Legislature(2009 - 2010)

04/16/2010 10:47 AM House FIN


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CS FOR SENATE BILL NO. 221(EDC)                                                                                               
                                                                                                                                
     "An Act  establishing an advisory task  force on higher                                                                    
     education  and  career  readiness  in  the  legislative                                                                    
     branch of  government; and  providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
5:20:35 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  MOVED to  ADOPT HCS CS  SB 221,  work draft                                                                    
26-LS1309\M, Mischel, 4/16/10 as a working document.                                                                            
                                                                                                                                
Co-Chair Stoltze OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
BEN  MULLIGAN, STAFF,  HOUSE FINANCE  COMMITTEE, provided  a                                                                    
sectional  analysis  of  the  bill.  The  program  had  been                                                                    
renamed "The  Alaska Merit  Scholarship Program".  Section 1                                                                    
established district  determination of  student eligibility.                                                                    
Section  2  gave  the  Alaska  Commission  on  Postsecondary                                                                    
Education   (ACPE)   the   ability  to   adopt   regulations                                                                    
pertaining to the  merit program. Section 3,  which was part                                                                    
of the Alaska Advantage Grant  Program, raised the amount of                                                                    
needs based funding  per school year from  $2,000 to $3,000.                                                                    
Section 4 states that a student  may not receive more than a                                                                    
total  of  $12,000  (formerly  $8,000)  in  awarded  grants.                                                                    
Section 5  established the eligibility and  awards structure                                                                    
of the Alaskan Merit  Scholarship program. Section 5 details                                                                    
the award  structure and  the requirements  to qualify  as a                                                                    
postsecondary institution.  Section 5 also  contained agreed                                                                    
upon defined terms. Section 6  had been amended to establish                                                                    
that the  commission would provide adequate  funding for not                                                                    
fewer than 5  students to attend four-year  programs in each                                                                    
of   the  following   fields:   dentistry,  optometry,   and                                                                    
pharmacy.                                                                                                                       
                                                                                                                                
5:24:42 PM                                                                                                                    
                                                                                                                                
Mr.  Mulligan   continued.  Sections   8  and   9  contained                                                                    
transitional language  to allow the Department  of Education                                                                    
(DOE)  to  permit  the implementation  of  regulations.  The                                                                    
Merit  Scholarship program  would not  be implemented  until                                                                    
July  2011. Section  10 contained  provisions for  the Joint                                                                    
Legislative Higher Education  Scholarship Funding Taskforce,                                                                    
which was defined in Senate  Concurrent Resolution (SCR) 19.                                                                    
Section  11  established  an advisory  taskforce  on  higher                                                                    
education  and  career readiness,  which  was  found in  the                                                                    
original  version of  SB 221.  Two members  from each  body,                                                                    
appointed by  the presiding officer,  would be  appointed to                                                                    
the  taskforce.   Mr.  Mulligan  stated  that   all  section                                                                    
pertaining to the Alaska Merit  scholarship program would be                                                                    
delayed  a full  year  in  order to  give  DOE  a chance  to                                                                    
examine how  the program  would need  to be  structured. The                                                                    
delay would  also allow the  various taskforces  the ability                                                                    
research the programs more comprehensively.                                                                                     
                                                                                                                                
Representative Austerman asked if  any of the regulations in                                                                    
the bill would  be implemented before the  effective date of                                                                    
2011.                                                                                                                           
                                                                                                                                
DIANE BARRANS,  EXECUTIVE DIRECTOR,  POSTSECONDARY EDUCATION                                                                    
COMMISSION, DEPARTMENT  OF EDUCATION,  replied that  the DOE                                                                    
and the  commission were prepared  to move forward  with the                                                                    
regulations  immediately. She  stated that  the plan  was to                                                                    
put regulations out by summer  2010, for public comment. The                                                                    
hope was to have  regulations that reasonably reflected what                                                                    
schools and  students would  need to know  by fall  2011, to                                                                    
participate in the programs.                                                                                                    
                                                                                                                                
5:31:02 PM                                                                                                                    
                                                                                                                                
Mr.  Mulligan added  that the  transition language  directly                                                                    
stated that  the regulations would  be available  for study,                                                                    
but would  not take  effect until  the effective  date. This                                                                    
would allow  for the  chance begin  promulgating regulations                                                                    
in order to get a head start on the regulatory process.                                                                         
                                                                                                                                
Co-Chair  Hawker  offered  several points  of  clarification                                                                    
regarding  the  bill.  Page  7,   Section  6  discussed  the                                                                    
extension of  the Western  Interstate Commission  for Higher                                                                    
Education  (WICHE)  program. He  relayed  that  it had  been                                                                    
unclear  whether  the  program   would  be  comprised  of  5                                                                    
students  or 60  students. He  also asked  bill drafters  to                                                                    
examine Page  4, Section 5,  which discussed  maximum awards                                                                    
under the  Alaska merit scholarship program.  He wondered if                                                                    
the awards would be distributed per year or per semester.                                                                       
                                                                                                                                
