Legislature(2011 - 2012)CAPITOL 106

04/15/2011 08:00 AM House EDUCATION


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08:05:05 AM Start
08:05:54 AM Presentation(s): Bristol Bay Borough School District (bbbsd) Superintendent
08:45:44 AM HB143
10:00:31 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Bristol Bay School District TELECONFERENCED
Superintendent
+= HB 145 K-12 SCHOLARSHIP PROGRAM TELECONFERENCED
<Bill Hearing Canceled>
+= HB 143 ADJUST BASE STUDENT ALLOCATION: INFLATION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled 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