Legislature(2005 - 2006)BUTROVICH 205

02/07/2005 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 84 CHILD PROTECTION CONFIDENTIALITY TELECONFERENCED
Heard & Held
+ SB 51 PUBLIC ASSISTANCE PROGRAMS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
                SB 51-PUBLIC ASSISTANCE PROGRAMS                                                                            
                                                                                                                                
CHAIR FRED DYSON announced SB 51 to be up for consideration.                                                                    
                                                                                                                                
2:56:51 PM                                                                                                                    
KATHRYN FARNHAM, Department of Health  and Social Services (DHSS)                                                               
introduced  SB 51.  In 1996  the federal  welfare reform  program                                                               
allowed  states  flexibility  in the  implementation  of  welfare                                                               
reform with an emphasis on  employment. That legislation has been                                                               
successful in Alaska. The caseload  reduction is 58 percent since                                                               
1994,  saving the  state  $66 million  dollars.  The block  grant                                                               
program  allows  the states  to  create  programs that  emphasize                                                               
work. This  same flexibility was offered  to Tribal organizations                                                               
in the  1996 law,  which allows  them to  run a  tribal Temporary                                                               
Assistance   to    Needy   Families   (TANF)    program.   Native                                                               
organizations  may  apply  for  a federal  block  grant  for  the                                                               
families in their region and serve them directly.                                                                               
                                                                                                                                
To run a fair and equitable program  that is on par with what the                                                               
Native  families  could  have  received from  the  state,  it  is                                                               
necessary to provide state funds.  In 2000 the Alaska Legislature                                                               
created  and  passed  the  Native   TANF  program  providing  the                                                               
opportunity to help  fund locally relevant programs.  The law was                                                               
made to  sunset in June 2005.  It was also designated  to four of                                                               
the 13  original entities.  The four  included the  Tanana Chiefs                                                               
Conference (TCC),  the Association of Village  Council Presidents                                                               
(AVCP), Tlingit Haida Central Council (TLCC), and Metlakatla.                                                                   
                                                                                                                                
3:00:03 PM                                                                                                                    
Reports  show the  tribal  TANF programs  are  working. They  are                                                               
achieving migration  to self-sufficiency though  employment. This                                                               
year they are in discussions  with three new native organizations                                                               
that are interested  in running a tribal TANF  program. The three                                                               
are  Cook Inlet  Tribal Council,  Bristol Bay  Native Association                                                               
and the Maniilaq Association.                                                                                                   
                                                                                                                                
3:02:22 PM                                                                                                                    
The recommendation in SB 51 is  to extend the program and make it                                                               
permanent in  the statute, and  to extend  it to the  12 regional                                                               
non-profits  plus Metlakatla.  Many of  the regional  non-profits                                                               
have  been contractors  to  the State  of  Alaska providing  case                                                               
management  services.  If  Cook   Inlet  establishes  their  TANF                                                               
program there  will be fiscal  impacts. The attached  fiscal note                                                               
pertains to Cook Inlet.                                                                                                         
                                                                                                                                
3:04:59 PM                                                                                                                    
SENATOR ELTON asked Ms. Farnham  the kind of provisions there are                                                               
for  auditing a  contractor who  provides services  such as  case                                                               
management.                                                                                                                     
                                                                                                                                
MS.  FARNHAM  advised current  contracts  are  under an  umbrella                                                               
called   "work   services."   Contracts   have   monitoring   and                                                               
performance tracks in them. In  FY05 those contracts were pay for                                                               
performance contracts.                                                                                                          
                                                                                                                                
3:06:39 PM                                                                                                                    
SENATOR WILKEN asked Ms. Farnham  what percent would Anchorage be                                                               
in the budget if the committee re-authorized the programs.                                                                      
                                                                                                                                
MS. FARNHAM replied  they have not assessed the size  of the Cook                                                               
Inlet, Bristol Bay  and Maniilaq caseloads. Cook  Inlet will have                                                               
close to 700 cases.                                                                                                             
                                                                                                                                
SENATOR  WILKEN asked  the guarantee  that  federal funding  will                                                               
continue and what is the obligation of the state.                                                                               
                                                                                                                                
MS.   FARNHAM  said   the  federal   law  authorizing   Temporary                                                               
Assistance   for    Needy   Families   is   currently    up   for                                                               
reauthorization.  It  has  been reauthorized  for  several  years                                                               
without any substantial changes.  If there are structural changes                                                               
to the block grant, the program will have to be re-examined.                                                                    
                                                                                                                                
