Legislature(2005 - 2006)SENATE FINANCE 532
02/25/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB 51 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 51 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
February 25, 2005
9:16 a.m.
CALL TO ORDER
Co-Chair Green convened the meeting at approximately 9:16:00 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Fred Dyson
Senator Bert Stedman
Also Attending: KATHERINE FARNHAM, Director, Division of Public
Assistance, Department of Health and Social Services; ELLIE
FITZJARRALD, Chief, Policy and Program Development, Division of
Public Assistance, Department of Health and Social Services; MOLLY
MERRITT-DUREN, Cook Inlet Tribal Council; DEAN GEORGE, Coordinator,
Employment Training Division, Central Council of Tlingit and Haida
Indian Tribes of Alaska;
Attending via Teleconference: From Fairbanks: DON SHIRCEL,
Director, Family Services Division, Tanana Chiefs Council
SUMMARY INFORMATION
SB 51-PUBLIC ASSISTANCE PROGRAMS
The Committee heard from the Department of Health and Social
Services and Native organizations. The bill was held in Committee.
9:16:50 AM
SENATE BILL NO. 51
"An Act relating to contracts for the provision of state
public assistance to certain recipients in the state;
providing for regional public assistance plans and programs in
the state; relating to grants for Alaska Native family
assistance programs; relating to assignment of child support
by Alaska Native family assistance recipients; relating to
paternity determinations and genetic testing involving
recipients of assistance under Alaska Native family assistance
programs; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
KATHERINE FARNHAM, Director, Division of Public Assistance,
Department of Health and Social Services, testified that this
legislation would make permanent, the Native Family Assistance
Program, which is currently a pilot program. This program was
established in conjunction with the federal welfare reform program
intended to facilitate welfare recipients to obtain jobs.
Ms. Farnham indicated a chart showing a 58 percent caseload
reduction and reduced spending of 66.1 percent since the programs
inception [copy not provided]. The Native Family Assistance Program
has been instrumental in achieving these reductions.
Ms. Farnham explained the federal Temporary Assistance for Needy
Families (TANF) program is based on a five-year limit of benefit
payments to individuals. The State and federal governments in 1996
enacted the programs. The State program enables the State to
receive and match the federal block grants with a "maintenance of
effort."
Ms. Farnham continued that the State established the Native Family
Assistance Program in the year 2000, which was allowable under the
provisions of the federal program. State funding is necessary to
supplement the tribal programs and this legislation would enable
the continuation and expansion of this process. Twelve of Alaska's
Native corporations would be eligible to participate.
Ms. Farnham reminded that the Native Family Assistance Program was
established as a pilot program, as it was uncertain whether the
program would be successful. Without this legislation, the program
would sunset on June 30, 2005. The pilot program was also limited
to participation by four tribal organizations, specifically Tanana
Chiefs Conference, Association of Village Council Presidents, the
Tlingit and Haida organization and the Metlakatla Native
organization.
Ms. Farnham stated that three Native organizations have
participated in the program. The program has been evaluated and
found to be successful in contributing to the State's caseload
reduction. From FY 01 through the present, the tribal-operated
programs have actually had a higher caseload reduction than the
State-operated programs. This is due in part to the knowledge of
the organizations in the people, local economies and culture.
Ms. Farnham noted the Native Family Assistance Program is not
limited to serving Native clients. The Association of Village
Council Presidents has entered into a contract with the State to
serve all residents of the Yukon-Kuskokwim Delta region. This
prevents duplication of efforts.
Ms. Farnham spoke to the intent to extend the program in both time
and participants. Other regional Native nonprofit organizations
have expressed interest in participating. The Cook Inlet Tribal
Council has completed preliminary efforts to establish a program
and would be able to begin on July 1, 2005, but only if this
enabling legislation is passed. Inclusion of other Native
organizations would be delayed until the Cook Inlet program is
implemented and requires less assistance from the Department.
Ms. Farnham stressed that these organizations perform these
activities already, contracting with the State to provide services.
Ms. Farnham addressed the fiscal notes accompanying the bill. One
fiscal note delineates the costs specific to the proposed
participation of the Cook Inlet organization and the anticipated
700 families it would serve.
Ms. Farnham directed attention to fiscal note #3, which reflects
general fund savings as well as a reduction of federal receipts
necessary for the program totaling almost $5 million. She commented
on the rarity of endorsing programs that are good for "people",
communities and the "fiscal bottom line". This is one of those
occasions. She explained this is because as the tribal
organizations directly receive block grants from the federal
government, the State block grant is reduced by the same amount and
the State's maintenance of effort requirement is reduced.
