HOUSE FINANCE COMMITTEE nd Anchorage LIO, 2 Floor Conference Room 220 June 6, 2007 4:09 p.m. CALL TO ORDER Co-Chair Meyer called the House Finance Committee meeting to order at 4:09:17 PM. MEMBERS PRESENT Representative Mike Chenault, Co-Chair Representative Kevin Meyer, Co-Chair Representative Bill Stoltze, Vice-Chair Representative Harry Crawford Representative Les Gara Representative Reggie Joule Representative Mike Hawker Representative Mike Kelly Representative Mary Nelson Representative Bill Thomas Jr. MEMBERS ABSENT Representative Richard Foster ALSO PRESENT Representative Craig Johnson; Representative Mike Doogan; Representative Paul Seaton; Ginny Austerman, Staff, Representative Olson; Karleen Jackson, Commissioner, Department of Health and Social Services; Janet Clarke, Assistant Commissioner, Division of Finance and Management Services, Department of Health and Social Services; Mike Friend, Access Alaska, Anchorage; Sandy Camery, Mabel T. Caverly Senior Center, Anchorage; Jay Dulany, Self; Kevin Turkington, SeniorCare of Alaska, Anchorage; Ray Clemens, Senior Voice, Older Person's Action Group, Anchorage; Rochelle Davis, UAA, Anchorage; Theresa Panchat, Marlow Manor Assisted Living Center, Anchorage; Shelly Hinges, Alaska Primary Care Association, Anchorage; Susan Faith, Executive Director, Older Alaskans Program, Anchorage. PRESENT VIA TELECONFERENCE Jon Sherwood, Director, Office of Program Review, Department of Health and Social Services (DHSS); Marie Darlin, AARP, Juneau; Sam Trivette, Juneau; Denise Daniello, Alaska Commission on the Aging; Errol Stafford, Wasilla Senior Center, MatSu, spoke in support of the SeniorCare Program; Allison Layman, Palmer Senior Center, MatSu, spoke in support of the SeniorCare Program; Doris Carpenter, MatSu; Elaine Pitka, Coordinator, Fairbanks Native Association Elder Program, Fairbanks; Alvin Martin, Fairbanks Native Association Elder Program, Fairbanks; Laurence (Larry) Titus, Fairbanks; Kathleen Dupertus, North Star Council and Aging, Fairbanks; Don Gray, AK-REA (Retired Educators Association), Fairbanks; Mary McLean, Fairbanks Native Association Elder Program, Fairbanks; Joy Price Tedder, Senior Center, Fairbanks; Lou Gross, Director, North State Council, Senior Center, Fairbanks; James Fisher, Self, Soldotna; Lorna Arndt, Self, Kodiak; Charles Michon, Homer; Jane Symens, Self, Homer; Pam Horazdovsky, Owner, Elder Options of Alaska, Homer; Sharon Howerton Clark, Self, Homer; Anna Winters, Swan Lake Senior Center, Sitka; Shirley Burkhart, Swan Lake Senior Center, Sitka; William Craig, Sitka; Helen Unruh, Wrangell; Betty Keagan, Commission on Aging, Wrangell; Marie Darlin, AARP, Juneau; Sam Trivette, Juneau; Denise Daniello, Executive Commission, Commission on Aging, Juneau; Lorilyn Swanson, Chair, Juneau Commission on Aging; Sheila Howe, Anchorage; Loreen McGee, Wrangell. SUMMARY CSSB 4 (FIN) am "An Act extending the cash assistance benefit program for seniors under the SeniorCare program and increasing the benefit amount; and providing for an effective date." CSSB 4 (FIN) am was heard and HELD in Committee for further consideration. CS FOR SENATE BILL NO. 4(FIN) am "An Act extending the cash assistance benefit program for seniors under the senior care program and increasing the benefit amount; amending medical income eligibility provisions for persons under 19 years of age and for pregnant women; and providing for an effective date." Co-Chair Meyer noted that a committee substitute had been distributed, which would change the title of the program [25-LS0056\K]. Members were also provided with a spreadsheet, which compared benefits under the current SeniorCare Program, SB 90/HB 148, SB 4, and HB 198 (copy on file.) GINNY AUSTERMAN, STAFF, REPRESENTATIVE OLSON, provided information on the legislation and noted that the current version was M.A [CSSB 4 (FIN) am]. The legislation extends the program's sunset date to June 30, 2011 and lifts the freeze on the federal poverty guidelines adjusted for Alaska from the 2003 rate. The SeniorCare Program is strictly a needs based program. The bill features three monthly payments: • $175 per month if the individual's household income does not exceed 100 percent of the federal poverty guidelines for Alaska • $150 per month if the individual's household income does not exceed 135 but is above 100 percent of the federal poverty guidelines for Alaska • $100 per month if the individual's household income does not exceed 150 but is above 135 percent of the federal poverty guidelines for Alaska Eligible seniors who may have been part of the Longevity Bonus