Legislature(2017 - 2018)SENATE FINANCE 532
04/10/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB102 || SB103 || SB104 | |
| SB102 | |
| SB104 | |
| SB103 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 102 | TELECONFERENCED | |
| + | SB 103 | TELECONFERENCED | |
| + | SB 104 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 102
"An Act relating to funding for Internet services for
school districts; and relating to the Alaska higher
education investment fund."
SENATE BILL NO. 103
"An Act establishing the Alaska education innovation
grant program; eliminating the Alaska education grant
program and the Alaska performance scholarship
program; redesignating the Alaska higher education
investment fund as the Alaska education innovation
grant fund; and providing for an effective date."
SENATE BILL NO. 104
"An Act relating to the duties of the state Board of
Education and Early Development; and relating to
school curriculum."
1:45:03 PM
BRITTANY HUTCHISON, STAFF, SENATOR ANNA MACKINNON,
offered an overview about why the suite of bills were being
introduced. She asserted that SB 102, 103, and 104 had been
crafted out of the need for major improvements in Alaska's
educational system. She said that the needs addressed in
the legislation were threefold: the prioritization of K-12
education as a constitutional responsibility, the
improvement of outcomes for Alaskan students, and providing
for efficient and streamlined delivery of education
processes and procedures.
2:45:57 PM
Ms. Hutchison offered a sponsor statement for the bill:
The goal of this bill is to help provide Alaskan
students with better outcomes through new innovative
new educational delivery methods and by providing a
fund that will allow school districts to apply to the
Department of Education and Early Development (DEED)
for innovative education grants.
We need to prioritize K-12 investment to make sure
that our students are prepared for life after high
school. Since 2011 when APS was created, 47,907
students have graduated from high school in Alaska,
only 8,606 of them received the APS. The total payout
to the approximately 18% of high school graduates was
$48.8 million. Of the recipients, 26% currently need
remediation when they enter college. The APS is not
achieving the results we had hoped for.
SB 103 will phase out the Alaska Performance
Scholarship and the Alaska Education Grant over the
next 4 years.
· Seniors in high school now - will receive 4 years
of scholarship
· Freshman in College now - will receive 3 more
years of scholarship
· Sophomore in College now - will receive 2 more
years of scholarship
· Junior in College now - will receive 1 more year
of scholarship
The high school graduating class of 2017 will be the
last class to receive these awards.
We must prioritize K-12 investment and provide Alaskan
students with a valuable 21st century education. In
doing so, SB 103 will rename the Higher Education Fund
to, "The Alaska Innovation Education Grant Fund." This
Fund's purpose is to provide school districts with
grants to fulfill academically innovative ways of
delivering education, such as coursework through a
combination of technologies, pilot programs for
cutting-edge learning resources, and changes in the
way students and teachers interact in the classroom,
to name a few. These grants must be approved by the
Commissioner of Education and be submitted to the
legislature for funding.
I urge your support for this legislation.
2:48:28 PM
Ms. Hutchison reviewed the Sectional Analysis (copy on
file):
Section 1: AS 14.03
Adds a new section, AS 14.03.128, that establishes the
Alaska Education Innovation Grant Fund. School
Districts may request a grant under this section for
the support of innovative education ideas. The
Commissioner of the Department of Education and Early
Development (DEED) shall determine annually the amount
requested for grants and submit them in their budget
for legislative approval.
Section 2: AS 14.42.030(e)
Removes the Alaska Education Grant from state statute.
The Alaska Education Grant is in AS 14.43.400 - AS
14.43.420.
Section 3: AS 14.43.810(a)
Makes the high school graduating class of 2017, the
last high school class to receive the Alaska
Performance Scholarship (APS).
Section 4: AS 14.43.820(a)
Allows the commission to award an APS to a student no
later than July 1, 2017.
Section 5: AS 14.43.915(a)
Makes the APS and the Alaska Education Grant (AEG)
available to students for four years and does not
allow a student's eligibility to go past the 2020-2021
academic year.
