Legislature(2005 - 2006)BUTROVICH 205

02/09/2005 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 75 PUBLIC HEALTH DISASTERS/EMERGENCIES TELECONFERENCED
Moved CSSB 75(HES) Out of Committee
*+ SB 73 STATE VIROLOGY LABORATORY TELECONFERENCED
Moved CSSB 73(HES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 84 CHILD PROTECTION CONFIDENTIALITY TELECONFERENCED
Moved CSSB 84(HES) Out of Committee
+= SB 51 PUBLIC ASSISTANCE PROGRAMS TELECONFERENCED
Moved SB 51 Out of Committee
                                                                                                                                
               SB  51-PUBLIC ASSISTANCE PROGRAMS                                                                            
                                                                                                                              
CHAIR FRED DYSON announced SB 51 to be up for consideration.                                                                    
                                                                                                                                
ELLIE  FITZJARRALD,   Chief,  Policy  and   Program  Development,                                                               
Division of  Public Assistance, Department  of Health  and Social                                                               
Services (DHSS),  said that when  Cook Inlet Tribal,  Bristol Bay                                                               
Native Association and the Milick  Association come on board with                                                               
their  Native   Family  Assistance  Programs,   approximately  35                                                               
percent of the  temporary assistance families in  Alaska would be                                                               
served by Native organizations.                                                                                                 
                                                                                                                                
1:59:30 PM                                                                                                                    
CHAIR DYSON  said he was  concerned about expanding the  costs of                                                               
Medicaid  and asked  if the  department believes  SB 51  does not                                                               
increase those costs.                                                                                                           
                                                                                                                                
MS. FITZJARRALD replied that the  Temporary Assistance Program is                                                               
a  federal  block  grant  program  with  a  maintenance-of-effort                                                               
provision that  the state contributes  funding to receive  it. As                                                               
that program  wends its way  through Congress, proposals  to date                                                               
show  there is  level  funding  and it  should  remain that  way.                                                               
Alaska has had  a caseload reduction and has been  able to invest                                                               
the federal dollars  into programs and services  for families and                                                               
it  is not  costing the  state any  more. The  fiscal note  shows                                                               
about  a $2  million  general fund  savings as  a  result in  the                                                               
adjustment of the department's maintenance of effort.                                                                           
                                                                                                                                
2:01:15 PM                                                                                                                    
CHAIR DYSON asked what happens  if the federal funding ceases and                                                               
the state has accepted an  implied obligation to keep the funding                                                               
at that level with state funds.                                                                                                 
                                                                                                                                
MS.  FITZJARRALD  replied that  current  statute  and grants  are                                                               
structured "subject to appropriation."  The grants are negotiated                                                               
year-to-year.                                                                                                                   
                                                                                                                                
SENATOR WILKEN said  he wanted it made clear that  if a dollar of                                                               
federal money  goes away, the  corresponding dollar goes  away in                                                               
the  general fund  and that  it is  not expected  to pick  up the                                                               
shortfall in federal revenue.                                                                                                   
                                                                                                                                
2:02:49 PM                                                                                                                    
MS.  FITZJARRALD  said  the   department  has  sustained  funding                                                               
through  caseload  reduction  and  there  is  no  requirement  in                                                               
federal law  that states provide supplemental  funding. If Native                                                               
organizations  get  caught in  a  situation  where they  couldn't                                                               
afford  to run  their program,  they have  the option  to rescind                                                               
from the program  and it then becomes  the state's responsibility                                                               
to  provide assistance  and services.  That could  increase their                                                               
general fund maintenance of effort need.                                                                                        
                                                                                                                                
2:04:24 PM                                                                                                                    
CHAIR  DYSON said  some audits  of  programs in  the Division  of                                                               
Health and Human Services indicate  irregularities in the past in                                                               
funding subcontractors. He asked what  the division does to audit                                                               
their performance and how does it attract money.                                                                                
                                                                                                                                