Program, as well as individuals who meet the eligibility criteria are covered. No Asset limits would be in place. The program would serve approximately 8,800 low income Alaskan seniors. An eligible senior would have to choose between the two programs if the Longevity Bonus were funded. She observed that a proposed committee substitute, version K, would change the title to "Senior Benefits" from "SeniorCare". She noted that due to the passage of SB 27, provisions for Denali Kid Care would need to be removed. KARLEEN JACKSON, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stressed the importance of senior benefits. She observed that seniors on fixed incomes would be at risk without action. She provided members with a memo by Sherry Hill, Legislative Liaison, which outlined options for senior benefits (copy on file). The memo contains short-term solutions for funding a July senior benefit payment. Emergency regulations are being finalized to allow action through general relief. The memorandum identifies long-term, statutory solutions to allow the continuation of benefits. She noted that there would not be an appropriation bill accompanying authorizing legislation passed [during the June 26, 2007 Special Session] and requested that inclusion of intent language directing the department to request funding through a supplemental request. 4:15:56 PM RITA HATCH, OLDER PERSONS ACTION GROUP, ANCHORAGE, spoke in support of the SeniorCare Program. She noted that she was a recipient of the Longevity Bonus prior to the SeniorCare Program. She acknowledged that the Longevity Bonus is gone and maintained that it should not be an issue. She observed that she is at 120 percent of the poverty level. There are 5,000 people that would receive $175 under SB 4; 2,643 individuals would receive assistance at the 100 to 135 percent of poverty level; and another 1,157 individuals would receive $100 under the program. The program would provide her with only $5 more [then she received under the Longevity Bonus], but she acknowledged that seniors would benefit. She referred to House Bill 198 [the House companion bill, introduced by Representative Hawker] and stated that she would support whichever bill provided the most support. She approved of the deletion of an asset test. She observed that most of the poor in the state rent their homes and that the renter's benefit was deleted. She recommended reinstatement of the renter's benefit. 4:21:33 PM MIKE FRENCH, ACCESS ALASKA, expressed support for continuation of the SeniorCare Program. He noted that he had been contacted by seniors concerned that they would not be able to make their utility payments or afford other services. He would like to see more money go to seniors. He observed that any threat to the fixed income of a senior is difficult. Water and heating costs have increased. Many seniors are in the renter's system. 4:24:35 PM SANDY CAMERY, EXECUTIVE DIRECTOR, MABEL T. CAVERLY SENIOR CENTER, ANCHORAGE, spoke in support of the legislation. She noted that they are a small organization that specifically outreaches to low income seniors. She observed that 90 percent of their clients receive the $120 dollar benefit. She reiterated that $120 is the difference between eating and not eating. She asserted that the 3,700 clients that they served last year will not be eating without the benefits. Half their clients would be better off under HB 198 and half would be better off under SB 4. She encouraged the Committee to consider the long-term. Seniors are having a hard time "hanging on". There needs to be a comprehensive plan. She observed that many seniors do not have food in their refrigerators at the end of the month 4:28:18 PM JAY DULANY, EAGLE RIVER, expressed support for continuation of the SeniorCare Program. He felt that HB 198 was a better vehicle, but expressed gratitude that the issue was being addressed. 4:29:25 PM KEVIN TURKINGTON, SENIORCARE OF ALASKA, ANCHORAGE INCORPORATED, spoke in support of the legislation. His organization assists seniors to stay in their homes. He favored the name change, but asked for help educating the public regarding the change if it is adopted. He spoke in support of a needs based program, which helps seniors and is easy to access and use. His organization receives 3 - 5 or more calls a day from seniors that have difficulty getting through to the program for information and applications. 4:33:15 PM RAY CLEMENS, SENIOR VOICE, OLDER PERSON'S ACTION GROUP, ANCHORAGE, expressed support for continuation of the SeniorCare Program. He noted the difficulty of getting assistance from the SeniorCare Program office. He recommended adding staff to the current office. 