Legislature(2011 - 2012)CAPITOL 106
04/15/2011 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Bristol Bay Borough School District (bbbsd) Superintendent | |
| HB143 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 145 | TELECONFERENCED | |
| += | HB 143 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 143-ADJUST BASE STUDENT ALLOCATION: INFLATION
CHAIR DICK announced that the next order of business would be
HOUSE BILL NO. 143, "An Act providing an increase and an
inflation adjustment to the base student allocation used in the
formula for state funding of public education; requiring a
review and recommendation for future adjustments to the base
student allocation; and providing for an effective date."
8:45:44 AM
REPRESENTATIVE PETE PETERSEN, Alaska State Legislature,
explained that the proposed bill would inflation proof
educational funding.
8:46:38 AM
REPRESENTATIVE SEATON asked if there was a proposed amendment to
be distributed.
DAVID DUNSMORE, Staff, Representative Pete Petersen, Alaska
State Legislature, explained that the proposed amendment
[Included in members' packets] was in response to a concern
voiced by Representative Seaton with regard to negative
fluctuations of the Consumer Price Index (CPI). He reported
that research had shown an increase in the CPI for Anchorage
since 1962.
8:48:40 AM
CARL ROSE, Executive Director, Association of Alaska School
Boards (AASB), reflected that the issue of inflation proofing
had been around for quite some time. He shared an anecdote
regarding the beginning teacher salary of $13,000 in 1974. He
reported that, since that time, there were at least four
foundation formula changes, which in turn changed the
calculations. At one time the instructional unit, calculated as
any portion of 15 students, was used. The school also received
instructional units for its operations, as part of a complicated
calculation. He pointed out that the current formula was based
on per student. He reported that the foundation formula had
changed, with a change of calculation for crediting school
sites. He detailed a change for Kenai in 1998, which resulted
in a drastic budget cut. He said that Senate Bill 36, in 1998,
had reflected a loss from inflation of almost 35 percent over
the prior 25 years. After this bill was implemented, there was
not an increase in the base student allocation for five years.
He said that from 1999 to present, there had been a 28.8 percent
loss in buying power. He called inflation "a thief in the night
that robs you blind," with a profound impact. He pointed out
that inflation was not just annual, but had serious impacts on
buying power over time. He explained the devastating impact
from inflation when it was combined with a change in the
foundation formula which did not catch up with inflation. He
stated support for HB 143 as a piece of the solution for school
funding.
8:56:25 AM
REPRESENTATIVE CISSNA observed that most legislators did not
easily grasp the economic impacts and effects of inflation.
8:57:31 AM
MR. ROSE offered assistance to educate the legislature. He
stated that the issue was not just about funding, but about
understanding the needs of the students and the school
districts. He reflected on the changes in the classroom over
the next ten years. He pointed out that technology was leading
education in a new direction. He opined that HB 143 should
include an annual review.
8:59:43 AM
REPRESENTATIVE P. WILSON described the loss of 5,000 timber jobs
in her district, and its impact on school funding and teaching
jobs. She emphasized that funding had still not recovered.
9:02:33 AM
REPRESENTATIVE SEATON reported that the consumer price index
(CPI) for Anchorage, the basis of the funding formula, was not
always correct in the adjustment of the base student allocation
(BSA) for all school districts. He cautioned that only using an
inflation adjustment would not adequately provide for the
schools as many programs, including vocational programs, were
not yet fully functional. He cautioned that, since 2001, the
schools would have been financially worse if there had only been
an adjustment for inflation. He offered his belief that the
Anchorage CPI was not a sufficient gauge for financing
educational opportunities across Alaska.
9:06:44 AM
MR. ROSE agreed that inflation proofing was only one component
necessary for school funding. He stated, however, that the
cumulative effect was obvious, especially in hindsight, when it
was not addressed. He offered his belief that it was necessary
"to identify what those needs are, and appropriate accordingly."
He stated that inflation proofing would not address "the needs
and the challenges that you have with providing a quality
education for all the children of the state." He announced that
the two necessary components for funding were inflation proofing
and meeting the student needs, which was the reason for the base
student allocation.
CHAIR DICK agreed that it was necessary for the legislature to
connect with the teacher reality and to be mindful of "this
constant reminder where we're just expecting superintendents to
perform magic."
