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 | |
SENATE BILL NO. 235 "An Act relating to charter school approval and funding." 10:00:23 AM Co-Chair Hawker MOVED to ADOPT Work Draft HCSSB 235(FIN), Version 26-LS1256\E as a working document before the committee. Co-Chair Stoltze OBJECTED for discussion. SENATOR KEVIN MEYER, SPONSOR, explained that the bill would help charter schools get started. He discussed the challenges charter schools experience in finding affordable buildings. Senate Bill 235 would amend existing state statute to allow the Department of Education and Early Childhood Development (DEED) to compete on behalf of Alaska charter schools for facility maintenance and start-up grants nationally available to the U.S. Department of Education. Currently, Alaskan charter schools are not eligible. The bill would first remove the statutory cap of 60 charter schools (there are currently 26 charter schools in Alaska). Second, the bill would create a statute requiring some sort of state mechanism to comply with the federal grant program, amending current law to establish the per person facilities aid program required under the U.S. Department of Education eligibility requirements. Senator Meyer noted that the cost would be nominal ($1.00 per pupil) in order to keep overall costs down. He believed minimal state involvement would maximize local incentive. He emphasized that local school district would have the final say regarding which charter schools are accepted. The bill would improve the state's ability to secure federal start-up funds, make charter schools eligible to compete for federal grants, reduce a major barrier in the development of charter schools, and increase educational choices for parents and opportunities for students. He requested the committee's support. JOMO STEWART, STAFF, SENATOR KEVIN MEYER, spoke to the CS. He pointed to a clarification on page 2, lines 19 through 25, regarding the 90/10 split between federal funding, state funding, and the obligations of the school districts. Line 22 clarifies through language. The phrase reads: "The department shall provide a participating share that is equal to the difference between the allowable costs of a project and the combined available federal funding and state aid provided." He stressed that the obligation regarding the match is the remainder after accruing federal and state funding. Representative Gara queried the $1.00 per pupil amount. Senator Meyer replied that some state contribution was required; since the amount was not stipulated, the sponsors tried to do the minimum. Representative Gara affirmed that the contribution was necessary to participate in the federal grant program. He asked whether the federal grant program was dedicated to charter schools. Senator Meyer replied that charter schools would be allowed to apply through DEED for federal grants for charter school facilities. Representative Gara asked whether there was a grant program specifically for charter schools. Senator Meyer answered in the affirmative. Representative Gara supported providing state funds for charter schools. He asked whether a state match would be required. Senator Meyer responded that the only state match was the $1.00 per student; the rest would come from the federal government. 10:07:01 AM Vice-Chair Thomas queried the drop-out rate in high schools. Senator Meyer did not know. Representative Fairclough believed the number was around 40 percent but has been on the decline. She noted that the drop-out rate was much lower for charter schools. Vice-Chair Thomas thought there would be a bigger difference. Senator Meyer thought the rate was typically less in charter schools. Co-Chair Stoltze reported that charter schools in the Mat- Su Borough have the highest rate of achievement. He added that not all charter schools go through grade 12, but he believed the drop-out rate was very low in charter schools ending in the eighth grade. Vice-Chair Thomas stated that he had not originally been a fan of charter schools but that he had come to support them. Senator Meyer concurred that he had been skeptical but now believed they served a good purpose. Representative Joule asked Representative Kelly whether the charter school in Fairbanks had affected the drop-out rate there. Representative Kelly answered that the rate was better but he did not know the number. Representative Gara elaborated that there were two kinds of optional schools in Anchorage, optional schools and charter schools. He thought charter schools provided an option for parents; however, he pointed out that the most actively involved parents tended to opt for charter schools, and that affected the graduation rate. He stated support for the charter school system and the legislation. Co-Chair Stoltze noted that optional and charter schools are not the same as far as funding goes. 10:11:35 AM Representative Kelly asked whether conforming to the national model to get federal funding would negatively impact charter schools. Senator Meyer replied that he had had similar concerns about possible strings attached to federal money. He believed the program wanted charter schools to remain autonomous. He assured the committee that the local school district still has the final say about the charter schools. Representative Kelly verified that Alaska was under the cap by about half. Representative Salmon remarked that there had been no options in earlier days in rural communities. He believed improving charter schools would benefit young people who could not thrive in regular schools. He supported the idea. Co-Chair Stoltze spoke in support of providing more money for charter school facilities. He believed charter schools had been effective. 10:15:07 AM Representative Foster queried the interest in charter schools in rural communities and whether schools have said they would go after the federal funds. Senator Meyer answered that he had not heard from all 26 charter schools, but the more active schools were very interested in and supportive of the bill. He had not heard from the Nome charter school. Mr. Stuart pointed out that there had been much response throughout the process. Co-Chair Hawker remarked on the fiscal note for $150,000 to administrate the program. He communicated concerns about the increment to state costs and wondered whether the fiscal note could be program receipts rather than general funds. SAM KITO, SCHOOL FACILITIES ENGINEER, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, detailed that 5 percent would be allowed for administrative costs if the grant were received. He provided more information about the grant. Competition for a federal program implemented in 2001 through the No Child Left Behind program resulted in two recipients, California and Indiana. In 2009, the U.S. Department of Education offered another grant competition for four grants between $2 million and $10 million for a charter school assistance program, but there was no funding provided. Mr. Kito told the committee that SB 235 would increase DEED's ability to get competitive facility funding. He noted that there was no guarantee that the state would receive the funding. The bill would establish the structure of a program that would not function until federal money was received. In order to have the ability to receive the money, regulations would have to be established, which would cost an initial $150,000. He estimated that additional staff of one and one-half employees would be necessary to administer the program for five years until the sunset date. He based the estimate on experience with other federal grants. Co-Chair Hawker asked whether the fiscal note summarized costs for a grant that had yet to be awarded. Mr. Kito responded that the Senate Finance Committee had modified the fiscal note so that in the first year the department would develop regulations and would not apply for the grant program. He stressed that personnel would not be hired until the state successfully competed for the grant funding. The initial cost would be to establish regulations to administer the program. 