Legislature(1999 - 2000)
03/29/2000 01:42 PM Senate HES
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SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
March 29, 2000
1:42 p.m.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Drue Pearce
Senator Kim Elton
MEMBERS ABSENT
Senator Pete Kelly, Vice-Chairman
Senator Gary Wilken
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 80(CRA)
"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;
and providing for an effective date."
-HEARD AND HELD
CS FOR HOUSE BILL NO. 191(FIN)
"An Act relating to charter schools."
-SCHEDULED BUT NOT HEARD
PRESENTATION BY DARRYL HARGRAVES, ALASKA COUNCIL OF SCHOOL
ADMINISTRATORS
PREVIOUS SENATE COMMITTEE ACTION
SB 80 - See Community and Regional Affairs minutes dated 3/8/99
and 3/17/99 and HESS minutes dated 5/3/99.
WITNESS REGISTER
Jim Nordlund, Director
Division of Public Assistance
Department of Health & Social Services
PO Box 110640
Juneau, AK 99811-0640
POSITION STATEMENT: Presented SB 80
Mr. Don Shircel
Tanana Chiefs Conference
122 1st Ave., Suite 600
Fairbanks, AK 99701
POSITION STATEMENT: Supports SB 80
Mr. Elmer Lindstrom
Special Assistant
Department of Health & Social Services
PO Box 110601
Juneau, AK 99811-0601
POSITION STATEMENT: Commented on SB 80
Barbara Miklos, Director
Child Support Enforcement Division
Department of Revenue
550 W 7th Ave., Suite 310
Anchorage, AK 99501
POSITION STATEMENT: Supports SB 80
Darryl Hargraves, Executive Director
Alaska Council of School Administrators
326 4th, Suite 404
Juneau, Alaska 99801
POSITION STATEMENT: Presented legislative agenda of AASA
ACTION NARRATIVE
TAPE 00-14, SIDE A
Number 001
CHAIRMAN MILLER called the Senate Health, Education and Social
Services (HESS) Committee to order at 1:42 p.m. and stated that a
quorum was not present so he would begin the meeting by taking
public testimony on SB 80. He noted his intention to hear HB 191
next Wednesday.
SB 80-PUB.ASSISTANCE:PROGRAMS/GRANTS/CONTRACTS
MR. JIM NORDLUND, Director of the Division of Public Assistance
in the Department of Health and Social Services (DHSS), made the
following comments about SB 80 on behalf of the Administration.
One of the main reasons for the success of the Welfare Reform Act
of 1996 is that Congress gave states a great deal more
flexibility with which to operate their welfare programs. In
exchange for that flexibility, the federal government agreed to
give states a fixed-amount block grant to operate their programs.
Since 1996, states have been able to design programs that are
more suited to their local economies and circumstances. The 1996
federal act also allows the 12 Alaska Native regional non-profit
corporations and the Metlakatla reservation to operate their own
welfare programs.
Alaska's version of welfare reform, the Alaska Temporary
Assistance Program (ATAP), was created by Alaska statute. That
law allows DHSS to coordinate the operation of its welfare
program with those same 13 entities.
To receive the federal block grant, Alaska must contribute state
funds, known as a maintenance of effort (MOE), to the program.
The state currently contributes approximately 40 percent of the
cost of the overall program. Current state law does not allow
the state match to go to the Native-operated programs; SB 80 will
allow the State to contribute State funds to the operation of the
Native programs. These state monies are currently being spent on
Native clients, so instead that money would be transferred to the
regional non-profit organizations. SB 80 has a zero fiscal note
because it simply changes the entity that is operating the
program and does not increase funding for the programs.
One other provision in the federal act, included at Senator
Murkowski's request, underscores the need for SB 80 and is unique
to Alaska. It requires that a Native-operated program be
comparable to the state's program; however, if a Native program
is operating with approximately 50 percent fewer dollars than the
State's program, its program could not be comparable. For all
practical purposes, without state funding, the Native
organizations would be denied the opportunity to run their own
welfare programs in Alaska.
The Tanana Chiefs Conference (TCC) is currently operating a
welfare program in the Fairbanks area. The only way the state
can provide state funds for the TCC program is if TCC designed a
program identical to the state's. TCC wanted to reduce client
benefits by five percent and use that money to operate a drug and
alcohol treatment program. TCC cannot do so under current state
law; SB 80 would change that. SB 80 is a local control bill. It
allows a local entity to design and operate its own program.
CHAIRMAN MILLER announced that a quorum was present as Senators
Pearce and Wilken had arrived.
