Legislature(2011 - 2012)HOUSE FINANCE 519

03/23/2012 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 9 IN-STATE GASLINE DEVELOPMENT CORP TELECONFERENCED
Moved CSHB 9(FIN) Out of Committee
+= HB 64 PERMANENT MOTOR VEHICLE REGISTRATION TELECONFERENCED
Scheduled But Not Heard
+= HJR 16 CONST. AM: EDUCATION FUNDING TELECONFERENCED
Moved Out of Committee
HOUSE JOINT RESOLUTION NO. 16                                                                                                 
                                                                                                                                
     Proposing amendments to the Constitution of the State                                                                      
     of Alaska relating to state aid for education.                                                                             
                                                                                                                                
9:06:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WES  KELLER, SPONSOR,  discussed that  HJR 16                                                                    
put  before   the  voters  the  choice   to  allow  indirect                                                                    
assistance for students attending  private schools. The bill                                                                    
was  directed  at  the  Blaine   Amendment;  he  noted  that                                                                    
constitutional delegate  Vic Fischer called the  amendment a                                                                    
standard feature  of all western state  constitutions, which                                                                    
had been  implemented after a  vote failed to include  it in                                                                    
the U.S.  Constitution. He explained  that the bill  did not                                                                    
institute  any programs,  but allowed  the state  to develop                                                                    
programs  that would  provide indirect  aid  to students  in                                                                    
Alaska.                                                                                                                         
                                                                                                                                
Vice-chair Fairclough  moved the bill before  the committee.                                                                    
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative Doogan asked for  detail related to a similar                                                                    
amendment that  had been  voted down  2 to  1 at  the Alaska                                                                    
Constitutional Convention.                                                                                                      
                                                                                                                                
Representative  Keller provided  an excerpt  from a  book by                                                                    
Vic Fischer related to the  issue. He informed the committee                                                                    
that after  Blaine Amendments had  been included  in western                                                                    
state constitutions  a proposed  amendment had  been offered                                                                    
to include  the words  "and indirect"  in the  language; the                                                                    
updated language  would have included a  prohibition against                                                                    
providing direct  and indirect assistance. He  read from the                                                                    
excerpt:                                                                                                                        
                                                                                                                                
     Proponents  of  the  proposed  amendment  stressed  the                                                                    
     importance  of  protecting   the  integrity  of  public                                                                    
     education while the opponents  argued for the provision                                                                    
     of services to the  individual students if otherwise in                                                                    
     keeping with the constitution.                                                                                             
                                                                                                                                
Representative  Keller  furthered  that  the  amendment  had                                                                    
failed 34  to 19.  He discussed that  support for  the issue                                                                    
had been  64 percent and 55  percent in two recent  polls in                                                                    
Alaska.  He  believed the  polls  were  consistent with  the                                                                    
objective proposed in HJR 16.                                                                                                   
                                                                                                                                
9:10:32 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze remarked  that  while  the polls  provided                                                                    
useful information,  the legislature was also  guided by the                                                                    
values of its members and other views.                                                                                          
                                                                                                                                
Representative  Wilson pointed  out that  HJR 16  would take                                                                    
the  issue  to  voters  for a  decision.  She  had  received                                                                    
letters  from   parents  of   special  needs   children  and                                                                    
explained that  some children in public  schools needed more                                                                    
than the  schools could  provide. The  bill would  allow the                                                                    
system to address  their needs in a  private school setting.                                                                    
She  stressed that  the  bill  was not  taking  a "shot"  at                                                                    
public  schools; she  felt it  allowed parents  to choose  a                                                                    
school based  on their  child's needs and  not on  what they                                                                    
could afford.  She believed  that the  "sad thing"  was that                                                                    
the  details   would  be  determined  (the   parameters  the                                                                    
department  would apply  and how  schools would  qualify for                                                                    
vouchers) if  voters passed the  issue. She stressed  that a                                                                    
significant  number of  single parents  could not  afford an                                                                    
option outside  of the  public school  system. She  spoke in                                                                    
support of providing voters with the choice.                                                                                    
                                                                                                                                