10:21:49 AM Co-Chair Hawker summarized that the regulations would be written, the grant would be applied for, and people would be needed to administer the program if the grant were received. He asked for more information. Mr. Kito answered that the amount would be for reimbursable services to the Department of Law for promulgating the regulations. Co-Chair Hawker thought contractual services would be more correct than personal services. He asked why it was necessary to write the regulations before applying for the grant. Mr. Kito believed that the regulations had to be in place before funding could be received. Co-Chair Hawker was still uncomfortable. 10:23:46 AM Representative Kelly described concerns regarding federal control coming with federal money. He thought there were too many regulations. He asked whether the federal government could be charged back for the cost of writing regulations. Mr. Kito responded that that there was no guarantee that Alaska could win a competitive grant; he pointed out that if the grant money was won there might not be enough time to write the regulations. Representative Kelly asked whether there were regulations already existing that could apply. Mr. Kito responded that the state does not have a program with a competitive process that matches the requirements. Regulations would have to be written to describe a process for prioritizing project applications for charter school facilities in the event that there is not enough money between the state, local, and federal sources. Representative Kelly reiterated his frustrations. 10:27:18 AM Co-Chair Hawker asked whether the time needed to write the regulations could be part of the process instead of trying to implement the program immediately; the administrative money could be requested as part of the regular budget cycle after the grant was awarded. Mr. Kito replied that he was not comfortable relying on funding that may not be available. Co-Chair Hawker stressed that he was also uncomfortable relying on money that might not be available. Representative Gara suggested using the same process municipalities use when they get capital money from the legislature. He suggested writing a provision stating that the department would allow charge-backs to the extent permitted by federal law to recoup the on-going costs of grant administration. Mr. Kito thought the course of action could work for the five years the program would be in effect. The federal program is intended as a step-up or start-up program. He believed the intent was that the federal program would participate at decreasing levels of funding as the state funding levels increased, until the state had a viable facilities program for charter schools. 10:30:38 AM Representative Fairclough suggested changing the debate. She proposed zeroing out the additional staff for the out years and keep the $150,000 for the regulations period. She maintained that charter schools had proven successful already, and there should be a mechanism to fund such success as there is currently funding inequity. She spoke in support of the legislation. Vice-Chair Thomas agreed that charter schools were a success and supported a fiscal note that allowed for the writing of the regulations and went out two more years. Co-Chair Hawker asked committee to consider a zero appropriation in FY 11 and then indeterminates for FY 12 to FY 16; if a significant grant is received, more money might be needed. Representative Doogan thought the first $150,000 in FY 12 was to write the proposal and subsequent increasing fiscal notes were for the costs of running the program in the event that the grant was received. Mr. Kito responded that the first $150,000 was to write the regulations that would establish the program. He noted that the department would still be able to apply for the grant if there were no appropriation this year, but would not be able to start the regulation process until the grant was successfully received. Representative Doogan queried the advantage of the original proposal. Mr. Kito responded that the program would be established and the funding could immediately be used for school district projects. Representative Doogan understood that the issue was timing. 10:36:57 AM Representative Joule queried the mechanism already in place with the public school districts. Mr. Kito responded that currently districts can apply for grants that can cover all facilities, but charter schools have not received much support related to facilities. Representative Joule established that charter schools are under the umbrella of the school district in which they reside. Mr. Kito explained that there are charter schools that are the responsibility of the school districts but charter school facilities are not getting much attention. Representative Foster asked whether having the regulations in place would enhance the state's ability to get the federal funds. Mr. Kito responded that the more robust the program, the better the applicant scores. He thought that a program in regulation might affect the scores in a competition. Mr. Stuart added that some of the eligibility requirements are universal. He stated that writing the regulations now would enhance the state's ability to pursue other grants. 10:40:13 AM Representative Kelly suggested that the school districts apply to prove motivation at the local level. Mr. Kito supported opening up the opportunity for additional funding. He noted that currently schools would be competing against all other state projects. He had not seen charter school applications through the existing grant program and thought a specific program would be good. Representative Kelly wanted to send a signal of support for the program and for taking off the cap. He also wanted local communities to do the work of selling the need to local districts. He stated that he supported either a zero or indeterminate fiscal note. He stressed his frustration about the need to fund a person for a year to write regulations. Senator Meyer agreed that the charter school process has been frustrating as some school districts do not embrace the idea. He believed that the program could get dropped without adequate funding. He supported Co-Chair Hawker's proposal of the indeterminate fiscal note. Representative Kelly stated his support of charter schools and agreed with Co-Chair Hawker's plan. Co-Chair Hawker requested a new fiscal note with a zero for FY 11 and indeterminates for FY 12 through FY 16 to emphasize the expectation that schools would get involved and drive the program. 10:45:00 AM Co-Chair Stoltze did not want the costs to be forced back on school districts that did not support charter schools. Co-Chair Stoltze WITHDREW his OBJECTION. There being NO further OBJECTION, the CS (Version 26-LS1256\E) was ADOPTED. Co-Chair Stoltze closed public testimony. He emphasized his support of charter schools. Vice-Chair Thomas MOVED to report HCSSB 235(FIN) out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCSSB 235(FIN) was REPORTED out of Committee with a "do pass" recommendation and with attached new fiscal note by the Department of Education and Early Development and previously published fiscal note: FN1 (EED). 10:47:20 AM RECESSED 11:21:02 AM RECONVENED