HB 262-SENIOR BENEFITS PROG. ELIGIBILITY  3:30:29 PM CHAIR SEATON announced that the next order of business would be HOUSE BILL NO. 262. "An Act relating to eligibility requirements of the Alaska senior benefits payment program; and providing for an effective date." He reminded the committee that, on February 4, there had been discussion regarding the lack of an asset test for this benefit program. The Division of Public Assistance had agreed to compare these senior benefits recipients with the recipients of those programs which did have an asset test. He directed attention to the response, titled "Department Response to 2-04-16 question on HB 262." [Before the committee was the committee substitute (CS) for HB 262, labeled 29-GH2770\W, Glover, 2/2/16, which had been adopted as the working draft on February 4, 2016] 3:31:59 PM MONICA WINDOM, Chief, Policy & Program Development, Division of Public Assistance, Department of Health and Social Services, stated that the committee substitute, Version W, added a citizenship requirement to the senior benefits program, which had not been in the original bill creating this program. CHAIR SEATON directed attention to the handout titled "Senior Benefits Program" [included in members' packets] which compared the programs for income limits and asset tests. MS. WINDOM, directing attention to the senior benefits cases, reported that, as 42 percent of the recipients were not receiving another benefit, there was not any asset information for those cases. She added that 27 percent of the recipients were receiving adult public assistance and that 25 percent of the recipients were receiving food stamps, both of which did have an asset limit of $2,000 for an individual and $3,000 for a couple. She noted that 610 individuals were receiving food stamps and senior benefits, although the food stamp resource limit was a bit higher for a household, $2,250; however, if one member of the household was 60 years or older, the asset limit was then $3,250. CHAIR SEATON reflected that about 5,000 people only received the senior benefits, whereas about 3,200 people received adult public assistance and senior benefits. He questioned whether there was a difference in the number of people receiving benefits from a program with an income limit versus a program with an income and an asset limit. He pointed out that 42.5 percent of those individuals receiving senior benefits did not receive any benefits from programs with an asset test. He acknowledged that it was unknown whether those 42.5 percent would not qualify to an asset test or whether there was another reason not to apply for the adult public assistance or food stamps. He pointed out that, as there was not sufficient funding for the senior benefits program, it would be necessary for the department to reduce payments to those individuals with the highest income levels, while maintaining the payments to those lower income levels. He opined that the monthly cash benefit of $125 had been reduced to $47 in the current fiscal year. He asked to ensure that those who were the most in-need were being reached, if this was the intent of the senior benefit program. He pointed out that individuals with large assets, but without much income, would qualify for this cash benefit program. He stated that the intention for asking this question was to make sure that the information surrounding the proposed bill was forwarded to the House Finance Committee, as this committee made the difficult decisions for the levels of allowable payment. CHAIR SEATON directed attention to the aforementioned Senior Benefits Program worksheet. REPRESENTATIVE VAZQUEZ pointed to the dramatic difference in the third tier resulting from the deduction effective March 1, 2016. She acknowledged that, although 42 percent of the recipients were not receiving adult public assistance or food stamps, those programs had an extremely low asset limit. She proposed that there should be a return to the prior monthly payment, noting that it was "not a very good situation to be elderly and have low income, that means they have low cash flow." She stated that the price of food, housing, and energy all went up and were higher than in other parts of the country. She reported that, as the average recipient age was 75 years, it was difficult to find a job to supplement income. She stated that this was a particularly vulnerable age, and that many individuals in this age bracket did not have the energy, stamina, and physical fitness to do many jobs, and often had some sort of illness. She pointed out that this money did not go far in Alaska. CHAIR SEATON stated that the committee was not proposing to make any changes, but was addressing the program because the Alaska State Legislature had asked the department to offer a way to reduce this highest asset group, as the program was not being fully funded. He acknowledged that, although the income level was eligible, statistics showed that the largest wealth was accumulated in the senior population. He noted that there were also a lot of not wealthy individuals, a lot of disparity in this population. He stated his desire to have the information to pass on to the House Finance Committee to make those decisions, in order to target the desired population. 3:44:22 PM REPRESENTATIVE VAZQUEZ moved to report the committee substitute (CS) for HB 262, labeled 29-GH2770\W, Glover, 2/2/16, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 262(HSS) was moved from the House Health and Social Services Standing Committee.