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House | February 19, 2013 | Committee Room | Health Appropriations

Full MP3 Audio File

Good morning. We’ll call our meeting to order. First we’ll recognize the pages. Representing the Senate, Caine Brown, sponsored by Senator Meredith. Libby Dalton, sponsored by Senator Jackson. The House pages we have Justin Smith, Ardale County, Brawley; William Jenkins, Mecklenburg, Schaffer; Daniel Keith, Wake County, Murry; Erin McDonald, Mecklenburg, Alexander; and Melissa Pulley, Nash County, sponsored by Representative Richardson. Are Sergeant at Arms are Priat Heinz from the House, and Charles Goodwin. From the Senate is Leslie Wright and Steve Wilson. If you’re looking at your agenda you’ll see we have a lot of speakers today. If we would, write down your questions or hold your questions ‘til the end of the presentation. At this time, I’ll call on Mr. Allen Briggs. Allen. If you will hold on a minute...Sorry about that. It’s still early. Donny Charleston. Donny was all ready to go and he couldn’t hardly wait. Sorry about that. [SPEAKER CHANGES] Thank you, Mr. Chair and good morning members of the committee. Today my comments refer to the presentation you’ll be hearing throughout the week on non-profits that received ?? from the Department of Health and Human Services. Today you’ll primarily be hearing presentations from North Carolina food banks. In your packets you have a handout that’s approximately three pages long. The front page is title the Joint Conference Committee Report. This handout is essentially an excerpt from two different documents, one being the Joint Conference Committee Report and the second being an actual excerpt from the 2012 Appropriations Act. If you look at page two of that document, it lists the 18 agencies that are identified of being recipients of appropriations through special provisions. These are agencies that received funding as past...i’m sorry, received pass through funding through the Department of Health and Human Services and does not include all agencies that DHHS has a relationship with. It only includes agencies that have or received funding as a function of special provisions that were inserted in the budget at some point in time. AS you can see, the total amount these agencies received in totals about $9.1 million. If you turn to the next page of that handout, it actually show the actual special provisions from last year’s 2012 Appropriations Act. Section 10.19A, the purpose of the special provision was to move these appropriations from the recurring budget to the non recurring budget in an effort to ensure annual review of these special appropriations by the General Assembly. Additionally, the special provision requires a 10% by these entities to the state funding they receive and require annual reporting on those funds to the General Assembly. You have those reports in your binders and they should follow this handout. Those reports include information about the mission of these entities, the services they provide, the outcome measures, budget information and the description of the 10% match for the state funds that they receive. As I indicated earlier, today you’ll be hearing from the North Carolina food banks regarding the funding that they receive as pass through through the Department of Health and Human Services. Mr. Chairman, that concludes my remarks. [SPEAKER CHANGES] Thank you, Donny. Now we’re ready for Allen Briggs.

The latest chairman of the chairs are so the committee that researches a candidate to be with you this morning indescribable more about the work we do have an answer questions you may have reports from each of the individual roommates and provide a two year, all old file oranges of all special mission last fall in a timely fashion so you can have those materials in front of you and you will hear from your individual Food Banks to what it does take a few minutes this morning after discussions with staffing from chairs, briefly about what Food Banks or why we exist and how we operate we can do that really without talking about the need more than 1.8000000, 1 acres across North Carolina with the food insecurity a lack of continuous access to basic food required from the likes sadly we always enjoy a weary of basketball team for a combination but those figures published last few years generally among the top 10 states a percentage of our population experiencing for insecurity particular sadly we Larkin virtual tie with state and we see a history of the largest population of children under the age of five in the U.S. missile from we'll know that the recession is normal North Carolina we continue to have my highest unemployment rates in the country approximately 870,000 different people in North Carolina receive emergency food assistance in any given week that's more than the entire in one of the 16 constituent universities are the university system of North Carolina defense is still growing and donations while going for not keeping up the pace with demand for services and preferred a storm how we operate you got quite a mouthful may not realize with North Carolina Association of feeding American Food Banks when it is important to note that all of our members were receiving funds for members of the American and America is the nation's largest domestic underwear release charity with over 200 members being American Food Banks feet over 37,000,000 Americans really half of them were seniors and children is network provides fresh citrus fruit, Americans like safe and nurturing places for children have a meal the merge into systems to disaster victims and limited or no here because troubles may we all are part of the disaster response in this country when you hear about the red cross and salvation army being a slight broadsword food and water or big part of the supplies they are using comfort Food Banks are network so heavily involved in the disaster response we were just a tremendous patience storms and share collaboratively throughout the nation and all come back to that because these are banks share collaborating collaboratively in North Carolina as well as national level few more cooperates to working with major corporate manufacturers and retailers and government commodities suppliers that's just for deduction for our country including a member Food Banks will not leading business partners international level Wal-Mart ConAgra General Mills Kellogg’s corn are single and many many others source of danger we start listing friends to be one out of Whittier flavor attacks four we received a state level we pursue sport also from Wal-Mart Dubai and blue spruce tears to your older CDs many many of our merchants across the state retailers as well as native American others provide funding for special efforts as much as 70% of all the food and we distribute is donated by these businesses merchants and farmers we also secure food and individual donations and for draws we depend on that network of donations to provide the bulk of the food in our Food Supply but it does not always reflect the types of quality of the food would like to be able to distribute these businesses and individual and other sources of financial support include state funds and we're officially appreciate your call the state funding because that gives us an opportunity to purchase additional items are in short. supply to choose quality protein or fresh produce which were not receiving awards that in your material from apples to ............