4:36:59 PM ROCHELLE DAVIS, UNIVERSITY OF ALASKA ANCHORAGE, ANCHORAGE, expressed support for continuation of the SeniorCare Program. She is a nurse. She maintained that the money is needed for food and medications. She observed the difficulty in managing chronic illness when seniors cannot afford medication or proper nutrition. Low income seniors are a vulnerable population and need help. 4:38:34 PM THERESA PANCHAT, MARLOW MANOR ASSISTED LIVING CENTER, NURSE, ANCHORAGE, spoke in support of the SeniorCare Program. She noted that care can be jeopardized by the reduction in funding. She observed that many seniors cannot advocate for themselves. She stressed the need for assistance and urged the continuation of the program. 4:40:57 PM SHELLY HINGES, GOVERNMENT AFFAIRS DIRECTOR, ALASKA PRIMARY CARE ASSOCIATION, ANCHORAGE, spoke in support of the SeniorCare Program. She observed that physicians are turning away Medicare patients, which results in seniors paying more out-of-pocket. She noted the raising cost of health care, transportation and other fixed costs. 4:43:19 PM SUSAN FAITH, EXECUTIVE DIRECTOR, OLDER ALASKANS PROGRAM, ANCHORAGE, spoke in support of the SeniorCare Program. She noted that their program serves 500 persons a week with meals and other services. One of the most important issues they face is allowing home bound seniors to remain independent. She maintained that the seniors in their program live on the edge and are in desperate straights financially. The money does not go for frills. 4:46:24 PM ERROL STAFFORD, WASILLA SENIOR CENTER, MATSU, spoke in support of the SeniorCare Program. He observed that his wife has to pay health insurance. After insurance and medical expenses she has less than $300 a month to live on. The federal poverty level for one person is $22,348; and the federal poverty level for a couple is $29,960 a year. He maintained that a lot of seniors at the Wasilla Senior Center are in need. Many of these seniors were forced to move in with their children when they lost their longevity bonus payment under Governor Murkowski. He referred to HB 198. He noted that SB 4 would extend the program for five years and pay $100 - $175 per month. He observed that if the Longevity Bonus is revived that those that are eligible and choose to receive payments would not be eligible for SeniorCare payments. Seniors would have to choose between the programs. He noted that the Governor has pledged to help seniors. He asserted that seniors are suffering and urged action. 4:49:18 PM ALLISON LAYMAN, PALMER SENIOR CENTER, MATSU, SPOKE IN SUPPORT OF THE SENIORCARE PROGRAM. She expressed concern about the possibility that the program would sunset. She maintained that a 10 percent decrease in income would be devastating to seniors. She stressed that expenses are rising and emphasized that the goal is to allow seniors to remain independent. DORIS CARPENTER, MATSU, spoke in support of the SeniorCare Program. She expressed her frustration with a lack of legislative contact. She observed that the Wasilla SeniorCare Center has been helpful. She noted that she would not have sufficient funds for food without the program. She spoke in support of returning the renters rebate program. 4:53:18 PM ELAINE PITKA, COORDINATOR, FAIRBANKS NATIVE ASSOCIATION ELDER PROGRAM, FAIRBANKS, spoke in support of the SeniorCare Program. She observed that it is difficult to meet needs as the cost of living increases. She noted the high cost of living in Alaska. She observed that 60 percent of their group is compromised nutritionally. She recommended that the formula be increased from a minimum of 100 percent of the poverty level to 125 percent. She noted that many seniors are on fixed incomes. ALVIN MARTIN, FAIRBANKS NATIVE ASSOCIATION ELDER PROGRAM, FAIRBANKS, spoke in support of the SeniorCare Program. He stressed the difficulty Native seniors face. 5:02:40 PM LAURENCE (LARRY) TITUS, FAIRBANKS, spoke in support of the SeniorCare Program. He noted that his income is $470 a month, including his retirement and SeniorCare payment. He stressed the difficulty of living on this fixed amount. 