Legislature(1993 - 1994)
1993-01-22 House Journal
Full Journal pdf1993-01-22 House Journal Page 0138 HB 85 HOUSE BILL NO. 85 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the public school foundation program; and providing for an effective date." was read the first time and referred to the Health, Education & Social Services and Finance Committees. The following fiscal note applies: Fiscal note, Dept. of Education, 1/22/93 The Governor's transmittal letter, dated January 22, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that makes statutory changes to improve the public school foundation program, which aids our public schools. The bill implements certain recommendations of the finance committee of Alaska 2000, as approved by the state Board of Education. Alaska 2000 represents a year-long study of the public school system in Alaska by Alaskans to recommend improvements and new directions. 1993-01-22 House Journal Page 0139 HB 85 The public school foundation program has been the subject of much debate in Alaska. The public school foundation program represents a significant portion of Alaska's operating budget. This bill improves this financing program and addresses many concerns of the school districts, the public, and the state Board of Education. Sections 1 and 3 replace the words "area cost differential" with "Alaska school price index" to conform to the substantive changes made by new AS14.17.049. New AS14.17.049, in sec. 7 of the bill, creates the Alaska school price index to replace the existing area cost differential in AS14.17.051 for determining public school foundation program support. The index will be calculated based on a weighted average of actual expenditures for fiscal years 1989 and 1992 for educational goods and services reported by a district or group of similar districts. The index will be adjusted every three years, beginning in fiscal year 1997, by a national elementary and secondary school price index as designated in regulations adopted by the Department of Education. This change should make it easier for a district to estimate its support from the foundation program, subject to legislative appropriation. Also, the amount of the support should be more reflective of actual expenditure history and school needs than is the area cost differential currently fixed in statute. The bill also makes adjustments to the way centralized correspondence study students are counted for determining foundation support. Presently, all centralized correspondence study students are counted only as elementary students, even though they may be enrolled in the centralized correspondence study program as a secondary student. Section 2 of the bill allows secondary correspondence students to be properly classified. The bill also addresses the need for additional vocational education in the public schools. The bill revises the foundation aid program to base financial support on total secondary student enrollment, rather than on the number of students enrolled in vocational education courses. Also, each district is assured of a minimum of one instructional unit for vocational education under the foundation program. See sec. 5 of the bill. The bill also makes adjustments to the foundation program for calculation of financial support to a district for its gifted and talented 1993-01-22 House Journal Page 0140 HB 85 program. Under the bill, the district receives support on a flat percentage rate of total student count. Presently, financial support is based on each student identified and served as a gifted child by the district. The bill also repeals a provision (AS14.30.315) that requires the department to approve a district's program for gifted children in order for the district to be eligible for state foundation aid. The changes are designed to give districts more flexibility and to remove incentives to identify students as gifted in order to receive additional state aid. See secs. 6, 7, and 11 of the bill. The bill also establishes a later date for school districts to submit to the department the student count estimates on which foundation support is based. This additional time should facilitate more accurate estimates and eliminate the need for districts to submit numerous amended estimates in order to reflect actual enrollment more accurately. See sec. 8 of the bill. Additionally, the bill authorizes a district to request use of a different 20-school-day counting period to determine the student enrollment on which school foundation support is based. Presently, a district must use a 20-school-day counting period in October or February of a school year or, alternatively, another 20-school-day period in the same school year if the district receives permission from the commissioner of education. The existing counting periods provide little flexibility to a district that is experiencing decreased enrollment in the current school year. The bill would allow the district to receive permission to use the preceding school year's actual enrollment during the October, February, or other 20-school-day counting period, in order to allow for more predictable financial support and less volatility in receipt of state aid. This provision of the bill is intended to operate as a forward funding mechanism, so that districts can obligate themselves in the spring and summer for the following school year without fear that a lower actual enrollment will occur which will substantially decrease foundation aid, after the district has committed itself to certain contractual obligations. See secs. 9 and 10 of the bill. Finally, since the bill makes some major adjustments in how foundation aid is calculated, sec. 12 of the bill protects a district so that its basic need for aid under AS14.17.021(b) for fiscal years 1994, 1995, and 1996 will not be less than the amount calculated under the present formula, unless there is a reduction in student enrollment. 1993-01-22 House Journal Page 0141 HB 85 This bill represents the collective wisdom of the many Alaskans through Alaska 2000 to improve the way the state provides financial aid to school districts. Given the amount of the state budget at stake in this important program, it is essential that the program be run efficiently and effectively to benefit all Alaskans, especially the children of Alaska. I urge your early consideration of this important legislation. Sincerely, /s/ Walter J. Hickel Governor"