Legislature(2013 - 2014)HOUSE FINANCE 519

04/11/2013 09:00 AM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 1:15 a.m. on 4/12/13 --
+= SB 21 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Moved HCS CSSB 21(FIN) Out of Committee
+ SB 47 DISTRICT OPERATED BOARDING SCHOOLS TELECONFERENCED
Heard & Held
+ SB 83 INTEREST ON CORPORATION INCOME TAX TELECONFERENCED
Moved HCS CSSB 83(FIN) Out of Committee
+ SB 85 EXPERIMENTAL VEHICLE PLATES TELECONFERENCED
Moved Out of Committee
+ SB 62 SCHOOL CONST. GRANTS/SMALL MUNICIPALITIES TELECONFERENCED
Scheduled But Not Heard
+= SB 18 BUDGET: CAPITAL TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 22 CRIMES; VICTIMS; CHILD ABUSE AND NEGLECT TELECONFERENCED
Moved HCS CSSB 22(FIN) Out of Committee
+= SB 7 CORPORATE INCOME TAX TELECONFERENCED
Scheduled But Not Heard
+= SB 88 ALASKA NATIVE MEDICAL CENTER HOUSING TELECONFERENCED
Moved Out of Committee
+ SB 65 RETIREMENT PLANS; ROTH IRAS; PROBATE TELECONFERENCED
Moved Out of Committee
+= SB 27 REGULATION OF DREDGE AND FILL ACTIVITIES TELECONFERENCED
Moved Out of Committee
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 47(FIN)                                                                           
                                                                                                                                
     "An Act relating to boarding schools operated by                                                                           
     school districts; and providing for an effective                                                                           
     date."                                                                                                                     
                                                                                                                                
3:14:56 PM                                                                                                                    
                                                                                                                                
RYNNIEVA MOSS,  STAFF, SENATOR JOHN COGHILL,  explained that                                                                    
the bill expanded on a  concept included in past legislation                                                                    
introduced  by the  sponsor (HB  16 in  2005); prior  to the                                                                    
bill's passage, students  had been paid a  stipend to attend                                                                    
a school in  another area when a village  school was closed.                                                                    
The  capability  had  been expanded  to  allow  students  in                                                                    
grades 9  through 12  to receive  a stipend  while attending                                                                    
boarding   school   facilities.  The   current   legislation                                                                    
eliminated  a  restriction   limiting  eligibility  only  to                                                                    
schools that  had been  in operation  prior to  January 2005                                                                    
(Section  1).  The  bill  would  expand  to  include  magnet                                                                    
schools, which  would enable them  to qualify  for stipends.                                                                    
Section  2  increased  the  stipend  paid  to  the  schools.                                                                    
Section 3 provided a provision  to allow school districts to                                                                    
contract  for  room  and board  services.  Section  4  would                                                                    
repeal  a  provision  that would  limit  the  Department  of                                                                    
Education  and Early  Development (DEED)  to approving  only                                                                    
three  additional  schools.  Additionally,  the  bill  would                                                                    
repeal  the   definition  of  district   operated  statewide                                                                    
residential  education  programs  (the definition  had  been                                                                    
moved to Section 1 of the bill).                                                                                                
                                                                                                                                
Ms.   Moss  communicated   that   the   bill  expanded   the                                                                    
opportunity to  magnet schools and  allowed for DEED  to add                                                                    
additional boarding schools. She  stated that the bill would                                                                    
allow for magnet schools with  variable terms to accommodate                                                                    
some  exciting things  underway  in  rural Alaska  including                                                                    
schools in Kotzebue  to train high school  students for jobs                                                                    
at Red Dog Mine; and Bethel  had a program that it wanted to                                                                    
expand  into  to  airline   freight  industry,  which  would                                                                    
provide  an   opportunity  to   many  rural   students.  She                                                                    
commented on  the challenge facing children  in rural Alaska                                                                    
who wanted to  go to college, but did not  have the adequate                                                                    
education  resources to  get into  college. She  likened the                                                                    
situation to  a quote by Vance  Law "when you're in  a slump                                                                    
it's  almost as  if you  look at  a field  and it's  one big                                                                    
glove." The  goal was to  "close the glove" and  provide the                                                                    
children with an opportunity.                                                                                                   
                                                                                                                                