3:10:43 PM                                                                                                                    
SENATOR  WILKEN  asked  Ms.  Farnham if  the  federal  money  was                                                               
reduced in  the future could he  expect the general fund  to make                                                               
up  the  difference  or  could  the  legislation  pare  back  the                                                               
program.                                                                                                                        
                                                                                                                                
MS. FARNHAM was reluctant to speculate.                                                                                         
                                                                                                                                
CHAIR DYSON  noted in  this program  the caseload  has diminished                                                               
but recipients may be receiving other assistance.                                                                               
                                                                                                                                
MS.  FARNHAM  said  she  has  seen  cash  assistance  cases  drop                                                               
dramatically. Some cases  are picking up bridge  programs but she                                                               
is also  seeing families  utilizing benefits  that can  help them                                                               
stay off cash benefits, for example, child care assistance.                                                                     
                                                                                                                                
3:12:52 PM                                                                                                                    
CHAIR DYSON asked  Ms. Farnham whether the  fiscal note reflected                                                               
state money fluctuations in programs.                                                                                           
                                                                                                                                
MS.  FARNHAM answered  no, but  the  budget for  the division  of                                                               
public assistance would show services trends.                                                                                   
                                                                                                                                
3:14:04 PM                                                                                                                    
CHAIR DYSON asked  Ms. Farnham the number of  people reflected in                                                               
the caseload reduction who have gone to work.                                                                                   
                                                                                                                                
MS.  FARNHAM answered  there is  a recent  division study  of why                                                               
people leave  TANF programs. Often  they quit applying.  A report                                                               
is available on their website. Multiple issues affect a family.                                                                 
                                                                                                                                
3:16:07 PM                                                                                                                    
CHAIR DYSON  said the federal  TANF program encourages  states to                                                               
invest in  making families  stay together.  He asked  Ms. Farnham                                                               
how the funding is used  to accomplish those federally emphasized                                                               
goals through the funding stream.                                                                                               
                                                                                                                                
MS. FARNHAM answered the four  purposes of TANF include promoting                                                               
strong  families and  healthy marriages.  Because  of their  high                                                               
success rate,  Alaska has received  a high performance  bonus for                                                               
three straight years.                                                                                                           
                                                                                                                                
3:18:50 PM                                                                                                                    
CHAIR DYSON asked Ms. Farnham to talk about tribal fraud.                                                                       
                                                                                                                                
MS.   FARNHAM  replied   part  of   the  provisions   for  tribal                                                               
organizations  to have  a TANF  program is  that they  have fraud                                                               
mechanisms in place.                                                                                                            
                                                                                                                                
3:20:42 PM                                                                                                                    
MS. FARNHAM pointed  out the food stamp error rate  in Alaska was                                                               
the  worst in  nation in  2003. Under  Tony Lombardo's  direction                                                               
they  turned it  around  and  Alaska is  now  on  par with  other                                                               
states. All the other programs  have seen a marked improvement as                                                               
well, by identifying trends and through training.                                                                               
                                                                                                                                
CHAIR DYSON said  national statistics show that 60  to 70 percent                                                               
of all  welfare applications have  errors or  fraud and 25  to 30                                                               
percent are fraudulent to some degree.  He would like to know how                                                               
many people are prosecuted and are making restitution.                                                                          
                                                                                                                                
MS. FARNHAM said  DHSS has a strong fraud unit.  Of the number of                                                               
cases that are  suspected fraud and are reviewed,  30 percent pan                                                               
out to be actual fraud.                                                                                                         
                                                                                                                                
3:23:10 PM                                                                                                                    
SENATOR WILKEN asked Ms. Farnham  for clarification on the fiscal                                                               
note.                                                                                                                           
                                                                                                                                
MS. FARNHAM  answered the details  are on page four.  The current                                                               
funding level has  been the same since 2001.  Annually the budget                                                               
includes 8.7  million dollars. Cook  Inlet is in the  fiscal note                                                               
because it  is new. The  other three  are already built  into the                                                               
budget.                                                                                                                         
                                                                                                                                
3:25:48 PM                                                                                                                    
SENATOR WILKEN asked about Maniilaq and Bristol Bay.                                                                            
                                                                                                                                
MS.  FARNHAM replied  they were  not factored  because talks  are                                                               
ongoing.                                                                                                                        
                                                                                                                                
CHAIR  DYSON  announced  he  would  hold SB  51  until  the  next                                                               
committee  meeting.  There  being  no further  business  to  come                                                               
before  the  committee,  Chair Dyson  adjourned  the  meeting  at                                                               
3:26:47 PM.                                                                                                                   

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