Legislature(2005 - 2006)BUTROVICH 205
04/06/2005 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| SB125 | |
| SB150 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 125 | TELECONFERENCED | |
| *+ | SB 150 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 10 | TELECONFERENCED | |
SB 150-ALASKA CHILDREN'S TRUST FUND GRANTS
CHAIR DYSON announced SB 150 to be up for consideration.
MARGO McCABE, Chairman, Trustees for the Alaska Children's
Trust, related that the Trust was created by the Legislature in
1988 to help fund programs across the state aimed at preventing
child abuse and neglect. She said:
Under current law, the Trust may spend the net income
earned by the trust on community-based prevention
programs. Last year it awarded a total of $217,000 in
grants to 16 non-profit organizations across the
state. Current statute limits the size of grants to
$50,000 and provides a specific funding formula for
funding grants. SB 150 removes the $50,000 cap and
calls for the elimination of the funding formula.
The Alaska Children's Trust is seeking these changes
for a couple of reasons. The changes would give
trustees the possibility to set maximum grant awards
and funding formulas based on need rather than a
predetermined amount set in statute. The intent is not
to eliminate caps of funding formulas completely, but
rather the trust would outline maximum grant awards
and funding formulas with the issuance of each new
RFP. More importantly, the changes will allow the
trust to be better positioned to receive larger grants
from private foundations and charitable trusts. Large
grants could then be more easily redistributed to
[indisc.] programs around the state. In closing, the
rate of child abuse and neglect in this state remains
higher in Alaska than anywhere else in the nation...
She said the Alaska Children's Trust will continue to fund small
community grants, but would like the opportunity to consider
larger projects that may truly "move the needle."
2:42:06 PM
CHAIR DYSON said that he thought that the Alaskan Children's
Trust was initially established to fund small community based
programs to enable organizations that were serving children to
get going and establish themselves and establish other funding
streams.
MS. McCABE responded that is true and they still have that
vision, but would like to be able to receive larger grants.
CHAIR DYSON asked if she intended to become a perennial funding
stream for some organizations that can't get alternative
funding.
MS. McCABE replied no, that there would still be funding limits
and a rule that recipients would be self-sustaining after four
years. Each new RFP would have that requirement. She explained:
Last year legislation proposed 75 percent of the
program's total funding in the first year; in the
second year 50 percent and in the third and fourth
final year, 25 percent. I think the Board of Trustees
still likes those numbers and if it has the
flexibility if this statute was removed, it would
implement that language in its RFP.
CHAIR DYSON asked if she is trying to delete all the statutory
limitations on the length of funding and trust the board's
judgment to carry forward the general gist of the legislative
intent.
2:46:47 PM
CHAIR DYSON asked if her organization wants to follow the
legislative intent of last year's bill, but without the
oversight of the Legislature.
MS. McCABE replied, "Absolutely.... I think that is what we
would be doing." She said the board unanimously supports the
legislation as it is drafted today. She said they are trying to
have more flexibility in being able to implement funding
formulas that are more appropriate to perform their mission.
2:49:10 PM
CHAIR DYSON asked if this bill removes the restriction on
spending the earnings of the trust.
MS. McCABE replied that the language just removes the $50,000
cap and the funding formula.
CHAIR DYSON commented that he thought she answered yes. He asked
if she has donors who don't want to contribute to the principle,
but want their donation to flow through directly to a particular
organization.
MS. McCABE acknowledged that was correct.
SENATOR GREEN asked why the donor could not just give their
donation directly to their favorite organization as opposed to
funneling it through the Children's Trust.
MS. MCCABE replied that a number of larger trusts exist that do
larger grants - in the $1 million to $2 million range. It might
be hard to find some of the smaller non-profits that would like
some of those monies and it would also be easier to find a
number of grantees at once that would benefit from a large
grant.
CHAIR DYSON asked if all of her grants are non-profit
organizations.
MS. McCABE replied that they are all non-profit organizations
that would qualify as a charitable gift recipient under federal
tax law.
SENATOR GREEN said that this bill seems to defeat the original
intent of the Children's Trust, which was to amass donations and
live off that endowment and it would become less effective
without contributions to the endowment. She remembered creating
the limitation to prevent a single organization from receiving
an inappropriate proportion of the trust's fund.
MS. McCABE responded that the trust is committed to increasing
principle, but it receives grants that prohibit it from
increasing its principle and she wants to be able to receive
those grants. The rate of child abandonment in this state is
unbearably high and she wants to do as much as she can.
2:54:45 PM
CHAIR DYSON thanked everyone for their testimony and said that
SB 150 would be held in committee.
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