Legislature(2013 - 2014)
04/19/2014 04:03 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| HB278 | |
| HB306 | |
| HB140 | |
| HB287 | |
| HJR10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 278(FIN) am
"An Act increasing the base student allocation used in
the formula for state funding of public education;
relating to the exemption from jury service for
certain teachers; relating to the powers of the
Department of Education and Early Development;
relating to high school course credit earned through
assessment; relating to school performance reports;
relating to assessments; establishing a public school
and school district grading system; relating to
charter schools and student transportation; relating
to residential school applications; relating to tenure
of public school teachers; relating to unemployment
contributions for the Alaska technical and vocational
education program; relating to earning high school
credit for completion of vocational education courses
offered by institutions receiving technical and
vocational education program funding; relating to
schools operated by a federal agency; relating to a
grant for school districts; relating to education tax
credits; establishing an optional municipal tax
exemption for privately owned real property rented or
leased for use as a charter school; requiring the
Department of Administration to provide a proposal for
a salary and benefits schedule for school districts;
making conforming amendments; and providing for an
effective date."
4:04:00 PM
Vice-Chair Fairclough MOVED to ADOPT the proposed committee
substitute for HB 278, Work Draft 28-GH2716\V (Mischel,
4/19/14). There being NO OBJECTION, it was so ordered.
Vice-Chair Fairclough wondered if the committee should take
a brief AT EASE to distribute the CS. Co-Chair Meyer
replied that there were very few changes in the CS.
EDRA MORLEDGE, STAFF, SENATOR KEVIN MEYER, related that
there were 5 changes in the CS. She looked at Section 7,
which involved the procurement for the Personalized
Learning Opportunity Grants. The inserted language ensured
that school districts would use competitive procedures,
including seeking bulk purchase discounts for equipment,
support, and training. The section also clarified that the
procurement process would provide vendors with reasonable
and equitable opportunities to participate in the program.
The section required the Association of Alaska School
Boards to evaluate the effectiveness of a sub grant under
the program. The section also required an independent third
party evaluation of the effectiveness of the entire grant
program, and to provide a report to the legislature.
Co-Chair Meyer noted that there was discussion the previous
day regarding the various types of electronic devices
available, and the intent of the change to allow for equal
opportunities for every company.
Vice-Chair Fairclough hoped that the Association of Alaska
School Boards would testify before the committee, in order
to ensure understanding of the new language and the
legislature's intent. Co-Chair Meyer replied that they
would testify following the presentation of the bill
changes.
Ms. Morledge looked at Section 20, which related to the
bond debt reimbursement program through Department of
Education and Early Development (DEED). The previous bill
version's effective date was July 1, 2014, but there was
some concern that it did not include the municipalities
with fall elections. The effective date was changed to
January 1, 2015. She explained that Section 24 outlined a
change to the required local contribution of a city and
borough to the school district, changing the mil tax levy
from 2.65 to 2.80 mil rate.
Co-Chair Meyer recalled that the local contribution was
changed two years prior. The mil rate was changed from 2.9
to 2.65, which took the education funding from the
municipalities to the state. He stated that the change
shifted the mil rate back to the municipality, so they
could greater contribute to education.
4:09:16 PM
Ms. Morledge explained that the two teacher tenure
provisions were removed from the bill.
Co-Chair Meyer surmised that the tenure status had returned
to its original term of three years. Ms. Morledge responded
in the affirmative.
Ms. Morledge stated that the last page of the bill had a
change, which required the Department of Administration
(DOA) to present a proposal for a statewide salaries and
benefits schedule for school districts. The current version
removed DOA from that obligation, and moved it into the
LB&A committee to present a study on the salaries and
benefits schedules statewide.
Vice-Chair Fairclough asked if there was an analysis on how
the mil rate affected the local communities. Co-Chair Meyer
replied in the affirmative, and wondered if there was a
specific community that should be addressed.
Vice-Chair Fairclough queried the mil rate for the Aleutian
Borough. Co-Chair Meyer replied that the Aleutian East
Borough would be required to contribute $34,831.
Vice-Chair Fairclough wondered if the $34,831 was in
addition to the current contribution. Co-Chair Meyer
replied in the affirmative.
Vice-Chair Fairclough explained that there was a mil rate
cap that was instituted a few years prior. She surmised
that the bill's intent was to encourage communities to
participate above the mil rate cap. Co-Chair Meyer replied
that the state took $9.2 million by moving the mil rate to
2.65. The legislation would change the mil rate to 2.8, so
Anchorage would contribute an additional $5.5 million to
education.
Vice-Chair Fairclough asked if Anchorage could use its $7
million to help the school district. She did not believe
that the action could occur retroactively, so she wondered
if there could be an effective date. Co-Chair Meyer replied
that the communities would be equally affected.
Vice-Chair Fairclough requested that the document be posted
in the backup documents attached to the bill. Ms. Morledge
agreed to provide that information.
Vice-Chair Fairclough asked that Mr. Whicker address the
procurement issues of the bill.