3:18:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze recognized  Senator  John  Coghill in  the                                                                    
audience.                                                                                                                       
                                                                                                                                
LISA    RIEGER,    COOK    INLET   TRIBAL    COUNCIL    (via                                                                    
teleconference), spoke  in support  of the  legislation. She                                                                    
noted that support existed statewide.                                                                                           
                                                                                                                                
3:19:46 PM                                                                                                                    
                                                                                                                                
JERRY   COVEY,  EDUCATION   CONSULTANT,  CITIZENS   FOR  THE                                                                    
EDUCATIONAL  ADVANCEMENT  OF  ALASKAN'S  CHILDREN  AND  COOK                                                                    
INLET TRIBAL COUNCIL (via  teleconference), spoke in support                                                                    
of the  legislation. He believed  the increased  stipend was                                                                    
justified  based  on  the delivery  cost  of  education.  He                                                                    
stated  that  the  district variable  length  programs  were                                                                    
favorable and would improve the  quality of rural education.                                                                    
He believed  that the partnership between  school districts,                                                                    
non-profits,  and   Native  organizations  in   relation  to                                                                    
residential services for students was also positive.                                                                            
                                                                                                                                
Co-Chair  Stoltze asked  whether the  bill provided  support                                                                    
for  children in  public K-12  education. Mr.  Covey replied                                                                    
that the bill would  provide residential stipend funding for                                                                    
students in grades 9 through 12.                                                                                                
                                                                                                                                
Co-Chair  Stoltze  asked  whether  the  bill  would  provide                                                                    
additional support  within the public education  system. Mr.                                                                    
Covey replied in the affirmative.                                                                                               
                                                                                                                                
Ms. Moss  clarified that the  bill covered grades  9 through                                                                    
12. Co-Chair Stoltze  understood that the bill  related to a                                                                    
subset within the grades K-12.                                                                                                  
                                                                                                                                
3:22:57 PM                                                                                                                    
                                                                                                                                
Representative Wilson asked whether  there was concern about                                                                    
students left  behind when others  were taken out  of public                                                                    
schools and put in boarding  schools. Mr. Covey replied that                                                                    
when students were  taken out of school  districts to attend                                                                    
statewide  residential  schools  the funding  traveled  with                                                                    
them.  Under  the  variable  length  programs  the  students                                                                    
stayed  within   their  school  districts;   therefore,  the                                                                    
district did not lose funding.                                                                                                  
                                                                                                                                
Co-Chair Stoltze  noted that the  department could  speak to                                                                    
the question as well.                                                                                                           
                                                                                                                                
Representative Wilson  was concerned that  removing students                                                                    
from smaller districts put the districts at risk.                                                                               
                                                                                                                                
Co-Chair Stoltze commented on the  potential of being put in                                                                    
a position  to make  a value judgment  on whether  a student                                                                    
should be held back from higher or different aspirations.                                                                       
                                                                                                                                
3:24:59 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze asked  DEED to  comment on  Representative                                                                    
Wilson's question.                                                                                                              
                                                                                                                                
Representative Wilson noted that  the bill applied to grades                                                                    
9 through 12  and that no program existed for  K-8 if school                                                                    
districts closed.  She wondered  whether the  department had                                                                    
looked  at  how taking  numerous  students  from a  district                                                                    
impacted the district.                                                                                                          
                                                                                                                                