North Carolina not going to be helpful if you look into materials that shows the territories and a member object to members of the association of Food Banks and then during the fiscal year 2011 & 12 North Carolina is the American Food Banks distributed more than 133,000,000 pounds of nutritious food and other Christian clubs equivalent of nearly 911,000,000 meals that banks provide this valuable community service to our network which surged almost 1.6 million north Carolinians in every county in the state we have a network of over 2700 agency partners throughout the state in the sense if your vision us were more like a wholesaler and looking a business model where the Sam's club and Costco we're gonna make sense to you when receiving food from these various sources and they believed by the city out that your local communities to large network of faith based nonprofit orders the soup kitchens and shelters are dead trees are a burden to shelters and so forth all aware that food is distributed in your community max or the product response to homer we're valuable businesses in our local communities collectively our members employ over 300 employees around the state we maintain large fleets of vehicles warehouses we do have the infrastructure is already in place thanks for their efforts and support from our local businesses and communities where most important facets of my work is if we utilized volunteers officially singing group you'll ever see last year we had over 66,000 north Carolinian volunteer our Food Banks but contributed nearly 370,000 hours of volunteer time to support our work to schools from across the state cleans out some like the school's science and math and German soldiers or leg as relationship with Arthur bank in Fayetteville businesses that the system, Springer management teams in the volunteer to Food Banks have led collaborative effort shared activity and get to know each other better churches all across the state we couldn't survive without getting the ball and cheers becoming just not initiate slides and source you can imagine the promise that uttered generously introduced the motion, money at a different set of the year in your state funding leverage those that support and maybe the best example of public private partnerships you'll see our banks use the spider race but small that cares to get the food purchased the state funds are approaching the is that work of corporate partners donors and volunteers breaks from banks extremely efficient approximately 95¢ of every dollar that comes into the bank is correctly including final table for those of our neighbors should be a quick history of state funding and 2011 & 12 fiscal year that also only appropriate in $5.77 million to the states Food Banks with reports of last year and 2012 & 13 backdrop to three million attendance purchased with funds provided courts and legislatures Credit Wire Food Banks will send four we rely on donated food that comes in many shapes and forms may not always be what we're lacking an individual food and we can only scalpel most basic staples to those donations in particular that state funding allows us to buy really valuable products such as high quality protein and fresh produce which are usually order to get in more expensive the benefits are many full of feeding are malnourished children are you sure they come to school they learn and make good use of tax dollars go to the education writers and meals to seniors reduces health problems for them investment means lower healthcare costs are estimates state funding is just one part of the funding stream for fruit ranch but effectively leverage as corporate and private funds increase our capacity and efficiency we politely were providing excellent return on your investment and we are very grateful for your help….

[Speaker changes.]...with that, Mister Chairman, I would recognize Peter ???????, the CEO and President of the Food Bank of central and eastern North Carolina. We may need a little technical help here. Peter has a brief video to give you a look inside of a food bank. [Speaker changes.] Thank you, Alan. [Speaker changes.] Good mornin'...my name is Peter ???????, I'm President and CEO of the Food Bank of central and eastern North Carolina. Actually alongside me is board member, Barbara Morales-Burke?????, Vice President of Health Policy and Chief Compliance Officer with Blue Cross/Blue Shield North Carolina...who will be making some remarks later. I'd like to thank the committee for this opportunity for myself and my colleagues to share our work. The majority of my presentation actually will be in the form of a video, which I'd like to show shortly. Before doing so, I'd like to perhaps provide what I think would best describe the value of the monies from the state through one of the partner agencies, a member agency...a quote that I received from them. Chatham Outreach Alliance, a food pantry in Chatham County has seen a dramatic increase in the number of families needing our services. "The food that we receive through the state has been a tremendous help to us. We are always looking for ways to stretch our resources and donor's dollars. The food received from this program allows us to concentrate our funds elsewhere. A cut in this program would cause us to look at cutting back not only the choices we provide but the amount of food we can distribute. This, in turn, would hurt the nutritional needs of our families, especially the children and elderly...46% of our client load." That's sort of perhaps a typical story of one of our partner agencies for our colleagues here in terms of again the value of the monies provided by the state. The video I'm about to show highlights the work of The Food Bank of Central and Eastern North Carolina and our operations in the 34 counties that we service; however, we believe that it's fairly transferable to a number of the food banks in the state and perhaps will give you an opportunity...a sense and feel and visual of what goes on daily at our facilities and certainly if you have not visited one of our facilities, we'd gladly like to host you and encourage you to come along to see our work. With that, I'd like to show the video. (INAUDIBLE.) AUDIO STOPS around 3:17

