CS FOR HOUSE BILL NO. 67(FIN)(efd fld) An Act relating to eligibility for and payments of public assistance. Co-chair Pearce directed that CSHB 67 (Fin)(efd fld) be brought on for discussion and directed attention to a draft SCS CSHB 67 (Finance) (8-GH1036\W, Lauterbach, 4/28/93). Co-chairman Frank MOVED for adoption of work draft "W." He explained that it adopts the House approach in terms of rolling amounts back to the 1992 level rather than the 1991 level proposed by the Governor. It also removes House Finance language requiring an increase if funding falls below 75% of the poverty line for AFDC and 100% of the poverty line for adult public assistance. The draft provides for increases when the legislature supplies money specifically for that purpose. A July 1, 1993, effective date was also added. In response to an inquiry from Senator Rieger, Co-chair Frank explained that the draft contains higher numbers but less of a reduction than the House or the Governor for both AFDC and public assistance. JAN HANSEN, Director, Division of Public Assistance, Dept. of Health and Social Services, came before committee in response to questions raised by Senator Kerttula. Mrs. Hansen explained that adult public assistance, including the elderly, the disabled, and the blind, consists of a federal core payment of $447.00 and a state supplement of $374.00 for a total of $821.00. Under the proposed Senate Finance bill, the state supplement would be reduced to $362.00, reducing the total payment to $809.00--a net reduction of $12.00. SHERRIE GOLL, Alaska Women's Lobby, next came before committee. She noted the 35 groups and 65 individuals who previously testified in opposition to the bill as it traveled through various committees. She stressed that while the proposed reduction might merely represent a restaurant meal to many people, to a poor mother and child it represents much more. It represents two weeks worth of Pampers for a baby, a bag of groceries, etc. Ms. Goll specifically noted changes in COLA that distinguish the Senate bill from that proposed by the House. She acknowledged that the automatic COLA is unique to Alaska. It is not, however, unusual for states to adjust public assistance payments to cover inflation. She stressed that while the average Alaskan spends approximately 30% of his or her income on housing. An AFDC household spends approximately 70%. Ms. Goll voiced a preference for mere suspension of the COLA as proposed by the Governor's legislation. She questioned how far into poverty people should be allowed to fall before public assistance payments are adjusted upward. Co-chair Frank referenced a fiscal note analysis indicating that changes would not become effective until October. Jan Hansen explained that because of failure of the effective date in the House, the earliest implementation would be October 1, 1993. A revised fiscal note references that date as well as associated additional costs. The legislation would become effective 90 days after signature by the Governor. While the 90-day limit may end as early as September 5, the earliest the department could effect changes for the entire caseload would be at the beginning of the next month. End, SFC-93, #69, Side 2 Begin, SFC-93, #71, Side 1 Senator Kelly inquired concerning a definition for "dependent child." CURTIS LOMAS, Program Officer, AFDC, Division of Public Assistance, Dept. of Health and Social Services, came before committee. Mr. Lomas noted that a definition currently exists in statutes. He explained that "under eighteen" years of age would be removed from statutes and "dependent child" substituted therefore to cover eighteen year olds who are still in high school. In response to an additional question from Senator Kelly concerning monetary standards that may be exceeded through regulation, Mrs. Hansen explained that setting the need standard higher than the payment standard does not increase the payment to the client. It allows a client working at a low paying job to earn moneys to supplement the AFDC payment while the individual works his or her way off AFDC. Mrs. Hansen subsequently referenced AS 47.25.410 (3) and recited the definition for "dependent child." Co-chairman Frank MOVED that SCS CSHB 67 (Finance) pass from committee with individual recommendations and appropriate fiscal notes. No objection having been raised, SCS CSHB 67 (Finance) was REPORTED OUT of committee. Co-chairs Frank and Pearce and Senators Kelly, Rieger, and Sharp signed the committee report with a "do pass" recommendation. Senator Kerttula signed "Do not pass." Senator Jacko was absent and did not sign. The following Dept. of Health and Social Services fiscal notes accompanied the bill: AFDC ($3,914.9) AFDC ( 1,944.4) AFDC ( 2,107.3) APA ( 607.7) APA ( 973.9) APA 0 PFD 414.0 Medicaid Facilities ( 106.8) Medicain Non-Facilities ( 106.9)