Economic Opportunity Poverty Reduction Task Force (09/04/2013)

Final
STAFF SUMMARY OF MEETING

ECONOMIC OPPORTUNITY POVERTY REDUCTION TASK FORCE

Date:	09/04/2013	ATTENDANCE

Time:	12:46 PM to 05:07 PM	Balmer	*
		Exum	X
Place:	SCR 356	Hudak	X
		Joshi	X
This Meeting was called to order by		Marble	X
	Senator Kefalas	Pettersen	X
		Saine	X
This Report was prepared by		Ulibarri	*
	Keshia Duncan	Fields	*
		Kefalas	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Breakout into Working Groups Presentation: PTC Rebate Audit Findings CDHS on Measuring Economic Well-Being Debriefing and Suggested Agenda Items for Future Update from Working Groups and Discussion		Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only -

12:47 PM -- Welcome and Working Group Breakout Session

Senator Kefalas, Chair, welcomed the task force members and stated that the working groups would break out into individual groups to discuss proposed legislation. He requested that the members return by 1:30 pm. The committee recessed.

01:36 PM -- Update from Working Groups and Discussion

Senator Kefalas called the meeting back to order. He explained the process and next steps for the working groups to propose legislation, and stated that the task force can suggest administrative or rule changes in addition to legislative changes. He went over the agenda and asked the working groups to provide an update on their progress.

01:39 PM

Senator Hudak provided an update on the Early Childhood Development and Education working group. She said that the group is focusing on two key areas. The first is to make changes to the state Child Care Tax Credit to streamline it to the federal tax credit. She explained that currently, if a person's income is too low to pay federal taxes, he or she will not qualify for the state tax credit. She explained that the working group is planning to propose legislation to separate the federal and state tax credits so that not qualifying for the federal tax credit does not preclude someone from qualifying for the state credit. The legislation will also increase the amount of the tax credit. Senator Hudak told the task force that the working group is also focusing on changes to the Child Care Assistance Program (CCAP). She explained that a number of people who would benefit from CCAP are not being reached, and that the program is under-funded due to program cuts. Senator Hudak said that the working group is focusing on legislation to ensure that all families with young children who are at 130 percent of poverty are able to be served by county CCAP programs.

01:46 PM

Senator Kefalas stated that he would like the state to be more active in allocating county CCAP dollars. Representative Saine provided an update on the Housing Continuum working group. She explained that the group is focusing on issues pertaining to manufactured homes, and that many people who own manufactured homes experience problems financing and refinancing their homes. She said that it is difficult for some people to sell their manufactured home, and that the group is working to identify possible solutions. Senator Ulibarri talked about the National Housing Fund. He explained that $17 million was temporarily invested in the fund, and stated that due to the recession funding to affordable home ownership programs was cut. He stated that Colorado is one of three states that does not have a long-term housing investment program. Senator Ulibarri talked about the tour the task force took of Warren Village, and commended its program model. He explained that Colorado is in a unique position because of restrictions placed by the Taxpayers Bill of Rights (TABOR), and because of this there are only a few housing investment fund models that would be aligned with TABOR restrictions. Representative Fields expressed her support for housing investment fund legislation because it would benefit people in her district. Senator Kefalas stated that he would also support a housing investment fund. He suggested making changes to the laws dealing with Community Development Financial Institutions (CDFI), as well as releasing Deeds of Trust in order to lower restrictions on local community reserve funds. Senator Kefalas talked about making changes to the Mobile Home Park Act to create opportunities for manufactured home owners to purchase the land on which their homes sit if the land owner chooses to sell it.

02:00 PM

Representative Fields updated the task force on the Workforce Readiness working group. She discussed a presentation the group heard from Barbara Kelley, Executive Director of Department of Regulatory Agencies (DORA), about the effects of regulations on small businesses. She stated that the group is interested in proposing legislation to reduce the "red tape" faced by small businesses, as well as legislation focused on funding adult education programs. She stated that Colorado is one of several states that does not provide adequate support for adult education. Senator Marble stated that it has been informative to hear from experts in the field, and talked about issues stemming from a lack of review by agencies on their overlapping, redundant, and conflicting rules. She said that this affects business owners and consumers because it leads to higher costs, and explained that the working group looked at states that have mandatory reviews of rules and regulations in hopes of adopting one of their models. Senator Marble said that the group discussed expanding technology and trade courses for middle school and high school students. Senator Ulibarri asked Senator Marble and Representative Fields to comment on ways the task force can reduce red tape for small businesses. Representative Fields responded that the group discussed reducing the number of applications that businesses must submit by replacing them with a universal application.

