Legislature(2011 - 2012)BELTZ 105 (TSBldg)

01/30/2012 08:00 AM Senate EDUCATION


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08:02:10 AM Start
08:02:50 AM SB171
08:57:28 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 171 INCREASE BASE STUDENT ALLOCATION TELECONFERENCED
Moved SB 171 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
            SB 171-INCREASE BASE STUDENT ALLOCATION                                                                         
                                                                                                                                
8:02:50 AM                                                                                                                    
CO-CHAIR THOMAS announced the continued consideration of SB 171.                                                                
                                                                                                                                
8:04:36 AM                                                                                                                    
LORRAINE "SAMMY"  CRAWFORD, Kenai Peninsula Borough  School Board,                                                              
said  dropout   rates  were  decreasing   and  test   scores  were                                                              
increasing.  She said the  bill would  provide needed  revenue for                                                              
maintaining  staff,  keeping  successful  programs  and  assisting                                                              
budget planning.                                                                                                                
                                                                                                                                
8:06:49 AM                                                                                                                    
SUNNI  HILTS,  Kenai  Peninsula   Borough  School  District,  said                                                              
forward  funding would  be beneficial  for maintaining  successful                                                              
programs and planning future budgets.                                                                                           
                                                                                                                                
8:08:47 AM                                                                                                                    
LON  GARRISON, President,  Sitka  District School  Board, said  an                                                              
increase in  the Base  Student Allocation  (BSA) was important  to                                                              
cover  budget shortfalls  due to  a decline in  local and  federal                                                              
funding. He  said school  boards were  facing average  budget cuts                                                              
of seven percent or greater.                                                                                                    
                                                                                                                                
8:12:51 AM                                                                                                                    
STEVE  BRADSHAW, Superintendent,  Sitka  School  District, said  a                                                              
$320  BSA increase  for  FY13 was  justified  but unrealistic.  He                                                              
said funding from the bill over three years was appreciated.                                                                    
                                                                                                                                
8:15:36 AM                                                                                                                    
BRUCE    JOHNSON,    Director,    Alaska   Council    of    School                                                              
Administrators,  said the bill  would assist with  forward-funding                                                              
as the BSA grows over three years.                                                                                              
                                                                                                                                
8:17:47 AM                                                                                                                    
DEBBIE  LOWENTHAL,  Member,  Gastineau   Site  Council,  Gastineau                                                              
Community  School,  said  the bill  would  help  maintain  smaller                                                              
class  sizes,  allow  for continued  special  education  and  help                                                              
retain school nurses.                                                                                                           
                                                                                                                                
8:19:16 AM                                                                                                                    
JOHN   ALCANTRA,   Director,   Government    Relations,   National                                                              
Education   Association-Alaska  (NEA-Alaska),   said  the   bill's                                                              
annual  funding  increase would  average  2.2 percent  over  three                                                              
years while the  annual inflation rate was projected  to be near 3                                                              
percent.  He  said  districts face  budget  shortfalls  even  with                                                              
added  funds from  the bill.  He noted  that a  $320 BSA  increase                                                              
would  not  be  an  unprecedented  amount  as  higher  rates  were                                                              
approved in the past.                                                                                                           
                                                                                                                                
8:23:52 AM                                                                                                                    
BILL  MCCLOUD, Superintendent,  Dillingham  City School  District,                                                              
said an increased  BSA with forwarding-funding would  be welcomed.                                                              
He said Dillingham's  current budget faced a $225,000  increase in                                                              
health   insurance  and   higher   energy   bills  without   added                                                              
assistance  from the state.  He said  the district benefited  last                                                              
year  when  the  state provided  $98,000  to  help  defray  energy                                                              
costs.                                                                                                                          
                                                                                                                                
8:26:18 AM                                                                                                                    
RUSSELL  NELSON, Director  of Facilities,  Dillingham City  School                                                              
District,  said a BSA  increase  would help the  district  pay for                                                              
higher facility  and energy costs.  He said the district  was cost                                                              
conscious  and  kept  custodial  staffing  50  percent  below  the                                                              
national  standard   for  personnel  suggested  for   square  foot                                                              
coverage. He  noted that the  district recently spent  $15 million                                                              
to improve schools' energy efficiency.                                                                                          
                                                                                                                                
8:27:58 AM                                                                                                                    
CARL  ROSE,  Executive  Director,  Association  of  Alaska  School                                                              
Boards, said  enrollment  funding does not  correlate with  actual                                                              
operating costs  unless the BSA  keeps pace. He said  any business                                                              
that  generates less  revenue than  operating  costs faces  either                                                              
deficit operations  or closing. He  welcomed the BSA  increase and                                                              
emphasized  proper BSA  calculation  as the  lynchpin for  funding                                                              
public education.                                                                                                               
                                                                                                                                
8:30:50 AM                                                                                                                    
PETE LEWIS,  Superintendent, Fairbanks  North Star Borough  School                                                              
District, said  the district faced  significant cuts  to personnel                                                              
and programs.  He said  the bill's  BSA increase  would not  cover                                                              
all costs, but  would help to maintain staff  and reasonable class                                                              
sizes.  He said  forward-funding  would  allow for  proper  budget                                                              
planning.                                                                                                                       
                                                                                                                                
