Legislature(1995 - 1996)
03/27/1996 01:50 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 230 "An Act making appropriations to the Department of Education for support of kindergarten, primary, and secondary education and for community schools programs for fiscal year 1996 and fiscal year 1997; making appropriations from the constitutional budget reserve fund under art. IX, sec. 17(c), Constitution of the State of Alaska; and providing for an effective date." RICHARD CROSS, DEPUTY COMMISSIONER, DEPARTMENT OF EDUCATION, voiced support of the committee substitute adopted by the Committee on 3/26/96, which included the Governor's FY97 request for funding of public education formula programs. The legislation includes full funding of the foundation, an increase of $6.5 million dollars from the current year. Mr. Cross pointed out the changes from the current budget. The first change would address the federal disparity test, 2 changing the REAA federal impact aid deduction from 90% to 95%, and providing supplementary aid to REAA's based on a flat rate unit adjustment of $500 hundred dollars per unit. It would increase the unit value in the REAA's so that the disparity would be just under 20%. The second notable change would be the move of the single site funding foundation. Co-Chair Hanley clarified that the committee substitute does not make the switches of actually moving the single site schools. That measure is contained in separate legislation which currently is moving through the Legislature. He asked if that bill did not pass, would it require an additional $1.2 million dollar allocation. EDDY JEANS, SCHOOL FOUNDATION, SCHOOL FINANCE, DEPARTMENT OF EDUCATION, stated it would. If the other bill does not pass, there would be an additional $1.2 million requested to "fix" the disparity. Co-Chair Hanley inquired if an allocation amount would need to be indicated for the single sites. Mr. Jeans replied that the single sites would need to be itemized as in prior years. Co-Chair Hanley provided the Committee with a Department handout indicating last year's breakdown. [Copy on file]. Mr. Jeans responded to Co-Chair Hanley's comment, stating that if the amounts indicated on the handout were moved, it would be consistent with past practice. Co-Chair Foster MOVED the allocation amounts recommended on the handout. Representative Brown questioned if it would adjust the dollar amount in the foundation. Co-Chair Hanley thought those would be allocations under additional district support. There being NO OBJECTION to including the allocation, it was adopted. Representative Brown asked why the Department decided to short-fund the pupil transportation line which would most dramatically affect urban districts. Mr. Cross explained that the pupil transportation request was for $30 million dollars, which was 92% of the FY96 authorized level. He continued that in preparation for the Governor's FY97 operating budget and at the same time in an effort to reduce $35 to $40 million dollars, that reduction was made. Representative Brown asked the amount needed to fully fund transportation for FY97. Mr. Cross replied that the full funding estimate would be $33.2 million dollars, as a result from increased costs over FY96. He added that pupil transportation was not the only item selected for reduction; that program had not been singled out, indicating that many reductions were made. 3 Representative Mulder asked if it was a "fair" assumption of the Governor that education was "fully funded" given the proposed reduction. Mr. Cross responded that there is full funding of the education foundation program in the Governor's proposed budget. He advised that it was a fair statement on the part of the Governor. Representative Mulder disagreed. He stated that pupil transportation should have been included for full funding status. Representative Navarre countered that fully funding education specifically means funding the foundation program unit value. Representative Brown inquired where the school debt retirement would be included. Mr. Jeans replied, in the past, it was included in the K-12 support funding, although, sometimes was addressed through another appropriation bill. Co-Chair Hanley stated that it had been included in the FY97 operating budget; the $94.7 million dollars includes the general obligation debt as well as the debt reimbursement amount for schools. It is fully funded at full entitlement.
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