4:14:11 PM
AT EASE
4:18:00 PM
RECONVENED
Vice-Chair Fairclough remarked that the Association of
Alaska School Boards (AASB) managed the One-on-one
Education Learning opportunity. There was a concern
regarding the type of technology that each school district
would utilize, and the state management of technology. She
wanted the lowest possible unit cost price to school
districts to allow them to utilize their preferred
platform.
ROBERT WHICKER, DIRECTOR, CONSORTIUM FOR DIGITAL LEARNING,
ASSOCIATION OF ALASKA SCHOOL BOARDS, JUNEAU, announced that
AASB would be soliciting vendors to seek the one-to-one
solution set, and work with school districts on that
platform.
Vice-Chair Fairclough looked at page 7, item C, and
announced that, if passed, the law would read:
"Before making a sub grant to a school district, the
Association of Alaska School Boards shall use a
competitive process to solicit prices from vendors,
including, where possible, seeking bulk purchase
discounts for the technology, equipment, support, and
training to be purchased with the funds from the grant
program."
MICHAEL HANLEY, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, felt that Ms. Morledge accurately
addressed the bill changes. He remarked that the changes
were small, but significant, and would continue to have a
positive impact on education.
Co-Chair Meyer remarked that the funding of the legislation
had also changed from the original version. He stated that
the fiscal notes would be discussed, and hoped that the
conversation would bring clarity to the bill's funding.
There had been some discussion about the funding for the
upcoming three years. The $25 million a year funding
equated to a $100 base student allocation (BSA). He
stressed that the funding was outside of the current
funding formula. He remarked that there were some other
additions to the funding: broadband, standardized testing,
middle school pilot program for Alaska Native Science and
Engineering Program (ANSEP), the charter school startup,
and the correspondence schools. He reiterated that the
analysis of additional funding depending on the financial
manipulation. He felt that there were substantial changes
and additions to the education funding.
4:25:32 PM
KELLY CUNNINGHAM, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, wondered if there would be a page by page
discussion of the fiscal note packet. Co-Chair Meyer
replied in the affirmative.
Co-Chair Meyer asked if there would be one fiscal note
substitution. Ms. Cunningham replied in the affirmative.
Ms. Cunningham announced that the fiscal note from the
Department of Labor and Workforce Development (DLWD), and
was an agency wide allocated appropriation. The fiscal note
was only for TVEP, and was applied to eight entities.
Senator Dunleavy inquired the number of the fiscal note.
Ms. Cunningham responded that the fiscal notes had not been
numbered.
Co-Chair Meyer announced that the fiscal note was labeled,
"Department of Labor and Workforce Development."
Ms. Cunningham restated that the fiscal note was agency
wide and allocated, and related to eight entities.
Ms. Cunningham related that the next fiscal note was for
DOA. She stated that the funding was originally intended
for a study that the new CS directed LB&A as the overseer.
The note should now be disregarded.
Senator Hoffman wondered if the funding would be applied to
LB&A. Co-Chair Meyer responded that LB&A already had the
funding to conduct the study.
Vice-Chair Fairclough announced that LB&A would attempt to
use its existing funds to conduct the study.
Ms. Cunningham stated that there was a fiscal note from the
Tax Division of the Department of Revenue (DOR), and was a
zero fiscal note.
Ms. Cunningham explained the fiscal note for the DEED
Boarding Home Grants for $2.249 million. It increased the
stipend ratio to the boarding schools. There was a partial
increase the year prior, and the funding provided a slight
increase to the grant.
Ms. Cunningham announced that the fiscal note for K-12
Support Foundation was zero, because the actual dollars
were reflected in the public education fund note.
Ms. Cunningham explained that the fiscal note for the
Alaska Library and Museums was $7.3 million for internet
support. She believed the funding would provide for a
district at which one or more schools qualify for a
discounted rate for internet services would be eligible to
receive an amount to bring their download speed up to ten
megabits per second.
Vice-Chair Fairclough asked if the fiscal note related to
the "e rate", and whether it including matching money. Ms.
Cunningham replied that the fiscal note was associated with
Senator Olson's broadband legislation. The e-rate was
mentioned, but she could not speak further on that topic.
4:30:08 PM
Senator Olson understood that the fiscal note related
directly to matching e-rate funds. He stated that it also
included the federal portion that would apply directly to
the school districts.
Vice-Chair Fairclough did not see information regarding
matching money in the backup for the note.
Senator Olson observed that one of the reasons that it was
not in the note was because the money went directly to the
school district, but was delivered at a four-to-one ratio.
Ms. Cunningham spoke to a zero fiscal note for debt service
and school debt reimbursement. She stated that there was
some reduced cost, so that was the reason for the zero
note. The replacement note was for the DEED Student and
School Achievement. The note added $3 million for
personalized learning grants.
Co-Chair Meyer wondered if the revised fiscal note also
included a three-year pilot program for STEM. Ms.
Cunningham replied in the affirmative.
Senator Dunleavy asked if the $750,000 in Innovative Grants
was contained in the revised fiscal note. Ms. Cunningham
replied in the affirmative.