LES  MORSE, DEPUTY  DIRECTOR,  DEPARTMENT  OF EDUCATION  AND                                                                    
EARLY DEVELOPMENT, replied that  the issue had occurred with                                                                    
Mt. Edgecumbe  for years  and had  occurred since  2005 with                                                                    
the  additional  boarding  schools.  He  stressed  that  the                                                                    
administration  strongly  supported  families  and  children                                                                    
having the  choices and  options. He  stated that  there was                                                                    
definitely an  impact on school  districts; however,  he did                                                                    
not believe the impact overrode  the opportunity to choose a                                                                    
boarding school route.                                                                                                          
                                                                                                                                
Co-Chair  Stoltze asked  for  clarification  on the  funding                                                                    
trail.  Mr.   Morse  replied  that  for   the  legislation's                                                                    
variable length  programs the Base Student  Allocation (BSA)                                                                    
would remain  in the school  district. He  communicated that                                                                    
the only  [funding] item the  bill addressed was  a stipend.                                                                    
However, when students attended  boarding schools for a full                                                                    
school year the BSA and stipend went to that school.                                                                            
                                                                                                                                
Representative Wilson asked for  verification that Mr. Morse                                                                    
believed that  a family's  ability to  choose where  a child                                                                    
went  to school  was positive.  Mr. Morse  replied that  the                                                                    
choice provided by the bill was a good thing.                                                                                   
                                                                                                                                
Representative Wilson remarked that choice was good.                                                                            
                                                                                                                                
Representative  Holmes  wondered   if  the  variable  length                                                                    
programs  would be  greater  or less  than  nine months  and                                                                    
whether the  stipend would  be paid for  the same  number of                                                                    
months. She noted  that the bill referred to  the payment of                                                                    
a stipend for  nine months and included  variable length and                                                                    
180-day school terms.                                                                                                           
                                                                                                                                
Mr.  Morse answered  that the  intent was  for the  variable                                                                    
length  programs to  be offered  within the  full nine-month                                                                    
scope. He  used the example  of multiple six-week  terms and                                                                    
stated  that even  though there  would  be several  students                                                                    
experiencing  the terms  they  would  receive one  full-year                                                                    
stipend. For example,  it would come out to  look like there                                                                    
were 30  students experiencing the  program in terms  of the                                                                    
amount of money dedicated; but,  in reality it would be many                                                                    
more  students  because  there  would  be  30  students  per                                                                    
variable length term.                                                                                                           
                                                                                                                                
3:29:22 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki  asked whether the cities  where the                                                                    
three  boarding schools  were located  (Nenana, Galena,  and                                                                    
[Bethel]) had property taxes or  another local tax base that                                                                    
helped pay  for the schools.  Ms. Moss was not  certain, but                                                                    
believed that Galena had a tax.                                                                                                 
                                                                                                                                
Mr. Morse  stated that the Lower  Kuskokwim Learning Academy                                                                    
in  Bethel  was  in  the midst  of  a  Regional  Educational                                                                    
Attendance Area (REAA) and would not have a tax base.                                                                           
                                                                                                                                
Co-Chair  Stoltze replied  that  the City  of  Galena had  a                                                                    
total  of 487  residents  with  a 3  percent  sales tax;  he                                                                    
surmised the  city could not  be supporting a  school system                                                                    
on a 3 percent sales tax and no other taxes.                                                                                    
                                                                                                                                
Ms. Moss  believed Nenana  also believed  that Nenana  had a                                                                    
tax.                                                                                                                            
                                                                                                                                
Co-Chair Stoltze  relayed that the  City of Nenana had  a 12                                                                    
mil property tax.                                                                                                               
                                                                                                                                
Representative Munoz  asked whether the bill  applied to Mt.                                                                    
Edgecumbe.  Ms. Moss  replied in  the  negative. She  stated                                                                    
that  Mt. Edgecumbe  was a  state operated  school that  was                                                                    
fully funded  through the legislature by  appropriation. She                                                                    
noted  that  the  cost  per student  of  a  boarding  school                                                                    
education was approximately half of the Mt. Edgecumbe cost.                                                                     
                                                                                                                                
