Legislature(2011 - 2012)CAPITOL 106

03/23/2011 08:00 AM House EDUCATION


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08:05:35 AM Start
08:06:02 AM Presentation(s): Superintendent, Cordova School District
08:29:53 AM HB198
08:59:28 AM HB199
09:53:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Cordova School District TELECONFERENCED
Superintendent
*+ HB 198 SPEC. EDUC. SERVICE AGENCY FUNDING/SUNSET TELECONFERENCED
Heard & Held
*+ HB 199 FUNDING FOR STATE BOARDING SCHOOLS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB 198-SPEC. EDUC. SERVICE AGENCY FUNDING/SUNSET                                                                    
                                                                                                                                
CHAIR DICK announced that the next order of business would be                                                                   
HOUSE BILL NO. 198, "An Act relating to the special education                                                                   
service agency."                                                                                                                
                                                                                                                                
8:29:53 AM                                                                                                                    
                                                                                                                                
SHEILA PETERSON,  Staff, Representative  Alan Dick,  Alaska State                                                               
Legislature,  introduced HB  198, paraphrasing  from the  sponsor                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     House  Bill  198  removes   a  sunset  requirement  and                                                                    
     increases  state  funding   to  the  Special  Education                                                                    
     Service  Agency (SESA),  a not-for-profit  organization                                                                    
     established in  statute in 1986.   SESA is  governed by                                                                    
     the  Governor's  Council  on Disabilities  and  Special                                                                    
     Education and its own independent board of directors.                                                                      
                                                                                                                                
     The  Special  Education  Service Agency  assists  local                                                                    
     school  districts to  provide needed  special education                                                                    
     services.    Sometimes  districts  cannot  fully  serve                                                                    
     students  that  have  low-incidence  disabilities  with                                                                    
     their  existing personnel  and resources.   SESA  has a                                                                    
     pool of  educators trained to give  support to teachers                                                                    
     and  administrators who  work daily  with students  who                                                                    
     are  deaf,   deaf-blind,  mentally   retarded,  hearing                                                                    
     impaired, blind  and visually  impaired, orthopedically                                                                    
     disabled, health-impaired  in other ways,  and severely                                                                    
     emotionally disturbed . . . (AS 14.30.630 (b)(1)).                                                                         
                                                                                                                                
     The  Special Education  Service  Agency receives  state                                                                    
     support  based on  a funding  formula adopted  in 1998.                                                                    
     Each  year  the  Department   of  Education  and  Early                                                                    
     Development  allocates to  SESA  not  less than  $15.75                                                                    
     times  the  number  of students  statewide.    Although                                                                    
     local  school districts  have received  an increase  in                                                                    
     state funding since 1998, SESA  has not.  Under HB 198,                                                                    
     the   multiplier   increases   as  the   base   student                                                                    
     allocation  increases.   Currently the  computation (.4                                                                    
     percent  of $5,680)  equals  $22.72 which  approximates                                                                    
     the impact of inflation from 1998 to 2011.                                                                                 
                                                                                                                                
     The Special  Education Service Agency is  set to expire                                                                    
     on June 30, 2013.   During previous performance audits,                                                                    
     both the  Department of  Education and  the Legislative                                                                    
     Auditor  recommended  removing  SESA  from  the  sunset                                                                    
     process.     House   Bill   198   repeals  the   sunset                                                                    
     requirement and thus allows SESA to plan long-term.                                                                        
                                                                                                                                
     Thank you for your support of this legislation.                                                                            
                                                                                                                                
8:33:06 AM                                                                                                                    
                                                                                                                                
MS. PETERSON  stated that the Governor's  Council on Disabilities                                                               
& Special  Education would become the  oversight committee should                                                               
the sunset audit requirement be removed.                                                                                        
                                                                                                                                
8:33:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON,  citing  the lack  of  a fiscal  note,                                                               
asked what  would be the  increase over  the years, and  what the                                                               
plan was for the extra funding.                                                                                                 
                                                                                                                                
MS.  PETERSON  read  from  the  handout,  "Benefit  of  Increased                                                               
Funding," [Included in members' packets] and stated that:                                                                       
                                                                                                                                
     A benefit of increase would  be to enhance the district                                                                    
     services; to provide more  distance delivery and online                                                                    
     [courses];  increase staff,  so  they  could meet  with                                                                    
     more  individual students;  and then  increase training                                                                    
     for regular and special ed teachers.                                                                                       
                                                                                                                                
She estimated  that the current  state funding was  $2-$3 million                                                               
under the current formula for $15.75.                                                                                           
                                                                                                                                