9:09:02 AM
BARB ANGAIAK, President, NEA-Alaska, stated support for HB 143
with inflation proofing and increased BSA components. She
reflected on the excellent public education that her daughter
had received in Bethel, and she noted that many of these
programs no longer existed. She questioned the current focus
for meeting the guidelines of "an artificially set standard on a
test, instead of educating the whole child, instead of meeting
the needs of those children as they grow and as they develop."
She noted the loss of music and physical education instruction
in the schools. She agreed with the theme based teaching
approach and its ability to connect relationships of life and
classroom. She opined that the insistence of obtaining a
product from an educational investment was "going down a bad,
bad path." She stated the necessity of a greater investment in
education for success to be realized.
9:15:04 AM
REPRESENTATIVE FEIGE asked if the educational investment should
come solely from the state.
MS. ANGAIAK replied that property taxes were an important
contribution, but that tax payers were not as big a beneficiary
of the investment in education as the state.
MS. ANGAIAK, in response to Representative Feige, explained that
the state was the beneficiary of money from oil and other
resource revenues while individual tax payers did not
necessarily reap those benefits.
9:16:21 AM
CHAIR DICK shared an anecdote about his early music classes and
expressed agreement with the need for music and other programs
for a good quality of life.
9:17:06 AM
REPRESENTATIVE CISSNA asked for more information regarding the
valuable effects of music on the brain.
9:17:31 AM
MS. ANGAIAK pointed to the research which showed an increase in
creative thoughts and logic when the arts were taught.
9:18:11 AM
REPRESENTATIVE P. WILSON directed attention to other educational
areas that were routinely cut, including the vocational
education and home economics programs. She offered her belief
that "the schools aren't doing a good enough job." She
expressed agreement with the difficulty as schools had to
continue to cut expenses. She pointed out that although overall
funding had been increased, all the schools had not necessarily
seen additional funds.
9:21:22 AM
REPRESENTATIVE FEIGE asked for recommendations as to which state
programs should be decreased in order to increase school
funding.
MS. ANGAIAK replied that "fundamentally, the most important
investment that the legislature makes is in educating our kids."
She declined to offer any suggestions for budget cuts.
9:23:17 AM
REPRESENTATIVE FEIGE asked if NEA-Alaska had spoken with the
municipalities regarding an increase of property taxes to fund
education.
MS. ANGAIAK replied that NEA-Alaska had regular communication
with the state communities to ensure that funding for education
was the highest priority.
9:23:48 AM
REPRESENTATIVE SEATON, pointing to page 2, line 3, asked whether
the stated CPI inflation proofing of 1.8 percent would cover the
general teacher contracts.
9:24:39 AM
MS. ANGAIAK, in response, said that the 1.8 percent did not
cover the contracts. She stated that Alaska had a difficult
time recruiting and retaining teachers. She reported that
Alaska needed about 900 teachers per year, and only produced
about 250-300 teachers. She said that the competition in the
teacher pool was with other states where the salaries were on
the rise, and the "cost of living is much, much lower."
9:25:34 AM
REPRESENTATIVE SEATON clarified that he did not believe that the
teacher salaries were exorbitant. He explained that as proposed
HB 143 had January, 2010 as the reference base index for
inflation proofing, and that 85 percent of district costs were
salaries, it would be necessary to cover the contractual
increases. He stated his concern for tying school funding to
inflation proofing, and indicated a need for the legislature to
add additional money for contractual inflation to keep the
school districts from "going backwards every year."
9:27:49 AM
REPRESENTATIVE FEIGE asked if the contracts were multi-year and
allowed for pay increases over the course of years. He asked if
there were provisions in the contracts that made the salary
agreements contingent upon legislative funding.
9:28:46 AM
MS. ANGAIAK replied that some contracts had provisions for re-
openers for limited purpose, which could include salaries.
9:29:17 AM
PETE LEWIS, Superintendent, Fairbanks North Star Borough School
District, stated support for HB 143, and said that doing nothing
would only result in falling further behind. He stated that the
BSA could "make a dent in inflation."
9:30:38 AM
LESLIE HAJDUKOVICH, Board Member, Fairbanks North Star Borough
School District, stated support for HB 143, and said that the
BSA was the most important funding piece in their budget. She
encouraged the legislature to prioritize educational funding.
