Legislature(2013 - 2014)

03/14/2013 03:21 PM House FIN


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HOUSE BILL NO. 87                                                                                                             
                                                                                                                                
     "An Act extending the special education service                                                                            
     agency; and providing for an effective date."                                                                              
                                                                                                                                
3:22:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETE  HIGGINS,   FAIRBANKS,  introduced  the                                                                    
legislation.  He   explained  that  the   Special  Education                                                                    
Service Agency  (SESA) supported  the education  of children                                                                    
with  Low Incidence  Disabilities (LID)  in rural  areas. He                                                                    
recommended  the extension  of  the program  and the  sunset                                                                    
through June 30, 2021.                                                                                                          
                                                                                                                                
3:24:16 PM                                                                                                                    
                                                                                                                                
THOMAS STUDLER, STAFF,  REPRESENTATIVE HIGGINS was available                                                                    
to answer questions about the bill.                                                                                             
                                                                                                                                
3:24:58 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS, LEGISLATIVE  AUDITOR,  LEGISLATIVE BUDGET  AND                                                                    
AUDIT, apologized  because she  was sick  and her  voice was                                                                    
suffering. She  introduced her audit manager  to provide her                                                                    
talking points.                                                                                                                 
                                                                                                                                
3:25:38 PM                                                                                                                    
                                                                                                                                
DIANE BURNHAM, LEGISLATIVE AUDITOR, LEGISLATIVE BUDGET AND                                                                      
AUDIT, presented Ms. Curtis' talking points.                                                                                    
                                                                                                                                
     The division  of Legislative  Audit conducted  a sunset                                                                    
     review of  the Special  Education Services  Agency also                                                                    
     known as  SESA and  issued our report  last year.   The                                                                    
     main objective  of the  audit was  to determine  if the                                                                    
     agency  was  operating  in   the  public  interest  and                                                                    
     whether its termination date should be extended.                                                                           
                                                                                                                                
     We conclude that  SESA is serving a public  need and is                                                                    
     essential in meeting the Federal  law that requires the                                                                    
     State ensure  that all children with  disabilities have                                                                    
     available to  them a free appropriate  public education                                                                    
     that meets  their unique needs.   SESA serves  over 200                                                                    
     students located in  mostly non-urban locations through                                                                    
     its low incidence disabilities program.                                                                                    
                                                                                                                                
     We  recommend extending  SESA's termination  date until                                                                    
     June  30,  2021.     However,  our  recommendation  for                                                                    
     extension   comes  with   recommendations  to   improve                                                                    
     collaboration and oversight.                                                                                               
                                                                                                                                
     The biggest  issue facing SESA  is the flat  funding of                                                                    
     its  Low Incidence  Disability  program.   The  funding                                                                    
     level is  set in statute  and hasn't been  increased in                                                                    
     14  years  thereby decreasing  the  real  value of  its                                                                    
     budget by  36 percent.   This has made it  difficult to                                                                    
     hire  qualified staff.    SESA's unique  organizational                                                                    
     structure has left it with  no mechanism for seeking an                                                                    
     increase  to its  budget  during  the annual  budgetary                                                                    
     process.    SESA's funding as identified  in the public                                                                    
     school funding  statute provides an amount  per student                                                                    
     as the a "not less  than" amount.  Since SESA's funding                                                                    
     comes from  the public  school funding statutes,  it is                                                                    
     funded through DEED.   DEED could ask  for increases as                                                                    
     part of  its annual budget  process but has  chosen not                                                                    
     to do so  since SESA reports to  the Governor's Council                                                                    
     on   Disabilities  and   Special  Education   which  is                                                                    
     organizationally  located  within   the  Department  of                                                                    
     Health and  Social Services.  DEED  management does not                                                                    
     consider their department's  responsible for monitoring                                                                    
     the adequacy of SESA's budget.                                                                                             
                                                                                                                                
     The  Governor's  council  did  support  legislation  to                                                                    
     increase SESA's  during the past  session but  the bill                                                                    
     was not successful.                                                                                                        
                                                                                                                                
