Legislature(2011 - 2012)HOUSE FINANCE 519
01/31/2011 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 16 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
January 31, 2011
9:03 a.m.
9:03:51 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 9:03 a.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
Representative Les Gara
ALSO PRESENT
Marie Darlin, Coordinator, Alaska Association of Retired
Persons (AARP) Capital City Taskforce, Juneau; Denise
Daniello, Executive Director, Alaska Commission on Aging,
Department of Health and Social Services; Ronald Kreher,
Acting Director, Division of Public Assistance, Department
of Health and Social Services; James Armstrong, Staff,
Representative Bill Stoltze.
PRESENT VIA TELECONFERENCE
Representative Mike Hawker, Sponsor; Robin Stilwell,
Director, Department of Advocacy and Agency Relations, Food
Bank of Alaska, Anchorage.
SUMMARY
HB 16 EXTEND SENIOR BENEFITS PAYMENT PROGRAM
HB 16 was REPORTED OUT of committee with a "Do
Pass" recommendation and attached new fiscal note
by the Department of Health and Social Services.
HOUSE BILL NO. 16
"An Act extending senior benefits."
9:04:31 AM
REPRESENTATIVE MIKE HAWKER, SPONSOR (via teleconference),
provided an overview of the legislation. He explained that
the bill would extend the sunset date for the senior
benefits payment program. He detailed that the program was
established in 2007 and would sunset on June 30, 2011
unless re-authorized. He reported that in December 2010,
there were 10,093 senior Alaskans across the state
receiving the benefits. The average age of Alaskans
receiving the benefits was 75 years old; the oldest was
105. The program provides a monthly cash stipend to
residents aged 65 years and older with very low household
income. The three-tiered program is based on the federal
poverty guidelines (FPG). Individuals with income of 75
percent or less of the FPG receive $250 per month; those
with income between 75 and 100 percent of the FPG receive
$175 per month; and those with income between 100 and 175
percent of the FPG receive $125 per month.
Representative Hawker emphasized that HB 16 would not
change the structure of the program or any of the benefit
amounts; it would only extend the program for more four
years. He added that the federal guidelines were updated
annually by the U.S. government, so there was an element of
adjustment built into the program. He noted that the
program has been well received by the senior community.
Representative Hawker pointed to the fiscal note showing
that the program costs the state approximately $20 million
per year. He referred to a provision in statute stipulating
that when funding was insufficient to meet the demands of
the program, the Department of Health and Social Services
(DHSS) was authorized to reduce or eliminate the benefit
available to recipients. He called the program "nimble and
responsive."
9:07:55 AM
Representative Hawker noted that the benefit reduction
provision along with the sunset date gave legislators
assurance that the program would not become viewed as an
entitlement. He stated that Alaskan seniors understand that
the program would be in existence as long as the state had
the fiscal means to fund it. Given current and projected
fiscal circumstances in the state, he believed that the
program merited extension for the next four years.
Co-Chair Stoltze noted discussion regarding the bill.
Co-Chair Stoltze opened public testimony.
MARIE DARLIN, COORDINATOR, ALASKA ASSOCIATION OF RETIRED
PERSONS (AARP) CAPITAL CITY TASK FORCE, JUNEAU, testified
in support of the legislation. She pointed to a January 28,
2011 letter of support from AARP (copy on file) detailing
the organization's support, emphasizing that AARP wants
retirees to be able to remain in Alaska. She believed that
the senior benefit program helped seniors to stay and that
senior citizens were a vital part of any community in
Alaska.
Co-Chair Stoltze commended her work.
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, DEPARTMENT OF HEALTH and SOCIAL SERVICES, spoke in
support of the legislation on behalf of the commission and
more than 10,000 Alaskan seniors who benefit from the
program. She stated that the program provided a crucial
safety net for many Alaskan seniors. She detailed that
approximately one in six seniors in the state benefitted
from the program. The amount received was not a lot, but
often enabled individuals to afford basic life necessities,
such as food, heating fuel, medicine, clothing, and other
needs.
9:12:17 AM
Ms. Daniello referred to a recent survey of Alaskan seniors
showing that one in five seniors responding did not have
the financial means to pay for necessities; approximately
17.5 percent of respondents reported that senior benefits
was an income source. The commission believed the program
was good public policy because it helped older citizens to
live with dignity and independence, which has a positive
influence on their overall health and well-being.
Co-Chair Thomas referred to discussions he had had with
elders who had not heard of the program; he wondered how it
was advertised. Ms. Daniello responded that the Division of
Public Assistance had conducted a public-awareness campaign
about the program. She added that when the commission
traveled to rural areas, it found that some people were not
aware of the program, which was communicated to the
division. She added that there was a need to translate
information about the program into various languages. She
stated that there may be latent demand for the program;
people who are now turning 65 may not have heard about it
when it was established in 2007.
9:14:50 AM
Representative Guttenberg queried outreach to senior
citizens regarding the program.
RONALD KREHER, ACTING DIRECTOR, DIVISION OF PUBLIC
ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
responded that there had not been an extensive outreach
program since 2009, when various media were used to inform
people. He noted that recipients typically were contacted
when they became recipients of old-age assistance through
public assistance.
Vice-Chair Fairclough referred to the state's finite
investment in the program. She pointed out that the
Dillingham area had high poverty and unemployment rates but
only seven participants in the program. She queried
criteria for inclusion into the program, and wondered
whether seniority or need affected who got the funds. Mr.
Kreher replied that when there were insufficient funds,
across-the-board adjustments in payments to all recipients
were made rather than refusing payment to any individual.
