Legislature(2023 - 2024)DAVIS 106

03/29/2023 08:00 AM House EDUCATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 71 SCHOOL DISTRICT ONLINE CHECKBOOK TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 105 SEX/REPRODUCTION EDUCATION; SCHOOLS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            HB  71-SCHOOL DISTRICT ONLINE CHECKBOOK                                                                         
                                                                                                                                
8:02:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced that the  first order of business would                                                               
be  HOUSE  BILL  NO.  71,  "An Act  relating  to  education;  and                                                               
relating to a school district online checkbook."                                                                                
                                                                                                                                
8:03:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GEORGE RAUSCHER,  Alaska State  Legislature, read                                                               
the sponsor statement  for HB 71 [included  in committee packet],                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
      The School Districts around Alaska spend millions of                                                                      
       dollars each year without a clear understanding of                                                                       
     where the money goes. We  believe it goes to everything                                                                    
     from    office   supplies,    to   teacher    salaries,                                                                    
     administrative workers  and hopefully  the kids  in the                                                                    
     classroom. A  tool like an  online checkbook  will help                                                                    
     the  Governor  and  Legislature  understand  where  the                                                                    
     deficit  is,  and  where   funding  is  needed.  Public                                                                    
     accountability  helps  ensure   that  funds  are  spent                                                                    
     wisely, and the public  is entitled to understand where                                                                    
     the funding goes also.                                                                                                     
                                                                                                                                
     The  intent of  the  online checkbook  is  to create  a                                                                    
     free,  searchable website  that provides  Alaskans with                                                                    
     easy access  to detailed and  comprehensive information                                                                    
     on  School  District   spending.  This  will  encourage                                                                    
     better   understanding    of   district    needs   and,                                                                    
     ultimately,  help ensure  that funding  is directed  to                                                                    
     where it should be.                                                                                                        
                                                                                                                                
REPRESENTATIVE RAUSCHER noted the  sectional analysis had already                                                               
been presented at a prior hearing.                                                                                              
                                                                                                                                
8:05:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX asked Representative  Rauscher whether he had                                                               
checked  with the  school  districts  to find  out  if they  have                                                               
expectations of  how much they  will have to spend  to accomplish                                                               
this proposal,  and whether  the districts think  it would  be an                                                               
improvement.                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  confirmed that  he had.   He  also noted                                                               
that  the public  would like  to  understand where  the money  is                                                               
specifically spent so they can ask the right questions.                                                                         
                                                                                                                                
8:09:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT asked  Representative Rauscher  whether                                                               
he had checked with single  sight districts that dont  maintain a                                                               
website or considered the financial burden of this proposal.                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER replied  he had  not. He  noted that  he                                                               
could not distinguish  specific districts within the  54 where it                                                               
might be a financial burden.                                                                                                    
                                                                                                                                
8:10:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR RUFFRIDGE  noted that  larger school  districts  budgets                                                               
were  available  to  the  public  on  an  online  platform.    He                                                               
questioned who may  be seeking detailed "line  by line" checkbook                                                               
data.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  RAUSCHER  explained   that  for  some  interested                                                               
people, it  is very  hard to get  the information,  and sometimes                                                               
schools can be  evasive in providing the  exact information being                                                               
sought.   He  said  the  public may  receive  a more  generalized                                                               
number.                                                                                                                         
                                                                                                                                
8:14:27 AM                                                                                                                    
                                                                                                                                
CO-CHAIR RUFFRIDGE  asked Representative Rauscher whether  he had                                                               
personal  experiences  with  people   that  struggled  to  obtain                                                               
particular information.   He stated that he wanted  to be certain                                                               
that people could use the  checkbook to find information they are                                                               
"missing out on."                                                                                                               
                                                                                                                                
REPRESENTATIVE  RAUSCHER offered  to forward  an email,  blacking                                                               
out  the person's  name, so  Representative  Ruffridge could  see                                                               
"what their problem was."                                                                                                       
                                                                                                                                
CO-CHAIR RUFFRIDGE indicated that he was interested.                                                                            
                                                                                                                                
8:16:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STORY    addressed   cybersecurity,    and   the                                                               
possibility of names on the  checkbook being a security threat to                                                               
vendors.    She also  noted  the  "tremendous expense"  for  some                                                               
districts that do not even have an online presence.                                                                             
                                                                                                                                
8:17:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY  opined that people  should be able  to see,                                                               
in detail,  where money is going  without having to go  through a                                                               
lot of hassle  to get the information.  He  expressed his support                                                               
for HB 71.                                                                                                                      
                                                                                                                                
8:19:13 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD  stated that she supported  transparency and gave                                                               
a  personal  example  of  being  a  parent  having  a  hard  time                                                               
obtaining information.  She shared  her belief that any member of                                                               
the public  should see how public  dollars are being spent.   She                                                               
confirmed her support for HB 71.                                                                                                
                                                                                                                                