SHARON  KELLY, STAFF,  REPRESENTATIVE  MIKE CHENAULT,  cited                                                                    
Page  5, Item  c, which  stated that  a student  receiving a                                                                    
scholarship  could remain  eligible for  up to  8 semesters.                                                                    
She agreed that the language could be clarified.                                                                                
                                                                                                                                
5:36:07 PM                                                                                                                    
                                                                                                                                
Representative Joule wondered if  students could raise their                                                                    
eligibility levels  by achieving  high grade  point averages                                                                    
during the first year of college. Ms. Barrans replied no.                                                                       
                                                                                                                                
Representative Gara  stated that  he had  not seen  a fiscal                                                                    
note funding the increase the  ACPE grant cap from $2,000 to                                                                    
$3,000. He  requested a fiscal  estimate of the cost  to the                                                                    
state if  the full  $3,000 was given  to all  who qualified.                                                                    
Ms. Barrans replied that the  fiscal note in the bill packet                                                                    
provided for an additional $400,000  to fund the program for                                                                    
the FY11  year. The commission  had $620,000 left  over from                                                                    
the FY09 appropriation  to fund grants in  FY11. The average                                                                    
funding for  the program for  the last  4 years has  been $1                                                                    
million   per  year.   $1.1  million   had  been   added  in                                                                    
continuation years  for the needs  based grant  program. She                                                                    
anticipated that after implementation  the annual base grant                                                                    
would  rise  from $1,000  to  $1,500,  priority grants  from                                                                    
$2,000 to  $3,000, for  the FY11 year.  The out  years after                                                                    
that would  be influence by the  legislative recommendations                                                                    
from the taskforce.                                                                                                             
                                                                                                                                
Representative  Gara  asked if  the  numbers  could be  more                                                                    
easily  provided by  removing  the  regulation that  offered                                                                    
only half  of the  capped amount.  Ms. Barrans  replied that                                                                    
she could get back to the committee with the numbers.                                                                           
                                                                                                                                
Representative  Gara expressed  concern for  students living                                                                    
in  districts  without access  to  the  courses required  to                                                                    
qualify for  the merit scholarship. He  thought that Section                                                                    
3 could resolve the problem.                                                                                                    
                                                                                                                                
5:42:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  reminded the committee that  only committee                                                                    
chairs   had   the  power   to   order   fiscal  notes   for                                                                    
distribution.                                                                                                                   
                                                                                                                                
Representative Fairclough  queried the  language on  Page 5,                                                                    
Line 8. She hoped that  student would not be precluded based                                                                    
on taking  classes during the  summer semester.  Ms. Barrans                                                                    
replied that the scholarship could  be spread out over three                                                                    
semesters in  an academic  year. The  six year  timeline was                                                                    
intended  to   allow  for  students   who  do   not  proceed                                                                    
immediately from high school to postsecondary education.                                                                        
                                                                                                                                
Representative Fairclough  expressed concern that  a student                                                                    
taking three  semesters in years  one and two, might  end up                                                                    
not  qualifying for  aid in  their third  year. Ms.  Barrans                                                                    
replied  that  the  student  would  remain  eligible  for  8                                                                    
semesters.  If   the  student  chose  to   accelerate  their                                                                    
program, the  scholarship would be  exhausted by the  end of                                                                    
the 8 semesters.                                                                                                                
                                                                                                                                
Representative  Fairclough cited  Page 4,  Lines 10-12.  She                                                                    
asked  if  there had  been  a  reduction in  the  governor's                                                                    
original  proposal  for  academic excellence.  Mr.  Mulligan                                                                    
referred the question to the DOE commissioner.                                                                                  
                                                                                                                                
Representative  Joule wondered  how long  after high  school                                                                    
graduation could a student be  eligible for the program. Ms.                                                                    
Barrans  replied  that under  the  terms  of the  bill,  the                                                                    
student  would  be  eligible for  6  years,  following  high                                                                    
school graduation.                                                                                                              
                                                                                                                                
Representative  Gara  asked  where the  funds  discussed  in                                                                    
Section 3  could be  used. Ms. Barrans  said that  the funds                                                                    
could  be   used  at  credited  traditional   or  vocational                                                                    
institutions. Currently,  the program operated as  a federal                                                                    
and state partnership and the  state received a small amount                                                                    
of federal  dollars. The  terms upon  which the  grants were                                                                    
issued must comply with federal requirements.                                                                                   
                                                                                                                                
Representative  Gara queried  further  examples of  credited                                                                    
institutions. Ms. Barrans replied  that charter colleges and                                                                    
career academies would qualify.                                                                                                 
                                                                                                                                
5:48:18 PM                                                                                                                    
                                                                                                                                
Representative Gara  expressed discomfort with Page  5, Line                                                                    
1.  He  wondered  if  the  state would  save  money  by  not                                                                    
rewarding  merit  grants to  students  with  less than  a  B                                                                    
average.  Ms.  Barrans responded that that  scenario had not                                                                    
been calculated.                                                                                                                
                                                                                                                                