Number 598
SENATOR PEARCE asked if the state will have approval authority
over the program changes that differ from the state's program.
MR. NORDLUND said the bill lays out some of the parameters by
which DHSS will provide state funding. One part of the bill is a
reiteration of the particular criteria DHSS and the federal
government will use to give non-profits state money. In
addition, the money would be granted from DHSS to the Native non-
profit organizations so the grants will be audited using DHSS's
auditing procedures.
SENATOR PEARCE noted that her concern is how much a Native non-
profit program could differ from a state program.
MR. NORDLUND stated it is hard for DHSS to anticipate exactly
what Native organizations might propose in a plan so there is no
bright line in terms of what they can and can't do. That
question revolves around the definition of comparability. DHSS
has laid out some of the things the Native organizations must do
to be comparable. His view is that a five percent benefit cut is
not substantial enough to make TCC's program incomparable. It
will ultimately be up to the U.S. Secretary of Health and Human
Services to define whether a program is comparable.
Number 805
CHAIRMAN MILLER asked Mr. Nordlund to list the names of the
Native non-profit organizations along with Metlakatla to clarify
where the money will be going. He also noted that although he
understands the benefit of creating regional programs, he has a
philosophical problem with creating a program for Native people
and a program for others since over the years the legislature has
tried to break racial barriers down. He asked Mr. Nordlund for
his view of that issue.
MR. NORDLUND said that matter has been dealt with in the
legislation itself because the bill allows DHSS to set up
regionally operated public assistance programs. DHSS could set
up a program that is for all of the Doyon region, for example,
including Natives and non-Natives if it chose to do so. That
provision is in the bill because the day may come when DHSS will
want TCC to operate the program for all recipients in the region.
DHSS will most likely contract with TCC fairly soon to operate
programs for all recipients in small villages because there may
be only one non-Native recipient in that village.
SENATOR ELTON asked if a Native resident of a region will have a
choice between the Native regional program and the state program.
MR. NORDLUND said the simple answer is "no." Once DHSS contracts
out the operation of the program to a local entity, then that is
where the person will go to get services.
CHAIRMAN MILLER asked which program a member of the Doyon region
who lives in Fairbanks would fall under.
MR. NORDLUND replied a Native person living in Fairbanks would
fall under TCC's program.
Number 1107
SENATOR ELTON asked about the changes in the proposed committee
substitute.
MR. NORDLUND said the main change in the committee substitute is
that it deals with child support. SB 80 was introduced last year
and ran into a roadblock in terms of how child support would be
distributed to the state or the Native organization. DHSS worked
with the Attorney General's office and the Child Support
Enforcement Division (CSED) over the interim on that issue and
determined that the child support collections should be assigned
to the Native organization. In the past, the state collected the
child support payments and gave half to the federal government as
a reimbursement. The federal government does not care what
happens with those distributions anymore and will allow the
Native organizations to keep all child support collections.
Because the state will be helping the Native organizations to
fund the program, the state will be reimbursed from the child
support collections by a reduction in the amount granted to the
Native organization.
CHAIRMAN MILLER said because the proposed committee substitute
was submitted to staff at the last minute he cannot receive it
too well.
MR. ELMER LINDSTROM, Special Assistant to the Commissioner of
DHSS, said he brought the document to committee staff this
morning, and the document reflects exactly the version of the
bill that passed out of the House HESS Committee earlier this
session. The bill was heard in the House Finance Committee late
last week and it was unclear whether it would be amended by that
committee. He waited until the bill moved from House Finance to
bring it to committee staff. He apologized for the short notice.
CHAIRMAN MILLER noted that committee members would have the
weekend to look at it.
MR. DON SHIRCELL, the Director of TCC's Family Service Division
for the past 16 years, said Alaska's unique size makes regionally
designed and administered temporary assistance programs logical.
SB 80 is consistent with the same rationale from which state and
federal welfare reform emerged. Programs closer to the people
are more responsive, relevant, effective and efficient than
large, centrally-operated one-size-fits-all programs planned and
administered outside of the community. This January, TCC
completed its first year administering a regional Native family
assistance pilot program. While it is still too early to fully
assess the project, some of the preliminary statistics indicate
that TCC is headed in the right direction. In January of 1999,
when the state fully transitioned its program to TCC, there were
440 cases. This January, the monthly caseload consisted of 356
families. Like the state's temporary assistance program, TCC's
caseload is the lowest it has been in three years. Preliminary
statistics also indicate that more Native families receiving
temporary assistance are working for the checks they receive.