8:35:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON directed attention  to Recommendation No. 1                                                               
in  the December  18,  2003 Audit  Report  [Included in  members'                                                               
packets]  which   suggested  that  "SESA  should   transition  to                                                               
videoconferencing as the  norm for the delivery  of its service."                                                               
He asked whether that recommendation had been implemented.                                                                      
                                                                                                                                
8:36:28 AM                                                                                                                    
                                                                                                                                
MS.  PETERSON offered  her belief  that  there was  work in  that                                                               
direction.   She deferred  to Ms. Nagarkar  and Ms.  Davidson for                                                               
clarification.                                                                                                                  
                                                                                                                                
8:37:05 AM                                                                                                                    
                                                                                                                                
NANCY  NAGARKAR, Executive  Director, Special  Education Services                                                               
Agency  (SESA), said  that the  agency currently  received $2.021                                                               
million  and, in  response to  Representative Seaton,  she stated                                                               
that there was  a lot of videoconferencing,  although some school                                                               
districts did not  have the equipment.  She  explained that Skype                                                               
was also used, noting that both of these were "value added."                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  pointed  out that  this  House  Education                                                               
Standing  Committee   meeting  was  not  videoconferenced.     He                                                               
explained  that the  committee  might be  "behind  the curve,  as                                                               
well," noting that it would be helpful to see the testifiers.                                                                   
                                                                                                                                
8:39:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON asked  how many additional  staff would                                                               
be hired, and how much revenue that would generate.                                                                             
                                                                                                                                
8:39:51 AM                                                                                                                    
                                                                                                                                
MS. NAGARKAR offered  her belief that at  least eight experienced                                                               
staff would be  hired.  She said that the  revenue estimate would                                                               
depend  on  the child  count,  and  she  deferred for  an  actual                                                               
estimate.                                                                                                                       
                                                                                                                                
8:41:24 AM                                                                                                                    
                                                                                                                                
ERIC GEBHART,  Superintendent, Nenana City School  District, Vice                                                               
Chair, Governor's Council on  Disabilities and Special Education,                                                               
stated  his support  for HB  198, and  said that  almost half  of                                                               
SESA's funding was  derived from grants, and  that the additional                                                               
revenue from HB  198 would ensure that the mission  of SESA could                                                               
be met.   He pointed out  that SESA was interested  in increasing                                                               
the   technology;  however,   due  to   the  special   nature  of                                                               
disabilities,  a  physical  presence  was  often  required.    He                                                               
emphasized the importance of removing  the sunset clause in order                                                               
to negotiate long term leases and offer assurances to the staff.                                                                
                                                                                                                                
8:45:02 AM                                                                                                                    
                                                                                                                                
PAT  DAVIDSON, Legislative  Auditor, Legislative  Audit Division,                                                               
said that four  reviews had been conducted on SESA  over the past                                                               
20 years, and  that the majority of recommendations  had been for                                                               
operational  issues  and  service delivery,  which  included  the                                                               
teleconferencing  currently being  discussed.   She relayed  that                                                               
the   teleconferencing  recommendation   had   sprung  from   the                                                               
expansion of tele-medicine.   She pointed to the  audit review of                                                               
1995, and stated that the  recommendation had been to extend SESA                                                               
for 10  years or  to remove  SESA from the  sunset process.   She                                                               
acknowledged  that  the sunset  process  allowed  for a  periodic                                                               
evaluation;  however, she  pointed  out that  an  audit could  be                                                               
requested through the Legislative Budget and Audit Committee.                                                                   
                                                                                                                                
8:47:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   asked  if  the  legislative   audit  was                                                               
supportive of the recommendation to expand videoconferencing.                                                                   
                                                                                                                                
8:48:02 AM                                                                                                                    
                                                                                                                                
MS. DAVIDSON replied that, with  changing technology, it would be                                                               
necessary to have a follow up audit for an accurate response.                                                                   
                                                                                                                                
8:49:08 AM                                                                                                                    
                                                                                                                                
ELIZABETH   SWEENEY  NUDELMAN,   Director,  School   Finance  and                                                               
Facilities   Section,   Department   of   Education   and   Early                                                               
Development (EED), addressed  the EED fiscal note.   She reported                                                               
that HB  198 would increase the  SESA funding by $901,000,  as it                                                               
would  change  the  allocation  from  $15.75  multiplied  by  the                                                               
statewide average  daily membership  (ADM) to  .4 percent  of the                                                               
base student allowance  (BSA) multiplied by the ADM.   She opined                                                               
that the  SESA increase would be  included each time there  was a                                                               
BSA  increase.   She noted  that the  BSA increase  was "directly                                                               
attributed  to  the  school districts  for  their  public  school                                                               
funding formula" and  that each BSA increase would  require a new                                                               
SESA fiscal note from EED.   She pointed out that, alternatively,                                                               
the increase  could be placed  in statute.   She stated  that EED                                                               
was in support of an extension for the sunset provision.                                                                        
                                                                                                                                
