Legislature(2007 - 2008)CAPITOL 106
03/22/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HB72 | |
| HB181 | |
| HB198 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 72 | TELECONFERENCED | |
| *+ | HB 198 | TELECONFERENCED | |
| *+ | HB 181 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 72-SCHOOL DISTRICT COST FACTORS 3:07:06 PM CHAIR WILSON announced that the first order of business would be HOUSE BILL NO. 72, "An Act relating to the district cost factors for state funding of public education; providing for an effective date by repealing the delayed effective date of sec. 6, ch. 41, SLA 2006; and providing for an effective date." 3:07:34 PM REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature, presented HB 72, as the prime sponsor. He pointed out that cost differential factors for educational funding have been an issue for some time. Representative Chenault said that HB 72 will enact the results of the Institute of Social and Economic Research (ISER), University of Alaska, Anchorage, study that was done to evaluate the differential cost factors for different parts of the state. He informed the committee that the current foundation formula bill was passed in 1998, and allows for adjustments to be made to the formula. School districts around the state have proven that there is a problem with the formula. He noted that funding to 100 percent of the ISER study recommendations will mean an additional $10 million dollars for the school district in Kenai. The previous funding formula has been especially difficult for the smaller school districts. In fact, today the larger school districts are beginning to feel the changes in their budgets, due to the cost factors, which the smaller school districts have been experiencing for seven years. He said that the results of inadequate school funding include the loss of bus transportation, class consolidation, and even school closures, although the school districts are doing everything that they can to utilize the funds that the state provides. Representative Chenault observed that some cities and boroughs provide as much additional funding as is allowed in an attempt to ease the crisis in their schools. 3:15:32 PM REPRESENTATIVE GARDNER recalled that last year 25 percent of the ISER recommendations were implemented. She asked whether a similar additional percentage was planned for subsequent years. REPRESENTATIVE CHENAULT explained that 25 percent was appropriated last year, with a provision to revisit the formula each year. He suggested that [the increased percentage] should be in the formula. REPRESENTATIVE GARDNER observed that there are vast inequities in school funding across the state. She asked what effect the passage of HB 72 would have on Anchorage. REPRESENTATIVE CHENAULT answered that if $72 million are added to the formula, it would not have a negative impact on Anchorage. However, this amount added to the formula would not gain Anchorage any funds. 3:18:26 PM REPRESENTATIVE GARDNER stated that there is a dispute about some of the underpinnings and conclusions of the ISER study and she asked to have someone come forward to discuss those issues. 3:19:04 PM REPRESENTATIVE FAIRCLOUGH asked how school districts qualify for power cost equalization. In addition, Anchorage, as a regional hub, requires more special needs funding due to the high density of special needs children there. She asked for information on how the ISER study reflects this additional need. Referring to the fiscal note, Representative Fairclough then asked for an explanation of the following: "Money in the Public Education Fund (PEF) flows to K-12 support with out further appropriation for distribution to school districts." 3:20:47 PM CHAIR WILSON indicated that public testimony would be taken before the analysis by the Department of Education & Early Development (EED). 3:21:08 PM BLAINE GILMAN, Attorney at Law, Lobbyist for the Kenai Peninsula Borough, stated the borough's support for HB 72. He explained that, according to the ISER report, the Kenai Peninsula Borough School District ("KPBSD") will be underfunded by over $11 million in FY 08. The cause of the under funding is that the current cost differential treats the KPBSD as an urban school district; however, it serves rural and urban schools, including four village schools. Mr. Gilman said current funding allows KPBSD only four-tenths of one percent over the Anchorage school district allowance. This district has always been supported by local government at the maximum allowable level and maintains the lowest administrative costs of any school district in the state. Under the current funding, 72 teachers will need to be laid off and will result in student teacher ratios to be raised to 1:24 for kindergarten classes. In the smaller schools, the teachers will be teaching multiple grade level classes. With all of these measures the district will still be operating with a deficit of $2 million. He opined that his public education in Kenai was more complete than what his children are receiving now, that school funding is inadequate, and that education is taking a step backward. Mr. Gilman concluded by saying that the cost differential is the most critical problem facing the KPBSD today and urged members to pass HB 72 from committee. 