Representative Gara  communicated reservation as to  how the                                                                    
program  would  apply to  districts  without  access to  the                                                                    
courses required to qualify for the scholarships.                                                                               
                                                                                                                                
Representative Joule advocated  for awarding scholarships to                                                                    
students  with a  2.5 grade  point average  (B average).  He                                                                    
shared his experience working with  students who were at the                                                                    
B average. He  argued that the B average  students were hard                                                                    
and   steady  workers,   and  should   not  be   denied  the                                                                    
opportunity for college scholarships.                                                                                           
                                                                                                                                
Representative  Doogan asked  how many  college credits  the                                                                    
first  award level  of $4,755,  would pay  for. Ms.  Barrans                                                                    
answered  that  the  sum  was the  equivalent  value  of  15                                                                    
credits at  the University of  Alaska based on  the approved                                                                    
tuition  rate for  2010. The  funds  could be  used for  any                                                                    
allowable cost for attendance.                                                                                                  
                                                                                                                                
Representative  Gara  expressed  the desire  to  assist  all                                                                    
students in  going onto postsecondary  education, regardless                                                                    
of  their  grade  point  average.  He  asked  if  there  was                                                                    
assistance  under  the  bill for  students  who  acquired  a                                                                    
general  education diploma  (GED). Ms.  Kelly believed  that                                                                    
the  intent of  the bill  was to  move the  governor's merit                                                                    
scholarship forward. She added  that any changes that needed                                                                    
to  be made  to  the  bill could  be  made  during the  next                                                                    
legislative session.                                                                                                            
                                                                                                                                
Representative Gara  clarified that  there was  no provision                                                                    
in  the merit  scholarship  language for  GED recipients  to                                                                    
receive assistance. Ms. Kelly said that was correct.                                                                            
                                                                                                                                
5:53:23 PM                                                                                                                    
                                                                                                                                
TIM LAMKIN, STAFF, SENATOR GARY  STEVENS, testified that the                                                                    
CS  had full  support from  the  sponsor. He  said that  the                                                                    
$4,755 figure  specifically referred to the  average tuition                                                                    
at  University of  Alaska  Anchorage  (UAA). Tuition  varied                                                                    
around  the state  between the  campuses. The  University of                                                                    
Alaska  Anchorage  tuition  was  slightly  higher  than  the                                                                    
University  of Alaska  Fairbanks, and  the average  of upper                                                                    
and lower  division classes  for one  year was  the equation                                                                    
used to establish the $4,755 figure.                                                                                            
                                                                                                                                
Vice-Chair Thomas asked if a  waiver would be used for rural                                                                    
students that  did not have  access to the  courses required                                                                    
to qualify for the program.                                                                                                     
                                                                                                                                
Mr. Lamkin understood that there  was transition language in                                                                    
the regulations.  He referred  to Page  7, Lines  20-31. The                                                                    
student  may be  eligible for  the program  even though  the                                                                    
student  did  not  fully meet  the  required  core  academic                                                                    
curriculum  for  the  school years  beginning  July1,  2010,                                                                    
through  June 30,  2014. He  stated that  the effort  was to                                                                    
reform  the education  system and  to encourage  students to                                                                    
work harder and perform better in school.                                                                                       
                                                                                                                                
Vice-Chair  Thomas   asked  whether   the  student   or  the                                                                    
university received  the money.  Mr. Lamkin stated  that the                                                                    
issue  would be  clarified  in the  regulations. Mr.  Lamkin                                                                    
assured the  committee that the  taskforce would  be working                                                                    
during the interim to craft comprehensive regulations.                                                                          
                                                                                                                                
5:58:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker opened public testimony.                                                                                        
                                                                                                                                
Representative Austerman requested  clarification on Page 4,                                                                    
Lines 6 & 10 of the bill.                                                                                                       
                                                                                                                                
LARRY  LEDOUX,  COMMISSIONER,  DEPARTMENT OF  EDUCATION  AND                                                                    
EARLY DEVELOPMENT, responded that  two sets of criteria were                                                                    
offered in order to qualify  for the scholarships. The first                                                                    
was  4 years  of mathematics,  4 years  of language  arts, 4                                                                    
years of  science, and 4  years of social studies,  one year                                                                    
of a  foreign language, which  may include an  Alaska Native                                                                    
language,  fine  arts,  or  cultural  heritage.  The  second                                                                    
option  was 3  years  of mathematics,  4  years of  language                                                                    
arts, 3 years  of science, 4 years of social  studies, and 2                                                                    
years of foreign language or  an Alaska Native language. The                                                                    
student would have  the choice between the  two options. The                                                                    
language  had   been  included   by  the   Senate  Education                                                                    
Committee.  Representative  Austerman  wondered if  the  two                                                                    
options lowered  the standards for  qualifying to  the level                                                                    
of vocational education.  Commissioner Ledoux responded that                                                                    
the second  option was  intended for  students who  were not                                                                    
oriented toward mathematics or  the hard sciences. According                                                                    
to  the American  College and  Testing  Board, both  options                                                                    
represented a  college preparatory curriculum.  The original                                                                    
proposal was 4  years of science, 4 years  of mathematics, 4                                                                    
years of language  arts, and 3 years of  social studies, and                                                                    
had been  modified through the  process, resulting in  the 2                                                                    
options.                                                                                                                        
                                                                                                                                
