The first order of business to come before the Senate HESS Committee was SB 156 (HUMAN SERVICES MATCHING GRANTS). The prime sponsor, SENATOR SHARP said SB 156 adds a definition for a second class borough with a population over 65,000 on page 1, line 14, and page 2, lines 1 and 2. The bill allows the Fairbanks North Star Borough to qualify as a recipient of matching grants for social services. Currently, the Fairbanks North Slope Borough is in better financial shape to provide matching money than the City of Fairbanks. The population figure is the same for the city. There wouldn't be a change in the dollar allocation. The bill would allow the Fairbanks North Star Borough, if they choose, to pass accommodating ordinances that would qualify them to receive and to match service grants. SENATOR ELLIS asked if just Fairbanks would be impacted. SENATOR SHARP said just Fairbanks would be impacted. Number 068 LAYNE ST. JOHN, Assembly Member, Fairbanks North Star Borough, testified in support of the bill. He said it is something that they will probably need very badly in the future. He said he would answer any questions the committee members may have. CHAIRMAN RIEGER asked if the city and the borough are currently nonunified. MR. ST. JOHN said that is correct. He said the city is the entity which has to apply for the grant instead of the borough. SENATOR ELLIS asked if the borough anticipates having problems in future years in meeting the ascending local match which was put into statute last year. MR. ST. JOHN explained the borough assembly currently has a committee looking at health and social service needs and requirements. One thing they are reviewing is the ability to fund any matching grants at the 50 percent mark that would be required in two years. Mr. St. John said it appears that in the near future Fairbanks will not be able to meet that 50 percent match. The North Star Borough would be able to. Number 115 HANK BARTES, Assembly Member, Fairbanks North Star Borough, said he served on the Fairbanks City Health and Social Service Commission for five years. He said this is one of the most cost effective utilization of funds that goes into the health and social service arena. It serves not only the people in the City of Fairbanks and the North Star Borough but also outlying areas through outreach programs that the various social services agencies provide. The program should be continued and improved upon. Number 133 There being no further testimony, SENATOR SHARP moved to pass SB 156 out of the Senate HESS Committee with individual recommendations and with the zero fiscal note. Hearing no objection, the bill moved out of committee.