     In recommendation  No. 1  of the  report, we  hold DEED                                                                    
     management  accountable  for  monitoring  SESA  because                                                                    
     DEED  is responsible  for  fulfilling  the federal  law                                                                    
     regarding  special  education.   Because  DEED  is  the                                                                    
     entity   the   ultimately   must   meet   the   federal                                                                    
     requirement, it should be taking  a more active role in                                                                    
     monitoring SESA.    We  recommend that  DEED management                                                                    
     and  SESA  management  collaborate to  ensure  SESA  is                                                                    
     operating and funded as intended by the legislature.                                                                       
                                                                                                                                
     DEED's   commissioner   does   not   agree   with   the                                                                    
     recommendation.  Historically the  funding for SESA has                                                                    
     been a  legislative process and  he sees no need  for a                                                                    
     change.  DEED does not  want to be held accountable for                                                                    
     SESA's operations.                                                                                                         
                                                                                                                                
     And  we understand  his viewpoint  since the  oversight                                                                    
     responsibility  for SESA  is fragmented  and confusing.                                                                    
     Which brings  me to the  Auditor's Comments  section of                                                                    
     the report.   In the Auditor's Comments  section of the                                                                    
     report,  we  discuss  SESA's  organizational  structure                                                                    
     which   has   led   to  confusion   as   to   oversight                                                                    
     responsibility for funding and  monitoring SESA.   SESA                                                                    
     is  a  nonprofit  corporation  created  by  statute  to                                                                    
     report to  the Governor's  Council on  Disabilities and                                                                    
     Special Education.   It must  report to  the Governor's                                                                    
     Council, however,  the council does not  have budgetary                                                                    
     authority over SESA.   As a component  of public school                                                                    
     funding,  SESA's   main  program,  its   Low  Incidence                                                                    
     Disabilities program, is funded through DEED.                                                                              
                                                                                                                                
     To   further  complicate   matters,   as  a   nonprofit                                                                    
     corporation, SESA has its own  bylaws and its own board                                                                    
     of directors.                                                                                                              
                                                                                                                                
     The Auditor's  Comments Section  of the  audit explains                                                                    
     SESA's  organizational  structure  and  highlights  the                                                                    
     need for  legislative clarification as to  which entity                                                                    
     should be held accountable.                                                                                                
                                                                                                                                
     The  audit contains  a second  recommendation addressed                                                                    
     to SESA's board president  to revise board policies and                                                                    
     improve SESA board oversight.   There has been a fairly                                                                    
     recent change  in the  executive director  position and                                                                    
     the board  president has  already initiated  changes to                                                                    
     help improve oversight.                                                                                                    
                                                                                                                                
                                                                                                                                
3:28:52 PM                                                                                                                    
                                                                                                                                
Ms. Burnham  detailed the  auditor's comments.  The comments                                                                    
discussed  SESA's  organizational  structure, which  led  to                                                                    
confusion   regarding  the   oversight  responsibility   for                                                                    
funding and monitoring SESA. She  added that SESA was a non-                                                                    
profit  corporation  created by  statute  to  report to  the                                                                    
Governor's  Council on  Disabilities and  Special Education.                                                                    
The council, however, did not  have budgetary authority over                                                                    
SESA. As a  component of public school  funding, SESA's main                                                                    
program  was  funded  through Department  of  Education  and                                                                    
Early Development (DEED). As  a non-profit corporation, SESA                                                                    
had its  own bylaws  and board  of directors.  The auditor's                                                                    
comment    section   of    the   audit    explained   SESA's                                                                    
organizational  structure  and   highlighted  the  need  for                                                                    
legislative clarification as to  which entity should be held                                                                    
accountable.  The audit  contained  a second  recommendation                                                                    
addressed  to   SESA's  board  president  to   revise  board                                                                    
policies  and   improve  the   SESA  board   oversight.  She                                                                    
mentioned  a   recent  change  in  the   executive  director                                                                    
position and  the board president  had initiated  changes to                                                                    
help improve oversight.                                                                                                         
                                                                                                                                
