Legislature(2017 - 2018)BUTROVICH 205

04/04/2017 03:30 PM EDUCATION

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
*+ SB 102 INTERNET FOR SCHOOLS; FUNDING TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
*+ SB 103 ED GRANTS/SCHOLARSHIP;INNOVATIVE ED FUND TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
*+ SB 104 EDUCATION CURRICULUM TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 96 EDUCATION:SCHOOLS/TEACHERS/FUNDING TELECONFERENCED
Moved CSSB 96(EDC) Out of Committee
        SB 103-ED GRANTS/SCHOLARSHIP;INNOVATIVE ED FUND                                                                     
                                                                                                                                
3:57:29 PM                                                                                                                    
CHAIR HUGHES announced the consideration of SB 103.                                                                             
                                                                                                                                
3:57:44 PM                                                                                                                    
MS.  HUTCHISON  explained  SB 103.  She  provided  the  sectional                                                               
analysis:                                                                                                                       
                                                                                                                                
     Section 1: AS 14.03                                                                                                    
     Adds a new section,  AS 14.03.128, that establishes the                                                                    
     Alaska   Education   Innovation  Grant   Fund.   School                                                                    
     Districts may  request a grant  under this  section for                                                                    
     the   support  of   innovative  education   ideas.  The                                                                    
     Commissioner of  the Department of Education  and Early                                                                    
     Development (DEED) shall  determine annually the amount                                                                    
     requested for  grants and submit  them in  their budget                                                                    
     for legislative approval.                                                                                                  
                                                                                                                                
     Section 2: AS 14.42.030(e)                                                                                             
     Removes the Alaska Education  Grant from state statute.                                                                    
     The  Alaska Education  Grant is  in AS  14.43.400 -  AS                                                                    
     14.43.420.                                                                                                                 
                                                                                                                                
     Section 3: AS 14.43.810(a)                                                                                             
     Makes  the high  school graduating  class of  2017, the                                                                    
     last   high  school   class  to   receive  the   Alaska                                                                    
     Performance Scholarship (APS).                                                                                             
                                                                                                                                
     Section 4: AS 14.43.820(a)                                                                                             
     Allows the commission  to award an APS to  a student no                                                                    
     later than July 1, 2017.                                                                                                   
                                                                                                                                
     Section 5: AS 14.43.915(a)                                                                                             
     Makes  the APS  and  the Alaska  Education Grant  (AEG)                                                                    
     available  to  students for  four  years  and does  not                                                                    
     allow a student's eligibility to  go past the 2020-2021                                                                    
     academic year.                                                                                                             
                                                                                                                                
     Section 6: AS 14.43.915(a)                                                                                             
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska  Education  Innovation   Grant".  This  section                                                                    
     deals  with money  going from  the fund  to the  Alaska                                                                    
     Education Grant fund. This section  is repealed Feb. 1,                                                                    
     2021.                                                                                                                      
                                                                                                                                
     Section 7: AS 14.43.915(b)                                                                                             
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska  Education  Innovation   Grant".  This  section                                                                    
     deals  with money  going from  the fund  to the  Alaska                                                                    
     Performance Scholarship award  account. This section is                                                                    
     repealed Feb. 1, 2021.                                                                                                     
                                                                                                                                
     Section 8: AS 14.43.915(c)                                                                                             
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska  Education  Innovation   Grant".  This  section                                                                    
     deals  with the  allocation  of monies  from the  fund.                                                                    
     This section is repealed Feb. 1, 2021.                                                                                     
                                                                                                                                
     Section 9: AS 14.45.130(a)                                                                                             
     This section deals with eligibility  of students from a                                                                    
     private or  religious school receiving  the APS.  It is                                                                    
     repealed Feb. 1, 2021.                                                                                                     
                                                                                                                                
3:59:00 PM                                                                                                                    
     Section 10: AS 37.14.750(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska  Education  Innovation   Grant".  This  section                                                                    
     establishes the  purpose of the fund,  which is "making                                                                    
     grants  to  school  districts  to  support  the  Alaska                                                                    
     Education Innovation Grant Program."                                                                                       
                                                                                                                                
