Legislature(2005 - 2006)FAHRENKAMP 203

01/26/2005 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 14 MUNICIPAL ELECTIONS TELECONFERENCED
Heard & Held
*+ SB 51 PUBLIC ASSISTANCE PROGRAMS TELECONFERENCED
Moved SB 51 Out of Committee
               SB  51-PUBLIC ASSISTANCE PROGRAMS                                                                            
                                                                                                                                
SENATOR GARY STEVENS  announced SB 51 to be  before the committee                                                               
and asked Ms Farnham to introduce herself.                                                                                      
                                                                                                                                
KATHERINE FARNAM, director of the  Division of Public Assistance,                                                               
said she would  give background for the  Temporary Assistance for                                                               
Needy  Families Program  to frame  the  Native Family  Assistance                                                               
Program.                                                                                                                        
                                                                                                                                
In  1996 the  State  of  Alaska began  to  rework welfare  reform                                                               
through  a state  block grant  that helped  families work  toward                                                               
self-sufficiency.  She  pointed  to  a  chart  illustrating  that                                                               
Alaska  has   reduced  the  number   of  families   on  temporary                                                               
assistance by  58 percent. At  the high point, there  were 13,000                                                               
families on temporary  assistance and in October  2004 there were                                                               
just  5,500.  This success  is  attributable  to the  flexibility                                                               
provided by the  block grant program and the  emphasis on welfare                                                               
to work. The  program also instituted a five  year lifetime limit                                                               
for welfare benefits.                                                                                                           
                                                                                                                                
1:51:48 PM                                                                                                                    
                                                                                                                                
MS. FARNAM  said the effort  to help families move  to employment                                                               
and self-sufficiency  has certainly  been successful and  when FY                                                               
04  is compared  to FY  97,  it shows  that $66  million in  cash                                                               
benefits have been saved.                                                                                                       
                                                                                                                                
She pointed  out that their Native  partnerships have contributed                                                               
to  the  success   of  their  program.  When   the  1996  federal                                                               
legislation enabled  the state's  block grant, it  instituted the                                                               
ability for  tribal organizations  to offer  temporary assistance                                                               
programs directly.                                                                                                              
                                                                                                                                
1:52:26 PM                                                                                                                    
                                                                                                                                
In  the   federal  law,  12  regional   Native  non-profits  plus                                                               
Metlakatla were  identified as  able to  run their  own temporary                                                               
assistance  program.  There  are  state matching  funds  for  the                                                               
program and  the maintenance of effort  associated with temporary                                                               
assistance  federal monies  is  at nearly  an  80 percent  level.                                                               
Because of the  success in employment and  work participation, it                                                               
will be at the 75 percent level in years to come, she said.                                                                     
                                                                                                                                
MS. FARNAM continued to explain  that to operate a tribal program                                                               
at a level that is comparable  to a state run program, some state                                                               
funds are required  to go with the federal grant  that they would                                                               
get  directly on  an  approved program.  To  authorize the  state                                                               
funds,  the  Legislature in  2000  introduced  the Native  Family                                                               
Assistance Program, which  is the program under  discussion in SB
51.                                                                                                                             
                                                                                                                                
In  Alaska,   Tlingit  Haida   Central  Council,   Tanana  Chiefs                                                               
Conference,  and the  Association of  Village Council  Presidents                                                               
have been running  a tribal TANF program since  2000. Those three                                                               
non-profits serve 20  percent of the Alaska  Natives on temporary                                                               
assistance in the state.                                                                                                        
                                                                                                                                
Because  it  was  a  new way  of  serving  families,  legislators                                                               
elected to set it up as  a time limited program that sunsets June                                                               
30, 2005. It also identified  four tribal organizations that were                                                               
eligible instead of  the 13 designated in the  federal law. Those                                                               
are the three  mentioned previously and Metlakatla.  Three of the                                                               
four non-profits have been running  very successful programs that                                                               
outperform what  the state could  have done in those  same years.                                                               
This is due  to familiarity of the culture, the  families and the                                                               
economic needs in the region.                                                                                                   
                                                                                                                                
