                  
                                                                                                                                
Ms.  Clarke  provided  the  history  of  the  program.    The                                                                   
original program was established  in the 1980's and the block                                                                   
grants went  to only Anchorage  and Fairbanks.  In  the early                                                                   
1990's,   with  the   downturn  in   state  revenues,   then-                                                                   
Representative Boyer  put the program  in statute and  it was                                                                   
developed.   At  that  point,  no other  community  qualified                                                                   
except Anchorage and Fairbanks.                                                                                                 
                                                                                                                                
Ms. Clarke  referred to  the fiscal note  related to  the CRA                                                                   
version of  the legislation  (#2), which  would impact  in FY                                                                   
07.  She noted  the two scenarios provided by  the note.  Ms.                                                                   
Clarke referenced page 3.  The  department made the program a                                                                   
statewide program,  which would  cover the entire  population                                                                   
of  the State.    Page  4 of  the  fiscal note  provides  the                                                                   
opposite view, which would need  an additional appropriation.                                                                   
                                                                                                                                
3:35:57 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked  about  the grant  history.   He                                                                   
pointed  out that  the program  had  been targeted.   It  was                                                                   
codified in  1992.  He noted  that two years ago,  the grants                                                                   
had  been zeroed  out.   He asked  how  that reconciled  with                                                                   
expansion of the program.                                                                                                       
                                                                                                                                
3:37:34 PM                                                                                                                    
                                                                                                                                
Ms.  Clarke  related  that governors  and  commissioners  can                                                                   
change  their minds  and they  do  support the  bill at  this                                                                   
point.                                                                                                                          
                                                                                                                                
Representative Hawker  inquired about diminishing  the amount                                                                   
going  to  the communities.    Ms.  Clarke replied  that  the                                                                   
department is neutral  on that subject.  The  original intent                                                                   
of  the social  services  block grant  has  changed with  the                                                                   
advent of  Mat-Su.   When the programs  were at their  budget                                                                   
height, there were many designated  grants.  Today, there are                                                                   
no designated grants.                                                                                                           
                                                                                                                                
Representative  Hawker  asked  for  clarification  of  "none"                                                                   
going to the state.   Ms. Clarke replied that  there are none                                                                   
in the  operating budget.   Representative Hawker  noted that                                                                   
$1.5  billion dollars  is  in the  Department  of Health  and                                                                   
Social Services budget  this year.  He requested  a statewide                                                                   
breakdown.   Ms. Clarke replied  that there is a  breakout of                                                                   
the community  grants in the  amount of $150  million dollars                                                                   
in the grant book analysis.                                                                                                     
                                                                                                                                
Representative Hawker asked if  scenario 1 or 2 is the intent                                                                   
of the  bill.   Representative Wilson  replied the  intent is                                                                   
not to make anything worse for  other areas at the benefit of                                                                   
her  district.    Representative   Hawker  observed  that  is                                                                   
scenario  2.   He asked,  with  limited financial  resources,                                                                   
where the dollars would come from.                                                                                              
                                                                                                                                
Representative Wilson  commented that services  have been cut                                                                   
to  parts of  the  state and  to  municipalities  due to  the                                                                   
elimination of  revenue sharing.   This type of  economy puts                                                                   
more stress on  families and communities, and  human services                                                                   
needs definitely need to be met throughout the state.                                                                           
                                                                                                                                
3:42:18 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked which  area to the  money should                                                                   
be  taken  from.   Representative  Wilson  replied  from  the                                                                   
personal  care   attendant  area,  which   needs  sideboards.                                                                   
Representative  Hawker   agreed.    So  much   is  driven  by                                                                   
abandoned  revenue  sharing.    He  stated  appreciation  for                                                                   
Representative Wilson's perspective.                                                                                            
                                                                                                                                
Vice-Chair Stoltze recalled that  many cuts have been made to                                                                   
communities statewide.  Representative  Wilson responded that                                                                   
in  Southeast Alaska,  services  such as  Catholic  Community                                                                   
Services had to be cut, which left a large void.                                                                                
                                                                                                                                
Representative  Hawker  made a  suggestion  about the  fiscal                                                                   
note; have  a two-scenario fiscal  note with a  clear intent.                                                                   
Ms. Clarke said  that could be done.    Representative Hawker                                                                   
noted this year's  5 percent increase for PERS and  TRS.  Ms.                                                                   
Clarke deferred to the wishes of the finance committee.                                                                         
                                                                                                                                
3:46:54 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED  to ADOPT Amendment 1, on page                                                                   
1, line  8, to delete 35,000  and insert 50,000.   Vice-Chair                                                                   
Stoltze OBJECTED for discussion purposes.                                                                                       
                                                                                                                                
Representative  Wilson stated  her support  for the  original                                                                   
bill.                                                                                                                           
                                                                                                                                
Vice-Chair Stoltze WITHDREW his  objection to adopt Amendment                                                                   
1.  There being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
3:48:20 PM                                                                                                                    
                                                                                                                                
Ms. Clarke clarified that several  regions of the state would                                                                   
not qualify at 50,000 population.   It would cost $400,000 to                                                                   
hold the current participants harmless.                                                                                         
                                                                                                                                
Representative  Wilson  explained  how the  consortium  would                                                                   
work.                                                                                                                           
                                                                                                                                
3:49:54 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  set the bill aside.   HB 231 was  HELD in                                                                   
Committee for further consideration.                                                                                            
                                                                                                                                
3:50:29 PM                                                                                                                    
                                                                                                                                

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