6:02:43 PM                                                                                                                    
                                                                                                                                
Representative  Joule thought  that  the conversation  about                                                                    
education  in  the state  could  be  broader than  the  bill                                                                    
allowed.  He expressed  the desire  to support  a bill  that                                                                    
addressed real  education reform so  that GPAs would  not be                                                                    
an  issue. He  emphasized  that the  conversation should  be                                                                    
about students  being able to  read, comprehend,  and retain                                                                    
information  by  the 3rd  grade.  He  stressed the  need  to                                                                    
expand the  conversation, and to  work for a  reformation of                                                                    
the entire educational system.                                                                                                  
                                                                                                                                
Representative Doogan  wondered how the fiscal  impact could                                                                    
begin  at $9  million and  increase to  21.5 million  over 5                                                                    
years.  Ms.  Barrans stated that the  expected fiscal impact                                                                    
for  FY2010 was  $9,321.9 million;  and had  two components.                                                                    
One was  $1.1 million, which was  continuation level funding                                                                    
for  the   needs  based  grant,   the  other   $8.2  million                                                                    
represented  the  average award  amount  for  the number  of                                                                    
students that  were expected to participate  in the programs                                                                    
the first group. The increase  in the three years after that                                                                    
provided for each  of the new cohorts  entering the program.                                                                    
An attrition factor was built  into each student group based                                                                    
on the attrition rate that  was typically experienced at the                                                                    
University of Alaska.                                                                                                           
                                                                                                                                
Representative Gara queried the  problem of schools that did                                                                    
not  have  the  coursework   required  to  qualify  for  the                                                                    
scholarships.  He  understood  the  department  intended  to                                                                    
suggest the schools use on-line courses.                                                                                        
                                                                                                                                
6:07:26 PM                                                                                                                    
                                                                                                                                
Commissioner Ledoux  informed the committee that  across the                                                                    
state, for  many years, there  had been  independent courses                                                                    
utilizing  different  methods   of  distance  delivery.  The                                                                    
alternative courses  had been  used in  60 schools  that had                                                                    
between  20 and  11 students,  ranging in  ages K-12.   Some                                                                    
districts  operated learning  centers  where students  could                                                                    
work on  distance courses. Some districts  were utilizing e-                                                                    
learning  blackboard  illuminate,   which  were  interactive                                                                    
distance courses  using the  internet. Others  had purchased                                                                    
special  independent study  curriculum that  was facilitated                                                                    
by  teachers.  Many districts  were  using  online, two  way                                                                    
video   in   real   time.   Aside   from   state   sponsored                                                                    
correspondence  schools,   some  districts   were  utilizing                                                                    
national  correspondence  schools.  Many states  across  the                                                                    
country, Alaska included,  were coordinating activities into                                                                    
a virtual  school to make  it easier for districts  to offer                                                                    
the  required coursework.  He emphasized  the importance  of                                                                    
rigorous  study; the  department intended  to be  careful to                                                                    
uphold high academic expectations.                                                                                              
                                                                                                                                
Commissioner  Ledoux regarded  the  proposal  as a  contract                                                                    
rather than  as a  scholarship. The  students in  the states                                                                    
smaller schools were aware of  the challenges faced by their                                                                    
districts, and they work harder because of it.                                                                                  
                                                                                                                                
Representative Gara  reiterated concerns about  students who                                                                    
graduate with  a GED. Commissioner Ledoux  replied that some                                                                    
states  had  GED  pathways. The  House  Education  Committee                                                                    
elected not to include GED recipients in the program.                                                                           
                                                                                                                                
Representative Gara asked if the  department supported a GED                                                                    
pathway.                                                                                                                        
                                                                                                                                
Commissioner   Ledoux  responded   that  merit   scholarship                                                                    
programs  evolve. He  thought that  as  the program  evolved                                                                    
from  year   to  year,  an  alternative   pathway  could  be                                                                    
established.                                                                                                                    
                                                                                                                                
6:12:43 PM                                                                                                                    
                                                                                                                                
Commissioner  Ledoux said  that  the program  was not  about                                                                    
what student  were doing right  now; it was about  what they                                                                    
were  going  to  do.   He  reference  Representative  Gara'a                                                                    
concern for scholarships for students  with a GPA of 2.5. He                                                                    
reiterated that the  program was a contract;  if the student                                                                    
worked hard,  if the student  took the  rigorous curriculum,                                                                    
if good grades were received,  the student would have a help                                                                    
to go to college.                                                                                                               
                                                                                                                                