3:30:10 PM                                                                                                                    
                                                                                                                                
Representative   Wilson  asked   if   the  Commissioner   of                                                                    
education was present for questions.                                                                                            
                                                                                                                                
Co-Chair Stoltze  confirmed that  a DEED  representative was                                                                    
present at the hearing.                                                                                                         
                                                                                                                                
Representative  Wilson  recalled   much  discussion  in  the                                                                    
subcommittee   process  regarding   SESA  and   their  ideal                                                                    
location.  She asked  how the  auditors would  determine the                                                                    
best  placement for  SESA  regarding  program authority  and                                                                    
oversight.                                                                                                                      
                                                                                                                                
Ms. Curtis replied that the  decision was policy driven. The                                                                    
audit  determined  that  the   structure  was  working.  The                                                                    
highlighted aspect  of the audit addressed  the flat funding                                                                    
problem, which  compromised the  program and  led to  a LB&A                                                                    
report.                                                                                                                         
                                                                                                                                
3:31:24 PM                                                                                                                    
                                                                                                                                
CRAIG  WARD,  KETCHIKAN   (via  teleconference),  urged  the                                                                    
committee  to reauthorize  the funding  for SESA.  He stated                                                                    
that  he was  the  parent of  a child  with  trisomy 18.  He                                                                    
explained  the  details  of  her  disabilities.  He  offered                                                                    
gratitude for a country that  offered a free and appropriate                                                                    
public education  for all children.  He noted that  prior to                                                                    
SESA's involvement his local school  in Ketchikan was unable                                                                    
to  determine how  best  to help  his  daughter because  her                                                                    
needs were beyond  the scope of their training.  He spoke to                                                                    
the frustration  about educating his daughter.  He explained                                                                    
that  SESA offered  optimism,  new ideas  and  hope for  his                                                                    
daughter and family.  Because of SESA, the child  now had an                                                                    
educational plan  for her  future. He  urged an  increase in                                                                    
SESA's  funding to  allow the  sharing  of information  with                                                                    
more districts throughout the state.                                                                                            
                                                                                                                                
3:34:37 PM                                                                                                                    
                                                                                                                                
JEREMIAH  PICKETT,  SPECIAL   EDUCATION  SERVICES,  BUCKLAND                                                                    
(via  teleconference),  testified  in support  of  SESA.  He                                                                    
explained  that he  was from  a rural  village and  was born                                                                    
blind.  He  urged the  committee  to  authorize funding  for                                                                    
SESA,  which  provided an  integral  part  of his  life  and                                                                    
education.  He stated  that the  specialists at  SESA taught                                                                    
him how to  accomplish mobility and navigation  and he would                                                                    
not be able to get around as well without the help.                                                                             
                                                                                                                                
3:36:20 PM                                                                                                                    
                                                                                                                                
GEORGIA   LANSING,  DELTA/GREELY   SCHOOL  DISTRICT,   DELTA                                                                    
JUNCTION (via  teleconference), testified in support  of the                                                                    
legislation. She explained that  she was a special education                                                                    
teacher  with a  master's degree  in learning  disabilities.                                                                    
She  explained that  her school  district in  Delta Junction                                                                    
recently saw  an increase  in LID  students. She  noted that                                                                    
she was  overwhelmed with the  task of meeting the  needs of                                                                    
students  with such  a  wide and  varied  range of  learning                                                                    
difficulties  including   LID.  She  stated  that   she  was                                                                    
empowered by  the organization. She  shared a story  about a                                                                    
student delivered  to her classroom with  needs greater than                                                                    
her education had prepared her  for. She benefitted from the                                                                    
help from  SESA, which enabled  students with LID  to become                                                                    
more competent.                                                                                                                 
                                                                                                                                