2:05:41 PM                                                                                                                    
MS. FITZJARRALD  replied that the statute  requires yearly audits                                                               
by a CPA. The department audits its programs each year as well.                                                                 
                                                                                                                                
2:07:37 PM                                                                                                                    
CHAIR DYSON asked  if SB 51 gets signed into  law, when would the                                                               
programs start up.                                                                                                              
                                                                                                                                
MS. FITZJARRALD replied  that some are already  running - Tlingit                                                               
and Haida, ABCP Bethel, Tanana  Chiefs. Cook Inlet Tribal Council                                                               
will start  on July  1, 2005 and  Bristol Bay  Native Association                                                               
and Cape Hope will start in 2006.                                                                                               
                                                                                                                                
CHAIR DYSON  said that documentation  says existing  programs are                                                               
doing well and  he asked if these programs had  been audited this                                                               
year.                                                                                                                           
                                                                                                                                
MS. FITZJARRALD replied yes.                                                                                                    
                                                                                                                                
CHAIR DYSON asked for copies of the audits                                                                                      
                                                                                                                                
2:09:39 PM                                                                                                                    
SENATOR WILKEN  said he  didn't understand why  the SB  51 fiscal                                                               
note has only one component - CITC.                                                                                             
                                                                                                                                
MS.  FITZJARRALD replied  that is  because the  financing of  the                                                               
other  three organizations  have been  in their  operating budget                                                               
since 2000 and aren't part of the new program.                                                                                  
                                                                                                                                
SENATOR  LYDA GREEN  asked if  Cook Inlet  Tribal Council  is the                                                               
only new program.                                                                                                               
                                                                                                                                
MS.  FITZJARRALD   replied  yes,  although  Bristol   Native  Bay                                                               
Association  and  the  Milick  Association  have  also  submitted                                                               
letters of intent to begin running in 2006.                                                                                     
                                                                                                                                
SENATOR GREEN  said that Native groups  have different benchmarks                                                               
and  asked if  they could  pay out  less than  the state  payment                                                               
would be to the same person.                                                                                                    
                                                                                                                                
MS. FITZJARRALD replied yes.                                                                                                    
                                                                                                                                
2:11:40 PM                                                                                                                    
SENATOR GREEN  asked if the  department could use  leftover money                                                               
for new and different programs.                                                                                                 
                                                                                                                                
MS.  FITZJARRALD answered  yes, but  not with  state supplemental                                                               
funding. They  can use  their federal block  grant to  invest and                                                               
provide supports  for low-income families.  It's all tied  to the                                                               
Temporary Assistance for Needy Families (TANF).                                                                                 
                                                                                                                                
SENATOR GREEN  asked if  their records  reflect exactly  what was                                                               
paid out.                                                                                                                       
                                                                                                                                
MS.  FITZJARRALD  replied  that  is  correct.  Both  monthly  and                                                               
quarterly reports of paid benefits are prepared.                                                                                
                                                                                                                                
2:13:27 PM                                                                                                                    
SENATOR GREEN asked  if there is any way to  debit one account to                                                               
give flexibility to another one.                                                                                                
                                                                                                                                
MS. FITZJARRALD  replied that Native organizations  have the same                                                               
flexibility as the state in that  they have federal money and the                                                               
state  maintenance  of  effort   supplemental  funds.  The  state                                                               
contribution provides  the supplemental  funds needed to  pay for                                                               
various forms of assistance.                                                                                                    
                                                                                                                                
2:15:07 PM                                                                                                                    
CHAIR DYSON  said the  committee has expressed  that it  does not                                                               
want people who  are unwilling to relocate to secure  work or who                                                               
are unwilling  to work to  receive welfare. A  federal regulation                                                               
says  if  a community  has  more  than 50  percent  unemployment,                                                               
benefits can be extended. He asked where that money comes from.                                                                 
                                                                                                                                
MS.  FITZJARRALD explained  that federal  law, as  well as  state                                                               
law, exempts  families who are  living in Alaska  Native villages                                                               
or on a reservation from the  60-day time limit, if the number of                                                               
adults not working in their community is 50 percent or more.                                                                    
                                                                                                                                