Representative Gara clarified that  he wanted to help people                                                                    
with a 2.5 GPA get into college.                                                                                                
                                                                                                                                
Representative Salmon  asked about  the $400  million dollar                                                                    
endowment written  into the original  bill. He  wondered why                                                                    
the fiscal note  showed most of the funding  coming from the                                                                    
general fund. Commissioner Ledoux  answered that the version                                                                    
of  the  bill before  the  committee  did  not say  how  the                                                                    
program would  be funded. That  task had been assigned  to a                                                                    
committee that would meet within the next two years.                                                                            
                                                                                                                                
Representative  Salmon  wondered   what  happened  with  the                                                                    
endowment process.                                                                                                              
                                                                                                                                
Commissioner  Ledoux  replied  that the  endowment  was  not                                                                    
currently in the bill, but could be reconsidered.                                                                               
                                                                                                                                
Vice-Chair  Thomas asked  if funding  had been  written into                                                                    
the  fiscal  note  to  pay for  the  implementation  of  the                                                                    
program  into  districts,  such  as  adding  more  teachers.                                                                    
Commissioner Ledoux  replied no. He furthered  that the cost                                                                    
to districts  would vary  depending on  how the  program was                                                                    
implemented,  Larger schools  could  modify class  schedules                                                                    
and offerings,  according to what the  students needed under                                                                    
the program  requirements. Small schools could  do the same;                                                                    
however,  the  state would  help  to  develop the  necessary                                                                    
programs in  smaller districts. He  said that  more teachers                                                                    
would not  be needed  because the  number of  students would                                                                    
not be increasing.                                                                                                              
                                                                                                                                
6:17:33 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Thomas  countered that  the  several  of the  15                                                                    
school  districts that  he  represented  reported that  they                                                                    
would  need  new teachers  in  order  to offer  the  classes                                                                    
required by  the program. He expressed  concern that certain                                                                    
districts  would be  left behind.  He thought  more research                                                                    
was  needed to  be sure  that the  legislation was  fair and                                                                    
equitable.  Commissioner Ledoux  assured the  committee that                                                                    
the department  would be reporting  back to  the legislature                                                                    
every year into  the future with regard to  which schools in                                                                    
the  district  were  participating  in  the  program.  Every                                                                    
superintendent in the state had  been contacted and asked if                                                                    
the program could  be delivered in their  districts. He said                                                                    
that every  superintendent in the district  replied that the                                                                    
program could be  supported. He added that it  would be more                                                                    
difficult for some districts, and  that the department would                                                                    
work to assist those schools.                                                                                                   
                                                                                                                                
Vice-Chair Thomas  cautioned the  passing of the  $3 million                                                                    
fiscal  note without  assurances  that all  students in  the                                                                    
state  would  benefit,  particularly  the  students  in  the                                                                    
districts he  represented. He  felt he  could not  support a                                                                    
bill that would leave the students he represented behind.                                                                       
                                                                                                                                
6:20:13 PM                                                                                                                    
                                                                                                                                
Representative Fairclough  thought it  would be wise  to let                                                                    
the  task  force  move  forward  with  improvements  in  the                                                                    
program.                                                                                                                        
                                                                                                                                
Co-Chair Hawker any more public testimony.                                                                                      
                                                                                                                                
CHRIS WILSON, JUNEAU,  shared that he was a  recipient of an                                                                    
honors scholarship  through the old scholarship  program. He                                                                    
expressed dismay  that the program  had disappeared.  He was                                                                    
currently employed by state because due to his two degrees.                                                                     
                                                                                                                                
Co-Chair Hawker closed public testimony.                                                                                        
                                                                                                                                
SB 221 was set aside until later in the meeting.                                                                                
                                                                                                                                
6:26:22 PM          AT EASE                                                                                                   
7:25:55 PM          RECONVENE                                                                                                 
                                                                                                                                
CS FOR SENATE BILL NO. 221(EDC)                                                                                               
                                                                                                                                
     "An Act  establishing an advisory task  force on higher                                                                    
     education  and  career  readiness  in  the  legislative                                                                    
     branch of  government; and  providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
9:14:15 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment 4, 26-                                                                             
LS1309\M.4, Mischel, 4/16/10:                                                                                                   
                                                                                                                                
Page 3, line 13:                                                                                                                
                                                                                                                                
     Delete "$3,000"                                                                                                        
                                                                                                                                
     Insert "$4,000"                                                                                                        
                                                                                                                                