Peter, if you don't mind, we need to move to the next until we get our audio straightened out. At this time, Food Bank of Albemarle, Liz [??]. Turn your mic on, Liz. [SPEAKER CHANGES] There we go. I brought some of the examples of the products that our food banks use your state appropriation funds for that help augment the diets of the hungry people that we serve each and every day. Something that is tangible for them because, without this food, they would have to skip more meals than they're already sacrificing and for the Food Bank of the Albemarle these resources would have to be made up elsewhere as with our peers. But how do you make up a million meals just for 15 counties in Northeastern North Carolina? We're constantly looking at the resources that we have and looking to identify new resources to replace existing opportunities because there are more people to feed on a daily basis than we have the resources to meet. So when we look at this funding, we look at it as helping us maintain the resources that we can continue to provide the most basic form of food to bridge the gap for the people that seek assistance. In our region, we serve over 61,000 food insecure people, and that represents, 33% of the people who seek assistance from our food bank and our partner agencies are children under the age of five, 8% of those are seniors over the age of 65, and 44% of the people who are seeking assistance from a poverty relief partner and the Food Bank of the Albemarle are actually working poor. They're not making enough money to pay the bills and buy groceries consistently to put on the table. Putting gas in the car to go to work is becoming more and more of a struggle for folks. So how do they balance, when their income is not increasing and keeping pace with the need to provide groceries? They, in turn, will go to lesser, unhealthy choices in order to maintain a full belly when their dollars have to stretch as far as they can. Your dollars enable the food bank to be able to augment those diets with healthy, nutritious food so that they have a choice and can provide balanced, nutritional food for their families. We're not using your funds to provide candy. We're not using your funds to provide soda-pop. We are providing resources in a nutritional balanced diet, trying to address the issues of hunger as well as nutritional health. We partner with many, we have many collaborations outside of the State Association. We work with community partners such as Cooperative Extension Service, we work with our local health departments to provide screening and opportunities to educate the clientele that are coming in to help them gain access to federal programs, educate them about food stamps and WICK and other resources that might benefit their family and help lift them up and help them survive and thrive. With your resources, we help bridge the gap of those missing meals. So as I look to you and I look to our sister food banks, your one piece of the pie for us. We look to the private sector for contributions, we look

And the donors to corporations in our communities weeks and marketing for North Carolina (with our region we have a lot of agriculture which is then passed a null our fresh fruits and vegetables when this season come around but this helps us all and then when this pressure to produce items were not available and can provide them with provide resources to the households are growing in systems are rats this support is essential to be able to provide those meals and our food bank would be hard pressed to make up a million meals going forward if we work could not have the funding available testaments to be speaking for either students from state as well and they can apply where we would make at this funding, to provide is necessary to sell without being said I'll turn the microphone over to see from hell that edge executive director of the Maffei bank of anchorage, Thank you (SPEAKER CHANGES) AK the six areas of the committee readiness in the top job at executive director of manna food bank we're serving the 16 counties in Western North Carolina savior to ensure that that does them and read Michael and all counties on the eastern border a way out to cheer TM grant earning less when of our unique sound is eating guesstimate is described as their entire service area is made up of the mountains and ISS challenges for a number of reasons and Jensen ridge estates in providing good people and sandbags and somewhat remote communities are from a distance from a grocery store and are accessed coffee and we also have a talented as an ally of food manufacturers are large corporations left in Western North Carolina which provides a CD turns into something the thing that we need to be able to distribute people in the Exxon and 55-agencies as my colleagues and describes those are the majority of surfing based organizations are buying stock and trees and 6000 francs in the most efficient way into doubt to people dislike it sound as we are able to deliver 11,000,000 pounds of food in the past year out into our service area that was able to be provided to over-6000 different individuals 33,000 of them were children under the age of five a state funding the fact that we're able to purchase about finding accounts for only 10% of the food industry as Alan said 70% of the disputed a stunning and but it's a critique of 10% but the larger than a small business for example a snob convenience stores -2 storage and tackles at the login ID, the delays in object was honored in Oregon and even stand and deliver purchase order inside of the wedding chapels at the fed bank and reopen at the door and they come from a retail store and a tiny open that door its surprise let's imagine a dress and not only are very appreciative of that it's finally unpredictable and you can imagine trying to run an efficient business without sort of model attend the senate today were able to practice using the state finds allows us to supplement that supplies with the food and it is not and we really need to be able to deliver to its critical tax but public private partnership that Allen mentioned this to sell to what we're able to do you are able to leverage support from corporations and individual people were willing to buy a carton dollars from the volunteers and less in North Carolina as I said we don't have a lot of food manufacturers that an example of firefighting are instead is Apple's me about all season, is the six largest apple grower in the country and we have a member of our board AM to 68 or how to lead to a man and not just apples that on the ground in fireworks. We're able to send hundreds of volunteers into the fields to harvest as apples and again over 100,000 pounds of apples onto the people in Western North Carolina we also are fortunate to have the most markets and are sincere in their headquarters is in black man LS surrender reclaim center which allows us to run again captured a million pounds of food and other ways to find ways to we are able to leverage a lot of support last Saturday morning I was standing right here in the price club will center which is one of our partner agencies and representative at the state……