3:32:54 PM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  shared that he  had spent time  in Galena                                                                    
and had stayed at the  school with the students. He recalled                                                                    
that  the  students voiced  that  they  were at  the  school                                                                    
because they wanted  to improve their lives.  He referred to                                                                    
the  cost of  education and  stated  that 80  percent to  90                                                                    
percent of  the students  were at risk  for drug  or alcohol                                                                    
abuse. The  schools provided students  with an  education to                                                                    
help improve  students' lives. He  realized the cost  of the                                                                    
schools,  but  stressed  the  importance  of  turning  lives                                                                    
around.  He spoke  to students'  energy  to learn  different                                                                    
trades.  He noted  that the  regional learning  centers each                                                                    
offered different programs in  order to increase options for                                                                    
students. He  spoke in  strong support  for the  program. He                                                                    
added that  it would have a  positive impact on the  cost of                                                                    
education in the end.                                                                                                           
                                                                                                                                
SB  47  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
3:35:18 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
3:58:25 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
ADM Statewide.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
AFN 2012 Resolution.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Alaska Dispatch are Boarding Schools the Solution.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Boarding School Enrollees By City.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Chugach SB47 Testimony.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
CITC Letter of Support.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Delete Secondary Amendment.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Galena School Letter Dec 2012.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
North Slope School District Letter.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Residential Boarding Homes 2013Summary 3 6 13.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
ResidentialActualCostsFY09-FY13 3 12 13.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
SchoolClosuresFY99-FY13_3-4-13.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Sectional Analysis Version H (S)FIIN.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Sponsor Statement Version H.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
Support Letter for SB 47 Nenana.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
SW School District Resolution.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
SB 83 Support Letter - THG - Mason.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 83 Support Letter - THG - Branson.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 83 Support Letter - PSFleek.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 83 Support Letter - Cons Ent.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 83 Support Letter - AGC.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 83 SFIN CS Sponsor Statement scanned.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
Interest on Under-Overpayments on Fed Taxes.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
Interest on Under-Overpayments on Fed Taxes.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
Interest Rate Table.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
26 USC 460.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
Sectional Analysis Version H (S)FIIN.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
CSSB 85 Alaska Aerofuel Letter of Support.pdf HFIN 4/11/2013 9:00:00 AM
SB 85
CSSB 85 FEDCo Letter of Support.pdf HFIN 4/11/2013 9:00:00 AM
SB 85
CSSB 85 Sponsor Statement.pdf HFIN 4/11/2013 9:00:00 AM
SB 85
CSSB 85 VWGoA Support.pdf HFIN 4/11/2013 9:00:00 AM
SB 85
HCS CSSB 22(FIN), version R.pdf HFIN 4/11/2013 9:00:00 AM
SB 22
SB 21 CS WORKDRAFT 4.11.13 L.pdf HFIN 4/11/2013 9:00:00 AM
SB 21
SB 47 Amenmedments 1&2 Edgemon -CSSBFIN.pdf HFIN 4/11/2013 9:00:00 AM
SB 47
SB 21 Econ One/DOR HFIN (4-11-13)corrected.pdf HFIN 4/11/2013 9:00:00 AM
SB 21
SB 83 Amendments 1 & 2.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 22 Amendments Gara Holmes CS FIN.pdf HFIN 4/11/2013 9:00:00 AM
SB 22
SB 21 Amendments CS FIN 1-14.pdf HFIN 4/11/2013 9:00:00 AM
SB 21
SB 21 Amendments CS FIN 15 & 7.pdf HFIN 4/11/2013 9:00:00 AM
SB 21
DOR responses slides - 20130411.pdf HFIN 4/11/2013 9:00:00 AM
SB 21
SB 65 Sponsor Statement P version.PDF HFIN 4/11/2013 9:00:00 AM
SB 65
SB 65 Sectional P version.PDF HFIN 4/11/2013 9:00:00 AM
SB 65
SB 83 Additional Support.pdf HFIN 4/11/2013 9:00:00 AM
SB 83
SB 21 Opposition additional.pdf HFIN 4/11/2013 9:00:00 AM
SB 21