Legislature(2007 - 2008)CAPITOL 106

03/15/2008 09:00 AM House HEALTH, EDUCATION & SOCIAL SERVICES


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Audio Topic
09:02:47 AM Start
09:03:13 AM Presentation: Moore V. State of Alaska
10:21:16 AM SB119
10:34:41 AM HB386
10:55:49 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Moore v. State of Alaska TELECONFERENCED
+ SB 285 STATE INTERVENTION IN SCHOOL DISTRICT TELECONFERENCED
<Bill Hearing Canceled>
*+ HB 386 ENERGY SUBSIDY FOR SCHOOLS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 119 SCHOOL LIBRARY GRANTS TELECONFERENCED
Moved Out of Committee
HB 386-ENERGY SUBSIDY FOR SCHOOLS                                                                                             
                                                                                                                                
10:34:41 AM                                                                                                                   
                                                                                                                                
CHAIR WILSON announced that the  final order of business would be                                                               
HOUSE BILL  NO. 386, "An  Act relating  to an energy  subsidy for                                                               
public schools."                                                                                                                
                                                                                                                                
10:35:27 AM                                                                                                                   
                                                                                                                                
THOMAS BROWN,  Intern to Representative Gabrielle  LeDoux, Alaska                                                               
State Legislature,  presented HB 386 on  behalf of Representative                                                               
LeDoux, sponsor.  Mr. Brown  explained that the bill was drafted,                                                               
at  the request  of several  school boards  across the  state, in                                                               
reaction to the 100 percent increase  of gas prices.  Schools are                                                               
taking  measures  to  address  the  increase  in  heating  costs;                                                               
however,  many  permanent solutions  are  cost  prohibitive.   He                                                               
stated that  the foundation  formula funding  does not  cover the                                                               
increase in  heating costs, which  remain the same even  if there                                                               
is  a decline  in enrollment.   School  districts are  mitigating                                                               
this increased  cost by  sealing doors  and windows,  closing off                                                               
parts  of  schools,  and  reducing  the  hours  of  after  school                                                               
programs.     Moreover,  high   technology  solutions   are  cost                                                               
prohibitive.                                                                                                                    
                                                                                                                                
10:36:43 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH   reminded   Mr.   Brown   that   the                                                               
legislature recently  passed the  largest education package  in a                                                               
decade.                                                                                                                         
                                                                                                                                
10:37:37 AM                                                                                                                   
                                                                                                                                
MR. BROWN expressed his understanding  that the education package                                                               
funded  50 percent  of the  recommendations of  the Institute  of                                                               
Social and Economic Research (ISER).                                                                                            
                                                                                                                                
CHAIR WILSON stated that the  increase in funding in her district                                                               
is  $12,000 per  year,  provided  that there  is  no decrease  in                                                               
enrollment.                                                                                                                     
                                                                                                                                
10:38:17 AM                                                                                                                   
                                                                                                                                
JIM  NYGAARD, Superintendent,  Cordova School  District, informed                                                               
the committee  that fuel bills  in Cordova have increased  by 372                                                               
percent since FY  03.  Furthermore, Cordova's  budget increase to                                                               
cover additional heating  and health care costs is  $150,000.  He                                                               
listed the measures  that Cordova schools have  taken to conserve                                                               
heating energy.   Mr. Nygaard  said that, although only  the high                                                               
school   has  computer   climate  control,   the  buildings   are                                                               
maintained  efficiently  and  fuel  consumption  has  gone  down.                                                               
Further, the district will close  its district office and move to                                                               
a school  building in order to  conserve fuel.  In  addition, its                                                               
elementary school, that was built  in 1953, is being surveyed for                                                               
energy  loss.   He  concluded that  the  high cost  of  oil is  a                                                               
resource benefit that should reach Alaska's kids.                                                                               
                                                                                                                                
10:45:28 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROSES  asked whether  the Cordova  School District                                                               
received  any  funding for  increased  costs  over the  last  two                                                               
years.                                                                                                                          
                                                                                                                                
10:45:41 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD said no.                                                                                                            
                                                                                                                                
10:45:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROSES assumed,  from  materials  provided in  the                                                               
committee packet, that the energy  costs for Cordova during FY 07                                                               
were  $398,065 and  the projection  for FY  08 is  $523,057.   He                                                               
opined that,  if passed,  the bill will  fund the  increased cost                                                               
and  more.   He  then asked  how the  district  budgeted for  the                                                               
higher than projected costs last year.                                                                                          
                                                                                                                                
10:46:40 AM                                                                                                                   
                                                                                                                                
MR.  NYGAARD responded  that the  money for  fuel comes  from the                                                               
efforts   of  the   legislature   last  session   to  fund   cost                                                               
differential increases.  He said  that the impact to his district                                                               
with the current legislation will be about $250,000.                                                                            
                                                                                                                                
10:47:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROSES referred to  the Department of Education and                                                               
Early  Development  (EED)  Energy Cost  Analysis  that  projected                                                               
Cordova to  have an  increase in energy  costs of  about $120,000                                                               
for  FY 08.   He  expressed his  understanding of  the burden  of                                                               
additional costs to every school district.                                                                                      
                                                                                                                                
10:48:37 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD indicated that his information was different.                                                                       
                                                                                                                                
10:49:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROSES  repeated his question about  how the school                                                               
district covered its higher fuel costs last year.                                                                               
                                                                                                                                
10:51:03 AM                                                                                                                   
                                                                                                                                
CHAIR WILSON  re-stated the question  and asked  whether programs                                                               
were cut to make up costs.                                                                                                      
                                                                                                                                
10:51:22 AM                                                                                                                   
                                                                                                                                
MR.  NYGAARD said  that the  district is  cutting staff,  through                                                               
attrition, and is looking at all areas of conservation.                                                                         
                                                                                                                                
10:52:03 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   FAIRCLOUGH  asked   whether  the   Cordova  cost                                                               
information reflects  the additional  education funding  that was                                                               
recently passed by the legislature.                                                                                             
                                                                                                                                
10:52:33 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD said yes.                                                                                                           
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  further  asked  if  the  supplemental                                                               
appropriation now before the legislature was also included.                                                                     
                                                                                                                                
10:52:45 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD said that he was not sure.                                                                                          
                                                                                                                                
10:52:49 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CISSNA  asked  whether  any of  the  fuel  saving                                                               
measures created a safety issue.                                                                                                
                                                                                                                                
10:53:15 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD said no.                                                                                                            
                                                                                                                                
10:53:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   CISSNA   further   asked   what   after   school                                                               
educational programs have been curtailed.                                                                                       
                                                                                                                                
10:54:04 AM                                                                                                                   
                                                                                                                                
MR. NYGAARD  explained that after  school programs have  not been                                                               
cut but have been moved to  the high school because that building                                                               
has computerized climate controls.                                                                                              
                                                                                                                                
10:54:41 AM                                                                                                                   
                                                                                                                                
CHAIR  WILSON announced  that  HB  386 would  be  held over  with                                                               
public testimony open.                                                                                                          

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