Senator Dunleavy announced that the funding was included in
the DEED submitted budget. Ms. Cunningham responded that
the funding would not be accepted at the Conference
Committee.
Co-Chair Kelly announced that the adjustment would be
addressed at the Conference Committee.
Ms. Cunningham
Vice-Chair Fairclough wondered if the fiscal note for
$1.794 million should be disregarded, and be replaced with
$7.550 million should replace that note. Ms. Cunningham
replied in the affirmative, and explained that the backup
for the new fiscal note would be revised to reflect the
changes.
Ms. Cunningham spoke to another fiscal note for the
University of Alaska (UA), which included technical funding
for the TVEP program.
Senator Bishop commented that the increase was a decrement
of $204,000 to UA, so it was less than what would appear
under the percentage decrement.
Vice-Chair Fairclough wondered if the funding related to
the penny increase. Senator Bishop replied that it was 0.16
of 1 percent increase.
Vice-Chair Fairclough asked if the funding was new money
for UA, and if it was an addition of the expanded programs.
Ms. Cunningham deferred to Mr. Teal.
4:37:48 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, stated
that the change was negative, but there was an increase in
total TVEP funding. He explained that UA had 50 percent of
the funding, but 5 percent of the funding for UAS was
removed, so UA received 45 percent of a larger portion, but
was ultimately less money.
Ms. Cunningham explained that the public education fiscal
note correlated with the K-12 foundation program. It
included the correspondence multiplier change from 0.8 to
0.9, and amends the charter school funding by providing
higher funding starting at the 75 ADM.
Mr. Teal pointed out that there was still a missing fiscal
note from DEED.
Senator Dunleavy wondered if the change in the mil rate
guaranteed that the schools within the municipality would
receive that funding. Mr. Teal replied that the change did
not guarantee funding for the municipality.
Senator Dunleavy queried the impact of the change in the
mil rate. Mr. Teal responded that communities had to
contribute another $132 million to school districts.
Senator Dunleavy wondered if "communities" referred to
recognized municipalities. Mr. Teal responded in the
affirmative
Vice-Chair Fairclough stated that there was an additional
fiscal note from LB&A Committee for FY 15 only for $650,000
to implement a school district cost factor study; a school
size factor study; and a study of the salaries and benefits
that were paid through the State of Alaska.
Senator Dunleavy asked what the total package would be for
each year of the proposed legislation. Ms. Cunningham
replied that there was $22.695 million in FY 15.
Senator Dunleavy asked that she be more specific by
announcing specific dollars.
4:42:33 PM
AT EASE
4:45:48 PM
RECONVENED
4:45:53 PM
Ms. Cunningham stated that part 1 of the total package cost
was $100 million in FY 15, and the fiscal notes were an
additional $23 million, with a $12 million savings from the
change in the mil rate. The total extra cost in FY 15 was
approximately $11 million in addition to the $100 million.
Senator Dunleavy surmised that the total cost for FY 15 was
$111 million. Ms. Cunningham agreed. She furthered that the
cost would continue into FY 16 and FY 17, except for the
$650,000 the LB&A studies.
Co-Chair Meyer thought that the figure was pretty close to
his own estimate. He felt that it was almost a $500 BSA. He
stated that a large portion of the funding was for
broadband.
Senator Dunleavy announced that it $111 million per year
for the following three years and $2 billion was
appropriated for the Public Employees' Retirement System
(PERS). He felt that the proposed legislation would stop
the argument that the state was not funding public
education.
Co-Chair Meyer wondered if the legislation funding was in
addition to the overall spending for $1.2 billion to $1.3
billion. Mr. Teal replied in the affirmative
Co-Chair Meyer asked if it was $1.2 billion or $1.3
billion. Mr. Teal replied that it was almost $1.3 billion.
Vice-Chair Fairclough noted that there were a lot of public
interest based on an expectation of an increase to the BSA.
She commented that she was willing to participate with the
organizations for three years to solve the schools issues
in urban and rural Alaska.
4:51:32 PM
Co-Chair Kelly MOVED to REPORT SCSCSHB 278(FIN) as amended
out of committee with individual recommendations and the
accompanying and forthcoming fiscal notes. There being NO
OBJECTION, it was so ordered.
SCSCSHB 278(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact note from
the Department of Education and Early Development, a new
fiscal impact note from the Department of Education and
Early Development, a new zero fiscal note from Department
of Education and Early Development, a new fiscal impact
note from the Senate Finance Committee for the Legislature,
a new fiscal impact note from the University of Alaska, a
new indeterminate fiscal note the Department of Revenue, a
new fiscal impact note from the Senate Finance Committee
for the Department of Labor and Workforce Development, a
new fiscal impact note from the Department of Education and
Early Development, a new fiscal impact note from the
Department of Education and Early Development, a new zero
fiscal note from the Department of Education and Early
Development, and a new zero fiscal note from the Department
of Education and Early Development.
4:51:55 PM
AT EASE
5:19:41 PM
RECONVNED
Co-Chair Meyer handed the gavel over to Vice-Chair
Fairclough
| Document Name | Date/Time | Subjects |
|---|