3:25:12 PM MARGARET GILMAN informed the committee that she was speaking for her four school-aged children and stated her support for HB 72. Ms. Gilman pointed out the opportunities she received while attending public school in Kenai and said that the quality of school has become minimized. At this time there are no supplemental classes outside of what is required for passing the high school graduation exams. As a society, we want to do more for our children, not less. Ms. Gilman urged the committee to pass HB 72, in order to prevent this generation of Alaskans from being offered fewer opportunities for education. 3:27:10 PM Peter Klauder, President of Klauder & Company Architects, stated his support for HB 72 and described how he originally looked forward to having his children attend public school in Kenai. Mr. Klauder said that he and his wife, a school nurse, have been active in the schools as volunteers and as school employees. Since his children have started school, funding has been cut and the supplemental teachers and programs have been eliminated; beginning with the librarian and music and art programs. He informed the committee that advanced placement high school classes for seniors may not be available soon. Mr. Klauder strongly urged the committee's support for HB 72, which will provide some equity in the distribution of school funding. 3:29:46 PM CAROLANN BARUM stated her support for HB 72 and said that she has watched the educational opportunities at the schools in Kenai decrease. As a professional health care provider with two children, she researched the schools several years ago and relocated to Kenai because of the school system; however, the schools have lost librarians, music and advanced placement classes. Ms. Barum urged the committee's support of HB 72. 3:32:00 PM EDDY JEANS, Director, School Finance and Facilities Section, Department of Education and Early Development (EED), said that HB 72 will implement the full recommendations of the 2005 ISER report. Mr. Jeans explained that the fiscal note cost of $72,608 million represents the remainder outstanding after the previous appropriation of $24 million. In response to the question from Representative Fairclough, he explained that monies that are appropriated to the PEF are held in that fund until disbursed by EED, according to statutory entitlement. 3:34:09 PM CHAIR WILSON asked whether the PEF is a different fund. MR. JEANS answered that the PEF is the same fund passed out of this committee to the House Finance Committee, and it also funds the foundation and pupil transportation fund. Also included in that appropriations bill was additional funding to the Department of Administration for the Public Employee's and Teacher's Retirement System (PERS/TRS). 3:34:43 PM REPRESENTATIVE FAIRCLOUGH asked whether Chair Wilson was referring to the Education Endowment fund. 3:34:57 PM CHAIR WILSON recalled that last year funds for education were set aside. MR. JEANS explained that monies are held in the PEF fund, and the fund can be over funded, like a holding account, and funds are disbursed by additional appropriations. CHAIR WILSON asked whether schools receive money from the EED on a monthly basis. MR. JEANS said yes. Monthly payments are a statutory requirement. 3:35:38 PM REPRESENTATIVE FAIRCLOUGH asked whether education has only one fund. MR. JEANS answered yes. He then said that there is one fund for the pupil transportation and foundation programs. REPRESENTATIVE FAIRCLOUGH expressed her understanding that the state legislature has a holding account, that has money in it, for forward funding of education. She asked whether there was an account that does not "move forward." MR. JEANS responded that [PEF] is the account and it does not require further appropriation from the legislature, once the appropriation is made to the fund. 3:36:37 PM REPRESENTATIVE GARDNER asked about the basic disputes regarding the ISER study. MR. JEANS replied that the one area under the ISER study that is under dispute is the issue dealing with teacher compensation. He explained that the American Institute for Research (AIR) reported that average teacher salaries were the same across the state. However, the ISER peer review indicated that certain aspects were not taken into consideration, such as teacher experience, turnover, and longevity. Mr. Jeans opined that the cost differentials reported by the ISER study were substantially higher after these factors were included. 3:38:36 PM FRANCIE ROBERTS informed the committee that she is a high school teacher at Homer High School and stated her support for HB 72. Ms. Roberts explained that in the past 13 years the 500 student high school has lost home economics, photography, two foreign languages, drama, and the gifted and talented program. There is one vocational education teacher, one counselor, and the athletic director and librarian are half-time. She opined that it has been sad to see the school programs dwindle over the last fifteen years. A small school in the area has been closed. Ms. Roberts urged the committee to support 100 percent funding of the ISER study. 