2:16:38 PM                                                                                                                    
CHAIR DYSON asked  if the state statute could be  changed so that                                                               
the state component  of the funding does not have  to extend past                                                               
the 60 days for those unwilling to relocate for work.                                                                           
                                                                                                                                
MS.  FITZJARRALD replied  that  she would  have  to consult  with                                                               
legal folks on that issue.                                                                                                      
                                                                                                                                
2:18:19 PM                                                                                                                    
TONY  LOMBARDO, Deputy  Commissioner,  Department  of Health  and                                                               
Social   Services,  said   he  would   discuss   that  with   the                                                               
commissioner and get back to committee.                                                                                         
                                                                                                                                
SENATOR DONNY  OLSON asked  what happened  to the  application of                                                               
the original four people in Metlakatla.                                                                                         
                                                                                                                                
MS. FITZJARRALD  replied that at  the time the  pilot legislation                                                               
passed, Metlakatla  had expressed  an interest  in participating,                                                               
but later decided against it.                                                                                                   
                                                                                                                                
SENATOR  OLSON  asked if  the  other  nine  might make  the  same                                                               
decision and  that should be  figured into the  financial concern                                                               
expressed by Senator Wilken.                                                                                                    
                                                                                                                                
MS. FITZJARRALD  replied that she  had not heard of  any interest                                                               
from the others  besides from Bristol Bay  Native Association and                                                               
Milick.                                                                                                                         
                                                                                                                                
2:20:00 PM                                                                                                                    
DON SHIRCEL, Director, Family  Services, Tanana Chiefs Conference                                                               
(TCC), strongly supported SB 51.  He said TCC statistics indicate                                                               
that more  Native families  are working  for the  assistance they                                                               
receive. However, he mentioned that  a shortcoming of the bill is                                                               
that it includes no references to child support programs.                                                                       
                                                                                                                                
2:25:58 PM                                                                                                                    
CHAIR DYSON asked him to send written testimony on that issue.                                                                  
                                                                                                                                
2:26:46 PM                                                                                                                    
DEAN  GEORGE, TANF  Program  Coordinator,  Tlingit Haida  Central                                                               
Council,  supported  SB  51  and   offered  to  answer  questions                                                               
regarding  his report.  He noted  that he  serves the  geographic                                                               
region from Yakutat down to Saxman, excluding Metlakatla.                                                                       
                                                                                                                                
SENATOR GREEN asked  if his current program was  derived from the                                                               
pilot program.                                                                                                                  
                                                                                                                                
MR. GEORGE replied yes.                                                                                                         
                                                                                                                                
2:28:36 PM                                                                                                                    
AMANDA BLACKGOAT, Finance System  Specialist, TANF, Tlingit Haida                                                               
Central Council, said she now  holds clients more responsible for                                                               
double dipping and fraud.                                                                                                       
                                                                                                                                
CHAIR DYSON asked if she had ever prosecuted anybody.                                                                           
                                                                                                                                
MS. BLACKGOAT replied no, because  that it is too time consuming,                                                               
but she recoups the money in other ways.                                                                                        
                                                                                                                                
2:30:42 PM                                                                                                                    
SENATOR GREEN asked  if the number of  participants attempting to                                                               
double dip now zero.                                                                                                            
                                                                                                                                
MR.  GEORGE  responded that  his  experience  is that  they  have                                                               
stopped double dipping altogether.                                                                                              
                                                                                                                                
2:32:06 PM                                                                                                                    
CHAIR DYSON  commented that  he would like  to hear  about people                                                               
who  are unwilling  to relocate  to where  jobs are  at a  future                                                               
date.                                                                                                                           
                                                                                                                                
SENATOR ELTON  moved to pass  CSSB 51(HES) out of  committee with                                                               
individual recommendations  and attached fiscal note.  There were                                                               
no objections and it was so ordered.                                                                                            

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