Section 6: AS 14.43.915(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant". This section
deals with money going from the fund to the Alaska
Education Grant fund. This section is repealed Feb. 1,
2021.
Section 7: AS 14.43.915(b)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant". This section
deals with money going from the fund to the Alaska
Performance Scholarship award account. This section is
repealed Feb. 1, 2021.
Section 8: AS 14.43.915(c)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant". This section
deals with the allocation of monies from the fund.
This section is repealed Feb. 1, 2021.
Section 9: AS 14.45.130(a)
This section deals with eligibility of students from a
private or religious school receiving the APS. It is
repealed Feb. 1, 2021.
Section 10: AS 37.14.750(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant". This section
establishes the purpose of the fund, which is "making
grants to school districts to support the Alaska
Education Innovation Grant Program."
Section 11: AS 37.14.750(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant". This section
establishes the purpose of the fund, which is "making
grants to school districts to support the Alaska
Education Innovation Grant Program." This section also
removes the language that allows payments from the
fund to go to scholarships to postsecondary
institutions. This section is repealed in Feb. 1,
2021.
Section 12: AS 37.14.750(d)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 13: AS 43.20.014(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 14: AS 43.55.019(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 15: AS 43.56.018(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 16: AS 43.65.018(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 17: AS 43.75.018(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 18: AS 43.77.045(a)
Conforming Language to change the name of the fund
from "Alaska Higher Education Investment" to the
"Alaska Education Innovation Grant".
Section 19: AS 14.03.113
AS 14.03.113, "District's determination of scholarship
eligibility" is repealed July 1, 2017.
Section 20
Repeals the following sections on Feb. 1, 2021.
Article 8: Alaska Education Grant Program
- AS 14.43.400 - Purpose; creation
- AS 14.43.405 - Administration
- AS 14.43.406 - Applicability of other laws
- AS 14.43.415 - Eligibility; priority
- AS 14.43.420 - Limitation on grants
Article 12: Alaska Performance Scholarship Program
- AS 14.43.810 - Alaska performance scholarship
program established; regulations
- AS 14.43.820 - Alaska performance scholarship
program; eligibility
- AS 14.43.825 - Maximum annual awards
- AS 14.43.830 - Qualified postsecondary institutions
- AS 14,43.840 - Report to the Legislature
- AS 14.43.849 - Definitions
Article 13 General Provisions
- AS 14.43.915 - Alaska education grant account and
Alaska performance scholarship award account
Article 9: Alaska Higher Education Investment Fund
- AS 37.14.750(c) - As soon as is practicable after
July 1 of each year, the commissioner of revenue shall
determine the market value of the fund established in
this section on June 30 for the immediately preceding
fiscal year. The commissioner shall identify seven
percent of that amount as available for appropriation
as follows: (1) one-third for the grant account
established under AS 14.43.915(a), from which the
Alaska Commission on Postsecondary Education may award
grants; and (2) two-thirds for the scholarship account
established under AS 14.43.915(b), from which the
Alaska Commission on Postsecondary Education may award
scholarships.
Section 21: Applicability Section
The Alaska Commission on Postsecondary Education may
only award an APS to a new applicant if they are
determined eligible by their school district and
reported as eligible to DEED on or before July 1,
2017.
Section 22: Transition
The Departments of: Education and Early Development,
Labor and Workforce Development and the Alaska
Commission on Postsecondary Education may adopt
regulations to implement necessary changes made by
this act. The regulations may only take effect after
the law is implemented.
Section 23: Retroactivity
If Sections 3-5 and 19 of this Act take effect after
July 1, 2017, then sections 3-5 and 19 of this act are
retroactive to July 1, 2017.
Section 24: Effective Dates
Sections 2, 9, and 11 take effect Feb. 1, 2021.
Section 25: Effective Date
Except for Sections 2, 9, and 11, this act takes
effect immediately.