3:41:14 PM RON LONG informed the committee that he is a resident of Seward and is testifying on his own behalf. He stated his support for HB 72 and described the lack of funding for the Kenai Peninsula Borough School District. Mr. Long said that there is an inequitable distribution of educational funding throughout the state. The borough has been funding education to the maximum allowed, but programs are still being lost. It is not a function of enrollment or high administration costs, he opined, it is a problem of the cost differential. Mr. Long urged the committee to seriously consider HB 72. REPRESENTATIVE GARDNER asked what percent of the budget is allocated to administration costs. MR. LONG estimated 3 percent. 3:43:47 PM DAVE JONES, Director of Finance, Kodiak Island Borough School District, explained that the current funding formula appropriated by SB 36 was based on the McDowell study. He recalled that the McDowell study included a disclaimer that the study was not sufficient on which to base a funding formula; however, that is what happened. SB36 called for EED to redo the cost factors, and the department ordered the AIR study, which was never implemented. Now, there is the ISER peer review and recommendations which take teacher turnover under consideration and are better tools to utilize than SB36. Mr. Jones drew an analogy of PERS/TRS and payments made outside of the formula. The full study needs to be implemented, he stressed. 3:46:54 PM PATTY RICH stated her support for HB 72. She informed the committee that Kenai Peninsula Borough school funding has been declining for several years and needs to be restored. In the 20 years she has had children in the school system she has witnessed program reductions. She urged the committee to fund schools adequately and fairly. 3:47:51 PM John Williams, Mayor, Kenai Peninsula Borough, stated his support for HB 72, and said that without adequate funding it is not possible to maintain good teacher and administrative levels. He noted that the schools in his borough are remote and must provide teacher housing and transportation. He gave examples of teacher shortages at the borough schools and the lack of vocational educational programs. Mayor Williams concluded by saying that the Kenai Peninsula Borough is very supportive of bring funding to the ISER report level. 3:50:21 PM JENNIE HAMMOND told the committee that her kindergartener at Nikiski North Star Elementary School has 23 children in her class and her second grader has 25 students in his class. The school projects next year's enrollment to be 368 students with 14 teachers. She expressed her hope that more funding will be available next year. 3:51:45 PM DEBORAH GERMANO, Member, Kenai Peninsula Borough Assembly, asked the committee to look at the inequities of funding. She noted that Anchorage citizens can provide support for education by additional municipal funding; however, the Kenai Peninsula Borough is funding its schools to the maximum amount. In addition, she pointed out that her borough is using general funds for pupil transportation. Ms. Germano urged the committee to support HB 72. 3:53:53 PM REPRESENTATIVE GARDNER clarified that she had asked whether the bill would hurt Anchorage, not what the bill would do for Anchorage. 3:54:22 PM BILL HATCH, Member, Kenai Peninsula School Board, recalled that at one time the schools in Kenai were well equipped. Presently, funding cuts have taken their resources beyond the bare bones and students are suffering. Large and small schools have lost programs and important courses are no longer available. 3:56:10 PM REPRESENTATIVE GARDNER asked what percent of the school district budget is administration. MR. HATCH said about four percent. 3:56:21 PM MILLI MARTIN, Member, Kenai Peninsula Borough Assembly, stated that she was testifying on her own behalf. She said that the Kenai Peninsula Borough covers an area of 25,000 square miles, and supports 44 schools. Five of the schools are not accessible on the road system; and yet, Kenai schools are funded at a level close to that of Anchorage and the Mat-Su school districts. Ms. Martin opined that, if Anchorage were funded at Kenai's level, the projected loss of teachers to Anchorage would be 350, rather than the projected 100. She pointed out that property taxes in the Kenai Peninsula Borough are paying a disproportionate share of education costs. Ms. Martin strongly urged the committee to enact HB 72. 3:58:51 PM LIZ DOWNING, Member, Kenai Peninsula Borough School Board, informed the committee that as a school board member, the most frequent comment she hears is that Alaska, one of the wealthiest states, does not have the will to fund its educational system. She noted that families are leaving the state because of the minimal school opportunities for their children. Ms. Downing stated that her school district is limited to teaching core classes and the best new teachers are being laid off. This situation, she said, is the result of not implementing ISER for the last 15 years. She concluded by saying that this is not what the students deserve, or what is wanted for our children, and asked that the full amount of the ISER study be funded. 