Legislature(2001 - 2002)
02/13/2002 01:37 PM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MS. SANDY HOBACK, an independent consultant under contract with
the American Institute for Full Employment, informed committee
members that the Institute is a non-profit research and education
institute whose mission is to promote full employment and
universal access to jobs with career potential for all who can
work, especially those receiving public assistance as a
substitute for opportunities and rewards for paid work. The
Institute offers to assess state welfare reform efforts. In that
vain, she visited Alaska last spring and made that offer to
Chairwoman Green and Chairman Dyson. They requested the Institute
do an assessment, which was completed last October.
MS. HOBACK said she would talk specifically about the legislative
recommendations made in that report. She pointed out the Division
of Public Assistance has contracted with her independently to
operationalize many of the other recommendations. She listed the
five recommendations as:
Recommendation 1
· Amend the statute to allow Alaska to use full flexibility
allowed under federal law to extend benefits to some long-
term recipients.
MS. HOBACK said the legislature discussed this issue last session
but the committee felt further analysis was necessary before
making that statutory change. She recommends that change be made
and allowing the Division of Public Assistance to craft narrow
criteria by which to determine whether a family can extend beyond
the 5-year time limit. She noted a family might reach the 5-year
time limit yet have several justifiable reasons for an extension.
She maintained that using criteria instead of an artificial cap
level is a better way to go.
Recommendation 2
· Move toward a progressive sanction system for uncooperative
clients.
MS. HOBACK explained that Alaska currently imposes a cash grant
reduction to the family of about 40 percent for the first time it
does not cooperate with immediate restoration upon cooperation; a
mandatory six month penalty for a second offense; and a 12 month
penalty for a third offense. She noted that system is a great
disincentive to cooperation because even if the adult decides to
start cooperating, he or she might still have a 6 or 12-month
penalty. Also, while disqualified, the family's time clock
continues to tick. She suggested using a system that progresses
through a number of stages but can ultimately close a cash grant
if people continue to be uncooperative. Such a system is more
family-friendly for two reasons: it can be cured immediately upon
cooperation and the time clock stops when the grant is closed.
She noted that adding appropriate safeguards for the well-being
of the children will create a better check and balance system
than using the artificial cap with the existing sanction policy.
Recommendation 3
· Create an approach whereby full-time working clients, under
a certain income level, continue to be eligible for some
ATAP benefits even though they have reached the five-year
limit.
MS. HOBACK stated that is addressed in the legislation [SB 293]
under a self-sufficiency services provision. It would allow the
state to continue to serve working clients and provide them with
appropriate support to stay on the job.
Recommendation 4
· Strengthen Alaska's upfront diversion program.
MS. HOBACK explained that an upfront diversion program is a
mechanism whereby the client is found employment so that he or
she does not have to come on the assistance program. The current
statute allows two months of benefits to be paid to the
individual upfront, instead of opening a cash grant. The
Institute recommends that be increased to three months of
benefits because two months is often not enough given the cost of
living in Alaska. She pointed out that recommendation dovetails
with other management recommendations she has made to the
division to strengthen the entire upfront approach so that
diversion becomes a much more viable option.
Recommendation 5
· Allow for a more complete wage subsidy program.
The State of Oregon developed a program that engages the private
sector to provide training opportunities. In most states, the
largest employer is the private sector so finding ways to include
it is critically important. The legislation [SB 293] asks for
authorization to take the value of the food stamp benefits. The
state already has the ability to take the value of the cash
benefit and turn it into a wage subsidy. This asks for state
permission to approach the federal food stamp program to do the
same thing with the food stamp benefit, couple those benefits
together and use them to reimburse private sector employers for
providing training opportunities for this clientele. The state
of Oregon found that approach was not only a very good avenue to
get clients with significant barriers to work, it also worked as
an economic stimulus because many small employers would not have
had the capital to expand.
CHAIRWOMAN GREEN asked if these changes are synchronized with
what the federal government may do.
MS. HOBACK said that Congress is just beginning to discuss
reauthorization so it is too early to tell. However, she believes
the changes in SB 293 will conform very well to what she has
heard discussed so far.
CHAIRWOMAN GREEN asked if the wage subsidy is designed for use by
the private sector only.
MS. HOBACK said that is how it was designed in the state of
Oregon but the bill only authorizes the division to use the value
of the food stamps for a wage subsidy program. It does not speak
to the private or public sector.
CHAIRWOMAN GREEN announced that SB 293 would be before the
committee next Wednesday.
MR. JIM NORDLUND, Director of the Division of Public Assistance,
said he will comment on the bill next week. He added that he has
had a good working relationship with Ms. Hoback. The division
had been considering some of the recommended changes for awhile.
The division has reservations about some of the provisions in the
bill but, overall it presents a good start.
SENATOR DAVIS thanked Chairwoman Green for contracting with the
Institute for the report.
There being no further business to come before the committee,
CHAIRWOMAN GREEN adjourned the meeting.
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