Representative   Gara   provided   information   about   the                                                                    
constitutional   history.  He   relayed   that  the   Alaska                                                                    
constitutional   delegates   [Jack]   Coghill   and   Rivers                                                                    
[Representative  Gara  subsequently  clarified that  he  had                                                                    
meant  delegate   Metcalf  instead   of  Rivers]   had  both                                                                    
expressed their  desire for a  free public  education system                                                                    
in   the   state.   He  read   a   statement   from   former                                                                    
Representative Coghill:                                                                                                         
                                                                                                                                
     I believe the  way our government was set  up 175 years                                                                    
     ago that  the founders  felt that public  education was                                                                    
     necessary to bring about a  form of educating the whole                                                                    
     child  for the  civic benefit  through the  division of                                                                    
     point of the  home taking a certain part  of the child,                                                                    
     the church taking a certain  part of his education, and                                                                    
     the government  or state through public  schools taking                                                                    
     the  other  part. I  feel  that  the intent  of  public                                                                    
     education is  primarily a state  function and  does not                                                                    
    belong to any private or any one particular group.                                                                          
                                                                                                                                
Representative Gara  read a statement from  delegate [Irwin]                                                                    
Metcalf:                                                                                                                        
                                                                                                                                
     There  are  16  states  that  have  sections  in  their                                                                    
     constitution preventing  public tax dollars  from being                                                                    
     spent for private schools in any way, shape, or form.                                                                      
                                                                                                                                
Representative  Gara read  from  the  constitution that  had                                                                    
been drawn in 1945:                                                                                                             
                                                                                                                                
     No money shall  ever be taken from  the public treasury                                                                    
     directly or  indirectly in aid  of any  church, sector,                                                                    
     denomination,  or religion;  or in  aid of  any priest,                                                                    
     preacher, minister, or teacher thereof as such.                                                                            
                                                                                                                                
Representative  Gara  expounded  that delegate  Metcalf  had                                                                    
been a "firm  believer in the complete  separation of church                                                                    
and state, especially with the  use of state money and state                                                                    
property."  He communicated  that the  delegates had  chosen                                                                    
not  to fund  private schools  for a  reason. He  elaborated                                                                    
that  once  there  was state  funding  of  private  schools,                                                                    
factions would develop in the  legislature; there would be a                                                                    
group  that   believed  private  school  funding   was  very                                                                    
important  and there  would be  a group  in favor  of public                                                                    
education.  He  opined  that support  for  public  education                                                                    
funding would be  lost because there would be a  rift in the                                                                    
legislature. He  did not fault  people for  having differing                                                                    
views on education; however, a  public education system kept                                                                    
people "all  in the same boat"  with the goal of  having the                                                                    
best public  schools possible. He  believed that  the result                                                                    
would be  a worse and  underfunded education system.  He had                                                                    
no  problem  with  people  attending  private  school;  many                                                                    
private schools  offered scholarships. He stressed  that the                                                                    
state  had  done  a   phenomenal  job  offering  alternative                                                                    
schools within  the public education  system. He  pointed to                                                                    
publicly  funded boarding  schools  and  charter schools  in                                                                    
larger Alaskan communities.                                                                                                     
                                                                                                                                
9:17:50 AM                                                                                                                    
                                                                                                                                
Representative Gara  pointed out  that public  education had                                                                    
been  improving.  Graduation  rates and  proficiency  scores                                                                    
were increasing because there had  been a significant amount                                                                    
of funds  invested in  public schools  in recent  years; the                                                                    
formula  had  been  adjusted that  he  felt  had  previously                                                                    
discriminated  against   rural  Alaska.  He   stressed  that                                                                    
funding  parity had  helped  rural  areas, children  needing                                                                    
special  education,  and  with Teachers'  Retirement  System                                                                    
(TRS) debt.  He believed the improvements  would be reversed                                                                    
if state funding  was extended to private  education; he did                                                                    
not support the legislation.                                                                                                    
                                                                                                                                
