SB 51-PUBLIC ASSISTANCE PROGRAMS    CHAIR FRED DYSON announced SB 51 to be up for consideration. ELLIE FITZJARRALD, Chief, Policy and Program Development, Division of Public Assistance, Department of Health and Social Services (DHSS), said that when Cook Inlet Tribal, Bristol Bay Native Association and the Milick Association come on board with their Native Family Assistance Programs, approximately 35 percent of the temporary assistance families in Alaska would be served by Native organizations. 1:59:30 PM CHAIR DYSON said he was concerned about expanding the costs of Medicaid and asked if the department believes SB 51 does not increase those costs. MS. FITZJARRALD replied that the Temporary Assistance Program is a federal block grant program with a maintenance-of-effort provision that the state contributes funding to receive it. As that program wends its way through Congress, proposals to date show there is level funding and it should remain that way. Alaska has had a caseload reduction and has been able to invest the federal dollars into programs and services for families and it is not costing the state any more. The fiscal note shows about a $2 million general fund savings as a result in the adjustment of the department's maintenance of effort. 2:01:15 PM CHAIR DYSON asked what happens if the federal funding ceases and the state has accepted an implied obligation to keep the funding at that level with state funds. MS. FITZJARRALD replied that current statute and grants are structured "subject to appropriation." The grants are negotiated year-to-year. SENATOR WILKEN said he wanted it made clear that if a dollar of federal money goes away, the corresponding dollar goes away in the general fund and that it is not expected to pick up the shortfall in federal revenue. 2:02:49 PM MS. FITZJARRALD said the department has sustained funding through caseload reduction and there is no requirement in federal law that states provide supplemental funding. If Native organizations get caught in a situation where they couldn't afford to run their program, they have the option to rescind from the program and it then becomes the state's responsibility to provide assistance and services. That could increase their general fund maintenance of effort need. 2:04:24 PM CHAIR DYSON said some audits of programs in the Division of Health and Human Services indicate irregularities in the past in funding subcontractors. He asked what the division does to audit their performance and how does it attract money. 2:05:41 PM MS. FITZJARRALD replied that the statute requires yearly audits by a CPA. The department audits its programs each year as well. 2:07:37 PM CHAIR DYSON asked if SB 51 gets signed into law, when would the programs start up. MS. FITZJARRALD replied that some are already running - Tlingit and Haida, ABCP Bethel, Tanana Chiefs. Cook Inlet Tribal Council will start on July 1, 2005 and Bristol Bay Native Association and Cape Hope will start in 2006. CHAIR DYSON said that documentation says existing programs are doing well and he asked if these programs had been audited this year. MS. FITZJARRALD replied yes. CHAIR DYSON asked for copies of the audits 2:09:39 PM SENATOR WILKEN said he didn't understand why the SB 51 fiscal note has only one component - CITC. MS. FITZJARRALD replied that is because the financing of the other three organizations have been in their operating budget since 2000 and aren't part of the new program. SENATOR LYDA GREEN asked if Cook Inlet Tribal Council is the only new program. MS. FITZJARRALD replied yes, although Bristol Native Bay Association and the Milick Association have also submitted letters of intent to begin running in 2006. SENATOR GREEN said that Native groups have different benchmarks and asked if they could pay out less than the state payment would be to the same person. MS. FITZJARRALD replied yes. 2:11:40 PM SENATOR GREEN asked if the department could use leftover money for new and different programs. MS. FITZJARRALD answered yes, but not with state supplemental funding. They can use their federal block grant to invest and provide supports for low-income families. It's all tied to the Temporary Assistance for Needy Families (TANF). SENATOR GREEN asked if their records reflect exactly what was paid out. MS. FITZJARRALD replied that is correct. Both monthly and quarterly reports of paid benefits are prepared. 2:13:27 PM SENATOR GREEN asked if there is any way to debit one account to give flexibility to another one. MS. FITZJARRALD replied that Native organizations have the same flexibility as the state in that they have federal money and the state maintenance of effort supplemental funds. The state contribution provides the supplemental funds needed to pay for various forms of assistance. 2:15:07 PM CHAIR DYSON said the committee has expressed that it does not want people who are unwilling to relocate to secure work or who are unwilling to work to receive welfare. A federal regulation says if a community has more than 50 percent unemployment, benefits can be extended. He asked where that money comes from. MS. FITZJARRALD explained that federal law, as well as state law, exempts families who are living in Alaska Native villages or on a reservation from the 60-day time limit, if the number of adults not working in their community is 50 percent or more. 2:16:38 PM CHAIR DYSON asked if the state statute could be changed so that the state component of the funding does not have to extend past the 60 days for those unwilling to relocate for work. MS. FITZJARRALD replied that she would have to consult with legal folks on that issue. 2:18:19 PM TONY LOMBARDO, Deputy Commissioner, Department of Health and Social Services, said he would discuss that with the commissioner and get back to committee. SENATOR DONNY OLSON asked what happened to the application of the original four people in Metlakatla. MS. FITZJARRALD replied that at the time the pilot legislation passed, Metlakatla had expressed an interest in participating, but later decided against it. SENATOR OLSON asked if the other nine might make the same decision and that should be figured into the financial concern expressed by Senator Wilken. MS. FITZJARRALD replied that she had not heard of any interest from the others besides from Bristol Bay Native Association and Milick. 2:20:00 PM DON SHIRCEL, Director, Family Services, Tanana Chiefs Conference (TCC), strongly supported SB 51. He said TCC statistics indicate that more Native families are working for the assistance they receive. However, he mentioned that a shortcoming of the bill is that it includes no references to child support programs. 2:25:58 PM CHAIR DYSON asked him to send written testimony on that issue. 2:26:46 PM DEAN GEORGE, TANF Program Coordinator, Tlingit Haida Central Council, supported SB 51 and offered to answer questions regarding his report. He noted that he serves the geographic region from Yakutat down to Saxman, excluding Metlakatla. SENATOR GREEN asked if his current program was derived from the pilot program. MR. GEORGE replied yes. 2:28:36 PM AMANDA BLACKGOAT, Finance System Specialist, TANF, Tlingit Haida Central Council, said she now holds clients more responsible for double dipping and fraud. CHAIR DYSON asked if she had ever prosecuted anybody. MS. BLACKGOAT replied no, because that it is too time consuming, but she recoups the money in other ways. 2:30:42 PM SENATOR GREEN asked if the number of participants attempting to double dip now zero. MR. GEORGE responded that his experience is that they have stopped double dipping altogether. 2:32:06 PM CHAIR DYSON commented that he would like to hear about people who are unwilling to relocate to where jobs are at a future date. SENATOR ELTON moved to pass CSSB 51(HES) out of committee with individual recommendations and attached fiscal note. There were no objections and it was so ordered.