4:01:21 PM PHILIPPA SONNICHSEN informed that committee that she and her husband have two children in the Kenai school system. Ms. Sonnichsen pointed out that her school district supports a school in Seldovia, and it is very expensive to maintain schools that are off the road system. She said that she is supporting HB 72 because it is the right thing to do. Current cost differentials are unfair to the Kenai Peninsula Borough School District. 4:02:43 PM PETER LARSON described his extensive experience as a teacher and administrator working for 32 years in the Kenai Peninsula Borough School District and elsewhere. He expressed his concern over the decline in educational funding that began in 1986. Teachers and administrators are being held to an impossible standard as programs, staff, and resources are cut. He suggested that cookie sales can not attract the highest standard of teachers to the district. His international experience has shown that Alaska students are losing the competitive edge needed to succeed. At one time, the international programs were behind the quality standards of Kenai schools; however, the situation has reversed. He urged the committee to correct the funding formula, increase funding to all schools, and forward fund education. 4:05:17 PM MELODY DOUGLAS, Chief Financial Officer, Kenai Peninsula Borough School District, expressed her belief that any study of differential cost will be faulted; however, the state needs to move ahead to begin to recover from the past losses. Her district has a $1 million shortfall in transportation which must be made up by the general fund. Ms. Douglas relayed the effects of the increased costs of liability and property insurance, workman's compensation costs, health care, and utilities. She urged the committee to choose to support Alaska's most important resource, its children. REPRESENTATIVE SEATON asked for the percentage of the budget that goes into administration, and how it compares to the other school districts. MS. DOUGLAS answered that administration costs are about four percent and every district is in a reduction mode in that regard. 4:07:56 PM GINNY ESPENSHADE stated that she has had a child in the public school system for 14 years. She opined that the legislature has had years to understand the ISER study and the complexities of this issue. 4:09:03 PM MEGAN O'NEILL informed the committee that Alaska is a state that develops its natural resources, but for 15 years its children have not been developed. She opined that the state will pay, with jails and other negative outcomes, if the schools are not funded. Ms. O'Neill strongly urged the committee to support HB 72. 4:10:39 PM CARL ROSE, Executive Director, Association of Alaska School Boards (AASB), reminded the committee that under the former foundation formula there was an oversight regarding small, single site schools and the legislature mitigated that problem for ten of the next eleven years. When SB36 was passed, it was controversial, but it was understood that the funding was not adequate and that the formula would be revisited. Therefore, the AIR and ISER studies were completed. The AASB supports 100 percent implementation of the ISER study and supports HB 72. Mr. Rose added that the policy issues regarding this bill have been covered. 4:12:06 PM MARY FRANCIS, Executive Director, Alaska Council of School Administrators (ACSA), recalled that the education cost differential has not been adjusted, but once since 1998, and the failure to do so threatens the integrity of the foundation formula program. She said that the ACSA is in support of full funding of the ISER study and reiterated that HB 72 should be accompanied by an increase in the base student allocation to all school districts. Dr. Francis noted that her association discussed the flaws in the ISER study and concluded that the current formula is flawed. 4:13:16 PM JOHN ALCANTRA, Government Relations Director, National Education Association-Alaska (NEA-Alaska), informed the committee that his association represents 13,000 public school employees and strongly supports HB 72. He said that he has visited many of the small schools in the rural areas and his experience shows that the rural schools do not have the opportunities for their students that the urban schools have. These schools will be positively impacted by HB 72 and urged its passage. 4:14:52 PM CHAIR WILSON closed public testimony. 4:15:02 PM REPRESENTATIVE GARDNER explained that sometimes questions are asked so that the answer can be on the record, not to reflect support or opposition to a bill. She then moved to report HB 72 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 72 was reported out of the House Health, Education and Social Services Standing Committee.
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