Legislature(2021 - 2022)ADAMS 519

04/06/2022 01:00 PM House FINANCE

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Audio Topic
01:34:00 PM Start
01:34:32 PM HB272
01:51:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 1:30 pm --
-- Please Note Time Change --
+= HB 272 INCREASE BASE STUDENT ALLOCATION TELECONFERENCED
Heard & Held
+= HB 273 INCREASE BASE STUDENT ALLOC. INFLATION TELECONFERENCED
Scheduled but Not Heard
+ HB 170 ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                   HOUSE FINANCE COMMITTEE                                                                                      
                        April 6, 2022                                                                                           
                          1:34 p.m.                                                                                             
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the House Finance Committee meeting                                                                     
to order at 1:34 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Heidi Teshner, Director, Finance and Support Services,                                                                          
Department of Education and Early Development                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 170    ENERGY INDEPENDENCE PROGRAM & FUND: AIDEA                                                                             
                                                                                                                                
          HB 170 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
HB 272    INCREASE BASE STUDENT ALLOCATION                                                                                      
                                                                                                                                
          HB 272 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
                                                                                                                                
HB 273    INCREASE BASE STUDENT ALLOC. INFLATION                                                                                
          HB 273 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
Co-Chair Merrick reviewed the meeting agenda.                                                                                   
                                                                                                                                
HOUSE BILL NO. 272                                                                                                            
                                                                                                                                
     "An  Act relating  to  education;  increasing the  base                                                                    
     student  allocation;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
1:34:32 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick indicated that the committee last heard HB
272 on April 1, 2022 and would consider amendments.                                                                             
                                                                                                                                
1:35:03 PM                                                                                                                    
                                                                                                                                
Representative Johnson MOVED to ADOPT Amendment 1, 32-                                                                          
LS1365\I.2 (Marx, 3/31/22) (copy on file):                                                                                      
                                                                                                                                
     Page 1, line 1, following "education;":                                                                                    
     Insert   "relating   to  funding   for   correspondence                                                                    
     programs;"                                                                                                                 
                                                                                                                                
     Page 1, following line 3:                                                                                                  
     Insert a new bill section to read:                                                                                         
     "* Section 1. AS 14.17.430 is amended to read:                                                                             
     Sec.  14.17.430.   State  funding   for  correspondence                                                                    
     study. Except  as provided in AS  14.17.400(b), funding                                                                    
     for the state  centralized correspondence study program                                                                    
     or  a  district  correspondence  program,  including  a                                                                    
     district that  offers a statewide  correspondence study                                                                    
     program,  includes   an  allocation  from   the  public                                                                    
     education  fund  in  an   amount  calculated  by  using                                                                    
     [MULTIPLYING]  the ADM  of  the correspondence  program                                                                    
     reported under AS 14.17.500(a)  and 14.17.600(a) [BY 90                                                                    
     PERCENT]."                                                                                                                 
                                                                                                                                
     Page 1, line 4:                                                                                                            
     Delete "Section 1"                                                                                                         
     Insert "Sec. 2"                                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 1, line 10:                                                                                                           
     Delete "Section 1 of this Act takes"                                                                                       
     Insert "Sections 1 and 2 of this Act take"                                                                                 
     Page 1, line 11:                                                                                                           
     Delete "Section 2"                                                                                                         
     Insert "Section 3"                                                                                                         
                                                                                                                                
Vice-Chair Ortiz OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative  Johnson  explained  the amendment  that  she                                                                    
believed would  level the  playing field  for correspondence                                                                    
students.   Currently,    statute   limited   correspondence                                                                    
students to  90 percent of  the funding of brick  and mortar                                                                    
students.  The education  formula  funded schools  on a  per                                                                    
student  basis calculated  on the  Average Daily  Membership                                                                    
(ADM) for each school as of  the last Friday of October over                                                                    
a  20-day count  period.  She ascertained  that  due to  the                                                                    
pandemic more  students in  traditional schools  were taking                                                                    
some  classes from  home  and  some correspondence  students                                                                    
were  attending some  classes  in  traditional schools.  She                                                                    
thought the  line between both  methods of  attending school                                                                    
was   blurring.   She  opined  that  funding  correspondence                                                                    
students  at  the same  level  as  traditional students  was                                                                    
 fair  and timely.   She  spoke about  the  value of  remote                                                                    
learning in  the school system  and hoped that  all students                                                                    
would be counted in the same way.                                                                                               
                                                                                                                                