8:20:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER explained  that he  sponsored an  online                                                               
checkbook bill  two years ago, and  during that time, no  one was                                                               
worried about  any kind of  security issues regarding  the checks                                                               
that were  written.  He stated  that it should not  be thought of                                                               
as a security breach.                                                                                                           
                                                                                                                                
8:22:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT moved to adopt Amendment 1 to HB 71,                                                                   
labeled 33-LS0435/A.2\Marx 3/23/23, which read:                                                                                 
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "and"                                                                                                        
                                                                                                                                
     Page 1, line 1, following "checkbook":                                                                                   
          Insert "; and relating to the review of a school                                                                    
     district budget by a legislator"                                                                                         
                                                                                                                                
     Page 1, following line 10:                                                                                                 
     Insert new bill sections to read:                                                                                          
        "*  Sec. 2.  AS 14.17  is amended  by  adding a  new                                                                
     section to read:                                                                                                           
          Sec. 14.17.925. Legislator review of school                                                                         
     district  budget. (a)  The superintendent  of a  school                                                                  
     district shall  meet with  a legislator  who represents                                                                    
     the  house  or  senate  district in  which  the  school                                                                    
     district is located to review  the budget of the school                                                                    
     district if  requested by  the legislator.  The meeting                                                                    
     must  be  held  at  a   place  located  in  the  school                                                                    
     district, unless the  superintendent and the legislator                                                                    
     agree otherwise.                                                                                                           
          (b)  In this section, "school district" has the                                                                       
     meaning given to "district" in AS 14.17.990.                                                                               
        *  Sec.  3. AS 24.05  is  amended  by adding  a  new                                                                  
     section to read:                                                                                                           
          Article 6. Review of School District Budget.                                                                      
          Sec. 24.05.220. Duty to review school district                                                                      
     budget.  (a)  At least  once  a  year, each  legislator                                                                  
     shall  meet   with  the  superintendent  of   a  school                                                                    
     district   located   within  the   legislator's   house                                                                    
     district  or  senate  district  to  review  the  school                                                                    
     district budget.  The meeting must  be held at  a place                                                                    
     located   in   the    school   district,   unless   the                                                                    
     superintendent and the legislator agree otherwise.                                                                         
          (b)  In this section, "school district" has the                                                                       
     meaning given to "district" in AS 14.17.990."                                                                              
                                                                                                                                
REPRESENTATIVE PRAX objected.                                                                                                   
                                                                                                                                
REPRESENTATIVE  HIMSCHOOT spoke  to Amendment  1.   She explained                                                               
that since school districts are  funded publicly, the information                                                               
about how  the money is  spent is  publicly available.   She said                                                               
the proposed amendment would put  an obligation on legislators to                                                               
spend  one day  in  their  home school  district  to explore  the                                                               
budget with the districts superintendent.                                                                                       
                                                                                                                                
8:23:58 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  ALLARD  asked  whether   the  bill  sponsor  considered                                                               
Amendment 1 to be a friendly amendment.                                                                                         
                                                                                                                                
REPRESENTATIVE RAUSCHER opined that Amendment  1 would be a heavy                                                               
burden  on some  legislators,  which,  compounded with  senators                                                                
districts, would become  even bigger.  He stated that  he did not                                                               
find Amendment 1 to be a "friendly amendment."                                                                                  
                                                                                                                                
8:26:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  drew attention  to page  1, line  21 of                                                               
Amendment 1,  which stated  "a" school  district.   She explained                                                               
she has  22 communities in 12  school districts and did  not want                                                               
to put  a burden on anyone;  however, she stressed that  it would                                                               
be  "a" school  district,  meaning one  district.   Further,  she                                                               
pointed out  that every legislator is  in a community that  has a                                                               
district office.                                                                                                                
                                                                                                                                
8:26:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY asked  for clarification  about line  14 of                                                               
Amendment  1, which  stated, "unless  the superintendent  and the                                                               
legislator agree otherwise".   She asked whether  that meant that                                                               
they could agree to have a phone conversation.                                                                                  
                                                                                                                                
REPRESENTATIVE HIMSCHOOT  confirmed that is correct,  it does not                                                               
have to be in person.                                                                                                           
                                                                                                                                
8:27:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY  opined that  he  would  rule the  proposed                                                               
amendment  as out  of order,  as it  has nothing  to do  with the                                                               
bill.                                                                                                                           
                                                                                                                                
8:27:57 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:27 a.m. to 8:44 a.m.                                                                       
                                                                                                                                