Representative  Joule  had   attended  a  Catholic  boarding                                                                    
school in high school and had  paid his own way. He believed                                                                    
he  had  gotten  the  best  education  that  he  could  have                                                                    
received.   He   expressed   frustration  related   to   the                                                                    
separation  between   church  and  state;  he   opined  that                                                                    
freedoms had  become so far  reaching that people  forget or                                                                    
prevent  the items  that are  important to  individuals from                                                                    
entering  the classroom.  He understood  respecting people's                                                                    
rights   and  responsibilities,   but   asked  "what   about                                                                    
respecting    everybody   else's."    He   understood    the                                                                    
opportunities that could  arise out of the bill,  but he had                                                                    
not seen  all of the  detailed information. He  wondered how                                                                    
many  students   would  be  counted  in   the  Base  Student                                                                    
Allocation  (BSA),  how  much additional  funding  would  be                                                                    
necessary,   how  much   the   transportation  costs   would                                                                    
increase,  etc. He  understood that  people wanted  to spend                                                                    
money on  education, but  there were  questions in  his mind                                                                    
that had been  unanswered. He believed a debate  on the bill                                                                    
on the  House floor would be  healthy, but he would  have to                                                                    
be convinced that it was the right thing to do.                                                                                 
                                                                                                                                
9:23:07 AM                                                                                                                    
                                                                                                                                
Representative Neuman  had spent  time at a  private school,                                                                    
but attended a  public high school. He believed  his time at                                                                    
the  private   Catholic  school  was  very   beneficial.  He                                                                    
discussed  that  the  school  had  provided  basic  academic                                                                    
courses  in addition  to religious  studies; he  had learned                                                                    
things in  Catholic middle  school that  were taught  in his                                                                    
senior  year  in  public  school.   He  discussed  the  home                                                                    
schooling of his own children.  He had chaired the education                                                                    
committee during his first two  years in office. He believed                                                                    
the education  system in Alaska was  not a one-size-fits-all                                                                    
system; he pointed  to rural schools with  10 students where                                                                    
the cost  could be $40,000  or $50,000 per student  per year                                                                    
and urban  schools that had  up to 1,400 or  1,500 students.                                                                    
He opined  that regional  learning centers  were "fantastic"                                                                    
and  would probably  be part  of Alaska's  future. He  asked                                                                    
what the funding to private  or Catholic school would be. He                                                                    
discussed the  BSA; correspondence programs were  80 percent                                                                    
of  the  base. He  wondered  whether  private schools  would                                                                    
receive  the base  allocation  if they  were  funded by  the                                                                    
state. He stated that schools  currently were trying to grow                                                                    
their  student population  in order  to  obtain more  funds;                                                                    
however, increased  student numbers  led to  overcrowding in                                                                    
the classrooms.  He believed the bill  would provide parents                                                                    
with more opportunities and would  put the decision in their                                                                    
hands. He stressed that Alaska  had many various educational                                                                    
opportunities   and  led   the   nation  in   correspondence                                                                    
programs.                                                                                                                       
                                                                                                                                
9:28:09 AM                                                                                                                    
                                                                                                                                
Representative  Neuman believed  that  it  was important  to                                                                    
give parents  a choice about their  children's education; he                                                                    
spoke in support  of the resolution because he  felt that it                                                                    
gave parents  the choice. He  opined that the  public school                                                                    
system was currently facing a  significant number of issues.                                                                    
He emphasized  that the  issue was about  what was  best for                                                                    
the kids.                                                                                                                       
                                                                                                                                