5:03:35 PM KATHLEEN DUPERTUS, NORTH STAR COUNCIL ON AGING, FAIRBANKS, expressed support for continuation of the SeniorCare Program. She reviewed services provided by the Council. She addressed the great need in the State and encouraged a higher poverty level percentage to a minimum of 125 percent. She observed that social security increases do not take into account the increasing cost of fuel. She emphasized the contributions seniors have made to the state and felt they should be valued as much as the state's students. She appreciated that the bill does not included a assets in the qualification determination. The bill fills a necessary gap. 5:07:19 PM DON GRAY, AK-REA (RETIRED EDUCATORS ASSOCIATION), FAIRBANKS, pointed out that costs continue to increase statewide. She stressed that the mark of a fair society is how well they take care of the most vulnerable. The benefit is important for the elders in the State. She urged that the bill be passed from Committee. 5:09:30 PM MARY MCLEAN, FAIRBANKS NATIVE ASSOCIATION ELDER PROGRAM, FAIRBANKS, testified in favor of the proposed legislation. Representative Gara noted that the provisions under consideration include annual cost of living increases [see Representative Gara's later remarks, which clarified that the cost of living increase pertains to program qualification]. 5:10:42 PM JOY PRICE TEDDER, SENIOR CENTER, FAIRBANKS, commented on the problems faced by seniors living on a limited income. She urged support of the bill. She stressed that all seniors become disabled as they aged. Representative Gara corrected his previous statement. He clarified that while the annual income limit for eligibility increases with inflation, he was not sure if the payments would increase with inflation. He promised to research the issue. 5:13:34 PM LOU GROSS, DIRECTOR, NORTH STATE COUNCIL, SENIOR CENTER, FAIRBANKS, testified in favor of SB 4, noting that it is critical that some level of funding be made available to help "at risk" seniors statewide. He observed that many seniors were devastated when the Longevity Bonus ended. He maintained that eligible seniors do not receive SeniorCare payments due to their inability to wade through the paperwork. He stressed that after care expenses are greater than preventive care. The group most impacted tends to be poor self advocates, who often do not have the assets that most seniors have. 5:18:13 PM JAMES FISHER, SELF, SOLDOTNA, urged that SB 4 be passed from Committee, with a minimum amount of $120 per month. He spoke to food assistance availability and maintained that low income seniors are not getting the assistance they need for basic services such as heat and electricity. He spoke to Food Stamps, commenting that the testimony has been poignant. 5:20:44 PM LORNA ARNDT, SELF, KODIAK, spoke in support of SB 4, but suggested that payments were too low. She supported deletion of the Longevity Bonus program, but reiterated that SeniorCare payments should be greater. She disagreed with a determination based on gross income. She stressed that seniors pay for Medicare. She encouraged greater use of food banks. She encouraged greater funding for the program and the name change to the Senior Benefits Program. 5:24:13 PM CHARLES MICHON, HOMER, testified on the need of the seniors and the difficulty of surviving on a fixed income. He was forced to discontinue his medical insurance and must rely on Medicare. He noted that he is too old to work and needs a supplemental income. 5:26:33 PM JANE SYMENS, SELF, HOMER, expressed support for the continuation of the SeniorCare Program. She lives in an assisted living home in Homer and receives just over $500 from social security. The loss of $120 dollars a month might prevent her from making her rent payments. 5:28:21 PM PAM HORAZDOVSKY, OWNER, ELDER OPTIONS OF ALASKA, HOMER, spoke in support of the legislation. She spoke for the 17 seniors that live at her home and provided scenarios of two of those seniors. Many are on fixed incomes and have no assets to rely on. 5:30:45 PM SHARON HOWERTON CLARK, SELF, HOMER, spoke in support of the SeniorCare Program. She asserted that seniors are not second hand citizens or welfare recipients. She stressed that seniors cannot go back to work. 5:32:15 PM ANNA WINTERS, SWAN LAKE SENIOR CENTER, SITKA, spoke in support of the SeniorCare Program. She noted that 50 percent of their seniors cannot pay the suggested fee of $4 for the meals provided by their center. Seniors need the legislation to allow them to pay their way. Some seniors must chose between items such as heat and medication. The legislation allows them more flexibility in these choices and allows them to stay independent. Seniors do not have financial margins. The SeniorCare Program is needed to allow seniors to stay in their homes. 5:35:56 PM SHIRLEY BURKHART, SWAN LAKE SENIOR CENTER, SITKA, testified in support of the SeniorCare Program. She spoke to her situation and noted that she did not receive the Longevity Bonus. She pointed to the rising cost of fuel and other services and asked that the program be made permanent. 