SJR 1-MEDICAL ASSISTANCE FOR CHILDREN  1:33:49 PM CHAIR DAVIS announced SJR 1 to be up for consideration. RICHARD BENAVIDES, aide to Senator Davis, sponsor of SJR 1, explained that the resolution urges the congressional delegation to achieve a timely reauthorization of the state children's health insurance program, and to continue federal medical assistance percentages for the Denali Kid Care program. Denali Kid Care is Alaska's version of the State Children's Health Insurance Program (SCHIP) which was created in 1997 and is slated for reauthorization this year. It has been and continues to be a successful state partnership now covering over four million low-income children, and enjoys bi-partisan support. However, in the upcoming fiscal year, 17 to 18 states, including Alaska, are predicted to have insufficient federal funding to sustain the existing SCHIP programs. According to various estimates, these states will face an estimated $800 to $950 million shortfall in 2007. In Alaska, that could total over $12 million. Without additional federal funding to avert these shortfalls, Alaska may have to reduce SCHIP enrollment. States may also be forced to curtail benefits, increase cost-sharing, or reduce provider payments. Congress has successfully acted in the past to address these shortfalls and can do so again; to rd that end, on February 23 a bipartisan group of lawmakers announced their proposal to extend health insurance to an additional nine million children in the US. Backed by a broad consumer and industry coalition, the Healthy Kids Act of 2007 would authorize over $50 billion over five years to expand SCHIP and Medicaid programs. The proposal would also provide $10 billion to help families with annual incomes of up to 350 percent of the Federal Poverty Level to purchase health insurance that covers children if they are not eligible for their state's SCHIP program. He asked for the committee's support of SJR 1 to add the Alaska State Legislature to the many voices urging the state's congressional delegation and the rest of Congress to enact legislation immediately that provides additional funding to ensure that all states have sufficient federal funding to sustain their existing SCHIP programs in fiscal year 2007. He added that the National Governor's Association had a meeting the previous day on the same program, and that there is an upcoming roundtable discussion on the SCHIP program in Washington DC. 1:37:57 PM KARLEEN JACKSON, Commissioner for the Department of Health and Social Services (DHSS), said that both the governor and Senator Murkowski support the resolution. SENATOR ELTON said that the problem appears to be two-pronged, with the 2007 shortfall and insufficient future funding, and asked if the resolution should address this. MR. BENAVIDES replied that these were separate issues but that a bipartisan bill would cover future funding shortfalls. COMMISSIONER JACKSON said that the redistribution issue is also being discussed in Congress and Alaska will not necessarily be penalized for a nationwide insufficient effort. SENATOR ELTON asked if any wording should be added to the resolution. 1:40:37 PM COMMISSIONER JACKSON said she could not speak to that issue. CHAIR DAVIS said that the resolution deals only with reauthorization and not funding. SENATOR COWDERY asked if funding is expected to be federal or state-based. MR. BENAVIDES replied that the money will come from the general fund. SENATOR COWDERY commented that there is a lot of money in the Permanent Fund account and this would be a worthy expenditure. CHAIR DAVIS said that funding will be addressed at a later time. 1:43:35 PM SENATOR DYSON said that his family members have received funding from this act, and he didn't believe he had a conflict of interest with the bill. CHAIR DAVIS agreed. SENATOR ELTON moved to report SJR 1 from committee with individual recommendations and attached fiscal note(s). There being no objection, the motion carried.