Representative Guttenberg recalled  a past conversation with                                                                    
constitutional  delegate Jim  Doogan who  had explained  why                                                                    
the issue  was a  "no." Mr.  Doogan had  been a  very active                                                                    
member of the  church and had explained that  once there was                                                                    
public  money in  a private  school the  door was  opened to                                                                    
control issues;  he had  wanted no part  of the  control and                                                                    
firmly  believed in  keeping his  church  separate from  the                                                                    
state for that reason. He  stated that parents currently had                                                                    
a choice  where their  children were educated;  the question                                                                    
was related  to who  paid for  the choices.  He had  gone to                                                                    
Hebrew school,  which had been  paid for by his  parents. He                                                                    
pointed  out  that  it  was  problematic  that  "when  money                                                                    
follows, control follows, and  budget issues follow." He was                                                                    
honored  to have  received the  information from  a delegate                                                                    
who  had been  a part  of  the decision  making process.  He                                                                    
relayed his opposition to the bill.                                                                                             
                                                                                                                                
9:33:53 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze relayed  that he  would vote  to move  the                                                                    
bill from committee. He discussed  that government had a way                                                                    
of "mucking things  up" in school systems. He  hated to risk                                                                    
ruining private schools that were  offered as an alternative                                                                    
to  public  education, but  he  supported  the bill  because                                                                    
philosophically he supported school choice.                                                                                     
                                                                                                                                
Representative Doogan stressed that  the issue should not be                                                                    
taken  lightly; even  passing the  bill from  committee with                                                                    
"no recommendation"  gave people information about  what the                                                                    
course of  the debate  would be. He  stressed that  he would                                                                    
not vote for the bill  for reasons beyond his father telling                                                                    
him not  to and not  only because  his father was  strong in                                                                    
his support  for private schools.  He discussed that  he had                                                                    
gone  to private  school  for 16  out of  18  years. He  was                                                                    
opposed  to  dividing people  up  based  on their  religious                                                                    
beliefs.  His   father  did  not  believe   that  the  civil                                                                    
institutions  should  use  religion to  make  decisions;  he                                                                    
believed there  should be a  clear line between the  two. He                                                                    
furthered that  the wording of the  constitutional statement                                                                    
on education read  that "no money shall be  paid from public                                                                    
schools for  the direct  benefit of  any religious  or other                                                                    
private  educational   institution."  He  opined   that  the                                                                    
statement could not be any clearer.                                                                                             
                                                                                                                                
Representative  Doogan believed  the  bill would  inevitably                                                                    
damage the system; he was  against allocating money based on                                                                    
people's religious  beliefs, economic situations,  or other.                                                                    
He did not agree with  a statement made by Co-Chair Stoltze;                                                                    
he  did  not  believe  that  the  obvious  failures  of  the                                                                    
education system  should be the  reason for  the legislature                                                                    
to  contemplate its  complete  dismantling.  He opined  that                                                                    
people in the  rich districts would get  together to improve                                                                    
their  educational  system  and   the  people  in  the  poor                                                                    
districts  would have  to deal  with  social, economic,  and                                                                    
other handicaps. He voiced strong opposition to the bill.                                                                       
                                                                                                                                
9:39:37 AM                                                                                                                    
                                                                                                                                
Representative  Doogan referenced  the quote  "I'm a  man of                                                                    
principle and my first principle is flexibility."                                                                               
                                                                                                                                
Co-Chair  Stoltze  interjected  that  the  quote  came  from                                                                    
former  U.S.  Senate  Minority  Leader  Everett  Dirksen  of                                                                    
Illinois.                                                                                                                       
                                                                                                                                
Representative Doogan  liked to  think he was  flexible, but                                                                    
he was  inflexible on  the issue. He  relayed that  he would                                                                    
vote against  passing the  bill from  committee. He  did not                                                                    
see the sense  in "inflaming the passions of  people" on the                                                                    
question.  He believed  that if  the  resolution passed  the                                                                    
outcome would be unknowable related  to an election and what                                                                    
would happen if  the issue became law. He  stressed that the                                                                    
flaws  of  the current  education  system  would be  nothing                                                                    
compared to  the fight that  would result if the  issue went                                                                    
to  the voters;  it  was  not possible  to  know what  would                                                                    
happen  if  state  funds  were  stripped  from  the  current                                                                    
educational system and allocated out in "unequal ways."                                                                         
                                                                                                                                
