2003-03-05                     House Journal                      Page 0445
HB 171                                                                                            
HOUSE BILL NO. 171 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act repealing the charter school grant program; and providing                              
     for an effective date."                                                                        
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would discontinue the state start-up grants for                            
charter schools.  The state grant program, implemented in FY2002,                                   
allocates $500 per ADM for each new charter school.  This funding                                   
was intended to supplement the federal start up grants for charter                                  
schools.                                                                                            
                                                                                                    
The Alaska Department of Education and Early Development is                                         
working closely with U.S. Department of Education to increase the                                   
level of start-up grants provided by the federal government therefore                               
eliminating the need for the state supplemental grant program                                       
beginning in FY 2005.  The state will allocate to a new charter school                              
$150,000 a year for the first three years and $45,000 in the forth year                             
for a total of $495,000 in start up funds over the four year period.                                
                                                                                                    

2003-03-05                     House Journal                      Page 0446
This bill is effective July 1, 2004.  The delayed implementation will                               
allow the state to fulfill its commitment of start-up grants to the                                 
existing charter schools.  Any new charter schools approved to operate                              
in FY 2004 will be eligible for the federal grant funds.                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"