Section 23: Retroactivity
If Sections 3-5 and 19 of this Act take effect after
July 1, 2017, then sections 3-5 and 19 of this act are
retroactive to July 1, 2017.
Section 24: Effective Dates
Sections 2, 9, and 11 take effect Feb. 1, 2021.
Section 25: Effective Date
Except for Sections 2, 9, and 11, this act takes
effect immediately.
2:50:52 PM
Co-Chair MacKinnon OPENED public testimony.
ARLENE RONDA, SELF, HOMER (via teleconference), testified
in opposition to the legislation. She said that she was
opposed to any provision that would give a tax credit to
individuals, businesses, property owners, or any other
entity that could claim a tax credit for a donation. She
asserted that well-funded public schools were essential for
a civil society. She was opposed to the tax credit section
of the legislation.
2:53:16 PM
AT EASE
2:53:45 PM
RECONVENED
Co-Chair MacKinnon explained that the bill would not alter
or repeal anything in relation to tax credits. She stressed
that the tax credits mentioned in the legislation already
existed in state statute and were not being repealed or
changed.
Ms. Ronda was surprised that the credit had been in statute
all along. She maintained her concerned that tax credits
were going toward anything that was not a public
institution.
Co-Chair MacKinnon explained how the tax credits worked in
relation to the Higher Education Fund.
2:55:41 PM
SAICHI OBA, UNIVERSITY OF ALASKA, FAIRBANKS (via
teleconference), testified in strong opposition to the
bill. He supported the continuation of the Alaska
Performance Scholarship. He said that the University
opposed the use of funds, identified for APS, to be used
for other purposes. He said that APS encouraged students to
take rigorous courses, and that recipients took fewer
remedial courses than non-recipients. He ruminated on the
positive educational aspects of the scholarship. He
believed that the greatest challenge facing Alaska was
students choosing not to continue to any post-secondary
program, which the loss of APS would only exacerbate.
2:58:28 PM
STEPHANIE BUTLER, ALASKA COMMISSION ON POSTSECONDARY
EDUCATION, JUNEAU, testified in opposition to the bill. She
said that the APS was an existing resource that had an
extraordinary reach; students and the state benefitted
greatly from the program. She listed the various ways in
which the APS benefitted the state. She noted that the
scholarship provided a pathway to higher education for
lower income Alaskans. She noted that many APS recipients
are the first members of their families to attend college.
She related that the APS was a positive force in addressing
Alaska's education and workforce crisis, and the impact was
growing. She relayed that the program encouraged all
students to aim higher academically.
3:02:11 PM
SCOTT MACMANUS, SUPERINTENDENT, ALASKA GATEWAY SCHOOL
DISTRICT, TOK, spoke in opposition to the bill. He
testified that he supported innovation in education, but
not at the expense of the APS. He supported the education
commissioner's "Alaska Challenge," which he believed would
create an innovative, systemic, long-term solution to
Alaska education. He lamented all of the positions that his
district was going to lose under the proposed 5 percent cut
to education.
3:04:38 PM
KEVIN SHIPLEY, KAKE CITY SCHOOLS, KAKE, testified in
opposition to SB 103. He stressed that the APS had resulted
in students taking more academically rigorous classes. He
said that the APS had been a driver in raising the bar for
students to challenge themselves academically. He shared
that the APS had allowed for innovation in schools because
educators had to figure out how to offer the required
courses to students.
Co-Chair MacKinnon asked whether the Kake school board
adopted curriculum.
Mr. Shipley replied that the school board had adjusted and
adopted curriculum, and he lamented that the curriculum was
largely driven by textbooks.
Co-Chair MacKinnon asked if the local school board set the
parameters for education qualifications.
Mr. Shipley replied in the affirmative.
3:07:35 PM
Senator von Imhof asked whether the school district offered
information on various scholarships to seniors.
Mr. Shipley replied that the district had a college and
career counselor, paid for by a grant, and that students
were constantly seeking additional ways to fund their
higher education. He said that the counselor was funded for
the next three years through a federal grant.
