Legislature(2021 - 2022)ANCH LIO DENALI Rm
10/27/2021 02:00 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Support for Alaska's Childcare Sector | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
Anchorage, Alaska
October 27, 2021
2:03 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage (via teleconference)
Representative Liz Snyder
Representative James Kaufman (via Microsoft Teams)
Representative Ken McCarty (via Microsoft Teams)
MEMBERS ABSENT
Representative David Nelson
COMMITTEE CALENDAR
OVERVIEW: SUPPORT FOR ALASKA'S CHILDCARE SECTOR
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SHAWNDA O'BRIEN, Director
Division of Public Assistance
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: Provided an overview on Support for
Alaska's Childcare Sector.
JASMIN SMITH
Business Owner
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
overview on Support for Alaska's Childcare Sector.
BRITTANY FORD, Daycare Provider
Fairbanks, Alaska
POSITION STATEMENT: Provided invited testimony during the
overview on Support for Alaska's Childcare Sector.
CHRISTINA EUBANKS-OHANA
Children's Center
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
overview on Support for Alaska's Childcare Sector.
KAYLA SVINICI, Owner
Little Moon Childcare
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
overview on Support for Alaska's Childcare Sector.
ACTION NARRATIVE
2:03:16 PM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 2:03 p.m.
Representatives Schrage (via teleconference), Story (via
teleconference), Kaufman (via Microsoft Teams), McCarty (via
Microsoft Teams), Spohnholz, and Fields were present at the call
to order. Representative Snyder arrived as the meeting was in
progress.
^OVERVIEW: Support for Alaska's Childcare Sector
OVERVIEW: Support for Alaska's Childcare Sector
2:03:34 PM
CO-CHAIR FIELDS announced that only order of business would be
an overview on Support for Alaska's Childcare Sector.
2:04:17 PM
SHAWNDA O'BRIEN, Director, Division of Public Assistance,
Department of Health and Social Services, began the overview on
Support for Alaska's Childcare Sector. She reported that the
division has developed an application for fund requests. The
grant program is managed by the department. She offered her
understanding that as of today, there are over 350 applications
being processed, and $1.5 million of the available $5 million
has been distributed thus far. She spoke about a legislative
liaison position and collaboration with tribal partners. She
said staffing has not increased at this time. There has been
engagement with community stakeholders, with some discussion
revolving around infrastructure and community help with costs.
A week-long meeting with childcare providers is planned to
discuss specific operating costs, with incoming programming
requirements of the funding still being issued by federal
oversight agencies.
2:09:29 PM
MS. O'BRIEN, in response to Co-Chair Fields, clarified the
division is discussing the American Rescue Plan Act of 2021
(ARPA) and the Coronavirus Response and Relief Supplemental
Appropriations Act of 2021 (CRRSA) [pronounced "Crissa"] funds
currently in receipt. To a follow-up question, she said she
could not say what the permanent increased authorization through
ARPA is, because the division has not received it yet.
2:10:31 PM
MS. O'BRIEN, in response to questions from Representative
McCarty, said the division has allocated $5 million for phase
one. She said $95 million was awarded, and approximately 55
percent of that has been dedicated to stabilization efforts.
About $1.5 million has been processed. The division notified
providers, and approximately 360 providers have submitted
applications thus far.
2:12:40 PM
MS. O'BRIEN, in response to Co-Chair Spohnholz, stated that at
this time the only funding received by the division is that
which expires September 2023, and she confirmed that any
additional funding may come from an infrastructure bill
currently being considered by the legislature.
2:14:33 PM
MS. O'BRIEN, in response to Co-Chair Fields, confirmed that the
division had received an increase in funding to its childcare
development block grant, and she estimated the amount was
approximately $2 million. She proffered that permanent plans
related to increasing wages could be better deciphered after
further consideration of resources and impacts. She explained
the limits in phase one to get funds out quickly in response to
a spring survey. The initial grant amount does not include a
bonus; she assumed higher figures could be awarded in phase two.
2:20:24 PM
MS. O'BRIEN, in response to Co-Chair Spohnholz, informed that
providers were not required to provide information on why they
decided not to participate; however, she said she hoped that
ongoing communication would address any existing barriers. In
response to a question about a recent cyberattack, she indicated
there would be a separate presentation to address the issue.
2:23:10 PM
CO-CHAIR FIELDS said the committee would hear from childcare
provider/owners from Fairbanks, Juneau, and Anchorage, Alaska.
2:23:41 PM
JASMIN SMITH, Business Owner, stated that she has used childcare
services, has supported employees who use the services, and has
been a case manager helping clients sign up for childcare. She
addressed the issues of availability and accessibility. The
system does not accommodate parents who own businesses or work
nontraditional schedules. She expressed interest in the
regulatory side of childcare and commented on the chronic long-
term view of addressing problems in the program when some short-
term solutions could be offered. In response to Co-Chair
Fields, she confirmed that issues related to childcare affect
the ability of employers in hiring.
2:27:40 PM
BRITTANY FORD, Daycare Provider, emphasized a lack of childcare,
especially for those children under 30 months of age. She spoke
about the problem with licensing and varied interpretations of
regulations. She reported that childcare serves have not been
paid on time for the past couple months and noted the issues
cause by that. She talked about those who do not qualify for
childcare and the lack of help they receive, and she recommended
raising the income level upon which qualification is based. She
commented on the uncertainty of grant funds used to raise wages.