1:37:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster believed  the amendment  would include  the                                                                    
IDEA   correspondence    program.   Representative   Johnson                                                                    
answered in  the affirmative  and added  that it  applied to                                                                    
all correspondence  programs in  the state.  Co-Chair Foster                                                                    
noted that  IDEA was headquartered  in Galena.  He supported                                                                    
the amendment.                                                                                                                  
                                                                                                                                
Representative Josephson requested to  read a statement from                                                                    
his district on the amendment  from the Office of Management                                                                    
and Budget  of the  Anchorage School  District. He  read the                                                                    
following:                                                                                                                      
                                                                                                                                
     By including  correspondence students at  the beginning                                                                    
     of the  foundation formula  the amendment  would create                                                                    
     and  inherent inequity  in  funding  between brick  and                                                                    
     mortar schools and correspondence  schools based on the                                                                    
     costs  associated   with  the   instructional  delivery                                                                    
     model. The cost associated  with providing education at                                                                    
     a  comprehensive high  school  that  provided gyms  and                                                                    
     fields for sports auditoriums,  for music and theatres,                                                                    
     shops  for Career  Technical  Education (CTE)  Courses,                                                                    
     and  kitchens with  cafeteria spaces  to feed  students                                                                    
     were  not comparable  to a  correspondence school  that                                                                    
     could operate  in limited  space and  scale up  or down                                                                    
     the  number  of  students  without  a  need  to  adjust                                                                    
     building  sizes. Additionally,  there was  considerably                                                                    
     more staffing in both  direct instruction and ancillary                                                                    
     supports  necessary to  provide face  to face  services                                                                    
     than through a correspondence  model. Yet the amendment                                                                    
     would provide the same funding to each.                                                                                    
                                                                                                                                
Representative  Josephson emphasized  that  for the  reasons                                                                    
stated he opposed the amendment.                                                                                                
                                                                                                                                
1:39:47 PM                                                                                                                    
                                                                                                                                
Representative Wool  opposed the amendment. He  did not want                                                                    
an  expedited discussion  merely  due to  the short  meeting                                                                    
time.  He believed  that  the topic  was  too important.  He                                                                    
agreed   with   Representative  Josephsons    concerns.   He                                                                    
countered that  the mass  migration of  traditional students                                                                    
to  correspondence   due  to  the  COVID   19  pandemic  had                                                                    
decreased the  amount of money school  districts receive and                                                                    
brick and  mortar schools  were more  costly to  operate. He                                                                    
stressed  that the  student-to-teacher  ratio was  disparate                                                                    
between  the  two  types   of  schools,  and  correspondence                                                                    
schools did not  have to maintain facilities.  He noted that                                                                    
the formula funding was complicated;  it began with the Base                                                                    
Student  Allocation (BSA)  and had  multipliers for  various                                                                    
things. The  correspondence schools  were not funded  at 100                                                                    
percent for  many reasons  that was  established and  set in                                                                    
the  formula.  He  wanted an  evaluation  of  correspondence                                                                    
programs before the formula was changed.                                                                                        
                                                                                                                                
1:42:00 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  opposed the amendment and  agreed with the                                                                    
previously  stated   opposition.  He  shared   his  personal                                                                    
experience  with the  topic as  his wife  was a  home school                                                                    
coordinator for a school district.  He indicated that he was                                                                    
very familiar that the school  districts received 90 percent                                                                    
of the formula funding and  maintained that it was  for good                                                                    
reason.  The  costs were significantly different  for brick-                                                                    
and-mortar  schools. He  indicated  that his  wife would  be                                                                    
opposed to  the amendment because  she also had worked  as a                                                                    
classroom teacher.                                                                                                              
                                                                                                                                