MS.  FARNAM pointed  to the  legislatively  required report  that                                                               
provides  information on  how  the  organizations achieved  their                                                               
gains,  how  they built  their  programs  and the  advantages  of                                                               
integrating those services with others that are provided.                                                                       
                                                                                                                                
1:56:34 PM                                                                                                                    
                                                                                                                                
Nationally,  37 tribes  have started  tribal  TANF programs  that                                                               
help about 8400 families. The  three Native non-profits have been                                                               
serving about  1,000 families  in Alaska  and receive  about $8.7                                                               
million  from the  Native Family  Assistance  Program each  year.                                                               
This is  in support of  the federal money  to give them  fair and                                                               
equitable  resources to  continue  running  their program  rather                                                               
than continuing a state program.                                                                                                
                                                                                                                                
Currently  there  are three  other  Native  non-profits that  are                                                               
working  to  set  up  their own  tribal  TANF  programs.  Without                                                               
extending  the sunset  date and  reauthorizing the  program, they                                                               
wouldn't be  able to develop   programs and receive  state funds.                                                               
The  three  additional  Native non-profits  are  the  Cook  Inlet                                                               
Tribal  Corporation,  the  Bristol  Bay  Native  Association  and                                                               
Maniilaq Association.                                                                                                           
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
MS.  FARNAM   recommended  making   the  program   permanent  and                                                               
expanding  it  to  match  the   organizations  that  the  federal                                                               
government authorizes for tribal TANF.                                                                                          
                                                                                                                                
She noted  that the fiscal  note is  based on the  fiscal changes                                                               
associated with  including Cook Inlet Native  Association (CINA).                                                               
Instead of receiving  federal money for the  Cook Inlet families,                                                               
that  federal money  would go  directly to  CINA. Money  would be                                                               
taken out  of general  fund expenditures  that currently  go into                                                               
Alaska Temporary  Assistance Program and  place it in  the Native                                                               
Family Assistance Program.                                                                                                      
                                                                                                                                
1:58:56 PM                                                                                                                    
                                                                                                                                
This  reduces the  federal block  fund  by the  amount that  Cook                                                               
Inlet would  receive directly, which  reduces the  maintenance of                                                               
effort limit  so there  would be an  associated net  general fund                                                               
savings.                                                                                                                        
                                                                                                                                
1:59:29 PM                                                                                                                    
                                                                                                                                
SENATOR  GARY STEVENS  recapped saying  the service  goes to  the                                                               
people wherever they  are. If they were living  in Anchorage they                                                               
would be served as fairly as if they lived in Cook Inlet (CIRI).                                                                
                                                                                                                                
MS. FARNAM  said yes, their  policy has been that  their services                                                               
have  been  for  all  Natives  in the  area  not  just  corporate                                                               
shareholders.                                                                                                                   
                                                                                                                                
SENATOR THOMAS WAGONER remarked that  it looks to be an excellent                                                               
program.  He  questioned whether  there  is  overlap between  her                                                               
agency and tribes that are working with the families.                                                                           
                                                                                                                                
MS. FARNAM  said that  in very rural  areas with  a predominantly                                                               
Native  population  her  agency  elected  to  contract  with  the                                                               
Association  of Village  Council Presidents  (AVCP) to  serve all                                                               
regional  residents to  avoid duplication  of services.  She said                                                               
they would likely continue to do  that in regions such as Bristol                                                               
Bay.                                                                                                                            
                                                                                                                                
In some  of the  more populated  areas such as  Cook Inlet  or in                                                               
Southeast, they collaborate closely  with the regional non-profit                                                               
partners.  Tribal   organizations  are   often  better   able  to                                                               
integrate services than the state.                                                                                              
                                                                                                                                