8:51:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  what time  frame was  suggested for                                                               
the sunset extension.                                                                                                           
                                                                                                                                
MS. NUDELMAN replied that EED  supported an extension for as long                                                               
term as was allowed by the Legislative Audit Division.                                                                          
                                                                                                                                
8:52:06 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK,   referring  to  the  graph   titled  "While  School                                                               
Districts have had their Base  Student Allocation increased... ,"                                                               
[Included in members' packets] pointed  out that SESA funding had                                                               
remained flat  for the past  10 years, while CPI  (Consumer Price                                                               
Index) and BSA had increased,  which indicated a necessity to "be                                                               
linked with something sensitive to the cost."                                                                                   
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  what SESA  would do  with the  extra                                                               
funding.                                                                                                                        
                                                                                                                                
8:52:54 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK  directed  attention  to the  "Benefit  of  Increased                                                               
Funding:"  [Included in members' packets]                                                                                       
                                                                                                                                
8:53:37 AM                                                                                                                    
                                                                                                                                
MS. NAGARKAR,  in response to Representative  Feige, relayed that                                                               
additional  specialists  would  be  hired  to  provide  increased                                                               
services to  students; travel costs  and distance  delivery would                                                               
be  funded;  and  on-line  courses  for  additional  training  to                                                               
regular    teachers,    special     education    teachers,    and                                                               
paraprofessionals throughout Alaska would be offered.                                                                           
                                                                                                                                
8:54:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  asked  if SESA  received  the  e-rate                                                               
subsidy.                                                                                                                        
                                                                                                                                
MS. NAGARKAR replied that it had been awarded.                                                                                  
                                                                                                                                
8:54:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   P.  WILSON,   directing  attention   to  another                                                               
recommendation, asked  if SESA had investigated  the necessity to                                                               
file tax returns and pay excise taxes.                                                                                          
                                                                                                                                
8:55:07 AM                                                                                                                    
                                                                                                                                
MS. NAGARKAR replied that SESA had done this.                                                                                   
                                                                                                                                
8:55:14 AM                                                                                                                    
                                                                                                                                
BRUCE  JOHNSON,  Executive  Director, Alaska  Council  of  School                                                               
Administrators,  stated his  support for  HB 198.   He  said that                                                               
some Alaska school districts hired  school psychologists from the                                                               
Lower 48, but  that this was not possible for  the smaller school                                                               
districts.  He opined that SESA  was a good use of resources, and                                                               
an  essential service,  required by  state and  federal law,  for                                                               
young people.  He stated that  SESA was a valued organization and                                                               
service.                                                                                                                        
                                                                                                                                
8:57:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  asked if there had been  an increase in                                                               
the number of special education students since SESA had started.                                                                
                                                                                                                                
8:58:32 AM                                                                                                                    
                                                                                                                                
LUCIENNE  SMITH,   Special  Education  Services   Agency  (SESA),                                                               
replied that the SESA caseload  had increased by 39 percent since                                                               
FY2001.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  P.  WILSON  suggested that  this  large  increase                                                               
should  be   reported  early   in  testimony   during  subsequent                                                               
hearings.                                                                                                                       
                                                                                                                                
CHAIR DICK announced that public testimony would remain open.                                                                   
                                                                                                                                
[HB 198 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB 198 Sponsor Statement.doc HEDC 3/23/2011 8:00:00 AM
HB 198
SESA Funding Comparison Chart.pdf HEDC 3/23/2011 8:00:00 AM
HB 198
SESA Responsibilities.pdf HEDC 3/23/2011 8:00:00 AM
HB 198
HB 198 Fiscal Note.pdf HEDC 3/23/2011 8:00:00 AM
HB 198
SESA Statutes.pdf HEDC 3/23/2011 8:00:00 AM
HB 198
Statutes for Residential Educ Programs.pdf HEDC 3/23/2011 8:00:00 AM
HB 199
HB 199 Fiscal Note - Copy.pdf HEDC 3/23/2011 8:00:00 AM
HB 199
White Paper by J. Covey.pdf HEDC 3/23/2011 8:00:00 AM
HB 199
HB 199 Sponsor Statement - Copy.doc HEDC 3/23/2011 8:00:00 AM
HB 199
Margie Brown Compass Piece - Copy.pdf HEDC 3/23/2011 8:00:00 AM
HB 199
Nenana PowerPoint.ppt HEDC 3/23/2011 8:00:00 AM
HB 199
Galena City School District Part 1 - Copy.pdf HEDC 3/23/2011 8:00:00 AM
HB 199