Legislature(1997 - 1998)
01/27/1998 03:06 PM House HES
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
SSHB 148 - SCHOOL FUNDING ETC./ CHILD CARE GRANTS Number 2090 CHAIRMAN BUNDE announced the next item on the agenda was SSHB 148 "An Act relating to the public school funding program; relating to the definition of a school district, to the transportation of students, to school district layoff plans, to the special education service agency, to the child care grant program, and to compulsory attendance in public schools; and providing for an effective date." He noted this legislation was held over from the last legislative session. The hearing would be teleconferenced to Anchorage, Fairbanks, Valdez, Barrow and Seward. CHAIRMAN BUNDE directed committee members' attention to the proposed committee substitute. Number 2132 REPRESENTATIVE GREEN made a motion to adopt proposed committee substitute 0-LS0605\H, Ford, 1/24/98, as a work draft. There being no objection, that version was before the committee. Number 2142 CHAIRMAN BUNDE explained this legislation pertains to the foundation formula; how state money is apportioned to the various schools in the state. It has been under discussion for a year in an attempt to simplify the foundation formula and ensure that it's a fair and equitable distribution throughout the state. He pointed out the legislation had been updated by changing dates for the current year. An area cost differential study will be released on Monday and incorporated into this proposed committee substitute. Another change is that district correspondence students are to be counted in the same manner as state correspondence students. He explained that in some areas correspondence students are counted as a full time student in attendance. In his view, that was not a fair distribution of the money because correspondence students cost the district less than a student who physically attends school. Number 2205 CHAIRMAN BUNDE said this is still a complex bill, but it was his desire that the committee substitute be adopted as a work draft to facilitate discussion. He pointed out that Eddy Jeans from the Department of Education was available to answer questions. Number 2248 REPRESENTATIVE J. ALLEN KEMPLEN asked if the proposed committee substitute was basically the same as the version that was discussed during the last session with the exception of the changes mentioned by Chairman Bunde. Number 2250 EDDY JEANS, Manager, School Finance Section, Education Support Services, Department of Education, confirmed that. REPRESENTATIVE KEMPLEN noted that at the interim meeting of the Health, Education and Social Services Standing Committee, the Anchorage School District had raised the issue of transportation in that the district desired to have transportation dealt with separately. He inquired if transportation was still incorporated into the proposed committee substitute. MR. JEANS responded that it was still incorporated in the legislation as part of the funding package. Number 2293 CHAIRMAN BUNDE noted there was a substantial fiscal note - a half million dollars - through the first four years this formula would be in effect and the source of that funding has not yet been addressed. Number 2325 REPRESENTATIVE KEMPLEN referred to the matrix that had been prepared last session, and asked if that matrix had been updated to reflect the other proposals. TAPE 98-1, SIDE B Number 0005 MR. JEANS responded the Department of Education is in the process of updating the side-by-side comparison to include the new bills introduced by the Governor, as well as the other house bill that was introduced. The comparison should be available by the end of the week. CHAIRMAN BUNDE remarked that Representative Gene Kubina had introduced legislation that would not change the formula from a per unit, per student, but would increase basically the local contribution. Number 0037 CHAIRMAN BUNDE indicated there will be three versions in the Senate, two of which change from a unit distribution to a per pupil and the Governor's version is going back to a per unit distribution. The Governor's bill will be in the House, as well as this bill. He mentioned that the "famous Education Weekly report" criticized Alaska's allocation formula. REPRESENTATIVE GREEN referred to the fiscal note and said the cost builds up to approximately $2 million over the first four years and then the state begins to recoup in the last two years. He asked, "If we were to carry that on, will that continue to be a negative fiscal note - in other words recouping - or will it just about die here as neutral?" MR. JEANS stated the fiscal note reflects the changes in the student allocation dollars over the six year period. The intent was to keep it neutral - that it would cover the cost of enrollment growth but not put any additional dollars into the funding formula. REPRESENTATIVE GREEN remarked, "So, that they'll be continuing -- if you were to have carried it out further, there would be more negative -- eventually somewhere around neutral." MR. JEANS said it would be somewhere around neutral. He added, "We're talking within $500,000 out of a $650 million program." Number 0118 REPRESENTATIVE BRICE inquired if the committee would have an opportunity to discuss other aspects of the legislation on Thursday. CHAIRMAN BUNDE replied the committee would take as much time as necessary and encouraged committee members to review the proposed committee substitute and bring their questions to the meeting on Thursday. Number 0185 CHAIRMAN BUNDE noted there were three individuals signed up to testify on teleconference on the proposed CSSSHB 148(HES) Version H. He invited individuals who had brief testimony to testify at this time; however, there would be an opportunity to testify on Thursday and again the following Thursday. Number 0225 LELAND DISHMAN, Superintendent of Schools, North Slope Borough, testified in opposition to the proposed CSSSHB 148(HES) based on the escalator clause. He explained the escalator clause deals with taxation that would be the equivalent of 4 mills in 1998, 5 mills in 1999 through 7 mills in 2002. That kind of taxation would bankrupt the North Slope operations, so there would be no way to fund it. He noted he would present his testimony in depth on Thursday. Number 0249 CHAIRMAN BUNDE announced the proposed CSSSHB 148(HES) would be held in committee and heard on Thursday, January 29, as well as Thursday, February 5. He stated there would be no meeting of the House Health, Education and Social Services Standing Committee on Tuesday, February 3.
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