SENATE BILL NO. 170 "An Act extending the Alaska senior benefits payment program; and providing for an effective date." 9:49:39 AM Co-Chair Olson relayed that it was the first hearing for SB 170. 9:50:01 AM JOE HAYES, STAFF TO SENATOR SCOTT KAWASAKI, read from a Sponsor Statement (copy on file): Senate Bill 170 would extend the Senior Benefits program to 2032, ensuring another eight years of support for low-income seniors across Alaska. The successor to the Longevity Bonus created in 1972, the Senior Benefits Program would end in June 2024 without legislative action. The Senior Benefits Program protects low-income seniors by providing them with modest monthly cash assistance to pay for expenses like food, heating, electricity, transportation and prescription medication. The program was established in 2007 and currently aids nearly 9,000 Alaskans aged 65 and older with incomes at 75, 100 and 175 percent of federal poverty level. Subject to appropriation from the Alaska State Legislature, assistance can range from $76 to $250 a month for eligible seniors. In September 2017, the House Health and Social Services Committee held a statewide listening session for Senior Benefit recipients and their advocates. Hundreds of Alaskans spoke of the need to preserve this program to enhance their way of life. This program protects seniors who have spent a lifetime building our great state. It lends a hand to low- income seniors who need assistance to help make ends meet. Terminating this program would put thousands of seniors at risk of losing their means for maintaining a healthy lifestyle. I respectfully request your support to continue this vital program. Co-Chair Hoffman thought the arguments Mr. Hayes made were quite valid and that the program needed to be extended. He suggested that instead of delaying it for another six years, the committee might want to put a period on line 7 after the word repeal, in order to make the program permanent. He understood that the bill was put into place as a replacement program. Mr. Hayes thought Co-Chair Hoffman had an excellent idea. He noted that Senator Kawasaki had been a sponsor of the bill in 2017, and would support extending the program fully. Senator Wilson wondered if the bill could clean up the statute. He thought there were dueling statutes between the Longevity Bonus and the Senior Benefits Program. Mr. Hayes did not believe the sponsor would have any issue with Senator Wilson's suggestion. 9:54:28 AM GRIFFEN SUKKAEW, STAFF FOR SEN. KAWASAKI, addressed a Sectional Analysis (copy on file): Page 1, line 7 Deletes "2024" and replaces with "2032" Page 1, Line 8 The Act takes effect immediately under AS 01.10.070(c). Mr. Sukkaew relayed that as of December 2023, the program aided more than 10,000 Alaska seniors aged 65 and older. The benefit was based on income at 75 percent, 100 percent, and 175 percent of the federal poverty level. By statute, those that qualified received benefits ranging from $125 to $250 per month subject to legislative appropriation. Because of constrained budget in recent years, the highest tier currently received $76 per month instead of $125 per month. Qualifying seniors must be residents of the state, a citizen of the United States, or a qualified alien and could not be incarcerated at a private or public institution or a resident of a nursing home, Pioneer Home, or Alaska Veterans Home. Mr. Sukkaew continued that income eligibility was based on gross annual income before taxes. Assets were not counted towards income. He cited the number of participants in the program, and noted that more figures were in the document entitled "Senior Benefits Fact Sheet" (copy on file). He asserted that the program had a long bipartisan history of protecting seniors who had spent a lifetime building the state. 9:57:16 AM VALERIE ROSE, FISCAL ANALYST, FISCAL NOTE COORDINATOR, LEGISLATIVE FINANCE DIVISION, spoke to a fiscal note from the Department of Health, OMB Component 2897. Beginning in FY 25, the department would be funded at a level that would allow them to provide full funding of the benefits as allocated in statute to the three-tiered income levels. She reiterated that in recent years the highest-level tier had been funded at $76 per month rather than $125 per month, although the other tiers had been funded at the amount allocated in statute. Co-Chair Hoffman asked about federal poverty limits, and asked if the limits took a cost-of-living allowance (COLA) into account. Ms. Rose did not have the information. Senator Kiehl asked if Ms. Rose could help with the discrepancy between the fiscal note and the department's Senior Benefits fact sheet. He thought one identified about 140,000 participants a year, and one identified 11,000 participants per year. Ms. Rose thought the question would be best addressed by the department. 9:59:59 AM MARGE STONEKING, ASSOCIATE DIRECTOR OF ADVOCACY, AMERICAN ASSOCIATION OF RETIRED PERSONS, ANCHORAGE (via teleconference), explained that the American Association of Retired Persons (AARP) was a non-partisan, non-profit member organization serving the age 50-plus population. She relayed that AARPs purpose was to empower people to choose how they lived as they aged, and it had a strong commitment to protecting financial resilience for older adults. She identified that some seniors in the state needed assistance to remain independent. She noted that programs like the Senior Assistance Program helped seniors remain in their homes and communities and to stay out of more costly levels of care. She cited that those seniors that qualified for the largest senior benefit amount of $250 per month could have income of no greater than $1,139 per month. Ms. Stoneking cited that in Alaska, the average Social Security retired worker benefit was $1,485 per month. The older Alaskans most likely to benefit from an extension of the program were women. Historically the majority of the beneficiaries of the program were women, who earned less over the course of their lives, made up the majority of family caregivers, and often outlived male spouses. She discussed lower wage workers and the high cost of living in the state. She mentioned rural Alaska, and those that lived a subsistence lifestyle. The loss of the benefits program would hurt many older Alaskans living in remote areas of the state. She cited that the states oldest citizens were the most likely to spend the most on increased healthcare costs, which could result in financial instability. She asserted that any loss of income to the senior population could result in loss of independence. 10:03:33 AM DEB ETHERIDGE, DIVISION OF PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH, introduced herself. Senator Kiehl wanted to clarify how many Alaskans benefited from the program. He thought the fact sheet showed one number of participants and the fiscal note showed another. He asked how many Alaskans were participating in the program. Ms. Etheridge relayed that there were over 11,000 Alaskan seniors on the program. Senator Kiehl mentioned the federal poverty level threshold and asked if the amount varied by the area of the state and cost of living. Ms. Etheridge relayed that the federal poverty level was adjusted every year, and the Senior Benefit was then adjusted, but not necessarily by region. SB 170 was HEARD and HELD for further consideration.