MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON HEALTH AND HUMAN SERVICES

 

      Sixty-seventh Session

      March 9, 1993

 

 

 

The Assembly Committee on Health and Human Services was called to order by Chairman Jan Evans at 1:40 p.m., Tuesday, March 9, 1993, in Room 330 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mrs. Jan Evans, Chairman

      Mrs. Vivian L. Freeman, Vice Chairman

      Ms. Kathy M. Augustine

      Ms. Marcia de Braga

      Mr. James A. Gibbons

      Mr. Dean A. Heller

      Mr. William A. Petrak

      Mrs. Gene W. Segerblom

      Ms. Stephanie Smith

      Mr. Louis A. Toomin

      Mr. Wendell P. Williams

 

 

COMMITTEE MEMBERS ABSENT:

 

      None

 

GUEST LEGISLATORS PRESENT:

 

      None

 

STAFF MEMBERS PRESENT:

 

      Kerry Carroll Davis, Research Analyst

 

OTHERS PRESENT:

 

      Steve Abba, Legislative Counsel Bureau; Jon Sasser, Nevada Legal Services; Connie Campbell, ADC Recipient; Frances Doherty, Washoe Legal Services; Joni Kaiser, Committee to Aid Abused Women; Marsha Slotten, National Association of Social Workers; Jan Gilbert, League of Women Voters; Sarah Chvilicek, Nevada Women's Lobby; Minor Kelso, American Association of Retired Persons; Janice Barbour, Nevada Self-Employment Trust; Jerry Griepentrog-Carlin, Department of Human Resources; Myla Florence, Welfare Division.

 

Chairman Evans opened the hearing on Assembly Bill 276.

 

ASSEMBLY BILL 276 -     Revises provisions of state plan relating to aid to dependent children.

 

Opening remarks were made by Mrs. Vivian Freemen, Chairman, Interim Study Committee (EXHIBIT C). 

 

Steve Abba, LCB Fiscal Division, gave an explanation of "Fill the Gap" budgeting (EXHIBIT D).

 

Mr. Gibbons wondered if passage of this bill would prevent Governor Miller from addressing budget problems by reducing ADC payments.  Mr. Abba was not sure but it could be researched.

 

Mrs. Segerblom asked for clarification regarding additional costs associated with Medicaid.  Mr. Abba noted there would be additional costs for the ADC program due to the dollar for dollar reduction in the grant.  Also, ADC recipients would be allowed to stay on the rolls longer.  Mrs. Freeman explained the state would be vulnerable in terms of what was being done by the federal government.

 

Ms. Augustine inquired about ADC recipients who receive medical insurance through employment.  Mr. Abba said these assumptions were not taken into consideration.

 

Ms. Smith expressed concern regarding receipt of a federal waiver.  Mr. Abba commented the waiver was necessary because the "Fill the Gap" budgeting approach was for earned income only.  In order to apply for the waiver, cost neutrality would have to be demonstrated.  The interim study committee did not come up with a recommendation regarding cost neutrality.

 

In response to a question from Mr. Toomin, Mr. Abba reviewed the initial program costs.  Mrs. Evans noted the cost figures would change depending on what assumptions were made.  The main objective of the committee was to discuss the merit of the bill as a policy measure.

 

Mr. Heller inquired as to how many other states had similar programs and what were the results.  Mr. Abba said the Welfare Division would speak to those issues.  Mr. Heller wondered if a pilot program had been considered.  Mrs. Freeman indicated a pilot program was not discussed.  The interim study committee felt the state needed to provide long-term public policy.  Mr. Abba noted pilot programs were being considered by other states.

 

Mrs. Segerblom asked what percent of money was obtained from the federal government.  Mr. Abba responded 50 percent. 

 

Jon Sasser, Nevada Legal Services, spoke in favor of AB 276.  His prepared testimony was submitted as EXHIBIT E.

 

Ms. Connie Campbell, recipient of ADC, addressed the committee in support of AB 276.  Ms. Frances Doherty, Washoe Legal Services, read Ms. Campbell's statement (EXHIBIT F) for the record.

 

Joni Kaiser, Committee to Aid Abused Women, spoke in support of AB 276 (EXHIBIT G).  Responding to questions from the committee, Ms. Kaiser noted the decrease in entry level employment and the increased cost of child care were contributing factors to the problem.

 

Marsha Slotten, National Association of Social Workers, read her prepared testimony (EXHIBIT H), and submitted additional testimony for the record (EXHIBIT I).