Joe Sam Queen was there to make a visit. I want to take a side bar just to say if you haven't had an opportunity to visit either your food bank or one of the pantries that's in your area, please do so. We would be happy to help arrange that visit for you. It is incredibly inspirational for two reasons. One is to watch the people who are walking through those doors and knowing that they're doing so with having to—as we call the mountain pride—having to put it aside to realize that if you need the help you need to go forward to get it for the sake of your family. And the other, again, is to see the incredible volunteer effort that goes into helping their neighbors. The numbers that we're giving you today only tell part of the story. I wanna tell you a short story about a pantry director who was sitting in her office one day, and she was looking out the window, and she noticed a man pull into the parking lot. He parked his car, got out, walked partway up to the door, hesitated, turned back, went back and sat in his car. He did that twice. So she finally got up from her desk and she went out into the parking lot and she said, "Sir, is there something I can do to help you?" The man broke down into tears and he said, "I used to walk through those doors as a volunteer and as a donor. Four months ago, I lost my job. I've run through my entire savings. I just paid my mortgage, so I won't lose my home, and I have no money left to put food on the table for my kids. Walking through those doors to ask you for help is the hardest thing I've ever had to do in my life." Those are the kind of people that are depending on us, people who, when they're back on their feet, will walk through those doors again as a volunteer and as a donor. But right now, until this economy improves, they're depending on us. We have a responsibility to them. We are appreciative that the state legislature has been our partner alongside us. That ten percent that you provide to us through those funds leverages 70% of the donations that we receive. So, thank you very much for partnering with us and we hope we can count on you to continue to do so. Thank you for the opportunity to speak today. That concludes my remarks, Mr. Chair. [SPEAKER CHANGES] Thank you [INAUDIBLE] Today [INAUDIBLE] [SPEAKER CHANGES] Good morning everybody and thank you very much for the opportunity to be here today. Second Harvest Food Bank in Charlotte serves 19 counties, 14 of which are located in North Carolina. To be sure I don't miss any of them, I've listed them, so bear with me, but we have Anson, Burke, Cabarrus, Catawba, Cleveland, Gaston, the southern part of Ardale, Lincoln, Mecklenburg, , Montgomery, Rowan, Rutherford, Stanley and Union. And then we also have five counties in South Carolina. Within our service territory last year, we distributed over 38 million pounds of food and other essential household items. Almost 30 million of those pounds were in North Carolina. The state funds that you all provided to us are very, very important because they're used to purchase highly nutritious foods that are not always donated in the quantities we need to meet all of the needs of our region. This past year, with your help in our service territory, we were able to purchase 1.2 million pounds of nutritious food, and we are very, very grateful for that. Within our 14-county region in North Carolina, we have almost 378,000 people living at or below the poverty level. The saddest part of that for me every day, day in and day out, is that number includes over 132,000 children and almost 28,000 seniors. So, we have set about at Second Harvest making our primary goals to end child and senior hunger in our region. We have a number of counties with extremely high child poverty rates, including Anson, Cleveland, Montgomery and Rutherford, where one in three children live in poverty, and Gaston, Rowan and Burke, where one in four children live in poverty. A number of our counties also have very high senior poverty rates as well, with Anson, Cleveland and Montgomery posting the highest rates. Our programs at Second Harvest focus strongly on these areas and include the following: Agency shopping - our agencies can come to any of our five branches that are scattered throughout our service territory once a week to acquire food. Our branches in North Carolina include our main branch in Charlotte. We also have satellites in Catawba County, Gaston County and Montgomery County. One thing that I think is kind of important and interesting about our branches is that they're all in

?? spice, Kataba in Gaston exists through private donor sponsorship through Food Lion, and the Alex Lee company, which is the parent company for MDI and Lowe's Foods. We currently serve 550 partner agencies, including pantries, soup kitchens, homeless shelters and so on. Of our 560, 60% are faith based. We are heavily dependent on our faith based communities, predominantly for our emergency pantries. Our child hunger programs include 102 backpack programs, 72 of which are located in North Carolina. These backpacks represent a life-line for children going home on the weekends who don't have enough food to eat, and their school meals are suddenly no longer available. We also have 42 kids cafe sites, which are meal sites, 36 of which are located in North Carolina. Like the backpack program, these sites are providing nutritious meals and snacks to children that are at risk of hunger. Almost all of our backpack programs and kids cafe sites are sponsored by corporate partners in our region. These include Morgan Stanley, Bank of America, American Tar, US Airways, The Carolina Panthers, and I could go on and on. One of the most unique partnerships we have with our backpack program is through Carolina's health care system. Every week Carolina's health care system starts an average of 75 new employees to work. And they decided recently that at their new employee orientation they were going to pack 200 backpacks every week for our food night. And we're using that now as a model to look out to other corporations and say, "Couldn't you do something similar?" We also have our second helping program, which is much like the backpack program but designed to serve seniors. We also have mobile pantry programs that take food directly to rural areas where the poverty rates are very high, resources are very low. Our corporate sponsors for that program include the Charlotte Bobcats - who last year purchased a new mobile pantry truck and 150,000 pounds of food - as well as Target and Walmart. Our philosophy at Second Harvest is to be the best community resource we can possibly be. To do that we feel like we have to place a very high emphasis on efficiency measures, and we operate our food bank on a business mode. While we definitely serve people from our hearts, we also believe our donors deserve to know that the money they donate is being used efficiently and for it's intended purpose. We strive to be the best possible stewards of the funds that companies and people entrust to us. We think the reason that we have such a high level of corporate support is because we represent an excellent return on the investments made in our food bank. I'm proud to say that our food bank in Charlotte is one of the most efficient in the 200 food bank network called Feeding America. According to the last network activity report we had the lowest cost per pound distributed of all 24 large food banks, and we're the 9th lowest of over 200 food banks. We have a very small staff, and that makes us highly dependent on volunteers. We welcome 31,000 volunteers last year - who provided over 90,000 hours of free labor - which more than doubled our existing staff. We also place a high value on donor service. Our top priority - because we are so dependent on food donation - is to ensure premium service to our donors. Finally, we believe strongly in supporting business in our service territory and within the state of North Carolina. In 2012 we spent $4.2 million with North Carolina businesses. So thank you from the bottom of our hearts for everything you do. Thank you for every hungry child and every hungry senior you help us feed, and we certainly hope you'll considering funding us again this year. [SPEAKER CHANGES] Thank you Kay, and now we hear from Clyde Fitzgerald, Northwest part of the state. [SPEAKER CHANGES] Thank you, Mr. Chairman, members of the committee. It's a privilege to be here to speak to you today. I represent Second Harvest Food Bank of Northwest North Carolina based in Winston-Salem. My name is Clyde Fitzgerald and I'm the executive director. Hunger is a very serious, very pervasive, and unfortunately growing problem in our part of the state.