3:40:12 PM                                                                                                                    
                                                                                                                                
TAMMY  BOUTTE,  SPECIAL   EDUCATION  SERVICES,  SALANA  (via                                                                    
teleconference), testified  that son  was autistic  and SESA                                                                    
helped her  son to  begin communicating and  therefore learn                                                                    
in the  classroom. She stated  that SESA helped  with travel                                                                    
by  teaching her  family  how  to react  and  behave in  the                                                                    
airport.                                                                                                                        
                                                                                                                                
3:42:45 PM                                                                                                                    
                                                                                                                                
PATRICK  PILLAI,   EXECUTIVE  DIRECTOR,   SPECIAL  EDUCATION                                                                    
SERVICE  AGENCY, provided  a brief  PowerPoint presentation.                                                                    
He  began with  slide 1:  "Special Education  Service Agency                                                                    
(SESA).                                                                                                                         
                                                                                                                                
     SESA provides consultation and  training to support the                                                                    
     unique  educational   needs  of  individuals   and  the                                                                    
     Alaskan communities that serve them.                                                                                       
                                                                                                                                
Mr. Pillai discussed slide 2: "Background."                                                                                     
                                                                                                                                
        · Created in 1986; formed as a not-for-profit                                                                           
          Corporation;                                                                                                          
        · Governed by the Alaska Governor's Council on                                                                          
          Disabilities and Special Education;                                                                                   
        · Receive   Low   Incidence   Disabilities   funding                                                                    
          through DEED based on prior years statewide total                                                                     
          enrollment;                                                                                                           
                                                                                                                                
Mr.  Pillai explained  that SESA  was not  included in  Base                                                                    
Student  Allocation (BSA)  calculations  and had  a lack  of                                                                    
funding for  the last 15  years. He stated that  many people                                                                    
were confused and  thought that SESA was a part  of BSA or a                                                                    
school district.                                                                                                                
                                                                                                                                
Mr.  Pillai   commented  on   slide  3:   "Individuals  with                                                                    
Disabilities Education Act (IDEA 2004)."                                                                                        
                                                                                                                                
     The State is required to  meet the mandate of IDEA 2004                                                                    
     to  "ensure that  all children  with disabilities  have                                                                    
     available to  them a free appropriate  public education                                                                    
     that emphasizes special  education and related services                                                                    
     designated to meet their unique needs."                                                                                    
                                                                                                                                
     The Legislature intended for SESA  to help DEED fulfill                                                                    
     this  requirement by  assisting schools  with providing                                                                    
     special education to children experiencing LID.                                                                            
                                                                                                                                
Mr.  Pillai  discussed  slide   4:  "A.S.  14.30.630(b)  (1)                                                                    
requires  SESA to  provide the  following special  education                                                                    
services."                                                                                                                      
                                                                                                                                
   A. Itinerant outreach services to students who are deaf,                                                                     
     deaf-blind, mentally retarded,  hearing impaired, blind                                                                    
     and   visually   impaired,   orthopedically   disabled,                                                                    
     health-impaired   in    other   ways,    and   severely                                                                    
     emotionally  disturbed, and  to students  with multiple                                                                    
     disabilities;                                                                                                              
   B. Special education instructional support and training                                                                      
     of local school district special education personnel;                                                                      
     and                                                                                                                        
 C. Other service appropriate to special education needs.                                                                       
                                                                                                                                
3:47:24 PM                                                                                                                    
                                                                                                                                
Mr.  Pillai  explained  slide  5:  A  picture  of  a  vision                                                                    
specialist working with a child in rural Alaska.                                                                                
                                                                                                                                
Mr.  Pillai discussed  slide 6:  "Total  Number of  Students                                                                    
Served." He stated  that SESA served 270  students with LID.                                                                    
He explained that  the needs of the  district determined the                                                                    
number  of  specialists in  the  area.  Most schools  had  a                                                                    
special  education  teacher,  but   the  uniqueness  of  the                                                                    
disability sometimes  required help from a  SESA specialist.                                                                    
He provided  an example of  a disability that led  to severe                                                                    
and multiple infractions of behavior.                                                                                           
                                                                                                                                
3:48:24 PM                                                                                                                    
                                                                                                                                
Mr. Pillai described slide 7: "SESA Services."                                                                                  
                                                                                                                                