8:32:40 AM                                                                                                                    
MARY HAKALA,  representing herself,  Juneau, said  the bill  was a                                                              
step in  the right  direction and  believed more  was required  to                                                              
cover  escalating  costs.  She   noted  that  without  a  separate                                                              
appropriation  similar  to  last  year's $20  million  for  energy                                                              
costs,  the  net gain  to  schools  for  the  first year  was  $11                                                              
million, not $31 million.                                                                                                       
                                                                                                                                
8:37:07 AM                                                                                                                    
ANNE KILKENNY,  representing  herself, Matanuska-Susitna  Borough,                                                              
said  the bill  would allow  the  district to  retain 32  teachers                                                              
from the projected  cutback of 162 teachers and  reduce class size                                                              
increases from  6.5 to  5.2 students.  She said staffing  accounts                                                              
for 80  percent of a school's  operating budget and  recommended a                                                              
BSA formula  that was  not based  upon the  consumer price  index.                                                              
She  noted  that intrastate  competition  for  teachers  increased                                                              
costs   and   recommended   oversight   for   statewide   contract                                                              
negotiations.                                                                                                                   
                                                                                                                                
8:42:50 AM                                                                                                                    
SENATOR STEVENS  said the  bill's BSA was  the wisest  strategy to                                                              
realistically attain passage.                                                                                                   
                                                                                                                                
8:44:14 AM                                                                                                                    
ELIZABETH  NUDELMAN,  Director,   School  Finance,  Department  of                                                              
Education  and Early  Development,  said  the bill's  fiscal  note                                                              
incorporated  increases  of  $30.613  million  for  FY13,  $31.837                                                              
million for  FY14 and $33.062 million  for FY15. She said  the BSA                                                              
would be  $5,805 for FY13,  $5,935 for  FY14 and $6,070  for FY15.                                                              
She  said  a  second  fiscal note  was  included  for  the  Alaska                                                              
Military  Youth Academy's  BSA formulated  funding with  increases                                                              
of: $190,000 for FY13, $198,000 for FY14 and $206,000 for FY15.                                                                 
                                                                                                                                
8:46:33 AM                                                                                                                    
CO-CHAIR MEYER  asked if  transportation was  funded from  the BSA                                                              
formula and if special education would receive added funding.                                                                   
                                                                                                                                
8:46:57 AM                                                                                                                    
MS. NUDELMAN answered  that transportation funding  was formulated                                                              
separately.  She  noted  that  special   education  funding  would                                                              
receive added funding based upon the BSA increase.                                                                              
                                                                                                                                
8:47:52 AM                                                                                                                    
CO-CHAIR  MEYER  asked  if  the  department  had  suggestions  for                                                              
funding education beyond grants or formula based means.                                                                         
                                                                                                                                
MS. NUDELMAN answered no.                                                                                                       
                                                                                                                                
8:50:08 AM                                                                                                                    
SENATOR  STEVENS asked  if  last year's  $20  million funding  for                                                              
energy costs was a onetime allocation.                                                                                          
                                                                                                                                
8:50:24 AM                                                                                                                    
MS.  NUDELMAN answered  correct.  She said  all operational  costs                                                              
would come from BSA foundation funding.                                                                                         
                                                                                                                                
SENATOR STEVENS asked if funding was district specified.                                                                        
                                                                                                                                
MS. NUDELMAN answered no.                                                                                                       
                                                                                                                                
8:51:32 AM                                                                                                                    
SENATOR STEVENS  commented that  it was  important to  address the                                                              
total funding of education.                                                                                                     
                                                                                                                                
CO-CHAIR  THOMAS  agreed that  it  was  important to  address  the                                                              
higher energy costs due to severe weather from this past winter.                                                                
                                                                                                                                
8:52:05 AM                                                                                                                    
CO-CHAIR MEYER commented  that individuals from Anchorage  did not                                                              
testify.  He said  added funding  for education  was important  to                                                              
Anchorage and recommended the bill be moved.                                                                                    
                                                                                                                                
CO-CHAIR THOMAS commented  that he had heard from a  lot of people                                                              
from Anchorage who supported added funding.                                                                                     
                                                                                                                                
SENATOR  DAVIS  said Anchorage  supported  increased  funding  for                                                              
education  and encouraged  members  to move  the bill  as fast  as                                                              
possible to  help districts with  their budget planning.  She said                                                              
flat-funding  education was  not acceptable  and the BSA  increase                                                              
was not  actual forward-funding,  but a  starting point  for added                                                              
funds  over a  three year  period. She  said citizens  need to  be                                                              
involved  with  the  process  to fully  understand  the  facts  to                                                              
properly fund public education.                                                                                                 
                                                                                                                                
8:56:44 AM                                                                                                                    
CO-CHAIR  MEYER moved  to report  SB 171 from  the committee  with                                                              
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
8:57:05 AM                                                                                                                    
CO-CHAIR  THOMAS announced  that without  objection, SB 171  moved                                                              
from the committee.                                                                                                             
                                                                                                                                

Document Name Date/Time Subjects
Bill Packet 1-30-12.pdf SEDC 1/30/2012 8:00:00 AM
BMI Tool for Schools.pdf SEDC 1/30/2012 8:00:00 AM
Health_Conditions_chart_2011.pdf SEDC 1/30/2012 8:00:00 AM
Mental Health of Students.pdf SEDC 1/30/2012 8:00:00 AM
Role of the School Nurse.pdf SEDC 1/30/2012 8:00:00 AM