5:37:03 PM WILLIAM CRAIG, SITKA, spoke in support of the SeniorCare Program. He suggested that poverty levels differ across the state. He stressed the difficulty of living on the amount of money eligible seniors receive. He stressed the difficulty seniors have in making ends meet. HELEN UNRUH, WRANGELL, testifies in support of the SeniorCare Program. She noted that the cost of living varies and recommended that cost of living be considered. She asked that eligible seniors be grandfathered into the program, so that they are not cut off. 5:40:26 PM BETTY KEAGAN, COMMISSION ON AGING, WRANGELL, spoke in support of the SeniorCare Program. She maintained that seniors are a bargain for the state of Alaska. Funds contributed to seniors help make Alaska a bigger and better state. She pointed out that: seniors do not require educational services; are law abiding; do less driving and do not clog the roads; exercise their rights to vote; value life and show family values to the next generation; and are active volunteers. Alaska has the second largest senior population growth in the United States. She spoke against a sunset. 5:46:41 PM MARIE DARLIN, AARP, JUNEAU, spoke in support of the SeniorCare Program. She recommended the bill be amended to include the eligibility benefits and guidelines included in HB 198. This would allow needed assistance for Alaskan seniors trying to cope with the increased cost of living. Stipends are used for utilities, rent food, and medicine, while seniors do their best to stay in Alaska. She observed that the benefit, as outlined by HB 198, would help seniors that have the least income. The highest benefit would go to individuals that have less than $9,578 in annual income. These individuals have a difficult time, especially if they are renters. 5:49:46 PM SAM TRIVETTE, JUNEAU, spoke in support of the SeniorCare Program: · I'm a 53 year resident of Alaska · I worked for the State of Alaska for 32 years prior to retirement. Now I do thousands of hours of volunteer work, much with Alaska seniors. · Although Longevity Bonus helped my elderly parents remain in Alaska after they had to move into assisted living in the 1990's, we now are in a different era. · With Alaska having finite resources, it appears unlikely the Legislature will continue the Longevity Bonus program and a program for low income seniors, so I urge adoption of an assistance program for low income seniors who are the most needy. · During this legislative session, I listened to many hours of testimony and discussion at the Alaska Commission on Aging meetings on SeniorCare related legislation, which has helped me for opinions on these issues.   Mr. Trivette urged support of HB 198 and maintained that it would provide a more substantial benefit for a larger number of low income seniors. He asserted that the current SeniorCare program has a number of technical problems and SB 4 does not provide the level of payment to help the neediest seniors. Mr. Trivette asserted that the annual impact of seniors on the Alaska economy was estimated by the University of Alaska ISER at $1.46 billion; this translates into over 110,000 full time jobs in the Alaska economy. Furthermore, Alaska seniors contribute many tens of thousands of hours of volunteer work, at no cost to Alaskans. 5:51:50 PM DENISE DANIELLO, EXECUTIVE COMMISSION, COMMISSION ON AGING, testified in support of a continued SeniorCare program, specifically SB4, amended with improvements from HB 198 as outlined in the support letter submitted by the Commission. Ms. Daniello observed that based on conversations with seniors from around the State, SeniorCare makes a real difference for seniors who live on modest incomes and use SeniorCare benefits to help pay for life's essentials such as food, housing, utilities, and other necessities. These individuals are doing their best to make ends meet, while holding on to their dignity, living in Alaska, their home. The current SeniorCare Program benefits older Alaskans over the age of 65 who earn less than $16,133 for a single person and $21,641 for a couple annually. Poverty impacts seniors disproportionately in primarily rural areas of the State. Recently, the Commission performed an analysis of SeniorCare cash benefit recipients by region and found that a significantly higher proportion of elders rely on SeniorCare in rural Alaska where poverty levels and the cost of living are the highest. In Wade Hampton census area, for example, almost 60% of the elders receive SeniorCare. Over 