   · Itinerant service                                                                                                          
   · In-service training                                                                                                        
   · Alaska State Special Education Conference                                                                                  
   · Courses designed and offered for university credit                                                                         
   · Alaska State Deaf Education Advisory Board                                                                                 
   · Governor's   Council/Rural    Education/Autism/   Early                                                                    
     Intervention                                                                                                               
   · AARC/BTKH/DSI                                                                                                              
   · Other Non-profits - Stone Soup/Center for Human                                                                            
     Development/ILP                                                                                                            
   · Distance Education                                                                                                         
                                                                                                                                
3:49:24 PM                                                                                                                    
                                                                                                                                
Mr.  Pillai commented  on slide  8: The  screen shot  of the                                                                    
SESA website, which was  recently redesigned and illustrated                                                                    
links available  to those  students with  LID and  the staff                                                                    
that work with them.                                                                                                            
                                                                                                                                
Mr.  Pillai  discussed  slide  9:  The  picture  depicted  a                                                                    
specialist working with a child with LID in rural Alaska.                                                                       
                                                                                                                                
Mr.  Pillai   described  slide  10:  "SESA   FY  12  Student                                                                    
Consultation  by  District."   The  graph  captured  student                                                                    
consultation in each one of  the districts. He mentioned the                                                                    
Bering  Strait  School  District (BSSD),  which  used  SESAs                                                                    
services  frequently.   He  added  that  SESA   might  serve                                                                    
anywhere from 39 to 45 school districts from year to year.                                                                      
                                                                                                                                
3:50:44 PM                                                                                                                    
                                                                                                                                
Mr. Pillai discussed slide 11: "Legislative Audit Report."                                                                      
                                                                                                                                
     Recommendation #1                                                                                                          
     Reiteration from the prior report that the Legislature                                                                     
     should review SESA funding; and                                                                                            
                                                                                                                                
     "Over  the   past  14  years,  school   districts  have                                                                    
     received  increases  in   their  funding  formula,  yet                                                                    
     SESA's   funding  formula   has  not   increased.  …the                                                                    
     historical process  for evaluating and  increasing SESA                                                                    
     funding has been a legislative process…"                                                                                   
                                                                                                                                
Mr. Pillai added  that SESA would be forced  to reduce three                                                                    
specialists in  the next  year if  the organization  did not                                                                    
receive funding  increases. He  reminded that  the inflation                                                                    
index affected  SESA by 36  percent over the last  15 years.                                                                    
He added that the specialist  hired by SESA were invested in                                                                    
working with students  with LID, so much that  they slept on                                                                    
the floor when travelling to  rural Alaska. He compared SESA                                                                    
specialists'  earnings   with  those  of  teachers   in  the                                                                    
Anchorage  School District  (ASD)  and noted  that at  entry                                                                    
level, SESA  specialists earned $6000 -  $9000 less annually                                                                    
than the  ASD teacher.  The specialists were  identified and                                                                    
recruited for their expertise and  SESA employed one teacher                                                                    
with  a PhD  in  autism from  Boston  University, which  was                                                                    
helpful as  autism had increased  more than 1000  percent in                                                                    
Alaska.  Well trained  specialists  were  more difficult  to                                                                    
recruit when  they were  paid so much  less. He  stated that                                                                    
the  specialists  also  contributed   30  percent  of  their                                                                    
earnings for medical insurance premiums.                                                                                        
                                                                                                                                
3:52:27 PM                                                                                                                    
                                                                                                                                
Mr. Pillai  discussed slide  12: "This  graph shows  how LID                                                                    
student  count has  increased while  SESA's overall  funding                                                                    
has  decreased due  to decreased  ADM."  The graph  depicted                                                                    
SESA's actual  funding compared to funding  if equivalent to                                                                    
BSA compared  to Student  Count. The red  bars in  the graph                                                                    
depicted the amount of funding  that would have come to SESA                                                                    
if it had been equivalent to BSA.                                                                                               
                                                                                                                                