Page 3, following line 10:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 3. AS 14.43.415(b) is amended to read:                                                                           
          (b)  The commission may, if sufficient funding is                                                                 
     available,  [SHALL] give  an  applicant eligible  under                                                                
     (a) of this section priority  for a grant award if that                                                                    
     applicant is, or is about  to be, enrolled in a program                                                                    
     of  study  that is  preparatory  for  employment in  an                                                                    
     occupation or  profession for  which the  Department of                                                                    
     Labor and  Workforce Development, or  another workforce                                                                    
     data  source selected  as reliable  by the  commission,                                                                    
     indicates  there  is  a   severe  shortage  of  trained                                                                    
     individuals   in   this    state.   Additionally,   the                                                                    
     commission may  give an applicant priority  for a grant                                                                    
     award  if   that  applicant   has  participated   in  a                                                                    
     secondary  education  program  of  study  that  can  be                                                                    
     demonstrated to  the commission to  be a  predictor for                                                                    
     success  at the  postsecondary  education  level for  a                                                                    
     program  of study  described  in  this subsection.  For                                                                    
     purposes of this subsection,                                                                                               
               (1)  "occupation or profession" means a job                                                                      
     for  which specific  postsecondary  certification is  a                                                                    
     prerequisite for entry-level placement;                                                                                    
               (2)  "severe shortage" means a current or                                                                        
     recurring job  vacancy rate of  15 percent  or greater,                                                                    
     as determined by the Department  of Labor and Workforce                                                                    
     Development  or   by  another  workforce   data  source                                                                    
     determined reliable by the commission."                                                                                    
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 7, line 28:                                                                                                                
                                                                                                                                
     Delete "sec. 5"                                                                                                            
                                                                                                                                
     Insert "sec. 6"                                                                                                            
                                                                                                                                
Page 8, line 10:                                                                                                                
                                                                                                                                
     Delete "secs. 1, 2, 5, 7, and 8"                                                                                           
                                                                                                                                
     Insert "secs. 1, 2, 6, 8, and 9"                                                                                           
                                                                                                                                
Page 13, line 3:                                                                                                                
                                                                                                                                
     Delete "Section 11"                                                                                                        
                                                                                                                                
     Insert "Section 12"                                                                                                        
                                                                                                                                
Page 13, line 4:                                                                                                                
                                                                                                                                
     Delete "Sections 3, 4, 6, and 8 - 11"                                                                                      
                                                                                                                                
     Insert "Sections 4, 5, 7, and 9 - 12"                                                                                      
                                                                                                                                
Page 13, line 6:                                                                                                                
                                                                                                                                
     Delete "sec. 13"                                                                                                           
                                                                                                                                
     Insert "sec. 14"                                                                                                           
                                                                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
Representative Gara explained that  the amendment would make                                                                    
2 changes in Section 3 of  the bill. The cap for needs based                                                                    
grants  for vocational  technical schools  and state  higher                                                                    
education would  increase from $3,000 to  $4,000. The second                                                                    
change  changes "shall"  to "may"  in Section  3, Line  8. A                                                                    
fiscal note would  need to be created to  support the fiscal                                                                    
impact of the amendment.                                                                                                        
                                                                                                                                
TIM LAMKIN, STAFF, SENATOR GARY  STEVENS, noted that between                                                                    
the  two bodies  a  worthy compromise  had been  established                                                                    
concerning  the legislation.  He warned  that the  amendment                                                                    
could impede the progress of the bill.                                                                                          
                                                                                                                                
9:18:52 PM                                                                                                                    
                                                                                                                                
Representative Fairclough  questioned Page  3, line  15. She                                                                    
wondered  if a  change in  the cap  would limit  the time  a                                                                    
student could participate in the program.                                                                                       
                                                                                                                                
DIANE BARRANS,  EXECUTIVE DIRECTOR,  POSTSECONDARY EDUCATION                                                                    
COMMISSION,  DEPARTMENT OF  EDUCATION,  thought the  concern                                                                    
was a valid.                                                                                                                    
                                                                                                                                
Representative Doogan  noted that the house  had not weighed                                                                    
in on  any form of the  bill, so there could  be no existing                                                                    
compromise between bodies on the legislation.                                                                                   
                                                                                                                                
Vice-Chair Thomas  asked if the  grant was limited  to trade                                                                    
schools.  Mr.  Lamkin understood  that  the  funds could  be                                                                    
applied to qualifying postsecondary educational facilities.                                                                     
Ms.  Barrans  added  qualifying   schools  were  Pell  grant                                                                    
eligible  schools;   which  included  both   vocational  and                                                                    
collegiate schools, but was not all encompassing in Alaska.                                                                     
                                                                                                                                
Vice-Chair Thomas  commented that  the money awarded  by the                                                                    
program was  a small help,  but that it was  not significant                                                                    
when considering the full cost of postsecondary education.                                                                      
                                                                                                                                
9:22:55 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough  asked  if, based  on  the  funds                                                                    
currently available  for the program,  the program  would be                                                                    
adversely  affected  by  the number  of  students  receiving                                                                    
funding.  Ms. Barrans  replied yes.  Section 2  of the  bill                                                                    
would  go into  effect  immediately and  the  pool of  grant                                                                    
applicants for  the 2010-2011 year  was already set.  A rise                                                                    
in  the cap  would limit  the amount  of students  who could                                                                    
receive funding.                                                                                                                
                                                                                                                                