Village leaders feel good about that. Alaska's rural communities
and their regional non-profit corporations have been designing
programs that fit the needs of their families, and many have also
been developing local and regional infrastructures that now rival
the state's capacity to provide a comparable level of local
service delivery, especially in remote areas. TCC feels it could
get more bang for the buck if it is allowed to incorporate other
regional variations within its temporary assistance program.
SB 80 would allow Native family assistance programs the degree of
flexibility needed to do more with its program dollars. For
example, the state's temporary assistance program plan includes
one-stop centers which offer a wide range of employment training
and counseling services to help people get off of welfare. The
state has financed such centers in a handful of urban
communities. Over the course of the first six months of the TCC
pilot program, it financed a community-based service delivery
infrastructure that includes community based offices and staff
located in one-stop centers in each of the 38 rural communities
of TCC's service area. These were created at no additional cost
to the consolidation of state and federal program funds. The
shared staff and facilities were funded through the combined
resources of other existing TCC programs to minimize
administrative costs and maximize the level of collaboration with
other support services needed by families seeking to enter the
labor market. These small community based service centers
service locally acceptable, culturally appropriate single points
of entry for families needing assistance, as well as single
points of contact for employers. The small size of the one-stop
centers allows for personal attention and monitoring to ensure
progress. People work with people and not paper.
Under SB 80, the TCC program could impose the following standards
not permissible under current Alaska statute. All applicants for
assistance could be required to undergo alcohol and substance
abuse evaluations. More importantly, they'd be required to
follow the recommendations of their evaluation or lose a
percentage of their benefits. For those who comply with the
treatment plan recommended within six months, their benefits
would be restored and any percentage withheld would be returned
upon successful completion of their treatment plan. TCC would be
able to assertively approach the problem of alcohol and substance
abuse and create bonus incentives for compliance on the same
dollar.
TCC could require all parents who receive benefits to attend
their children's parent teacher conferences and include their
children in regular health screenings and immunization clinics.
TCC cannot impose many sanctions under current law. SB 80 is
about less government, local control, and more "bang for the
buck."
Number 1661
SENATOR ELTON said SB 80 presents a more holistic approach. He
asked what process TCC goes through to determine which programs
it will mandate and what the sanctions will be.
MR. SHIRCELL replied the TCC engaged in a planning exercise for
about four years which preceded the introduction and submission
of its federal welfare reform plans to the federal government.
During three TCC conventions each condition and sanction was
hashed out. TCC initially did a survey in 1996 to flesh out the
kinds of things that tribes were willing to do. The sanctions
were agreed upon by consensus.
SENATOR ELTON asked who would be in charge of making sure that
public assistance dollars are not being used to supplement other
programs that TCC may be offering - whether it be anger
management or alcohol and drug abuse. He asked whether TCC, the
federal government, or the state government would do that.
MR. SHIRCELL said TCC has contractual arrangements with the
various federal agencies and with the state divisions.
Number 1869
MS. BARBARA MIKLOS, Director of the Child Support Enforcement
Division, said Mr. Nordlund described CSED's role in this process
very well and that she was available to answer questions.
SENATOR ELTON asked MS. MIKLOS if she was satisfied with the
regime DHSS set up to accomplish the child support requirements.
MS. MIKLOS said she was and that it took DHSS and CSED two years
to figure out how to resolve the child support issue.
CHAIRMAN MILLER asked if the House version was heard by the House
Finance Committee.
MR. NORDLUND said it was.
CHAIRMAN MILLER announced that he would bring up SB 80 again next
week after committee members had time to digest the changes in
the bill. He asked Mr. Darryl Hargraves to address the
committee.
Number 2036
MR. DARRYL HARGRAVES, Executive Director of the Alaska Council on
School Administrators (ACSA), referred to a handout given to
committee members entitled "Alaska Legislation Update" and made
the following comments.
[Mr. Hargraves was representing the school superintendents from
around the state (members of the Alaska Association of School
Administrators - AASA) who recently met in Juneau to discuss
legislation.]
Discussions regarding the House operating budget focused on the
need to get funding at the level allowed under the foundation
formula. Co-payments for student transportation will require
school districts to pay a portion of that cost. The AASA is
concerned about the status of a study for the adequacy of the
foundation formula. The AASA has asked that it be allowed to be
involved in such a study and it encourages the legislature to do
the study as envisioned by the authors of SB 36. The AASA would
like to see the operating budget go forward.
The Governor's capital budget supports construction. The AASA is
concerned that some projects will not be funded for five years.
Some of those projects need to be done right now. The AASA did
not decide whether the Governor's bill, with its technical
aspects, was the best way, or whether construction with general
obligation bonds would be better. That is a decision to be made
by the legislature but the projects need to be done.