Co-Chair Stoltze recommended that  the discussion be held in                                                                    
the education subcommittee process.                                                                                             
                                                                                                                                
Mr. Studler stated that the will  of the sponsor was to move                                                                    
the bill from committee to extend the sunset date.                                                                              
                                                                                                                                
3:53:40 PM                                                                                                                    
                                                                                                                                
Representative Wilson  argued the fact that  SESA was funded                                                                    
through  DEED, with  oversight from  DHSS.  She opined  that                                                                    
without oversight, the funding  should not be routed through                                                                    
DEED.  She  was  unsure  about   the  proper  solution,  but                                                                    
advocated  for further  investigation  of SESA's  placement.                                                                    
She  stressed that  she  understood the  value  of SESA  and                                                                    
supported  the program,  but wanted  to  detail the  funding                                                                    
organization for budgetary reasons.                                                                                             
                                                                                                                                
Co-Chair Stoltze expressed that  the conversation was tardy,                                                                    
as  the  operating  budget  had  passed  out  of  the  House                                                                    
already.                                                                                                                        
                                                                                                                                
3:55:04 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki hoped that  Mr. Pillai could address                                                                    
the LB&A audit.                                                                                                                 
                                                                                                                                
Mr.  Pillai  stated  that  the process  was  funded  by  the                                                                    
legislature and  the Governor's Council determined  that the                                                                    
system  was working  and did  not require  change. He  added                                                                    
that DEED focused more on  compliance, where SESA focused on                                                                    
service. He  added that the  state administrator  of special                                                                    
education sat on  the SESA board and  attended every meeting                                                                    
and  received a  full report  of every  board meeting  along                                                                    
with an annual report.                                                                                                          
                                                                                                                                
Co-Chair Stoltze requested further information.                                                                                 
                                                                                                                                
Representative  Kawasaki  noted  the audit's  comments  that                                                                    
board meetings failed  to have public notice  and DEED staff                                                                    
did  not consistently  attend meetings.  He wondered  if the                                                                    
practices had changed with the release of the audit.                                                                            
                                                                                                                                
Mr. Pillai  replied that  all of  the audit's  concerns were                                                                    
addressed and  DEED was  present at  all board  meetings for                                                                    
the last 18 months.                                                                                                             
                                                                                                                                
3:57:32 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman pointed  out various  issues detailed  in                                                                    
the  audit along  with commentary  from SESA.  He understood                                                                    
the  recommendation   that  the  legislature   review  their                                                                    
oversight  responsibility. He  opined that  the program  was                                                                    
great and  funding must be used  appropriately. He suggested                                                                    
extending the  date for a  shorter period to allow  for more                                                                    
frequent   legislative  review.   He   wished  for   further                                                                    
committee discussion.                                                                                                           
                                                                                                                                
Mr. Pillai responded that SESA  had clean fiscal audits. The                                                                    
LB&A  audit  was  also  clean  in  terms  of  finances.  The                                                                    
previous executive  director did enter into  a contract with                                                                    
her husband  with board  approval. He  pointed out  that the                                                                    
arrangement did not lead to fiscal implications.                                                                                
                                                                                                                                
3:59:58 PM                                                                                                                    
                                                                                                                                
Representative Edgmon  stated that  he worked  with auditors                                                                    
regularly outside  of his legislative efforts.  He supported                                                                    
the  program,  but  listed the  deficiencies  cited  in  the                                                                    
audit.  He  stated  that  he   didn't  understand  that  the                                                                    
structure  of the  SESA program.  He pointed  out that  SESA                                                                    
funding   was  not   adequately   evaluated   by  DEED   for                                                                    
operational  needs and  the operating  plan  did not  comply                                                                    
with  state  statutes. He  stated  that  both findings  were                                                                    
material. He asked  how to better structure  the program. He                                                                    
asked for recommendations from SESA's executive director.                                                                       
                                                                                                                                