Co-Chair  Stoltze wanted  the record  to accurately  reflect                                                                    
his  prior  statement. He  communicated  that  there was  no                                                                    
pressure to  let the bill  move forward. He  understood that                                                                    
it was a serious issue.                                                                                                         
                                                                                                                                
Representative  Doogan clarified  that he  had not  meant to                                                                    
mischaracterize  any  prior   statements  made  by  Co-Chair                                                                    
Stoltze.  Co-Chair  Stoltze  was   glad  there  was  passion                                                                    
related to the issue.                                                                                                           
                                                                                                                                
Co-Chair  Thomas  noted  that  8 out  of  55  constitutional                                                                    
delegates had  been born  in Alaska;  he wondered  who could                                                                    
have  more passion  than a  person  born and  raised in  the                                                                    
state. He  noted that the  constitution had been  amended in                                                                    
the past and  that the resolution was not  the first attempt                                                                    
to  make an  amendment. He  stated that  it was  the state's                                                                    
ordained  right to  change the  constitution  if it  thought                                                                    
something was  wrong or flawed;  the issue may fail,  but he                                                                    
believed people  should have  the option to  vote on  it. He                                                                    
had  spoken  to family  members  about  the past  move  from                                                                    
Native  schools to  public schools;  people had  thought the                                                                    
education system  would fall  apart. He had  not been  a big                                                                    
proponent of the  resolution at first, but  he had reflected                                                                    
on his own children's education.  He wondered what was wrong                                                                    
with letting  parents choose where  their children  would be                                                                    
educated.  He  opined  that there  was  nothing  wrong  with                                                                    
religious schools; he had been  in church three or four days                                                                    
a week during his youth.                                                                                                        
                                                                                                                                
9:45:48 AM                                                                                                                    
                                                                                                                                
Co-Chair Thomas  remembered that he  had learned to  pray in                                                                    
Vietnam.  He  was in  support  of  moving  the bill  out  of                                                                    
committee  and  would probably  vote  for  it on  the  House                                                                    
floor.  He  noted  that the  Alaska  Federation  of  Natives                                                                    
supported the concept because they  wanted their children to                                                                    
have the ability to receive  a stellar education. He thought                                                                    
the  people should  decide. He  did not  want to  stifle the                                                                    
voice  of the  people. He  believed children  should receive                                                                    
the best  education possible. He discussed  his district and                                                                    
the school  options when he was  a youth. He would  vote for                                                                    
what he thought was right for the children.                                                                                     
                                                                                                                                
A  roll call  vote  was  taken to  report  the  bill out  of                                                                    
committee.                                                                                                                      
                                                                                                                                
IN FAVOR: Joule,    Neuman,   Wilson,    Costello,   Edgmon,                                                                    
Fairclough, Stoltze, Thomas                                                                                                     
OPPOSED: Guttenberg, Doogan, Gara                                                                                               
                                                                                                                                
The MOTION  PASSED (8-3). There being  NO further OBJECTION,                                                                    
it was so ordered.                                                                                                              
                                                                                                                                
HJR  16 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and with one new  fiscal impact note from the                                                                    
Office of the Governor.                                                                                                         
                                                                                                                                
9:49:38 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:50:05 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB009CS(RES)-NEW_DOR-AHFC-03-22-12 Attachment #2.pdf HFIN 3/23/2012 9:00:00 AM
HB 9
HB009CS(RES)-NEW FN DOR-AHFC-03-22-12.pdf HFIN 3/23/2012 9:00:00 AM
HB 9
HB009CS(RES)-DOR-AHFC-03-12-12 Attachment #1.pdf HFIN 3/23/2012 9:00:00 AM
HB 9
HB9 Amendment #13.pdf HFIN 3/23/2012 9:00:00 AM
HB 9
HJR16 Sponsor Handout.pdf HFIN 3/23/2012 9:00:00 AM
HJR 16