02:14 PM

Senator Balmer told the task force about the Career Ready Colorado Certificate which certifies a job seeker's skills and creates common, objective standards for employment readiness. He discussed issues with the current program, as well as the need to pass legislation to make the certificate easier to obtain. Representative Exum told the committee that there is a need for an alternative identification card for individuals who are unable to qualify for a state identification card for a variety of reasons. He explained that a person must show identification in order to receive certain benefits. There was no public testimony.

02:21 PM

Senator Kefalas asked if any of the working groups considered a recommendation to increase the Division of Housing budget line item from the current appropriation of $2.5 million. Senator Ulibarri responded that the Division of Housing has a limited role in housing investment which is why the idea of a housing investment fund was discussed as an alternative. The committee took a brief recess.

02:48 PM -- Presentation on PTC Rebate Audit Findings

The committee came back to order. Senator Kefalas asked Trey Stanley and James Taurman from the Office of the State Auditor (OSA) to come to the table and begin their presentation on the audit of the Property Tax/Rent/Heat (PTC) rebate program. Mr. Stanley distributed a copy of the audit (Attachment A) and explained that rebates are divided into two categories: rent and heat. He said that applicants can receive a rebate of up to $700 a year, but most receive less. He reviewed the qualifications and income eligibility requirements, and stated that the Taxpayer Services Division within the Department of Revenue (DOR) oversees the program. He said that the program is funded through General Fund dollars and is not limited by an appropriation, so as long as a person is eligible for the rebate there won't be a cap on the amount they receive. Mr. Stanley said that the objectives of the audit were: to ensure that only eligible applicants were being approved for the rebate; to determine if people were aware of the program; and to examine the efficiency and effectiveness of the program's administration. Senator Kefalas asked Mr. Stanley to discuss the reasons for the decrease the number of rebate recipients. Mr. Stanley stated that the audit did not show any specific reasons, but that program outreach could be responsible for the decrease in numbers. Senator Kefalas asked about eligibility income thresholds and Mr. Stanley answered that this was not within the scope of the audit.

13 EOPRTaskForce0904AttachA.pdf

02:59 PM

Mr. Taurman explained the DOR Gen Tax system in terms of processing and payments. Senator Kefalas asked how many applications were denied and how many were approved. Representative Fields asked about underpayments to recipients. Mr. Taurman answered that 45 percent of the recipients surveyed in the audit were not paid the correct amount. He said that when the audit findings were presented, DOR explained that the income thresholds change every year and were not updated in the Gen Tax system. He stated that the audit found that DOR does not have a process in place to notify recipients of payment errors. Senator Kefalas asked why DOR did not update the income thresholds prior to the application deadline. Mr. Taurman responded that DOR said the updates were not made in a timely fashion. Senator Kefalas asked why rebates are paid out in four installments. Mr. Taurman answered that state law requires the rebates to be paid in four installments because of supplemental income requirements.

03:10 PM

Mr. Taurman continued to tell the task force about the issues with the Gen Tax system and the verification process, as well as the relationship between DOR and the Colorado Department of Human Services (CDHS) in regards to the PTC rebate program. Mr. Tuarman told the committee that CDHS provides data from the Colorado Benefits Management System (CBMS) to DOR to input into Gen Tax for verification. Senator Ulibarri asked about the accuracy of the data and how it is determined that a person qualifies for the rebate due to a disability. Mr. Stanley responded that statute requires that someone already be receiving disability assistance in order to qualify for a PTC rebate. The task force discussed reasons why some applications for the rebate were denied and whether the reasons for denial were in line with statutory requirements.

03:18 PM

Mr. Taurman discussed the history of the PTC rebate program, and talked about the need to blend resources and improve program outreach. He stated that per statute, DOR is required to provide PTC rebate forms to the Public Employees' Retirement Association (PERA). The task force discussed ways to improve the program's outreach efforts and statutory changes needed to support improved outreach and cost efficiency. Senator Kefalas asked if the DOR website includes up-to-date information and is user-friendly. Mr. Taurman responded that the information is current but that the audit did not examine whether the website is user-friendly. Senator Kefalas wanted to know if DOR accepted OSA's recommendations pertaining to collaboration with other departments. The task force discussed transferring responsibility for the program from DOR to CDHS, and whether a hybrid model would be more efficient and cost effective.

03:33 PM

Mr. Stanley discussed the benefits of CDHS managing the rebate program since it already administers similar programs. Mr. Stanley continued to review the OSA recommendations, and explained that the Legislative Audit Committee requested that DOR and CDHS report back to the committee in December on their progress implementing the recommendations in the audit. Senator Kefalas thanked Mr. Stanley and Mr. Taurman and pointed out the statutory requirements that the departments have not followed in regards to the PTC rebate program. The task force discussed ways to recover the overpayments made to recipients and the need to continue evaluating the effectiveness of the rebate program.