Mr.  Pillai replied  that DEED  did not  take responsibility                                                                    
for increasing revenue to SESA  as the Governor's Council on                                                                    
Disabilities  and  Special   Education  had  oversight.  The                                                                    
department  opined that  legislative  appropriation was  the                                                                    
proper method  of increasing funding. He  stressed that SESA                                                                    
remained in an awkward place  where they were told that they                                                                    
were a good agency and  they would benefit from the funding,                                                                    
but    always    confusion   regarding    the    legislative                                                                    
appropriation versus  funding from  DEED. The  audit pointed                                                                    
to the area of confusion.                                                                                                       
                                                                                                                                
4:02:10 PM                                                                                                                    
                                                                                                                                
Representative Edgmon asked about SESA's classification.                                                                        
                                                                                                                                
Mr. Pillai replied that SESA  was a political subdivision of                                                                    
the state.                                                                                                                      
                                                                                                                                
Representative Edgmon  asked if the bylaws  and budgets were                                                                    
governed  by the  Governor's Council  on Disabilities  or by                                                                    
DEED.                                                                                                                           
                                                                                                                                
Mr. Pillai  replied that  a minimum of  five and  maximum of                                                                    
seven members  from the  Governor's Council  on Disabilities                                                                    
were required to  serve on the board. The  state director of                                                                    
special education had  a mandatory position on  the board as                                                                    
well.                                                                                                                           
                                                                                                                                
Co-Chair  Stoltze  stated  that  he planned  to  review  the                                                                    
legislation further in the committee in further meetings.                                                                       
                                                                                                                                
4:04:05 PM                                                                                                                    
                                                                                                                                
MARILYN  ROSENE,  PRINCIPAL  OF DILLINGHAM  ELEMENTARY  (via                                                                    
teleconference),  explained that  SESA's  staff worked  well                                                                    
with her school. She stated  that her district was unable to                                                                    
serve the children  with LID without SESA's  help. She noted                                                                    
that her district employed SESA  resources over the last six                                                                    
years  from behavior  specialists,  which helped  transition                                                                    
students from  elementary to middle  school. She  added that                                                                    
SESA's  help allowed  students to  remain in  the community.                                                                    
She spoke to SESA's specialist's quality training.                                                                              
                                                                                                                                
4:06:41 PM                                                                                                                    
                                                                                                                                
PJ  FORD  SLACK, PRINCIPAL,  SITKA  HIGH  SCHOOL AND  CHAIR,                                                                    
SESA, explained  that when she  began her position  as board                                                                    
chair,  she soon  found that  an inappropriate  contract was                                                                    
initiated by the former director  of SESA in 2011. She noted                                                                    
that the director was removed  and Mr. Pillai was hired. She                                                                    
mentioned  working  with  the School  Board  Association  to                                                                    
assure  that all  of  the current  SESA  board members  were                                                                    
trained in  correct public and  board policy.  She mentioned                                                                    
that in 2012, Joseph Reeves  reviewed the board's policy and                                                                    
the  board received  training regarding  audit reports.  She                                                                    
promised that the board would  follow proper procedure under                                                                    
her lead.                                                                                                                       
                                                                                                                                
Representative  Munoz  asked about  the  "intensive-funding"                                                                    
rate. She wondered  if the district shared a  portion of the                                                                    
"intensive-funding" with SESA.                                                                                                  
                                                                                                                                
Ms.  Slack replied  that  the district  was  not allowed  to                                                                    
share the  funds because SESA  was not allowed  to establish                                                                    
fees as  a non-profit organization. She  added that students                                                                    
identified with LID  were not necessarily "intensive-funded"                                                                    
students.                                                                                                                       
                                                                                                                                
Co-Chair  Stoltze  remarked  that  passage of  HJR  1  might                                                                    
enable the sharing of funds.                                                                                                    
                                                                                                                                
Representative Munoz asked about  the difference between the                                                                    
"intensive-funding" rate  and the special  education funding                                                                    
rate in the BSA.                                                                                                                
                                                                                                                                