1:43:21 PM                                                                                                                    
                                                                                                                                
Representative Carpenter thought  the correspondence program                                                                    
had  the  highest demand  increase  in  the last  number  of                                                                    
years.  He  wanted  to  understand  why  more  parents  were                                                                    
choosing  correspondence.  He  believed that  the  amendment                                                                    
recognized that the largest growth in the school system was                                                                     
not fully  funded and  was demanded  by parents  and thought                                                                    
that it  was a  wise   step to  take. He did  not understand                                                                    
what the  dollars associated  with the  change would  be and                                                                    
shared some concern over the cost issue.                                                                                        
                                                                                                                                
1:44:57                                                                                                                       
                                                                                                                                
Co-Chair Foster  asked for  verification that  the amendment                                                                    
would not take away money  from brick and mortar schools and                                                                    
increased  the  size  of  the  overall  pie;  correspondence                                                                    
programs would merely receive increased funding.                                                                                
                                                                                                                                
HEIDI  TESHNER,  DIRECTOR,  FINANCE  AND  SUPPORT  SERVICES,                                                                    
DEPARTMENT   OF  EDUCATION   AND   EARLY  DEVELOPMENT   (via                                                                    
teleconference), answered  in the affirmative  and confirmed                                                                    
that  the  amendment would  increase  the  pie and  bump  up                                                                    
correspondence  to 100  percent ADM.  Co-Chair Foster  noted                                                                    
that the amendment would not  harm brick and mortar schools.                                                                    
He  furthered  that  correspondence  funding  was  used  for                                                                    
things like  providing students music  lessons and  was much                                                                    
more than just lessons taught at home.                                                                                          
                                                                                                                                
1:46:52 PM                                                                                                                    
                                                                                                                                
Representative Edgmon agreed with the  comment that it was a                                                                    
very  impactful  amendment  that  could  have  far  reaching                                                                    
ramifications.  He   asked  if  the  increase   in  the  BSA                                                                    
amounting  to $57  million that  was  currently a  budgetary                                                                    
item   would  be   stretched   further   and  compete   with                                                                    
traditional school  funding at  a 100 percent  threshold. He                                                                    
wondered  whether his  assessment was  correct. Ms.  Teshner                                                                    
replied  that  the  $57 million  on-time  funding  would  be                                                                    
adjusted based  on the ADM  and the  correspondence increase                                                                    
to 100 percent would be  part of that. Representative Edgmon                                                                    
commented that  the prohibition against state  dollars spent                                                                    
on   private  schools   was   clearly   delineated  in   the                                                                    
constitution. He asked  if some of the  schools were private                                                                    
schools and  whether there was any  risk with correspondence                                                                    
funding.                                                                                                                        
                                                                                                                                
Ms.  Teshner   responded  that  29  school   districts  were                                                                    
projecting correspondence ADM, and all were public schools.                                                                     
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
Representative  Edgmon   deduced  that  the   amendment  was                                                                    
purporting to  change a formula  that had been in  law since                                                                    
1998.  The   amendment  gave  correspondence   schools  that                                                                    
provided much  less than brick  and mortar schools  the same                                                                    
funding.   Ms.    Teshner   answered   that    the   current                                                                    
correspondence formula  had been  put in  place in  1999 and                                                                    
increased to 90 percent from  80 percent. She clarified that                                                                    
the  amendment changed  the correspondence  formula from  90                                                                    
percent  to 100  percent but  did not  offer formula  factor                                                                    
adjustments like the special needs adjustments, etc.                                                                            
                                                                                                                                
1:50:52 PM                                                                                                                    
                                                                                                                                
Representative Edgmon  thought it was necessary  to have the                                                                    
formula  provided  to  members  to  further  understand  the                                                                    
effects of the amendment.                                                                                                       
                                                                                                                                
Co-Chair Merrick  noted that the discussion  merited further                                                                    
conversation.                                                                                                                   
                                                                                                                                
HB  272  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Merrick reviewed  the schedule  for the  following                                                                    
day.                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
1:51:44 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:51 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB272 Amendment Packet HFIN.pdf HFIN 4/6/2022 1:00:00 PM
HB 272
HB 170 Presentation AIDEA - AK EIF - April 6 2022_final.pdf HFIN 4/6/2022 1:00:00 PM
HB 170
HB 272 Public Testimony Rec'd by 040622.pdf HFIN 4/6/2022 1:00:00 PM
HB 272