The following people testified:

03:48 PM -- Herb Homan, representing the Colorado Senior Lobby, came to the table. He distributed a handout (Attachment B). He stated that his views are his own and not representative of the Senior Lobby. Mr. Homan told the committee about difficulties he's faced during retirement, especially since the benefits and income thresholds have not been adjusted for inflation since the 1990s. He talked about the work of the PTC coalition, and specific areas of the PTC rebate program that the OSA audit missed. He told the task force why CDHS should manage the program and discussed other ways to improve the program.

13 EOPRTaskForce0904AttachB.pdf

04:05 PM -- Eileen Doherty, representing the Colorado Gerontological Society, came to the table. She suggested auto-enrolling people into the rebate program who are already receiving other benefits. She talked about ways to improve the program and how to increase participation rates.

04:10 PM -- Pat Ratliff, representing Colorado Counties, Inc. (CCI), came to the table. She talked about the importance of the rebate program and stated that CCI should be involved in future discussions about how to improve the program.

04:12 PM -- Presentation on Measuring Economic Well-Being

Julie Kerksick, Deputy Executive Director of the Office of Economic Security, CDHS, introduced herself to the committee and provided a handout (Attachment C). She told the task force about the mission and purpose of the Office of Economic Security. Michael Martinez-Schiferl, Data and Evaluation Analyst, Work Support Strategies, CDHS, introduced himself and gave background information on the Work Support Strategies (WSS) initiative. Ms. Kerksick discussed the WSS initiative and noted that rising caseloads have led to problems administering benefits. She said that her office has made progress in administering food assistance and medical programs and benefits to those in need. She explained that Colorado has one of the lowest participation rates in WSS programs in the country, and that this might be because people are not aware of the program or don't think they are eligible. Senator Kefalas stated that he would like an evaluation of the effectiveness of the tools currently being used for outreach.

13 EOPRTaskForce0904AttachC.pdf

04:26 PM

Mr. Martinez-Schiferl told the task force about a survey of organizations done by CDHS examining different ways to measure economic well-being. He said that the survey posed the following questions: how is economic well-being defined; how is economic well-being measured in terms of data and tools used; and what is done with the data once it is collected. He reviewed the types of responses received, and talked about the child well-being index that is based off of U.S. Census data. Mr. Martinez-Schiferl stated that the information CDHS gathered on economic well-being indicators may assist the task force in developing an economic well-being index.

04:36 PM

The task force and presenters continued to discuss ways to measure economic well-being in terms of stability, highest-level of education, and whether basic needs are being met. Mr. Martinez-Schiferl noted that different organizations use different descriptors for the same kind of scale and this creates difficulty when trying to determine qualifying measures for economic well-being. He talked about the importance of uniformity and the ability to share information organization-wide, and explained the collaboration model used by Boulder County and local community organizations. Senator Marble asked if CDHS partners with faith-based groups. Ms. Kerksick stated that they do not at this time, but that they are open to it. Ms. Kerksick answered questions about the composition of the WSS board of directors. Representative Fields asked if any research has been done on how the program would benefit grandparents who are raising their grandchildren or adults who are taking care of aging parents. Ms. Kerksick stated that her office has not focused specifically on problems faced by these populations. Senator Kefalas asked Ms. Kerksick and Mr. Martinez-Schiferl if either of them read the Legislative Council Staff memo on steps to creating an economic well-being index and opened the floor to public comment.

04:54 PM -- Debriefing and Suggested Agenda Items for Future

Senator Kefalas asked each task force member to talk about what he or she learned from the day's meeting and what he or she would like to see included on the agenda for the next meeting. Senator Ulibarri stated the there is a lot more work for the task force to accomplish and that he is unsure where to begin focusing in order to be the most effective. Senator Hudak stated that she was impressed by the level of collaboration by different departments on the issues discussed, and asked what could be done to help fund adult literacy programs. Representative Fields thanked Senator Kefalas for his work on the task force, and stated that she was surprised by how much still needs to be accomplished, especially in regards to adult education. Senator Marble stated that there is a lot of overlap between working groups and talked about the need to identify what gaps have already been filled. Senator Kefalas thanked the task force members for their hard work and said that he recognizes that the work load of the task force is heavy. He explained that at the next meeting on September 18th the task force will focus on recommendations from the working groups that could lead to proposals for specific legislation. He said there will also be a panel discussion on the PTC rebate program. Senator Hudak asked for clarification on the process for proposing and drafting bills. Senator Kefalas responded that bill drafters from the Office of Legislative Legal Services (OLLS) will attend the next meeting and that bill drafts will be voted on at the final meeting of the task force.

05:07 PM

The committee adjourned.