Senator von Imhof asked how many seniors lived in the
district.
Mr. Shipley replied that he had 5 seniors in his district.
3:08:52 PM
TONY HABRA, HAINES BOROUGH SCHOOLS, HAINES, testified in
opposition to the bill. He shared that his daughter would
be receiving the APS in 2017. He said that the APS would
allow her to receive her degree and stay in Alaska after
graduation. He believed that she was representative of many
students that received the scholarship. He echoed previous
testimony about the APS benefitting lower-income student
who may be the first in their family to attend college.
3:11:00 PM
TIM BAUER, SUPERINTENDENT, ANNETTE ISLAND SCHOOL DISTRICT,
METLAKATLA, testified in opposition to the bill. He echoed
the comments of the previous speaker. He asserted that the
scholarships provided hope and possibilities for Alaskan
students. He relayed that the chance at an APS was used to
bolster motivation for engagement by students; the idea
that there would be a reward for hard work resulted in
students success. He passionately defended the retention of
the APS.
Co-Chair MacKinnon asked whether Mr. Bauer's students
qualified for other University grants.
Mr. Bauer answered in the affirmative.
3:13:28 PM
JOHN CONWELL, SUPERINTENDENT, UNALASKA CITY SCHOOL
DISTRICT, UNALASKA, spoke against the bill. He remembered
that the original legislation that established the
scholarship had been signed on campus by then Governor
Parnell. He believed that the program especially served his
diverse district well, and he praised the innovative nature
of the program. He shared that the scholarship was often a
"safety net" for students seeking financial aid. He thought
that recipients of the scholarship were more likely to stay
in Alaska for their postsecondary education.
3:17:17 PM
LORA JORGENSEN, SELF, JUNEAU, testified in opposition to
the bill. She discussed the benefits of the program that
extended beyond recipients of the scholarships. She shared
that her son was a recipient of APS.
3:19:54 PM
HOLLY HOLMAN, UNALASKA CITY SCHOOL DISTRICT, UNALASKA,
testified against the bill. She relayed that her child had
applied for the scholarship and had decided to go to school
in Fairbanks. She said that students in Unalaska were
working extra hard in order to qualify for APS, and that
these students wanted to go to college and then make a life
in Alaska. She believed that the scholarship was an
investment in the future.
3:22:05 PM
MAXIMILIAN ERICKSON, SELF, FAIRBANKS (via teleconference),
spoke in opposition to the bill. He voiced strong support
for APS.
3:23:41 PM
GRETCHYN O'DONNELL, SELF, JUNEAU (via teleconference),
testified in opposition to the bill. She shared that she
was a first generation college student in her family. She
relayed that the APS became available her sophomore year of
high school. She believed that investment in students
through the APS gave students hope that their dreams could
be achieved. She said that she would not have been able to
attend college without the APS.
3:26:16 PM
PETE HOEPFNER, CORDOVA SCHOOL DISTRICT, CORDOVA (via
teleconference), testified in opposition to the bill. He
spoke of the increased academic rigor in his district due
to the APS. He said that many students had planned on using
the scholarship to go to college. He worried that only
having grants available would pit districts against each
other because some would be better at grant writing than
others. He did not think that districts should compete with
each other for funding. He felt that the additional
administrative costs of crafting the innovative grants
would add more work to the already full plate of the
reduced personnel at the Department of Education and Early
Childhood Development.
3:28:48 PM
JOE NELSON, UNIVERSITY OF ALASKA SOUTHEAST, JUNEAU, spoke
in opposition to the bill. He echoed the comments of
previous testifiers. He expressed understanding for the
fiscal situation in the state. He felt that the scholarship
was impacting systemic change and helping to change the
culture of education district-by-district. He noted that
districts were initially challenged by the requirements of
the APS, but that the idea had been proved to be thoughtful
and innovative, as it tied the scholarship to the
curriculum, standardized test scores, the G.P.A, and took a
three tiered approach to qualifying levels.