9:32:14 AM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, explained
that he was a co-sponsor of the bill. He described the far
reaching effects of educational funding, as students eventually
become working members of the community, as well as elected
officials. He pointed out that flat funding in education would
lead to the reduction in programs. He indicated that career and
technical education were important, requiring specialized
classrooms, equipment, and instructors. He spoke about the
influence of Greek mathematics on modern architecture and music.
He opined that teachers were the inspiration for students to
become successful adults. He declared that the governor did not
include a budget item, but that HB 143 would provide something
to the school districts.
9:38:07 AM
REPRESENTATIVE PETERSEN explained that another section of the
proposed bill required EED to conduct a study of the statewide
educational needs in order to provide an essential understanding
of what more was needed for full funding of education.
9:39:38 AM
REPRESENTATIVE P. WILSON asked about an earlier statute that
required a bi-annual EED report for suggested educational
adjustments. She opined that this report had never been
written.
9:40:44 AM
[Due to technical difficulties, part of the testimony was not
recorded.]
MR. DUNSMORE referred the committee to the fiscal note for HB
143, which required that the aforementioned report be submitted.
9:41:45 AM
REPRESENTATIVE SEATON stated his concern for establishing an
actual cost parameter, as some school districts would have other
means of revenue.
9:42:34 AM
REPRESENTATIVE PETERSEN recognized that some districts would
contribute more revenue for education, and that was the reason
for the differential funding.
9:43:32 AM
REPRESENTATIVE SEATON reflected on the need for the actual cost
of education per student in each district. He spoke of various
detailed independent studies, none of which had been able to
determine the exact cost in each district, as school districts
would spend all the money that they were given. He asked if
there were any other parameters to the proposed study before it
was written into the legislation.
9:45:14 AM
MR. DUNSMORE explained that the intent was to review teacher
costs, energy costs, and other objective factors not considered
in the Anchorage CPI.
9:46:25 AM
REPRESENTATIVE P. WILSON reported that she had recently
requested EED to provide school utility costs and that the
information was available. She opined that the Institute of
Social and Economic Research (ISER) had indicated that $350,000
was not enough to complete a comprehensive study. She pointed
out that most superintendents kept some school district money in
reserve for unexpected expenses.
9:49:09 AM
REPRESENTATIVE CISSNA, expressing her wonder at the scope of the
problems in the schools, questioned whether the bill addressed
long term outcomes throughout the state, or was merely a
solution to some of the immediate issues which were only a small
part of the problem.
9:51:58 AM
REPRESENTATIVE PETERSEN agreed that HB 143 was not a final
solution for educational problems, but he declared that the
proposed bill was "a short term stop gap measure to keep the
lights on." He explained that HB 143 would also buy some time
for a study and the development of a long term plan. He noted
that either EED or Legislative Legal and Research Services had
suggested the amount of the fiscal note.
9:53:23 AM
CHAIR DICK offered his belief that there was a desire for the
success of education, and a willingness to fund for success, but
he stated that "No Child Left Behind is actually end up with
Every Child Left Behind when it comes to music programs, and art
and everything else." He opined that the legislature wanted
better results, but the problem was that "the results are on a
track that is, really, nobody wants and nobody ever wanted.
It's becoming very sterile, very in the box, everybody's
teaching to the test, and it's really counterproductive to
everything that we all believe in."
9:55:10 AM
REPRESENTATIVE PETERSEN said that he would be amenable to a
conceptual amendment.
REPRESENTATIVE SEATON explained that he had decided to not yet
offer a conceptual amendment, but that one would be necessary
for a change in direction.
9:56:19 AM
DON SMITH, Board Member, Anchorage School District, reported
that the Anchorage School District budget for 48,000 children
was $811.9 million. He reported that the budget would have to
increase by a minimum of $30 million in the upcoming year, just
to cover salary and benefit increases to school district
employees. He expressed the need for an increase in the
investment into technology in the classroom. He pointed out
that these expenditures would need to come from the operating
budget, as bonds would not cover short term products, such as
electronic tools. He suggested the creation of a $100 million
revolving loan fund for higher education and technology
improvements to school districts. He suggested that borrowing
from such a fund would allow the immediate purchase of
technology, which would result in "an incredible change in
education."
10:00:31 AM
REPRESENTATIVE SEATON, in response to Representative Cissna,
pointed out that the lack of a quorum would not allow the bill
to be moved from committee.
[HB 143 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB 145 ( ) Ver X.pdf |
HEDC 4/15/2011 8:00:00 AM |
HB 145 |