Ms. Slack  replied that  she would do  her best.  She stated                                                                    
that   "intensive-funding"  was   specific  to   Alaska  and                                                                    
appropriated   by  the   legislature.  She   explained  that                                                                    
"intensive-funded" students  must meet at least  five or six                                                                    
criteria   and  LID   students  had   rare  and   infrequent                                                                    
disabilities   that  required   very   specific  help.   She                                                                    
mentioned a student with LID  funding who did not have arms.                                                                    
She noted that he was not an "intensive-funded" student.                                                                        
                                                                                                                                
4:11:13 PM                                                                                                                    
                                                                                                                                
Representative  Munoz   asked  for   a  rough   estimate  of                                                                    
"intensive-funding"   versus   regular   special   education                                                                    
funding rates.                                                                                                                  
                                                                                                                                
Ms.  Slack replied  that the  director of  finance for  DEED                                                                    
could better answer the question.                                                                                               
                                                                                                                                
4:12:07 PM                                                                                                                    
                                                                                                                                
MILLIE  RYAN, EXECUTIVE  DIRECTOR,  REACH,  stated that  she                                                                    
served  as  an  ex  officio  member of  SESA  in  her  prior                                                                    
position  as executive  director  of  the Alaska  Governor's                                                                    
Council   on  Disabilities   and   Special  Education.   She                                                                    
addressed  the   question  about  SESA's  location   in  the                                                                    
council.  Upon creation  of SESA,  the council  served as  a                                                                    
special  education advisory  panel  and SESA  was a  special                                                                    
education  program.  The  council, located  in  DHSS  became                                                                    
designated  as a  special education  advisory panel  because                                                                    
the  legislature, at  the time,  did not  want to  establish                                                                    
another  board with  a narrow  purpose. Because  the council                                                                    
had  the  similar  purpose,  it   was  chosen.  The  council                                                                    
received  regular reports  on SESA  during meetings  and the                                                                    
education  committee received  the  same communication.  She                                                                    
admitted that the situation was  awkward, but she understood                                                                    
that  SESA was  located  in DEED  because  SESA provided  an                                                                    
education service.                                                                                                              
                                                                                                                                
Representative Wilson asked if  SESA might receive oversight                                                                    
from DEED alone.                                                                                                                
                                                                                                                                
Ms. Ryan stated  that the situation was  awkward because the                                                                    
council  looked  for  funding  changes  for  SESA  and  made                                                                    
recommendations  regarding the  Alaska  Mental Health  Trust                                                                    
Authority,  which  represented   people  with  developmental                                                                    
disabilities.  She  added  that   the  council  provided  an                                                                    
advocacy role  that the state  board of education  might not                                                                    
address as thoroughly.                                                                                                          
                                                                                                                                
4:15:49 PM                                                                                                                    
                                                                                                                                
Representative   Kawasaki  asked   about   the  timing.   He                                                                    
understood that some SESA employees  had contracts that were                                                                    
set to expire.                                                                                                                  
                                                                                                                                
Ms.  Ryan agreed  that an  assurance was  necessary for  the                                                                    
teachers.                                                                                                                       
                                                                                                                                
4:16:40 PM                                                                                                                    
                                                                                                                                
ESTHER  BENNET, ADAK  (via  teleconference), explained  that                                                                    
her son  had benefitted  greatly from SESA's  involvement in                                                                    
his education. She  mentioned that she served  on the school                                                                    
board and  was aware that the  agency had not had  a funding                                                                    
increase in  15 years.  She stated that  her son  waited for                                                                    
SESA's services and  she wondered if the  wait resulted from                                                                    
the lack of funding  increases. She suggested that committee                                                                    
members  get to  know SESA  specialists. She  explained that                                                                    
travel around Alaska was unpredictable  and wondered if that                                                                    
might   explain  board   member   absences.  She   expressed                                                                    
gratitude  that her  son  had access  to  the services  from                                                                    
SESA.                                                                                                                           
                                                                                                                                
4:19:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze closed public testimony.                                                                                       
                                                                                                                                
HB  87  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
4:20:02 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:21:27 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

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