     Section 11: AS 37.14.750(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska  Education  Innovation   Grant".  This  section                                                                    
     establishes the  purpose of the fund,  which is "making                                                                    
     grants  to  school  districts  to  support  the  Alaska                                                                    
     Education Innovation Grant  Program." This section also                                                                    
     removes  the language  that  allows  payments from  the                                                                    
     fund   to   go   to   scholarships   to   postsecondary                                                                    
     institutions.  This  section  is repealed  in  Feb.  1,                                                                    
     2021.                                                                                                                      
                                                                                                                                
     Section 12: AS 37.14.750(d)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 13: AS 43.20.014(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 14: AS 43.55.019(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 15: AS 43.56.018(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 16: AS 43.65.018(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 17: AS 43.75.018(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 18: AS 43.77.045(a)                                                                                            
     Conforming  Language to  change  the name  of the  fund                                                                    
     from  "Alaska  Higher   Education  Investment"  to  the                                                                    
     "Alaska Education Innovation Grant".                                                                                       
                                                                                                                                
     Section 19: AS 14.03.113                                                                                               
     AS 14.03.113, "District's  determination of scholarship                                                                    
     eligibility" is repealed July 1, 2017                                                                                      
                                                                                                                                
     Section 20                                                                                                             
     Repeals the following sections on Feb. 1, 2021.                                                                            
     Article 8: Alaska Education Grant Program                                                                                  
   - AS 14.43.400 - Purpose; creation                                                                                           
                                                                                                                                
   - AS 14.43.405 - Administration                                                                                              
                                                                                                                                
   - AS 14.43.406 - Applicability of other laws                                                                                 
                                                                                                                                
   - AS 14.43.415 - Eligibility; priority                                                                                       
                                                                                                                                
   - AS 14.43.420 - Limitation on grants                                                                                        
                                                                                                                                
                                                                                                                                
     Article 12: Alaska Performance Scholarship Program                                                                         
   - AS 14.43.810 - Alaska performance scholarship program                                                                      
     established; regulations                                                                                                   
                                                                                                                                
   - AS 14.43.820 - Alaska performance scholarship program;                                                                     
     eligibility                                                                                                                
                                                                                                                                
   - AS 14.43.825 - Maximum annual awards                                                                                       
                                                                                                                                
   - AS 14.43.830 - Qualified postsecondary institutions                                                                        
   - AS 14.43.840 - Report to the Legislature                                                                                   
                                                                                                                                
   - AS 14.43.849 - Definitions                                                                                                 
                                                                                                                                
                                                                                                                                
     Article 13 General Provisions                                                                                              
   - AS 14.43.915 - Alaska education grant account and                                                                          
     Alaska performance scholarship award account                                                                               
                                                                                                                                
                                                                                                                                
     Article 9: Alaska Higher Education Investment Fund                                                                         
   - AS 37.14.750(c) - As soon as is practicable after July                                                                     
     1  of  each year,  the  commissioner  of revenue  shall                                                                    
     determine the  market value of the  fund established in                                                                    
     this section  on June 30 for  the immediately preceding                                                                    
     fiscal  year.  The  commissioner shall  identify  seven                                                                    
     percent of  that amount as available  for appropriation                                                                    
     as  follows:  (1)  one-third   for  the  grant  account                                                                    
     established  under  AS 14.43.915AS  14.43.915(b),  from                                                                  
     which the Alaska  Commission on Postsecondary Education                                                                    
     may  award scholarships.  (a),  from  which the  Alaska                                                                  
     Commission   on  Postsecondary   Education  may   award                                                                  
     grants; and (2) two-thirds  for the scholarship account                                                                  
     established under                                                                                                        
                                                                                                                                