Our mission, like that of my colleagues across the state, is to bring hope to those who have none, food to those who have too little, and the certain knowledge that someone really cares to untold hundreds of thousands of our fellow northwest North Carolinians and North Carolinians that struggle every day for the basics inf life. And I believe that on this Earth there is nothing more basic than the need for nutritious food. We're gratefeul for the state funding that allows us to leverage, as you've heard from my other colleagues, the donations of both food and money that we get from a variety of sources -- the corporate world, foundations, civic clubs, individuals, the faith community. We enjoy a very good public/private partnership. We're proud to partner with the state of North Carolina to bring food assistance to our neighbors in this state that are in dire need of it. With the funding that we received in our food bank, we have been able to last year to purchase and distribute over 1.7 million pounds of food. That's nearly 1.5 million meals to those in need in our area. Over the last three to four years, a period of tough economic times in our region, the need for food assistance across all of our eighteen counties is a hundred percent plus. Very very strong. The driving force in that is chronically high levels of unemployment and very significant of under-employment, uh, that take folks that during this period of time that used to be our donors, that used to be able to take care of their family, their children that now, through no fault of their own in most cases, find themselves without a job, lacking the financial resources for even the basics in life. And so they turn to us and our partner-agency network. In northwest North Carolina we have about 300 partner agencies, all 501(c)3 like we are, that operate over 400 programs that provide food assistance to those in need. The numbers of people that we serve during this period of time has increased from about 135,000 people today over 300,000 people, and sadly 100,000 of those we're serving are children. Now we don't that anyone should be hungry in this state. We certainly don't believe that a child should be hungry. But we appreciate the partnership that we enjoy with the state of North Carolina, uh, collectively and from our food bank especially for what we're able to do. The amount of food that we have obtained with your funding equates to about 8 percent of our total distribution, but as you've heard from my colleagues, the percentage of that distribution is vitally important because of the high quality, highly nutritious of the food that we're able selectively purchase to add to all of the food that comes from a variety of sources that's donated to us. The types of programs that we operate in this regard focus, as you've heard from many of my colleagues, on childhood hunger and senior hunger. And of course there's folks of all ages in between that find themselves in great need. In just the last three years, we've doubled the number of our Kids' Cafes programs in Winston-Salem, Greensborough and High Point. We have dramatically expanded our backpack program, which my colleagues have explained what that is. We've gone from seven programs three years ago to having 76 in operation today, and next month we will have 80 such programs across the 18 counties that we service, and our counties go from Caswell and Alamance to our east all the way through Wautauga to our west, over 8,500 square miles of territory that we cover. Winston-Salem and its, and Greensborough and the metropolitan area, which many people say well, surely you don't have a problem there, it must be in some rural county. Well, one out of every six people in Forsyth county and one out of every six people and Guilford county need food assistance every week. And in other counties that we service, that gets even worse, a very severe problem. And we're on the front lines, and we're partnering with you in being on the front lines [CUTS OFF]

providing food assistance to those who so desparately need it. We provide mobile pantry distributions of high quality food and fresh produce in all 18 of our counties, and we are very actrive in summer feeding programs for children. This past summer we identified through our partners and provided food to over 19,000 childrean that would have otherwise fallen through the cracks during the summer that did not have access to food assistance programs through the various counties. That's on top of all the children we serve every day through our core food distribution program. We have unfortunately some statistics in our area that as Allan spoke to in his opening comments, are not on the right end of the stick where we'd like to be. Being number 1 in basketball is a good thing, but being number one on the worst end of having the highest percentage of households with children that are suffering from hunger in your back yard is not a good thing and we're doing everything we can to change that picture with the programs that we putin place. Certainly using the food that we obtained through the state appropriation. Those kind of things are extremely important to us. Many times think that well there are food stamp programs and other things, free and reduced price meals in schools and surely that takes care of this need. Well it tkaes care of some of that need, but certainly not all of that need. And another statistic I'd like to bring to your attention is that in our service area of our 18 counties, 35% of all of the people who need food assistance make just a little too much money to qualify for a government assitance program. They don't qualify for food stamps. They don't qualify for the free and reduced meals in the schools for their children. So charitable sources like Second Harvest food bank, and our partner agencies and my colleagues across the state are the only hope for people that are in that type of need. And that's why we're there to serve them, and to try to bring some relief til they get back on their feet. I always like to talk about the face of hunger. It's the 82 year old widow that called me one day and said I'm in need, I saw you on television, found your name and can you help me? And I said I'd like to, please tell me your problem. And she said I'm an 82 year old widow, I live in a very small apartment, social security is all that I have. The last week of every month, I have to eat my dog's food until my next check comes. Can you help me? I said Yes ma'am, and that very day we had one of our partner agencies deliver food to that lady, and she shared some with her friends in the same situation. That's part of the face of hunger that we don't hear about. We see many children every week that will look me in the eye and tell me they're not having a bad day because it's not their day to eat. No child should ever have to say It's not their day to eat. I think of recently a 9 year old child. I have grandchildren older than that, that said that his mother and father both work, he has a brother and sister so there's 5 of them in the household, but they don't have enough money to have food and so they take turns eating and that's another face of hunger. So we're deeply grateful for what you do for us, we thank you very much for that, we are good stewards of your investment. 92% of all the revenues we get go to our programs, less than 4% to admin and fundraising and we're very grateful for that support, I hope you will continue to partner with the state's food banks to bring food relief to those in our state. Mr. Chairman, that concludes my comment. [SPEAKER CHANGES] Thank you Clyde, and now from the Southeast, David Griffin. ?? [SPEAKER CHANGES] Good morning. Mr. Chairman, co-chair, committee members. My name is Ron Pringle, and I'm from the Second Harvest food bank from Southeast North Carolina. My director sends his regards, he is home with a illness this morning, but felt very- that it was an urgent matter that we were represented here this morning. Because we are grateful for your friendship