Ms. Farnham spoke to transfers in the use existing maintenance of
effort general funds to pay the grant to the Cook Inlet Tribal
Council. These funds are currently allocated to the Alaska
Temporary Assistance for Needy Families (TANF) program. This
legislation would allow a reduction of $2 million general funds due
to the reduced maintenance of effort requirement.
9:27:45 AM
Co-Chair Green asked the impact of the reduction of "maintenance of
effort" to the State.
Ms. Farnham replied that fewer general fund monies are necessary to
be in compliance to receive the federal block grants.
Co-Chair Green clarified this occurs when the block grants are
"shifted" to the organizations.
Ms. Farnham affirmed that the overall maintenance of effort
decreases and the State could utilize a portion of the savings to
pay the tribal organizations. This results in net savings to the
State.
Co-Chair Green asked if the definition of "maintenance of effort"
is that State must contribute the same amount as was appropriated
the previous year.
Ms. Farnham detailed a chart titled "Federal TANF and State MOE"
[copy on file] that demonstrates the decline in the required
contribution from the State, as a result of the tribal programs.
States are required to contribute 75 or 80 percent matching funds
to continue to receive the federal grant unless it is able to
demonstrate success in "work participation rate".
9:31:14 AM
Co-Chair Wilken noted this legislation would repeal statutes
relating to the pilot program. He asked if the new statutes
proposed in this legislation contain identical language.
Ms. Farnham responded that the language is exactly the same with
the exception of the sunset provision and the removal of the
provision restricting participation to four specific Native
organizations. The new language is linked to the federal
classifications of approved organizations.
Co-Chair Wilken spoke to concerns about the "erosion" of federal
support for many programs in Alaska. He asked the consequences to
the State if the federal block grants diminished and whether the
State would be required to fund the program with general funds.
Ms. Farnham replied that the block grant amounts have not increased
since 1996 and that the program has been due for Congressional
reauthorization for several years. If the federal funding were
reduced, the implications would be significant and the State would
be required to reassess all the programs that currently utilize
TANF funds. She assured this is unlikely to happen, noting the
president's budget proposal and other budget plans include funding
at the current level. The programs have been very successful in
many states, which provides incentives to continue the federal
funding.
Ms. Farnham continued that if federal funding were reduced, and
because the federal funding is contingent upon State matching
funds, the issued would be whether the State would participate in
the federal program.
Co-Chair Wilken understood the short-term support for the program,
but stressed the need to consider the long-term possibilities of
continued federal funding. He was unsure that the State would have
sufficient funding to replace federal funds if it became necessary.
9:35:03 AM
Co-Chair Wilken then asked if the general fund component allows the
four participating organizations to serve non-Natives as well as
Native clients.
Ms. Farnham replied that the programs are intended to primarily
serve Natives and American Indians. The contract with the
organization operating in the Yukon-Kuskokwim Delta area specifies
services to be provided to all residents, regardless of race. It is
anticipated that a program implemented in the Bristol Bay region
would include non-Natives as well. However, the proposed Cook Inlet
organization program would operate in the Anchorage area and would
more appropriately handle only Native clients.
Co-Chair Wilken pointed out that the Tanana Chiefs Conference (TCC)
decided during the previous year to not serve non-Native. He asked
how that decision would impact this program.
Ms. Farnham responded that the aforementioned TCC decision did not
pertain to the TANF program. Under the provisions of the TANF grant
provided to the TCC, that organization serves only the Natives of
the Doyon region and the State provides services to the remainder
of the population in the Interior area.
Co-Chair Wilken understood that the general fund contribution
becomes subject to the federal guidelines is not subject to any
State mandates governing whom the organization must serve.
Ms. Farnham affirmed.
9:37:44 AM
Co-Chair Green asked if Native clients residing in Anchorage or
Fairbanks would have the option of receiving TANF services from the
State rather than the Native organization.
Ms. Farnham answered that they would have this option.
ELLIE FITZJARRALD, Chief, Policy and Program Development, Division
of Public Assistance, Department of Health and Social Services,
furthered that under special circumstances a Native family could
apply for services through the State, although this has not
occurred to date. The Division is coordinating with the
organizations to address any issues that may cause a Native client
to oppose receiving services from the Native organization. The
intent is to avoid a situation in which families are "shopping" for
services and switching from one agency to another if unsatisfied.
9:39:00 AM
Co-Chair Green recalled Committee discussions related to the FY 05
supplemental appropriations regarding waiver of sovereign immunity.
On-going debate on the matter of tribes bypassing State authority
continues. She cautioned that some activities, including this
program, further the tribes' ability to argue sovereign immunity.
She cited a provision of Chapter 78. Grant Programs, of Title 7 of
the Alaska Administrative Code, as follows.
