HB 292-INCREASE CHILD CARE GRANTS CHAIR DYSON announced the next order of business, SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 292, "An Act relating to child care grants; and providing for an effective date." [Representative Joe Hayes, sponsor, explained via teleconference that he would listen in while his staff person presented the bill to the committee.] Number 0715 MELINDA BRUNO, Staff to Representative Joe Hayes, Alaska State Legislature, presented SSHB 292 on behalf of Representative Hayes, sponsor. Calling SSHB 292 a simple but important bill, she explained that current statute calls for a child care grant to not exceed $50. Statute also calls for [child care] grants to be adjusted on a geographic basis by the same adjustment factors used for funding school districts. This statute is AS 14.[17].460. MS. BRUNO noted that a geographic adjustment is not possible in several communities with a grant cap set at $50. If the statute were revised to cap the base rate at $50, it would provide the opportunity, given the availability of funding in any fiscal year, for a rate increase to occur. Therefore, SSHB 292 will change the $50 cap to a $50 maximum base rate. Currently, child care grants are available a program that is fully funded with federal dollars. Therefore, it won't cost the state anything. MS. BRUNO indicated federal funds cannot be fully utilized with the cap in statute. Alaska now receives a little more than $3.7 million; unless the change is made to a maximum base, these funds will not be fully utilized. This will allow the state to adjust for the geographical cost index and distribute more money. Number 0835 YVONNE CHASE, Deputy Commissioner of Early Development, Office of the Commissioner, Department of Education and Early Development (EED), testified via teleconference in support of SSHB 292. She explained that the state-funded child care grant program was created in 1981 as a small-business subsidy for licensed child care providers, with a statutory cap of $50 a month for each full-time-equivalent child attending the facility. She offered her belief that the original intent of the child care grant was to ensure that spaces were available for children in the subsidy program, since language required participating providers to have a certain percentage of available slots reserved for subsidized families. She pointed out that the department doesn't take issue with that. MS. CHASE explained that over the years the department has attempted, when funds have been available, to increase the rate. Because the program is now federally funded and receives an appropriation at the beginning of the year and "as providers either come or go in the program," the rate may vary. She told members, "We would like to have the ability to have the rate be flexible, based on the amount of funding that's there at any point in time." She said this is why the fiscal note is zero. CHAIR DYSON asked why the administration hadn't brought this bill forward. Number 0970 MS. CHASE answered, "Well, it could be that Representative Hayes beat us to the punch." She reiterated that the department is very supportive of the bill. CHAIR DYSON asked whether, over the last 20 years, anyone in the administration had thought it necessary to request this change. MS. CHASE offered her thought that during the early years of the program, the funding was relatively [stable], and when the program began, the monthly base rate was as low as $8.31 a child. "So, it seemed like a long way to $50 at the time," she concluded. Number 1000 KALEN SAXTON, Child Care Connection, testified via teleconference, noting that her resource-and-referral agency has worked with family child care homes and centers from Glennallen to Unalaska. She expressed support for the geographic differential as a better way to share the funds, which are needed and appreciated. CHAIR DYSON temporarily suspended the hearing on SSHB 292. HB 292-INCREASE CHILD CARE GRANTS CHAIR DYSON returned the committee's attention to SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 292, "An Act relating to child care grants; and providing for an effective date." Number 1538 REPRESENTATIVE JOULE moved to report SSHB 292 out of committee with individual recommendations and the accompanying zero fiscal note. REPRESENTATIVE KOHRING objected and requested a synopsis of the bill. Number 1515 MELINDA BRUNO, Staff to Representative Joe Hayes, Alaska State Legislature, speaking on behalf of Representative Hayes, sponsor, said the bill allows the state to increase the grants awarded to child care facilities for quality measures under the child care grant program. She added, "We have this federal money, and we want to be able to give out the maximum amount. So this allows them to adjust the amount that's given out." REPRESENTATIVE KOHRING asked what the money is used for. MS. BRUNO referenced the bill packet, noting that the sponsor statement lists what the child care grant program does. She said that it betters these facilities by providing funds for additional staff and training, thereby improving the environment for children. REPRESENTATIVE KOHRING expressed concern that these are private businesses receiving government subsidies, and offered his philosophical objection. He asked, "If they're being given monies, then why should not other entities and different industries be given money, too, from government?" He noted that he struggles with this underlying concept. He indicated he wished to maintain his objection. Number 1425 REPRESENTATIVE COGHILL asked if the child care grant could be used for anything from playground equipment to augmenting wages. MS. BRUNO said she believed that to be correct. REPRESENTATIVE COGHILL surmised that the $50 base amount could expand rather rapidly, depending on the funds. MS. BRUNO said it depends on the amount of federal funding being used; it will not be a cost to the state. This makes the maximum amount of federal money available to adjust for the geographical differences. REPRESENTATIVE COGHILL said he disagreed with the whole concept. Number 1354 REPRESENTATIVE CISSNA suggested SSHB 292 is an economical way to provide professional care for children. Noting that she has worked with kids off and on for over 40 years, she remarked that in the past 10 years, Alaska's children have taken the largest "hit" because [the state] has systematically lowered standards of care. She pointed out that wages of state workers and most others are much higher than those of people who work with children. She spoke in support of the bill. Number 1213 A roll call vote was taken. Representatives Dyson, Joule, Coghill, and Cissna voted to move [SSHB 292] out of committee. Representative Kohring voted against it. Therefore, SSHB 292 was reported out of the House Health, Education and Social Services Standing Committee by a vote of 4-1.