[SPEAKER CHANGES]: A partnership and your assistance and helping us to ?? in South and in North Carolina. My colleagues got up this morning and they all spoke very eloquently on and they put out a whole list of statistics where that I can let of to you now. I can continue to tell you that we serve over a 102,000 families each and every month. I can go on to tell you that in our South East and South East, North Carolina there are over 127,000 children who suffer, who are on at risk and a on free and we do select. [SPEAKER CHANGES]: Representative ?? I can also tell you in Blaine County alone 79% of those children are on free ?? lunch, but I think both of us will also tell you and also my colleagues that one child go on hungry it's one to men and that's why each of us are in this for long hour. This is why we are here asking for your assistance once again because we understand that it's not always about big government, but it's about communities helping communities. This is how we end hunger. Each of our programs with the help of your funding, we are able to build unique programs within communities specifically for that particular community. Understanding this is not a copy right solution to any community, but we are able to take food with our mobile pantry program into food desserts that there are no grocery stores, that individuals cannot get to the inter cities were able to establish ?? programs, and ensure that a child has a healthy nutritious food that they can access themselves over the course of a weekend, so that way they show up to work to school on Monday morning ready to learn. That's what your assistance does, and one child having to show up to school on Monday morning and we label a trouble maker are always in the Principal office because they are labelled unruly just because they had no food all weekend it's one too many. My point here to date is to let you know that the program works. Your assistance is needed because the program works. Had it not been for a program such as an after school kids cafe program, had it not been for a ?? pack program, then I would not be able to stand before a group of you today and representing those, some of those children that you would never meet, but I can go back to them and tell them that they have your support. I can go back and let them know that they are not in this fight alone. I found myself as a young child, my mother passed away at a very young age, and when she passed away my father had 4 kids and no job after 17 years with one company, found himself with no job. But luckily, I had a grandmother who knew of the food bank, and she was able to go to the food bank and provide food, help my father provide food for his 4 children and for that reason alone I never knew what hunger was, because I always had food on the table. But I talked to one of our children now in our ?? program or in our after school kids cafe program, and you ask them what would you do if I were to give you million dollars, and the first thing out of their mouth is, I would buy a grocery store or I would buy some food, and so think, the first thing from most of mouths would be to buy something that we could not ordinarily afford ourselves. This is their reality. Food is one thing that bring us around the table, food is one thing that we come together around the table, families are able to sit, talk about their day, talk about home work, talk about hopes, talk about drinks, talk about opportunities, but without this basic product something as simple as rice these individuals or at least families have no need to come around the table. Well that sound to look like, It looks just like you, and it looks just like me. Individual societies in board room last year made the tough decisions are now finding themselves ?? to our doors, who had the downs as their homes, who have lost their homes still ?? same fancy corridor they can't get out of hoping that not one comes to take it, puling open our drab ways asking how can they benefit from our services.

That’s the reality of what we see each and every day. But we are grateful for you, we are grateful for your commitment, your friendship and your continued support. Thank you so very much. [SPEAKER CHANGES] Thank you, sir. Now, Peter, I think we might have you ?? [SPEAKER CHANGES] We are the food bank of Central and Eastern North Carolina, a non-profit hunger relief organization that has provided food in 34 counties for over 30 years. Sadly, hunger remains a serious problem in North Carolina. There are over 560,000 in these 34 counties who live at or below the poverty line. But even more who are at risk for hunger. Who are these people? It’s not just the homeless. Some are the unemployed or underemployed. [SPEAKER CHANGES] Many of those that we serve are working families. People whose income runs out by the end of the month and they find themselves in an emergency situation without food. [SPEAKER CHANGES] Well, I am hungry. This is my first meal of the day. Hopefully I’ll get to eat again later this evening. [SPEAKER CHANGES] Additionally, within those families, we are looking at ⅓ being children. Statistics tell the story. The most vulnerable populations in our 34 counties are seniors and children. We supply more than 150,000 pounds of food every day through our six locations in Durham, Greenville, New Bern, Raleigh, Sandhills, and Wilmington. But we don’t do it alone, we service a network of more than 800 non-profit partner organizations. These community based emergency feeding programs are soup kitchens, food pantries, rescue missions, shelters, group homes, senior and child nutrition programs. [SPEAKER CHANGES] Almost 200,000 that we serve are children who are living in poverty with their parents or their single mother. This makes up for the largest demographic of those that we serve. [SPEAKER CHANGES] We specifically address childhood hunger with special programs. Kids Cafe is our after school program. The weekend power pack program sends kids home with backpacks filled with nutritious food. And our kids summer meals provides breakfast and lunch during the summer months. The dry goods, fresh produce, dairy and meats we distribute come from many sources. They come from food drives, retailers, wholesalers and local farmers. Our fleet of food bank trucks drives more than a half million miles a year to distribute much of this donated food to our regional branches to select food for their programs. They collect food based on their needs and availability in our warehouses. [SPEAKER CHANGES] What I’m looking for in here is for things for our soup, hot dogs, hamburgers, anything that we can serve 375 people a day. [SPEAKER CHANGES] Now that you know how great the need, you can help the food bank operations in three ways. [SPEAKER CHANGES] The most important thing you can do is donate money. For every dollar you give us, we can turn it into five meals, or ten dollars worth of food. We are proud to be an efficient organization where 97% of every dollar donated goes out to the community in food to feed our hungry neighbors. [SPEAKER CHANGES] Second, you can donate time as a volunteer. [SPEAKER CHANGES] You come to volunteer, that means you’re giving your time, energy, and effort to help somebody who is struggling during hard times. It’s important if everybody does a little bit then it makes a huge impact, especially for the food bank because they need so many resources.