7 AAC 78.030. Eligible applicants.
(e) An Alaska Native entity or a nonprofit subsidiary of one
or more Alaska Native entities may apply for a grant under
this chapter. An Alaska Native entity must submit with its
proposal a resolution approved by its governing body that
waives the entity's sovereign immunity from suit with respect
to claims by the state arising out of activities related to
the grant.
Co-Chair Green asked the implications if these regulations were
changed.
Ms. Fitzjarrald assured that this regulation represents a
longstanding practice of the Department and that although the
regulation has been amended it has not been significantly changed
since its inception. Any future proposal to change the regulation
would undergo the usual public process and be subject to scrutiny.
The Department utilizes this regulation in operating programs such
as the Native Family Assistance Program. Native organizations
entering into agreement with the State for receipt of the TANF
funds are required to provide documentation waiving sovereign
immunity in relation to the activities of the program.
9:41:46 AM
Co-Chair Green stated for the record that this provision must
continue.
9:42:14 AM
MOLLY MERRITT-DUREN, Cook Inlet Tribal Council, testified in favor
of the bill. She detailed information contained in a "Fact Sheet"
provided by the Cook Inlet Tribal Council [copy on file], which
reads as follows.
· CITC has been providing TANF (Welfare to Work) case
management services as a vendor for the State since 1997
(8 years). During this tenure CITC has been a key player
in the successful decline of State TANF roles.
· 1994 TANF caseload for Anchorage was 1,123; it is
currently 692 (as of 11/2004). During this period,
Anchorage experienced an increase in Native population
from 12,000 (1990 US Census) to approx. 46,000 (2000 US
Census); yet the TANF participant role decreased by 62%.
· Supports the Governor's mandate of local control and
downsizing of State government.
· Makes the delivery of Tribal Temporary Assistance to
Needy Families service delivery uniform throughout the
State, as the Majority of Alaska Native and American
Indians in Alaska are currently being provided TANF
services at other Native regional tribal social services
agencies including Tanana Chiefs, Central Council of
Tlingit and Haida Indian Tribes and the Association of
Village Council Presidents.
· CITC is a fully integrated one-stop employment, social
service, and substance abuse treatment agency.
· Data and financial reporting and tracking will be a non-
issue for CITC. CITC will be using the State of Alaska,
Department of Health and Social Services Eligibility
Management System interfaced with our own sophisticated
information technology (IT) and accounting
infrastructure.
· CITC currently provides IT services for 5 non-profit
agencies in 25 locations (413 end users) and accounting
services for 39 non-profits, consistently having no
financial single audit findings.
9:47:45 AM
Co-Chair Green clarified that the Cook Inlet Tribal Council would
utilize and modify the existing State system to meet its specific
needs, rather than create an entirely new program. She indicated
the advantage of this.
Ms. Merritt-Duren affirmed and explained the intent that the
Council would utilize the State system and integrate it into the
Council's IT system. This would be more effective and would assure
the State that no funding confusion would arise. The State would
have access to the Council's information at all times.
9:48:37 AM
DEAN GEORGE, Coordinator, Employment Training Division, Central
Council of Tlingit and Haida Indian Tribes of Alaska, referenced
written testimony he had submitted to a previous committee [copy
not provided]. He supported this legislation and thanked the State
for supporting the pilot program. The partnership between the
Division and the Council has been effective.
Co-Chair Green asked how long the witness has been involved with
this program.
Mr. George replied he has been involved for three years. The
program has been in operation since the year 2000.
Co-Chair Green clarified the witness would rate the program as
successful.
Mr. George answered, yes and expressed the Council is appreciative
of the State funding, which has been well utilized.
9:50:45 AM
DON SHIRCEL, Director, Family Services Division, Tanana Chiefs
Conference, testified via teleconference from Fairbanks, reading a
statement into the record as follows.
TCCs tribally administered temporary assistance program is
currently in its seventh year of operation. While like all
programs there's always room for improvement, the tribes of
the Interior are proud of the accomplishments they've
collectively made to date getting people from welfare to work.
The report to the Alaska Legislature prepared by the Division
of Public Assistance indicates that that's what Native family
assistance programs have been doing - getting people to work.
In Alaska's urban areas, hub communities and even in some of
the most economically challenged rural areas of the State. The
report and the outcomes achieved through this pilot program
indicate that the tribes are heading in the right direction.
SB 51 enables us to collectively and collaborately stay what
appears to be a good course.
SB 51 is about bottom lines. It makes sense, saves dollars and
will help to get more people off welfare. This bill extends
programming that promotes marriage and fatherhood, strengthens
Alaska families, promotes local control and individual
responsibility, and it institutionalizes a proven successful
collaborative partnership that's based on measurable and
meaningful outcomes.