2:01:39 PM                                                                                                                    
                                                                                                                                
SENATOR WAGONER said, "You avoid turf wars."                                                                                    
                                                                                                                                
MS. FARNAM replied, "We don't turf war."                                                                                        
                                                                                                                                
2:01:51 PM                                                                                                                    
                                                                                                                                
SENATOR ALBERT KOOKESH asked whether  there would be turf wars if                                                               
the bill were to die.                                                                                                           
                                                                                                                                
MS FARNAM  assured him there  would be grave difficulties  if the                                                               
bill  didn't pass.  It would  be particularly  difficult for  the                                                               
three  existing  programs  because  they  would  be  entitled  to                                                               
federal money, but  they wouldn't have the $8.7  million in state                                                               
money that is necessary to provide a fair program.                                                                              
                                                                                                                                
SENATOR KOOKESH  said his  point is  that the  cost to  the state                                                               
would  rise dramatically  if the  bill  didn't pass.  He said  he                                                               
didn't want everyone to think  this would just benefit the Native                                                               
community.  The  state  will  benefit   as  much  as  the  Native                                                               
community because the Native non-profits  are shouldering some of                                                               
the load for the state.                                                                                                         
                                                                                                                                
MS. FARNAM agreed  and said they have not only  taken some of the                                                               
workload they've done a good job  and saved the state money. They                                                               
estimate that  there's been $33  million in general  fund savings                                                               
since the  first tribal TANF  program. She emphasized  that there                                                               
would  be  major   shifts  in  service  quality   if  the  tribal                                                               
organizations continued to serve families without state support.                                                                
                                                                                                                                
SENATOR KOOKESH said it works both ways.                                                                                        
                                                                                                                                
MS. FARNAM agreed.                                                                                                              
                                                                                                                                
SENATOR  GARY  STEVENS  restated  the  point  saying  that  state                                                               
responsibility   would  increase   dramatically  if   the  tribal                                                               
organizations didn't continue the programs.                                                                                     
                                                                                                                                
MS. FARNAM clarified  that it would require  reassuming the cases                                                               
they haven't been managing, which  would be a significant effort.                                                               
If the block grants were turned  down the state would receive the                                                               
money,  but the  state general  fund commitment  to the  programs                                                               
would increase.                                                                                                                 
                                                                                                                                
SENATOR  GARY STEVENS  thanked Senator  Kookesh  for bringing  up                                                               
that point.                                                                                                                     
                                                                                                                                
SENATOR JOHNNY  ELLIS said the bill  was great and that  when the                                                               
Governor puts  out the traditional  must-have list at the  end of                                                               
the session she  should make sure this was  included. It warrants                                                               
the attention and support.                                                                                                      
                                                                                                                                
MS. FARNAM thanked him for the suggestion and the support.                                                                      
                                                                                                                                
SENATOR GARY STEVENS called Ms. Merritt Duren.                                                                                  
                                                                                                                                
MOLLY MERRITT  DUREN, employment  training services  director for                                                               
Cook Inlet Tribal  Council, explained that they  are a non-profit                                                               
service agency that  serves Anchorage and the  six CIRI villages.                                                               
She  said  they  provide employment  training,  family  substance                                                               
abuse,  and education  services. They've  been a  vendor for  the                                                               
state providing welfare to work TANF services for eight years.                                                                  
                                                                                                                                
2:05:58 PM                                                                                                                    
                                                                                                                                
They serve all Alaska Natives  and American Indians in the region                                                               
and they've become the largest village in the state.                                                                            
                                                                                                                                
2:07:10 PM                                                                                                                    
                                                                                                                                
The  1994 caseload  in  the  Anchorage area  was  1,123 and  that                                                               
number  was used  for the  original tribal  TANF caseload.  As of                                                               
November 2004  the caseload was  692 while census  reports showed                                                               
the  Native population  increased  from 12,000  to 46,000  during                                                               
that time. This shows a caseload decrease of 62 percent.                                                                        
                                                                                                                                