48% of the rural elders in the Bethel census area are SeniorCare beneficiaries. Similarly, more than 35% of the elders in the Nome Census area receive SeniorCare. In comparison, 14% of Anchorage seniors and about 10% of seniors living in Juneau receive SeniorCare benefits. Ms. Daniello recommended amending the bill to use the eligibility guidelines and benefits included in HB 198, in order to provide assistance to a greater number of older Alaskans. These benefits include an increase of the program's income limits to 175% of the federal poverty guidelines for Alaska and an increase in the monthly benefit to $250 for households at 75% and less of the federal poverty guideline whose income is no more than $798 monthly. Ms. Daniello pointed out that older Alaskans contribute significantly to the state on many levels. Alaska seniors serve as community volunteers, caregivers, cultural historians, and as mentors for all generations, but they also contribute economically to the state. In 2005, seniors invested almost $1.5 billion from their retirement income, Social Security, health care spending, and investments into Alaska's economy. She stressed that it may be in the state's best interest to support programs that benefit retired seniors in order to cultivate their economic and social assets and asserted that their security and well- being are the responsibility of all Alaskans. 5:56:07 PM    LORILYN SWANSON, CHAIR, JUNEAU COMMISSION ON AGING, spoke in support of the SeniorCare Program. Ms. Swanson is also the manager of Fireweed Place, an independent living apartment building for seniors. She deals on a daily basis with the outcome of limited income and reduction in income for seniors. She stressed that $120.00 may not seem like much to some but to those who have an income of less than $1,350 per month, it is sizeable. "To have this taken away means that they may have to change housing or do without the daily necessities. Please understand that many did not expect to be in this position, they thought they were well covered for in their later years but through the loss of a spouse and income reduction they find that they no longer have the income to survive. The SeniorCare Income means that many can stay independent, without being considered on Welfare." Ms. Swanson works with approximately 75 seniors on a daily basis; of those 75, approximately 20 received SeniorCare. With this year's raise of 3.3% in social security payments, 7 persons no longer qualified for SeniorCare payments. She pointed out that 35% of the seniors she works with and many more throughout the state were disqualified over a change in income of just a few dollars a month. She observed that HB 198 would cover this cost of living increase. Ms. Swanson noted that seniors followed the Longevity Bonus and SeniorCare issues throughout the election and the past legislative session and suggested they would continue to follow these issues during the interim. She was shocked when the Legislature failed to address this issue. She spoke in support of HB 198, which has a graduated income level. House Bill 198 also covers the cost of living increase in social security, which would otherwise disqualify many. Ms. Swanson stressed that seniors are anxious over the lack of action on the continuation of SeniorCare program, which came after the shock of having the Longevity Bonus program discontinued by the previous Administration. She maintained that Longevity Bonus should no longer be an issue, since the SeniorCare Bill will take care of those who were on the Longevity Bonus and who truly need the help. She acknowledged that seniors originally wanted to reinstate the Longevity Bonus Program, but noted that there has been shift toward support of the SeniorCare bill. 6:00:18 PM SHEILA HOWE, ANCHORAGE, testified in support of the SeniorCare Program. She spoke in support of adding the provisions of HB 198 to SB 4. She noted the number of veterans that receive SeniorCare payments. 6:02:48 PM LOREEN MCGEE, WRANGELL, spoke in support of the SeniorCare Program. She is an active volunteer at 84 years of age. She noted that she had to sell her car when the Longevity Bonus was discontinued. She stressed that seniors need assistance and urged support of the legislation. 6:05:16 PM Co-Chair Meyer reviewed plans for the special session. He felt confidant that SeniorCare legislation would be passed. Representative Gara stated that he would like to address inflation proofing. CSSB 4 (FIN) am was heard and HELD in Committee for further consideration. ADJOURNMENT The meeting was adjourned at 6:09 PM