?? do it without helping other volunteers. Ultimately you get the satisfaction of knowing that your impact whether its sorting potatoes or donating food or sorting food drive food ultimately goes to help someone else who's having hard times for whatever reason, and you may have fed a child today, you may have fed a senior citizen, and ultimately your helping somebody else. [SPEAKER CHANGES] And third you can donate food by starting a food drive. [SPEAKER CHANGES] We work really hard every year to get as much food as we possibly can for the food drive we get really exited for just raising food for people its such a good cause its really easy to just get your whole school involved, and get a lot of pounds that way. [SPEAKER CHANGES] The food bank is supported by the community for the community. We greatly appreciate your support. We greatly need your support. [SPEAKER CHANGES] Because of the food bank you know we're able to feed all these people and if wasn't for then you know we wouldn't be able to feed them this is so important to so many people that its not a resource its a life source. [SPEAKER CHANGES] Thank you very much ?? hopefully that gave you some perspective of ?? [SPEAKER CHANGES] Good morning my name is Barbara Moralis Bertka and I work for Blue Cross Blue Shield North Carolina and I'm on the board of the food bank in Central and Eastern North Carolina. Blue Cross is a long time supporter of the food bank of central and eastern North Carolina, and we share the organizations commitment to serving the communities of our state. We're proud to be counted as a friend of the food bank our employees enthusiastically participate in the annual food drive that we hold every year to benefit the 34 counties that our food bank serves, and they participate in other food bank related events that we sponsor. We believe that reducing hunger makes our state a better place to live and work, and maintaining a healthy population is one key to making healthcare better for North Carolina. The food bank is a great investment of our corporate community investment dollars for several reasons including the focus on getting nutritional food to the people who are served by the food bank, the fact that it partners with many agencies and programs to distribute food at the community level, the fact that it fills in the gaps when peoples incomes fall short or when other kinds of assistance have been exhausted, and finally the relationships it has with local food producers, and retailers. All of these factors motivate me personally as a board member, and make me very proud to be affiliated with that organization. Hunger is a tragedy that is entirely preventable. Beyond the charitable motives for feeding the hungry it's a true statement that the businesses of North Carolina, the not for profit agencies, the governmental agencies, their fortunes are really tide to having a healthy vibrant population in our state. During this period of slow economic recovery theirs so many North Carolinians who are on the bubble, and I think that everyone deserves a fair chance of prosperity part of ensuring that chance is to make sure that no one goes hungry. So thank you for the couple of minutes to speak with you this morning, and the commitment that you show everyday to serving the people of our great state with compassion. I just wanna mention one thing that I think shows a lot about how Blue Cross regards the food bank of Central and Eastern North Carolina we provide funds to sponsor the cost of operating a truck that picks up and delivers food across the state, and our company name and logos on that truck, and I think that says a lot when were willing to pay to have our name on the same truck as the food bank. [SPEAKER CHANGES] Thank you ma'am. Questions or comments ?? [SPEAKER CHANGES] I would say wow thank you all for the fine presentation. This is probably a question for Mr. Briggs and I think for the number of questions Ima try to limit it to one. You mentioned the state funding reduction. Give us some idea of what your overall funding situations been over the last couple of years, and how you have had to deal with this funding reductions in terms of budget cutbacks, and other ways you've had to balance your budgets. [SPEAKER CHANGES] ?? Lutenant ?? a number of different ??