She said  they have  worked in close  partnership with  the state                                                               
and would  like legislative support  so they could begin  being a                                                               
tribal TANF provider in July 2005.                                                                                              
                                                                                                                                
2:08:14 PM                                                                                                                    
                                                                                                                                
To  show their  ability to  become  a tribal  TANF provider,  she                                                               
informed  members   that  Cook  Inlet  Tribal   Council  provides                                                               
accounting services for  39 non-profits in the  state through the                                                               
Foraker Group, and information technology for five non-profits.                                                                 
                                                                                                                                
SENATOR WAGONER  asked whether there  were 46,000 Natives  in the                                                               
entire region or just Anchorage.                                                                                                
                                                                                                                                
MS. MERRITT-DUREN clarified that it was just Anchorage.                                                                         
                                                                                                                                
SENATOR WAGONER  asked how many  Natives live in the  region they                                                               
serve.                                                                                                                          
                                                                                                                                
MS. MERRITT-DUREN  thought the  1994 figure  was right  at 1,300.                                                               
She added, "We do propose to  offer our villages the option of us                                                               
becoming a  tribal TANF  provider for them  in years  two, three,                                                               
four and we get a little experience under our belt."                                                                            
                                                                                                                                
2:10:17 PM                                                                                                                    
                                                                                                                                
CHAIR GARY STEVENS  asked whether the program  also served Native                                                               
Americans that came from outside Alaska.                                                                                        
                                                                                                                                
MS. MERRITT-DUREN replied they serve  Alaska Natives and American                                                               
Indians.                                                                                                                        
                                                                                                                                
OZZIE  SHEAKLEY, Tlingit  Haida  Central Council  representative,                                                               
informed  members  that  he was  representing  his  boss,  Sharon                                                               
Olsen, and  the tribe president,  Ed Thomas. He pointed  out that                                                               
Ms. Olsen's  testimony was in  the report he distributed,  but he                                                               
wanted  members  to note  the  employment  figures in  particular                                                               
because  in  some  communities,   the  Native  unemployment  rate                                                               
reaches 80 percent.                                                                                                             
                                                                                                                                
2:12:29 PM                                                                                                                    
                                                                                                                                
He thanked the  state for complementing the work  they have done.                                                               
He  pointed to  a press  release stating  that the  Department of                                                               
Labor  gave them  the highest  award  for work  they've done  for                                                               
their people.                                                                                                                   
                                                                                                                                
2:13:24 PM                                                                                                                    
                                                                                                                                
AMANDA BLACKGOAT, financial systems  specialist for Tlingit Haida                                                               
TANF program said  she has been with the  program since inception                                                               
in March 2000. They took on their caseload in July 2000.                                                                        
                                                                                                                                
She noted that  the Tlingit Haida TANF program  averages over 360                                                               
cases  per  month, which  is  reduced  from  the 440  cases  they                                                               
handled in  the beginning. In  addition, there are  300 potential                                                               
TANF  clients  that don't  use  the  program  for one  reason  or                                                               
another,  but  they might  do  so  at  some point.  "The  program                                                               
benefits the culture  here in Southeast and Juneau  in that we're                                                               
trying to  be specific.  We're trying  to establish  a foundation                                                               
for our  clients. We're  trying to be  all encompassing  in order                                                               
for them to be self sufficient," Ms. Blackgoat said.                                                                            
                                                                                                                                
2:15:45 PM                                                                                                                    
                                                                                                                                
MR. SHEAKLEY closed saying they support SB 51.                                                                                  
                                                                                                                                
CHAIR GARY STEVENS asked for a motion.                                                                                          
                                                                                                                                
2:16:39 PM                                                                                                                    
                                                                                                                                
SENATOR ELLIS motioned to move SB 51 from committee with                                                                        
individual recommendations and four attached fiscal notes. There                                                                
being no objection, it was so ordered.                                                                                          

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