Our collective experience to date we feel indicates that we,
the tribes and the State, are headed in the right direction.
9:52:41 AM
Co-Chair Green relayed concerns regarding communities with limited
employment possibilities. She asked if any Native organizations
were involved in delivering TANF services in these areas.
Ms. Farnham informed that federal law allows for benefit extensions
for Native or tribal areas with low opportunity for employment.
This represents only approximately eight percent of the total
number of families served by the program. The Cook Inlet
organization would not cover such areas, as its target is
Anchorage. The US Census shows a significant increase in the Native
population in Anchorage, which indicates that villagers are
relocating to larger communities to secure employment.
Co-Chair Green asked if because the Native organizations operate
differently than the State whether those organizations are able to
more carefully monitor the families it serves.
Ms. Farnham affirmed this is the strength of the tribal
organizations in operating the programs. Regionally based
organizations are better able to identify specific needs and
solutions.
Co-Chair Green stressed the importance of avoiding complacency with
this program. She spoke of the legacy of the former welfare
programs in rural Alaska.
Ms. Farnham agreed. While other states have experienced welfare
reforms plateau or even increases, Alaska continues to experience
caseload declines. This is due to commitments imbedded in the
Alaska programs. The State has received high performance bonuses
from the federal government for its continued success. The Division
and the Native organizations are intent on adapting to various
situations' needs rather than limiting to one isolated solution
method.
9:59:04 AM
Co-Chair Wilken asked whether the Committee should adopt
legislative intent language regarding potential future reduction in
federal support.
Co-Chair Green asked how the federal funds are allocated and
whether State matching funds are required.
Ms. Farnham replied that the TANF funds are allocated through a
formula, requiring an 80-percent maintenance of effort or 75
percent if the State achieves target participation rates. The
Native program stipulates the State contribute a "fair and
equitable share" to "complement the federal share".
Co-Chair Green questioned the definition of "complement". She
informed that the Committee would coordinate with the Division to
draft intent language as indicated by Co-Chair Wilken.
Ms. Fitzjarrald noted language in Section 2 of the bill on page 10,
line 3 amending AS 47.27 by adding Article 4. Regional Programs.
The specific language in Sec. 47.27.300. Regional public assistance
programs., reads as follows.
(b) The department may award contracts to implement a program
developed under (a) of this section. A contract authorized for
delivery of state public assistance under a regional public
assistance program under this section is exempt from the
competitive bid requirements of AS 36.30 (State Procurement
Code). Subject to appropriation, a contract under this section
must be in an amount that represents a fair and equitable
share of the money appropriated under this chapter to serve
the state residents specified in (a) of this section. This
section provides additional authority to contract to the
available under AS 47.05.015 or other law.
Ms. Fitzjarrald stated this language explains what constitutes a
fair and equitable share and qualifies that the program is subject
to a fair and equitable share. If federal funding were reduced, the
terms of the program would be subject to renegotiation.
Ms. Farnham furthered that funding for the program is also subject
to the terms of the federal block grant.
Co-Chair Green asked if this language is included elsewhere in the
bill.
Co-Chair Green commented that in instances where federal funding
has been reduced, expectation has been that the State must provide
funding in an amount to fund a program at the previous level. She
clarified that if federal funding for this program were reduced no
requests would be entertained to appropriate State funding in the
amount of the federal reduction.
Co-Chair Green asked the possibility of litigation over the term
"fair and equitable."
Ms. Farnham replied that this provision has been in effect for many
years without difficulty. She pointed out the language is also
included in Section 1 of the bill on page 3, line 7, amending AS
47.27 by adding Article 3. Alaska Native Family Assistance Grants.
The specific language in subsection (c) of Sec. 47.27.200. Alaska
Native family assistance grants., reads as follows.
(2) for the second and subsequent state fiscal years
under the plan accepted by the department, represents a fair
and equitable portion of state appropriations made for public
assistance programs that is allocated for Alaska Native family
assistance grants to be awarded under this section in order to
serve the state residents who will be served by the plan; if
the money is not allocated for these grants, the amounts shall
be made in the same manner as described in (1) of this
subsection.
Co-Chair Green requested confirmation of the State's obligation in
the event the federal government reduced its share of funding for
this program, as implied by this language.
Ms. Farnham surmised the "fair and equitable share" language would
be cross-referenced to the federal enabling language that provides
that State funding is dependant upon federal appropriation. The
provisions relating to the State's obligation in the event of
reduced federal funding is not likely specified in this bill. If
federal funding were reduced, the program would be readdressed.
Co-Chair Green announced that additional work would be undertaken
to address this issue.
Co-Chair Green ordered the bill HELD in Committee.
ADJOURNMENT
Co-Chair Green adjourned the meeting at 10:08 AM
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