I think staff will probably have some statistics to back up. One of the things that happened two years ago was, because North Carolina's unemployment rates were so high, the state received additional TANF funding through the federal block grant and at that time the 2011-12 budget reflected diversion of additional funds for that. But I would note that we've been pretty much at that three million mark now for about ten years. And as you've heard this morning, we would really love an opportunity to work with you to identify additional sources of money because you've seen how that leverages, you've seen how our work has grown and, honestly, we need to find, I know how difficult that is and it probably, you look at me a little funny today to talk about additional funding but I would like the opportunity for us to work with you to identify sources and make additional funding available. Because we're having to pick that up in other ways but we're simply not able to keep pace. [SPEAKER CHANGES] Thank you. Senator Hise. [SPEAKER CHANGES] Thank you, Mr. Chairman. I've always, just trying to look at, for the association as a whole, looking at the past through funds that were spent to this state. From the presentations today we saw a lot of variety in sizes of organizations and in populations they serve, however, at least last year as is consideration of the state that we distribute funds in an equal manner, 1/6th of the two million appropriated to each of the six. My question, first, is is that an appropriate distribution of funds, not necessarily the question of how much overall, but should there, something else be done with how those funds are distributed from the state. And secondly, does the association itself accept donations, currently, and distribute it to its members? [SPEAKER CHANGES] Senator, that is a question that has arisen a great deal. The honest answer, initially, is that 20 years ago, or so, when the state initially started funding food banks it was policy choice by the General Assembly to distribute the funds on an equal basis. What we've done, and I hope we've demonstrated today, is how we collaborate. I think, I won't speak for Charlotte and Raleigh, they want to ask them directly but we collaborate tremendously. We recognize that the resources available in the Western North Carolina and Eastern North Carolina are not the same. The larger food banks accept the fact that they have some resources that others don't and we have it very workable to share those resources to ensure those food banks covering areas with greater need and less resources are able to meet their needs as well. As far as the State Association, we actually all, we do not get direct funding. We are, our members pay dues to the State Association and any, we don't actively solicit donations, but what donations we receive are distributed among our members. [SPEAKER CHANGES] Representative Earle. [SPEAKER CHANGES] Thank you. I would just like to thank the food banks for coming and for sharing with us what you do. What, the challenge that they face and have always faced has been great. They do an excellent job with the resources and I'm just, some of the stories that have been shared, I think, ought to make us all feel a little bad about how critical this situation is with folk, especially children and the elderly, not having sufficient food. I've been involved with the food banks for a while. I've visited mine in Charlotte and I've visited one in Winston, Salem and I think, like I say, they do an excellent job. I'm hoping that we can at least increase the funding for this year. I think the challenge is going to be even greater when you take into consideration the unemployment bill that we just passed. In three to five months, without a job, you're going to have more people knocking on the doors and showing up for food at one of these agencies. With the not expanding Medicaid, which could possibly be a safety net for some of these people, that's going to create an even greater challenge and I'm just hoping that

we can find funding and they exhibited that they do an excellent job of managing the resources that we provide and the resources that they get from different agencies and providers around the state. Thank you. [SPEAKER CHANGES] Representative Avila [SPEAKER CHANGES] Thank you, Mr. Chairman. I guess this question could be directed to Mr. Briggs or some of the others, but I noticed in several of your presentations there was a breakdown regarding the level of poverty in each of your counties. Then in one of the gentleman’s presentations, he mentioned the fact of people not qualifying for food stamps. If you could clarify for me the levels of eligibility that are applied when people don’t qualify for food bank, or rather the food stamps and they go to food banks or your affiliates in terms of meeting the needs of the total level of people living in poverty in your county or your service area. [SPEAKER CHANGES] I’m going to look for a little assistance from folks who have boots on the ground there. One of the things to note is that, as we mentioned, we have 2700 different partner agencies. All of them have slightly different rules about who’s eligible. Some shelters are geared for families or women and children only, those types of things. There’s not a universal standard, but I would defer for folks, as far as where those eligibility requirements shift in terms of eligibility for other food assistance. We’re basically, Representative Avila, we’re an emergency relief group of organizations. We are fingers in the dike. These other programs, rules are set by the federal government for food stamp eligibility, the income levels, the asset determinations. We have no role in that. It certainly supplements that we’re doing, but we’re dealing with that basic emergency relief in the work that we do. [SPEAKER CHANGES] Senator Robertson, I might mention we are running a little short of time. [SPEAKER CHANGES] I’m going to be very short with this and simply say that I really appreciate the work that the banks are doing across our state. I want to, however, and I’ve volunteered with Kids’ Cafe and I’ve visited and a lot of the people that we serve in our area benefit greatly from Second Harvest, so when we talk about the volunteer power in the contributions of North Carolina, they are tremendous. Recently in Guilford County we had a halt in the food stamp system and I wanted to know from Clyde, Mr. Fitzgerald, I imagine that a lot of those people had to come to Second Harvest for assistance. Can you share any information on that in terms of the impact that had on Second Harvest? [SPEAKER CHANGES] Yes, ma’am. It certainly had an impact. We were away that a delay was going to be necessary outside of any control that we had, but what we did was we was we worked with our retail partners to obtain additional food so that we could distribute additional food, especially to the folks who were impacted negatively by having to wait longer than they normally would in that transition. I can’t say that we were able to resolve the problem for everyone, but we made a significant impact and I believe across our state, we all did the same things to try to equalize that situation so that people would not find themselves in an even worse situation than they already were in. [SPEAKER CHANGES] Representative Ford. [SPEAKER CHANGES] Thank you, Mr. Chairman. Question for Mr. Briggs. I was wondering about the current structure of the donation situation with the tax credits or what kind of treatment does the state have in regards to that as far encouraging corporate food donations? [SPEAKER CHANGES] Subject to correction, I believe there is a 2%

credit for food donations, if it's provided directly by farmers and other producers. That will be a significant question, Dr. Foreman, as you go forward looking at tax policies because, obviously, we would be impacted a great deal by changes in our state sales tax on food or on franchise taxes, which currently do not affect non-profits. At the national level, we are, through the Feeding America Network, very concerned about trying to expand those donation credits for food and, currently, most of that's impacted apparently by federal tax laws. [SPEAKER CHANGES] Thank you. On behalf of the legislature and the Health and Human Services Committee, thank each of you for being here today and thank you for the work you do. I don't know of another more important thing that we could be doing. Thank you so much for the time that you dedicated to the people that we take for granted every day, when we sit down and eat. I'm sure that all of us, in every district, have people who are not eating every meal. Thank you so much for what you're doing. Just a reminder for in the morning: the meeting has been moved to 9:00, here in this room. If you'll make a note of that. Thank you so much for attending and the meeting is adjourned.