 

Jan Gilbert, League of Women Voters, testified in favor of AB 276 (EXHIBIT J) and submitted a Family Income Study from the state of Washington (EXHIBIT K).

 

Sarah Chvilicek, Nevada Women's Lobby, spoke in support of AB 276 and submitted a list of organizations which also support this legislation (EXHIBIT L).

 

Minor Kelso testified in favor of AB 276 on behalf of the American Association of Retired Persons (EXHIBIT M).  Mrs. Freeman commented it was gratifying to know an organization which represented older people was willing to take a stand on issues important to families.

 

Janice Barbour, Nevada Self-Employment Trust, testified in support of AB 276 and discussed the microenterprise development and microlending program (EXHIBIT N).  Mrs. Freeman emphasized this program represented private non-profit organization activity at its best.

 

Jerry Griepentrog-Carlin, Department of Human Resources provided testimony which identified several policy concerns (EXHIBIT O).  Proposed goals, impact and cost were discussed.  Mr. Griepentrog-Carlin indicated a welfare reform package was forthcoming with a recommendation to expand the jobs program.

 

Myla Florence, Welfare Division, offered testimony which explained the difference between "Fill the Gap" budgeting and standard budgeting (EXHIBIT P).

 

Ms. Augustine inquired if the state was decreasing benefits for individuals receiving child support payments.  Mike Willden, Deputy Administrator, Welfare Division, explained when someone becomes eligible for public assistance he assigns his child support rights to the state.  Therefore, child support was collected and used to off-set what was paid out in ADC grants.  The first $50 received in child support was passed on to the ADC family.  A brief discussion ensued.  Mr. Griepentrog-Carlin noted the policy at the federal level would have to change before Nevada could change its policy on child support.

 

Mr. Williams voiced his concerns regarding the current situation in Nevada.  This same issue has been discussed since 1987 and nothing has been done to alleviate the problem.  He was curious to know how much money it cost to administer the welfare program in relation to how much money was paid out in benefits.  Mr. Griepentrog-Carlin reiterated he was not in opposition to welfare reform and there was a fiscal impact to be considered with "Fill the Gap" budgeting.  He reminded the committee administration costs were driven by federal requirement.  The two things which were needed in order to change the system were national health insurance and jobs.  These were beyond the reach of any state under the current structure.

 

Mrs. Segerblom asked why the federal government participated at a higher rate with other states.  Mr. Griepentrog-Carlin indicated the formula was based on average income level of the citizens in each state.  Discussion ensued regarding the jobs program and evaluation of needs.

 

In response to comments from Mr. Petrak, Mr. Griepentrog-Carlin indicated there were some ways the current proposal could be modified to make it more workable and remove some of the disincentives.

 

Ms. Smith questioned the figures being presented and Mr. Griepentrog-Carlin indicated those figures represented the experience of other states and additional research would be provided.

 

Mrs. Freeman asked if the governor's package on welfare reform included child care.  Mr. Griepentrog-Carlin said it was built into the jobs program.

 

Mr. Heller wondered if the administration considered "Fill the Gap" budgeting in the governor's welfare reform package.  Mr. Griepentrog-Carlin indicated due to budget constraints a better argument could be made for the expanded jobs program.  Mr. Heller inquired how passage of AB 276 would affect the governor's reform bill.  Mr. Griepentrog-Carlin reiterated in order to have a waiver approved the state would have to demonstrate cost neutrality.  There was no room in the budget to provide both programs.  Mr. Heller was concerned with why it was so difficult to determine costs.  Mr. Griepentrog-Carlin responded because there were so many different variables to be considered.

 

A discussion ensued between Mr. Williams and Mr. Griepentrog-Carlin regarding quality of jobs and generational issues.  Mr. Griepentrog-Carlin remarked in the out years there would be enough savings so next biennium both programs could be accomplished.

 

Mr. Sasser made some closing remarks in response to Mr. Griepentrog-Carlin's testimony.  Under various assumptions the cost could be reduced significantly.

 

Mrs. Evans indicated the committee would have an opportunity to vote on this bill in the near future.

 

There being no further business to come before committee, the meeting was adjourned at 3:45 p.m.

 

      RESPECTFULLY SUBMITTED:

 

 

                             

      CONNIE CAMPBELL

      Committee Secretary

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Assembly Committee on Health and Human Services

March 9, 1993

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