The goal was to have every eligible individual receive some
stipend.
Vice-Chair Fairclough summarized that there would not be a
request for increased appropriation based on need, but that
the amount would be divided amongst the pool of recipients.
She wanted further clarification about how regulations were
applied.
9:19:54 AM
Mr. Kreher responded that there had not been a problem to
date since there has not been a need for payment-level
adjustments.
Vice-Chair Fairclough stated concerns about Alaska's aging
population. She asked whether the department planned
outreach in the Dillingham area. Mr. Kreher responded that
any outreach conducted would be statewide and would include
the Dillingham area.
Co-Chair Stoltze emphasized that benefits to seniors were
not being reduced. He referred to a supplemental request by
the governor. He agreed the discussion was relevant.
Vice-Chair Fairclough stated that her intent was to support
funding to seniors. She wanted seniors to be aware of
benefits that were available to them.
9:22:22 AM
Representative Joule queried the position of the
administration on the legislation. Mr. Kreher responded
that the administration supported the legislation as it was
currently drafted.
Representative Wilson asked why eight people on the list
were unidentified. She wondered whether their location was
known. Mr. Kreher did not know the answer.
Representative Edgmon queried whether more than one senior
in a household could be eligible for the funds. Mr. Kreher
responded that the query was a technical policy question
beyond his knowledge and offered to get more information.
9:24:30 AM
ROBIN STILWELL, DIRECTOR, DEPARTMENT OF ADVOCACY AND AGENCY
RELATIONS, FOOD BANK OF ALASKA, ANCHORAGE (via
teleconference), testified in support of the bill on behalf
of the food bank and the 75 members of the Alaska Food
Coalition. She spoke to the question of outreach and
reported that beginning in June 2009, the Alaska Food
Coalition, in conjunction with the Division of Public
Assistance, began outreach on senior benefits in
conjunction with food stamp outreach. She noted regular
outreach for the program going on in food pantries and soup
kitchens, particularly in the Anchorage and Mat-Su Valley
areas.
Co-Chair Stoltze closed public testimony.
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE,
explained the new fiscal note. He described the new
tracking and analysis program used for fiscal notes, which
had been used for the first time on HB 16. Flaws were
discovered in the program; DHSS worked with the Legislative
Finance Division to produce a new, correct fiscal note.
Co-Chair Stoltze noted that David Teal and Amanda Ryder
from Legislative Finance nodded in agreement.
Mr. Armstrong continued that [in the original fiscal note]
the growth calculations for the out-years had been short by
$200,000 for FY13, $500,000 for FY14, and $900,000 for FY
15. In addition, the new fiscal note reflected a
supplemental request for $1.3 million.
9:27:55 AM
AT EASE
9:28:38 AM
RECONVENED
Co-Chair Stoltze clarified that the new fiscal note before
the committee was dated January 28, 2011, 5:30 p.m. He
emphasized that the note reflected the continuing support
of the administration through the supplemental, and
reiterated that there were not going to be cuts in the
senior program.
Mr. Armstrong referred to a spreadsheet by DHSS and
Legislative Finance ("Senior Benefits Caseload Summary,"
copy on file).
Representative Wilson queried an increase of $2.5 million
between FY12 and FY13. She noted that there was not a
similar increase between FY13 and FY14. She wondered
whether more people were anticipated to join the program.
Mr. Kreher answered that the numbers reflected projected
service-population growth.
Representative Wilson asked why other years did not have
similar increases. Mr. Kreher responded that there were a
number of factors involved. In the out-years, it was more
challenging to project the number of seniors; the
population was anticipated to increase in FY12 and the
department was trying to project a median line.
9:31:38 AM
Mr. Armstrong explained that the governor's FY12 budget
submission showed $20,485,300; the new fiscal note showed
$1.9 million in FY12. The change was due to a projection;
the two added together and compared to FY13 amounted to
less of a difference.
Representative Hawker pointed out that the program was
needs-based and driven by the qualifications established by
the legislature and by the number of folks who choose to
use the program. He emphasized that the fiscal notes were
estimates and that the numbers would be refined each year
as more accurate data became available.
Representative Hawker responded to an earlier question
regarding more than one senior in a household. He stated
that each individual was considered; the qualification was
based on each individual's household income. Two
individuals residing together would be considered
separately; the household income numbers for the federal
government would be adjusted to reflect the number of
people in the household. Therefore, both individuals would
qualify but the dollar amount would be somewhat different
than the amount for an individual residing alone.
9:35:14 AM
Representative Doogan recalled past difficulties related to
the program and spoke in support of the legislation.
Co-Chair Stoltze commended Representative Hawker's work on
the bill.
Representative Hawker commended his staff.
Representative Joule spoke in support of the legislation.
He referred to past disagreement about the issue and was
glad lessons had been learned about seniors.
Vice-Chair Fairclough MOVED to report HB 16 out of
committee with individual recommendations and the
accompanying fiscal notes.
HB 16 was REPORTED OUT of Committee with a "Do Pass"
recommendation and attached new fiscal note by the
Department of Health and Social Services.
ADJOURNMENT
The meeting was adjourned at 9:38 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 16 Background - Related Statutes.docx |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16 Fact Sheet - DHSS.docx |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16 Sponsor Statement.docx |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16 Support - AARP.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB16 Support - ACoA.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB16 Support - Public letters.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16 Support - AFC.doc |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16NEW FN Back up.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB016-NEW FN DHSS-012811.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |
| HB 16 Add'l Support.pdf |
HFIN 1/31/2011 9:00:00 AM |
HB 16 |