Representative Fairclough  thought that  the raising  of the                                                                    
cap  could be  re-examined at  another time  after the  task                                                                    
force had the chance to analyze the bill more closely.                                                                          
                                                                                                                                
Representative  Gara did  not think  that  the change  would                                                                    
adversely affect  students who  had already applied  for the                                                                    
2010-2011 year.   He said a fiscal note would  be written to                                                                    
fund the change. He urged against delaying the cap raise.                                                                       
                                                                                                                                
Co-Chair Stoltze MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Doogan, Foster, Gara, Salmon,                                                                                         
OPPOSED:  Austerman,   Fairclough,  Joule,   Kelly,  Thomas,                                                                    
Stoltze, Hawker                                                                                                                 
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
9:29:18 PM                                                                                                                    
                                                                                                                                
Representative  Gara   MOVED  to  ADOPT  Amendment   2,  26-                                                                    
LS1309\M.2, Mischel, 4/16/10:                                                                                                   
                                                                                                                                
Page 4, following line 25:                                                                                                      
                                                                                                                                
     Insert a new subsection to read:                                                                                           
          "(c)  Notwithstanding the requirements under                                                                          
     (a)(3) and  (4) of  this section, the  department shall                                                                    
     adopt,  in  regulation,  alternative standards  to  the                                                                    
     curriculum  and grade  point average  requirements that                                                                    
     demonstrate preparedness for  attendance at a qualified                                                                    
     postsecondary  institution  for an  otherwise  eligible                                                                    
     student. The  standards may include minimum  scores for                                                                    
     a general education  diploma and alternative curriculum                                                                    
     standards for  vocational or other courses  relating to                                                                    
     a postsecondary course of study."                                                                                          
                                                                                                                                
Page 5, line 6, following "regulation.":                                                                                        
                                                                                                                                
     Insert "The regulations must allow  for an extension of                                                                    
time  for  a  student   who  meets  alternative  eligibility                                                                    
standards adopted under AS 14.43.820(c).                                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
Mr.  Lamkin reminded  the committee  that the  reform effort                                                                    
was  a contract  with students  to perform  a more  rigorous                                                                    
curriculum.  He  believed  that Representative  Gara  had  a                                                                    
valid  point, but  stressed  that the  issue  would be  best                                                                    
taken up by the task force.                                                                                                     
                                                                                                                                
Co-Chair  Hawker  voiced  support   for  the  department  to                                                                    
resolve the  issue addressed by  the amendment and  that the                                                                    
amendment was unnecessary.                                                                                                      
                                                                                                                                
Co-Chair Stoltze MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Doogan, Foster, Gara, Salmon                                                                                          
OPPOSED:  Fairclough,   Joule,  Kelly,   Thomas,  Austerman,                                                                    
Hawker, Stoltze                                                                                                                 
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
9:31:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  MOVED to ADOPT Amendment  3, 26-LS1309\M.3,                                                                    
Mischel, 4/16/10):                                                                                                              
                                                                                                                                
     Page 4, line 26:                                                                                                           
                                                                                                                                
          Delete "Maximum awards. (a)The maximum"                                                                             
                                                                                                                                
          Insert "Maximum annual awards. (a)The maximum                                                                       
          annual"                                                                                                               
                                                                                                                                
                                                                                                                                
     Page 7, line 9, following "students":                                                                                      
                                                                                                                                
          Insert "each year"                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
Co-Chair Hawker explained that  the amendment clarifies that                                                                    
the   award  amount   was  an   annual   award,  which   was                                                                    
accomplished  by changing  the preface  to the  section from                                                                    
"maximum  awards" to  "maximum  annual  awards". The  second                                                                    
change  clarified that  the total  number  of students  that                                                                    
would receive awards was 20.                                                                                                    
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  no                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
Co-Chair  Hawker asked  if any  of the  amendments that  had                                                                    
passed  had changed  the fiscal  notes. Ms.  Barrans replied                                                                    
no.                                                                                                                             
                                                                                                                                
Co-Chair  Hawker stated  that  the  most significant  fiscal                                                                    
note  was   for  the  Alaska  Commission   on  Postsecondary                                                                    
Education (ACPE). He wondered if  the cost leading into 2015                                                                    
was  too high  to be  maintained.  He felt  that within  two                                                                    
budget cycles,  the state  could be back  in a  deficit. Ms.                                                                    
Barrans replied that the state would be paying for success.                                                                     
                                                                                                                                
Co-Chair  Hawker warned  that  the passage  of large  fiscal                                                                    
notes during the session could lead to future deficits.                                                                         
                                                                                                                                
Representative  Gara expressed  frustration  that the  state                                                                    
could spend  $20 million on  a college aid program  that was                                                                    
not going to  help student attend college.  He believed that                                                                    
for  half the  amount a  program could  have been  developed                                                                    
that  would help  those  willing  to go  to  college of  job                                                                    
training. He  stressed that  he had never  seen a  bill that                                                                    
cost  so  much  money  that was  so  incomplete  and  poorly                                                                    
crafted.  He opined  that  the state  was one  of  2 in  the                                                                    
nation  that had  refused to  sign on  to a  national policy                                                                    
towards bettering schools.                                                                                                      
                                                                                                                                