Co-Chair MacKinnon believed that of the 5 percent of
students that applied for the grant and received it, only 5
percent of the student graduated in 6 years' time.
Mr. Nelson agreed that the issue of persistence should be
addressed. He thought that graduation rates could be
improved.
Co-Chair MacKinnon restated that 5 percent of all Alaska
high school freshmen would graduate from college within 6
years. She noted that the statistic was farther reaching
than just the scholarship. She wondered whether the dollars
were being used to the greatest benefit through the APS.
3:33:33 PM
ALYSE GALVIN, SELF, JUNEAU, spoke in opposition to the
bill. She believed that the scholarship served students who
may not have believed that they could ever attend college.
3:36:29 PM
JACK WALSH, SUPERINTENDENT, CRAIG SCHOOL DISTRICT, CRAIG,
testified in opposition to SB 103. He recognized that there
was a need for innovation in education. He believed that
eliminating the scholarship would be harmful to the state
overall. He felt that the legislature could craft a fiscal
plan while maintaining the scholarship.
3:39:12 PM
Senator Micciche asked how Mr. Walsh made the connection of
K-12 education and the APS part of his mission.
Mr. Walsh responded that scholarships in education provided
hope and opportunity to Alaskan students and could lead
people out of poverty and into successful livelihoods. He
believed that not only K-12 education needed to be
encouraged, but also postsecondary education. He felt that
education should not end with the 12th grade, and that all
of the research stated that postsecondary education was
necessary in the future.
3:42:04 PM
TIM PARKER, NEA ALASKA, JUNEAU, spoke in opposition to the
bill. He believed in innovation in K-12 education, and he
stressed that every good teacher in the state was
innovating on a regular basis. He said that 2 out of 3
students needed financial aid in order to attend college
and that the APS was needed by those students.
3:44:28 PM
BRENDA TAYLOR, GREAT ALASKA SCHOOLS, JUNEAU, testified in
opposition to the bill. She said that she had initially be
against the APS because of the pressure that it placed on
school districts to meet the scholarship requirements for
class offerings. She said that her mind had been changed
and she had realized that the advanced rigor had resulted
in students working harder toward the goal of postsecondary
education. She said that college counselors at Juneau
Douglas High School had been cut, which had resulted in
students having less guidance when seeking resources and
financial aid for college.
3:47:36 PM
KATHY TODD, SELF, VALDEZ (via teleconference), spoke in
opposition to the bill. She believed that the APS had
proved successful in her district in motivating kids to
take more academic classes, and in raising grade point
averages. She said that the scholarship had provided much
needed funding for financial aid. She added that the
scholarship fed the University budget while helping Alaskan
students. She believed that the APS was an innovative way
to change school culture for the better and give more
students a range of postgraduate educational opportunities.
3:51:01 PM
SUSAN NIMAN, SELF, VALDEZ (via teleconference), testified
in opposition to the bill. She thought that taking away
money from a group that did not have the power to vote was
unfair. She felt that education funding should take
priority over funding juvenile detention centers. She
echoed the points made by previous testifiers.
3:52:39 PM
MIKE COONS, SELF, PALMER (via teleconference), spoke in
support of the bill.
3:55:46 PM
TODD SMOLDON, SELF, WILLOW (via teleconference), testified
in support the bill.
3:58:15 PM
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon specified that amendments for SB 103
were due by 5pm, Tuesday, April 11, 2017.
Ms. Stephanie Butler, Executive Director, Alaska Commission
on Postsecondary Education, Department of Education and
Early Development offered to provide further information
that supported not eliminating the APS program.
Co-Chair MacKinnon reminded the committee and the public
that Alaska was facing a fiscal crisis. She explained that
a direct draw from the earnings reserve account (ERA) would
jeopardize the Alaska Permanent Fund Dividend. She stressed
that it was critical to examine important issues in order
to address the current budget shortfall.
SB 103 was HEARD and HELD in committee for further
consideration.
Co-Chair MacKinnon discussed housekeeping.