The AASA finds SB 198 to be interesting, acceptable and
desirable. AASA commends the sponsor for the legislation which
is vitally necessary. He asked for the committee's support of SB
198.
The AASA supports the Quality Schools grant funding in the amount
of $7.5 million. SB 198 will alleviate some of the serious
concerns faced by districts right now and the Quality Schools
funding can be used strictly to boost student results on the exit
exams.
Regarding compliance with IDEA, SB 205 was supported by the AASA.
The bill will provide $14.3 million in federal funding. AASA is
concerned the state will lose that money if something is not done
to take care of those statutes on the books right now. The bill
simply says the statutes will reference federal law. AASA is
concerned that the bill will become "Christmas tree" legislation
and many issues will be addressed by it. AASA would like to see
the bill pass as is, and not become a vehicle for issues related
to gifted and talented programs.
SENATOR ELTON asked Mr. Hargraves if he has problems with the way
the legislature restructured the way special education programs
are funded and whether that percentage cap runs into problems
with IDEA.
MR. HARGRAVES said it is his understanding that gifted and
talented programs do not fall under the purview of IDEA. AASA
has wondered why gifted and talented programs were put under that
category. He said he was on the first task force in the 1970s to
start gifted and talented programs in the state. Alaska was
quite unique in that it put gifted and talented programs into the
same category as programs for children who are handicapped.
SENATOR ELTON thought that the fact that both programs were
lumped together with a cap may create problems with the federal
law. He asked Ms. Lappe of the Department of Education and Early
Development to respond to his concern at a later date.
CHAIRMAN MILLER said another discussion that has to take place
regarding SB 205 is that DOEED has already gone farther because
it has mandated that gifted and talented programs must be offered
in every school district in one of the sections of SB 205. He
noted Mr. Hargraves was saying the state needs to do what is
necessary to comply with IDEA.
MR. HARGRAVES agreed and said the Alaska delegation in
Washington, D.C. has said the state will lose the $14.3 million
if it does not do something about compliance.
MR. HARGRAVES noted that the superintendents strongly support
opening the coastal plain of the Arctic National Wildlife Refuge
(ANWR) to development to provide more revenue to the State.
Regarding the clean-up bills on PERS and TRS, the AASA took no
position.
The AASA appreciates the fact that student transportation costs
are included in the supplemental appropriation bill, but it would
like to see no co-pay for several reasons.
The AASA took no position on the Mackie plan or the long-term
fiscal plan.
The AASA does not support the school discipline and safety bill
[HB 253] as it will create many difficulties for school
districts. Regarding SB 292, the AASA has taken no position.
AASA does support the school debt reimbursement bill - HB 433.
AASA would like to see the legislature keep that as a central
part of school construction.
The AASA sees SB 105 as a limited opening up of SB 36. SB 105 is
strongly supported by the AASA even though only three schools
will benefit from it.
In response to the tax cap initiative, the AASA has "double-
starred" that proposal as an area of concern because it does not
know what the future of the state will be. Schools are having
terrific problems now and are having to cut offerings left and
right. Vocational education is all but gone in most of the
school districts in the state. The AASA does not see how schools
will survive the passage of SB 227.
Regarding HB 192, the AASA has taken no position. The AASA has
expressed an interest in having the pledge of allegiance in the
classrooms and would expect school boards to set up policies.
AASA took a "no" position on the free exercise of religion and
believes it will open up severe problems for school districts.
AASA believes that schools will have to show a compelling state
interest for almost anything done in a school district.
AASA opposes the creation of an Alaska Board of Technical and
Vocational Education [SB 289] because it sets up a different
bureaucracy. It will create something that could cost money that
would be taken from school districts.
The AASA took no position on HB 327 - the retirement incentive
program - but it questions whether it is appropriate to put it in
a permanent program of this type and whether it is needed at this
time.
The AASA opposes HB 129, which excludes principals from
collective bargaining under PERA. AASA also opposes the Native
language program bill. Superintendents from rural areas with an
almost 100 percent Native population said the local people in
those communities oppose SB 103 because they want that issue left
to local control.
Last, HB 365 pertains to the REAA consolidation. AASA heartily
opposes that bill - state operated schools were not successful in
the past.
The AASA sees benefits to HB 277 which would allow the rehire of
retired teachers but it is concerned that teachers may quit their
jobs to get retirement benefits and then get rehired. Some
members suggested that the bill should require teachers to be out
of work for a specified period of time.
There being no questions or further testimony, CHAIRMAN MILLER
adjourned the meeting at 2:36 p.m.
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