Legislature(2009 - 2010)HOUSE FINANCE 519
04/14/2010 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB230 | |
| SB144 | |
| SB269 | |
| SB235 | |
| HB317 | |
| HB69 | |
| SB305 | |
| HB69 | |
| HB421 | |
| SB219 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 230 | TELECONFERENCED | |
| + | SB 144 | TELECONFERENCED | |
| + | SB 219 | TELECONFERENCED | |
| + | SB 235 | TELECONFERENCED | |
| + | SB 269 | TELECONFERENCED | |
| + | SB 305 | TELECONFERENCED | |
| + | HB 69 | TELECONFERENCED | |
| += | HB 317 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 421 | TELECONFERENCED | |
HOUSE BILL NO. 317
"An Act increasing the special needs funding and base
student allocation for public schools, and extending
the adjustment for student transportation funding; and
providing for an effective date."
11:21:11 AM
Co-Chair Hawker MOVED to ADOPT Work Draft CSHB 317(FIN)
(Version 26-LS1378\P, Mischel, 4/13/10) as a working
document before the committee. There being NO OBJECTION, it
was so ordered.
KATIE KOESTER, STAFF, REPRESENTATIVE PAUL SEATON, explained
that the committee substitute would first increase the base
student allocation (BSA) by $125 per year for FY 12 and FY
13 and second increase the block funding for special
education gifted and talented vocational and bilingual
education by 1.5 percent for FY 12 and FY 13. The intent
was to have the money spent on vocational education, as
stated in the Letter of Intent by the Education Committee
(copy on file).
Ms. Koester noted that the CS deletes Section 1, which had
extended inflation adjustment for pupil transportation and
correlated to the adjustment to increases in the consumer
price index (CPI).
Representative Gara questioned whether deleting the
inflation adjustment would allow for cost increases. Ms.
Koester replied that the deletion would remove changes in
the CPI. She believed there might not be much inflation in
some years. She pointed out that Section 1 was put in place
in 2008 as a recommendation of the Joint Legislative
Education Funding Task Force.
Vice-Chair Thomas commented that the increases should be
adjusted to graduation rates rather than to inflation. He
thought the goal of the Education Committee was success; he
did not think increasing the BSA had resulted in success.
Co-Chair Stoltze acknowledged concern related to improving
graduation rates.
11:26:06 AM
EDDY JEANS, DIRECTOR, SCHOOL FINANCES AND FACILITIES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, remarked
that most pupil transportation contracts in the state have
an automatic inflationary adjustment built in. He noted
that the contracts are increased each year by the Anchorage
CPI. He pointed out that the previous version of HB 317
repealed a sunset clause on applying the Anchorage CPI to
the pupil transportation contracts; the new version removed
the adjustment to transportation except related to student
population.
Representative Gara opined that as costs for pupil
transportation go up, districts will have to decrease staff
and supply funding if the legislature does not increase the
increment. He liked the pupil transportation inflation
adjustment and did not like betting on inflation in coming
years. He suggested putting Section 1 back in the bill.
11:29:30 AM AT EASE
11:39:59 AM RECONVENED
Co-Chair Stoltze MOVED Conceptual Amendment 3:
Page 2, following line 24 Insert:
Sec. 7. Section 11, ch. 9, SLA 2008, is amended to
read:
Sec. 11 AS 14.09.010©, added by sec. 2, ch.9, SLA
2008 [OF THIS ACT] is repealed June 30, 2013
[2011].
Co-Chair Hawker OBJECTED for discussion.
Co-Chair Stoltze detailed that Conceptual Amendment 3
corrects a mistake that removed the sunset extension;
without the extension, the program would sunset. The
amendment would give the program an additional two years
before considering the policy measure.
Co-Chair Hawker noted that the amendment restores language
that was in the Education Committee version of the bill.
Co-Chair Hawker WITHDREW his OBJECTION. There being no
further objection, Conceptual Amendment 3 was ADOPTED.
Representative Gara MOVED new Amendment 2:
Page 2, line 17:
Delete "$5,805"
Insert "5,830"
Page 2, lines 21-22:
Delete "5,930 [$5,805]"
Insert "5,980 [$5,830]"
Co-Chair Stoltze OBJECTED for discussion.
Representative Gara explained the amendment. Currently, the
proposal is for the BSA for the next two years to go up by
$125 per year. He was concerned that the BSA has gone up
$100 over the last two years, slightly behind inflation.
Over the next three years the BSA should lag behind
inflation at $125 per year. The $125 increase on the $5,800
BSA is less than 2 percent. He stressed that since the
actual inflation rate is unknown, he was concerned about
setting the rate for three years out.
Representative Gara stated concerns about other reductions
that would become necessary if the BSA does not keep up
with inflation. The Department of Education and Early
Development normally uses the previous three years to
establish an average inflation rate for Anchorage
projections; for the past three years the average has been
2.7 percent. He pointed to a chart on page 2 and asserted
that a 2.7 increase over the next three years would come to
$151 to $155 BSA increase. He noted that the incremental
cost of increasing the BSA from $125 to $150 would be
approximately $6 million per year.
Representative Gara believed the Education Task Force had
done an important thing when they added funding for special
needs and the area cost differential. He did not believe
the additional funds were intended to be lost to inflation
increases.
11:44:24 AM
Co-Chair Hawker MAINTAINED his OBJECTION. He believed the
topic had been thoroughly discussed by committed people and
he wanted to respect their determination.
Co-Chair Stoltze also objected to the amendment. He did not
want to bind any future legislature to an amount in
statute. He observed that education funding only went up,
not down, except an administrative formula decrease in FY
97.
Mr. Jeans agreed that the only time the foundation program
was reduced was in 1987 under Governor Sheffield.
11:48:26 AM
A roll call vote was taken on the motion.
IN FAVOR: Foster, Gara, Doogan
OPPOSED: Kelly, Salmon, Thomas, Austerman, Fairclough,
Hawker, Stoltze
Absent from the vote: Joule
The MOTION FAILED (7-3).
Representative Thomas emphasized that his vote against the
amendment was not a vote against education.
Co-Chair Hawker explained the fiscal notes.
Co-Chair Hawker MOVED to ADOPT the Letter of Intent [from
the House Education Committee] dated February 10, 2010.
There being no OBJECTION, it was so ordered.
Co-Chair Hawker MOVED to report CSHB 317(FIN) out of
Committee with individual recommendations, the Letter of
Intent, and the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
CSHB 317(FIN) was REPORTED out of Committee with no
recommendation, with a Letter of Intent by the Education
Committee, and with previously published fiscal notes: FN1
(EED), FN2 (EED).