9:38:28 PM                                                                                                                    
                                                                                                                                
Representative Joule  asked about  the establishment  of the                                                                    
advisory taskforce discussed in Section  11 of the bill. Mr.                                                                    
Lamkin replied that the task  force was intentionally set up                                                                    
to include members with a  background in education. The list                                                                    
of members  included a number  of institutions  and agencies                                                                    
within the  state that  were directly  involved in  the K-12                                                                    
and postsecondary  educational system.  Representative Joule                                                                    
asked  about the  involvement of  the  Alaska Federation  of                                                                    
Natives  (AFN).  He  shared  that  there  were  many  native                                                                    
corporations  that gave  millions  of  dollars annually  for                                                                    
scholarships. He  asked if the  president of the  task force                                                                    
would reach out  to the native corporations, or  if the only                                                                    
native  representation   would  be  from  AFN.   Mr.  Lamkin                                                                    
responded that concern for rural  capacity on the task force                                                                    
had been discussed in education  committees. In the interest                                                                    
of  minimizing controversy,  AFN  seemed to  be the  natural                                                                    
choice as  the rural  voice on the  task force.  He believed                                                                    
that,  given   the  scholarships  and   vocational  training                                                                    
offered  by native  organizations  in the  state, AFN  would                                                                    
seek out a representative from one of those organizations.                                                                      
                                                                                                                                
Representative  Fairclough  wondered  if  the  organizations                                                                    
listed   for  the   task  force   had   already  agreed   to                                                                    
participate. Mr. Lamkin said yes.                                                                                               
                                                                                                                                
Representative  Doogan  questioned  the effectiveness  of  a                                                                    
task force  comprised of members  who were part of  a system                                                                    
that was  already failing. He  wondered if there  was better                                                                    
pool  to draw  from.  He thought  the  legislation had  been                                                                    
poorly  crafted. He  felt that  under the  legislation money                                                                    
would  not be  given to  students who  really needed  it. He                                                                    
suggested  that the  problems faced  by  students in  Alaska                                                                    
were substantially different  than in the lower  48. He felt                                                                    
that  the legislature  had  embarked on  a  course that  was                                                                    
irreversible and redundant.                                                                                                     
                                                                                                                                
9:45:14 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas pointed out  to the committee that charter                                                                    
schools,  which  were  proving   to  be  successful  in  the                                                                    
education of students in the  state, were not represented on                                                                    
the advisory  board list. He  shared that as a  young person                                                                    
growing up  in the  state receiving  a higher  education had                                                                    
been encouraged.  He lamented that children  in rural Alaska                                                                    
could  be denied  the chance  to apply  for the  scholarship                                                                    
because  of   curriculum  limitations  in   smaller  village                                                                    
schools. He  questioned the  sincerity of  the bill  to help                                                                    
students from  all parts  of the  state and  declared strong                                                                    
opposition to the legislation.                                                                                                  
                                                                                                                                
Representative  Fairclough reiterated  the concern  that the                                                                    
scholars  program  at UAS  would  be  eliminated because  of                                                                    
diminished  general   fund  dollars  as  a   result  of  the                                                                    
legislation. She thought that  changes needed to be examined                                                                    
within DOE in order for the legislation to be successful.                                                                       
                                                                                                                                
Representative Gara  acknowledged the hard work  done on the                                                                    
legislation.  He reiterated  his  frustration regarding  the                                                                    
legislative policy in the bill.                                                                                                 
                                                                                                                                
Co-Chair   Stoltze   acknowledged   that   more   time   and                                                                    
information would  be needed  to craft  a bill  that pleased                                                                    
all parties,  and that the  K-12 system in the  state needed                                                                    
improvement. He applauded  the hard work that  had been done                                                                    
to craft the legislation.                                                                                                       
                                                                                                                                
9:51:14 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  hoped  the  once  a  task  force  was                                                                    
established,  the  members  would   be  made  aware  of  the                                                                    
committee's  concerns  about  an already  failing  education                                                                    
system in the state.                                                                                                            
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his OBJECTION  to adopting  work                                                                    
draft 26-LS1309\M,  as the working document.  There being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair  Hawker  MOVED  to  report   HCS  CS  SB  221(FIN),                                                                    
amended,  out of  Committee with  individual recommendations                                                                    
and the accompanying fiscal notes.                                                                                              
                                                                                                                                
HCS CS  SB 221(FIN) was  REPORTED out of Committee  with "no                                                                    
recommendation" and  two new attached fiscal  impact note by                                                                    
the Department  of Education and  Early Development  and one                                                                    
new fiscal impact note by the Legislative Affairs Agency.                                                                       
                                                                                                                                

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