She pleaded for the entire system to be fixed.
2:32:57 PM
CHRISTINA EUBANKS-OHANA, Children's Center, stated that the
$11,500 maximum in this round of funding is 1 percent of the
annual budget. She talked about the proposed increase in the
subsidy payments that would support families. She asked that
payments be set based on the level of quality care desired. She
said childcare facilities cannot operate with lack of funding
and delayed background checks. She expressed gratitude for the
minimum $1.00 an hour wage increase in 2022; however, she noted
the Children's Center currently has three open staff positions.
She asked for transparency, cooperation, and a focus on
providing high-quality care for Alaska's children.
2:35:58 PM
MS. EUBANKS-OHANA, in response to Representative McCarty, said
workers at the Childcare Center stay for eight years on average,
pre-COVID-19. She indicated there is a teen program from which
she can recruit workers; she looks for people who care about
children, then she works on their competency skills. In
response to another question from Representative McCarty, she
said state background checks are required, and she agreed that
third-party background checks would expedite the process.
2:40:23 PM
CO-CHAIR FIELDS asked about the possibility of emergency
regulations to allow the division to accept third-party
background checks.
MS. O'BRIEN answered that she cannot speak to that, but offered
to follow up with the unit that oversees background checks.
2:41:45 PM
KAYLA SVINICI, Owner, Little Moon Childcare, noted she had
testified in July and still there are no tools for planning.
She talked about feeling stressed when there is uncertainty, no
control, a lack of information, and the feeling of being
unheard. She talked about challenges faced, including
"consistent closure" of her two facilities, storm damage, labor
shortage, and turnover of both staff and children and families.
The money from stabilization grants can help the situation. She
spoke of the increasing operation costs and uncompensated
administrative time leading to mental and emotional exhaustion.
She emphasized the state of crisis. She urged extending money
to programs so that each can use it to cover their needs as they
see fit. She said the small amounts of money are offensive and
the wait for funds is untenable. She said she thinks everyone
has agreed that one-time release funds are "the only way," and
she recommended the state consider "budgeting childcare as
infrastructure."
2:48:35 PM
MS. O'BRIEN responded to questions that had been submitted by
Representative Story and read by Co-Chair Fields. She said the
division has considered [stipends] as part of the phase two
award; the division also included bonuses in phase one for
providers that were doing extra. She explained the delays
within the department in regard to licensing and payment, and
the effects of the aforementioned cyberattack. She estimated
that phase two payments could be paid starting in January
[2022]. She highlighted the unique factors of providers and
Alaska.
2:55:10 PM
MS. O'BRIEN continued answering questions from Representative
Story [who had now arrived in person] and offered further detail
on the work involved in getting applications ready to process
for payment, saying she hoped it could happen as early as
December [2021]. She explained that the division must collect
operational costs from providers before it can begin phase two,
and she mentioned federal guidance under these funds. Regarding
a query whether funds beyond the 1 percent in phase one could be
sent now, she explained that this is allocated funding based on
the U.S. Census. She said 50 percent of the funds have been
allocated to stabilization, which is $47 million in Alaska; the
first phase of that was $5 million. She talked about meeting
federal requirements without causing undue hardship for
providers. To another question, she explained that the division
currently does not have operational costs for providers; bonuses
were based on four categories of care. In further response, she
said the division could in phase 2 - consider giving $600 per
child, as has been done in some other states.
3:03:35 PM
MS. SVINICI offered to provide operational costs to Ms. O'Brien.
She recalled offering that information in the phase one
application, as well as in May 2020.
MS. O'BRIEN said information for all providers still needs to be
collected for phase two; further discussions needed to be held
with providers to ensure following the program requirements. In
response to a follow-up question, she said she would have to get
back to the committee regarding the timing of processing. She
indicated there may be additional staff brought on, but at this
time she could not commit to what the specific timelines would
look like. She said feedback from providers would help the
division.
3:07:15 PM
MS. EUBANKS-OHANA emphasized her concern in the face of massive
budget shortfalls. She criticized the 1 percent given and the
lack of communication the division has had with the party it is
working with to make this happen. She said the information is
available now.
MS. O'BRIEN expressed appreciation for the feedback but said she
had nothing further to add in response.
3:09:58 PM
CO-CHAIR FIELDS thanked the presenters. He noted that Congress
is considering a budget reconciliation bill, a part of which
would provide a substantial amount of money for early childhood
education and pre-kindergarten.
3:10:55 PM
CO-CHAIR SPOHNHOLZ highlighted the frustration heard from
providers, as well as some of the barriers faced by the
division. She urged finding a way to make it as easy as
possible for providers to access funds, since they are operating
on such small margins.
3:12:53 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[3:13] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Written Testimony, Stephanie Berglund thread 10.27.21.pdf |
HL&C 10/27/2021 2:00:00 PM |
|
| NCSL ARPA Child Care Stabilization Grants Oct 2020 10.27.21.pdf |
HL&C 10/27/2021 2:00:00 PM |