8:44:13 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD  asked Representative Prax whether  he maintained                                                               
his objection.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  PRAX maintained  his  objection.   He shared  his                                                               
belief that  it is a good  idea for legislators to  pay attention                                                               
to their  districts; however, he  disagreed with  the requirement                                                               
that a superintendent must meet  with a legislator.  He explained                                                               
that  it is  not [the  legislature's]  primary responsibility  to                                                               
look at each school district, and said  it was not a good idea to                                                               
put it in statute.                                                                                                              
                                                                                                                                
8:46:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCKAY questioned the  penalty for not meeting with                                                               
the superintendent.                                                                                                             
                                                                                                                                
8:46:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HIMSCHOOT replied it would  be the same penalty as                                                               
the legislature not finishing session in 90 days.                                                                               
                                                                                                                                
8:47:09 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD  observed that the proposed  amendment requires a                                                               
legislator to  review the  budget, which has  nothing to  do with                                                               
the  online  checkbook;  therefore,  she  stated  she  would  not                                                               
support Amendment 1.                                                                                                            
                                                                                                                                
8:47:54 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:47 a.m. to 8:50 a.m.                                                                       
                                                                                                                                
8:50:35 AM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Himschoot,  and                                                               
Story  voted in  favor  of Amendment  1.   Representatives  Prax,                                                               
McKay,  Allard,  and  Ruffridge voted  against  it.    Therefore,                                                               
Amendment 1 failed by a vote of 2-4.                                                                                            
                                                                                                                                
8:51:21 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:51 a.m.                                                                                 
                                                                                                                                
8:51:53 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD opened public testimony on HB 71.                                                                               
                                                                                                                                
8:52:36 AM                                                                                                                    
                                                                                                                                
SARAH MONTALBANO, Education Policy  Analyst, Alaska Policy Forum,                                                               
testified in  support of HB 71,  and gave a brief  description of                                                               
the  forum.    She  stated   that  transparency  helps  residents                                                               
understand  their   government  and  hold  it   accountable,  and                                                               
explained  that  it is  often  difficult  and expensive  for  the                                                               
public to  obtain financial  information about  their government.                                                               
Transparency  requirements  do  not  have  to  be  burdensome  to                                                               
districts, she  said, but  the statute  should list  minimum data                                                               
requirements  that must  be provided.   Other  states and  school                                                               
districts  nationwide  have  recognized the  value  of  providing                                                               
checkbooks online,  she said.   She opined  that Alaska  would do                                                               
well to follow suit.                                                                                                            
                                                                                                                                
8:54:48, AM                                                                                                                   
                                                                                                                                
HERMAN MORGAN,  representing self,  testified during  the hearing                                                               
on HB 71.   He opined that rural districts  were being failed and                                                               
urged the legislature to fix the education system.                                                                              
                                                                                                                                
8:58:13 AM                                                                                                                    
                                                                                                                                
CASSEE  OLIN,  Administrative  Services Director,  Juneau  School                                                               
District, testified during  the hearing on HB 71.   She expressed                                                               
concern  that the  const for  school districts  would be  hard to                                                               
estimate;  additionally,  she   expressed  concern  that  smaller                                                               
school  districts  with  only  one   business  manager  would  be                                                               
affected.   Lastly,  she expressed  concern about  cybersecurity.                                                               
She stated that she lacked clarity  as to how the checkbook would                                                               
be set up.  She offered to remain available for any questions.                                                                  
                                                                                                                                
9:00:59 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD closed public testimony on HB 71.                                                                               
                                                                                                                                
9:01:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY asked Representative  Rauscher what level of                                                               
detail is in  the checkbook and requested an example  of one that                                                               
had been done for school districts.                                                                                             
                                                                                                                                
REPRESENTATIVE  RAUSCHER gave  examples  of the  type of  entries                                                               
that might be shown in the checkbook.                                                                                           
                                                                                                                                
9:02:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR ALLARD announced that HB 71 was held over.                                                                             

Document Name Date/Time Subjects
Amendment #1.pdf HEDC 3/29/2023 8:00:00 AM
Amendment #1 - HB71
HB0071A.PDF HEDC 3/29/2023 8:00:00 AM
HB 71
HB 71 Sponsor Statement.pdf HEDC 3/29/2023 8:00:00 AM
HB 71
HB 71 Sectional Analysis.pdf HEDC 3/29/2023 8:00:00 AM
HB 71
HB 71 Fiscal Note.pdf HEDC 3/29/2023 8:00:00 AM
HB 71
HB105- House Education Hearing Request 3-8-2023.pdf HEDC 3/29/2023 8:00:00 AM
HB 105
HB105 Sponsor Statement.pdf HEDC 3/29/2023 8:00:00 AM
HB 105
HB105-Fiscal Note.PDF HEDC 3/29/2023 8:00:00 AM
HB 105
HB0105A.PDF HEDC 3/29/2023 8:00:00 AM
HB 105
HB105 - Sectional Analysis.pdf HEDC 3/29/2023 8:00:00 AM
HB 105