3:59:33 PM                                                                                                                    
     Section 21: Applicability Section                                                                                        
     The  Alaska Commission  on Postsecondary  Education may                                                                    
     only  award an  APS  to  a new  applicant  if they  are                                                                    
     determined  eligible  by   their  school  district  and                                                                    
     reported  as eligible  to  DEED on  or  before July  1,                                                                    
     2017.                                                                                                                      
     Section 22: Transition                                                                                                   
     The  Departments of:  Education and  Early Development,                                                                    
     Labor   and  Workforce   Development  and   the  Alaska                                                                    
     Commission   on  Postsecondary   Education  may   adopt                                                                    
     regulations  to  implement  necessary changes  made  by                                                                    
     this act.  The regulations  may only take  effect after                                                                    
     the law is implemented.                                                                                                    
                                                                                                                                
     Section 23: Retroactivity                                                                                                
     If Sections  3-5 and 19  of this Act take  effect after                                                                    
     July 1, 2017, then sections 3-5  and 19 of this act are                                                                    
     retroactive to July 1, 2017.                                                                                               
     Section 24: Effective Dates                                                                                              
     Sections 2, 9, and 11 take effect Feb. 1, 2021.                                                                            
     Section 25: Effective Date                                                                                               
        Except for Sections 2, 9, and 11, this act takes                                                                        
     effect immediately.                                                                                                        
                                                                                                                                
4:00:42 PM                                                                                                                    
SENATOR BEGICH  voiced concern  about a  policy bill  coming from                                                               
Senate Finance Committee at this  late date. He said Sections 12-                                                               
17 are amendments  to Education Tax Credit that is  set to sunset                                                               
next year. He said that he  has crafted an amendment to extend it                                                               
seven more years, if the  sponsor is interested. He asked whether                                                               
Senator Coghill will be offering it as a bill.                                                                                  
                                                                                                                                
4:02:53 PM                                                                                                                    
SENATOR BEGICH  related that the  Innovation Grant  Fund provides                                                               
support to offset cuts proposed  by the Senate Finance Committee.                                                               
He asked how much is in the Grant Fund for this fiscal year.                                                                    
                                                                                                                                
4:03:36 PM                                                                                                                    
MS.  HUTCHISON said  the amount  in the  Alaska Higher  Education                                                               
Investment  will   be  transferred  into  the   Alaska  Education                                                               
Innovation Grant Fund. That amount currently is $349 million.                                                                   
                                                                                                                                
SENATOR BEGICH asked  if the entire amount will  be available for                                                               
the Grant Fund.                                                                                                                 
                                                                                                                                
MS. HUTCHISON  explained that  the whole Grant  Fund will  not be                                                               
available;  the Alaska  Performance  Scholarship  and the  Alaska                                                               
Higher Education Investment  must be funded for  four more years,                                                               
as well as non-designated appropriations.                                                                                       
                                                                                                                                
4:04:36 PM                                                                                                                    
SENATOR BEGICH asked how much will be available.                                                                                
                                                                                                                                
MS. HUTCHISON offered get that information.                                                                                     
                                                                                                                                
4:05:08 PM                                                                                                                    
CHAIR HUGHES thought there might be $100 million left.                                                                          
                                                                                                                                
MS. HUTCHISON said  she has seen the figures of  $100 million and                                                               
$118 million.                                                                                                                   
                                                                                                                                
SENATOR BEGICH  explained that there  is a one-time  decrement of                                                               
$69 million that lowers the BSA and follows through over time.                                                                  
                                                                                                                                
4:05:52 PM                                                                                                                    
CHAIR HUGHES  stated that  the formula is  not being  change. She                                                               
said  the idea  is to  help districts  come up  with new  ways to                                                               
provide classroom  instruction and serve as  lasting changes. The                                                               
Innovation Grants would no longer be needed year after year.                                                                    
                                                                                                                                
4:06:43 PM                                                                                                                    
SENATOR BEGICH restated  his question for the  benefit of Senator                                                               
MacKinnon, sponsor, who just joined the meeting.                                                                                
                                                                                                                                
4:07:01 PM                                                                                                                    
SENATOR  ANNA MACKINNON,  Alaska State  Legislature, speaking  on                                                               
behalf  of the  Senate Finance  Committee, explained  why Senator                                                               
Begich's analysis was  not correct. She noted  the starting point                                                               
of $349,360,778 in  the FY18 Governor's budget  for the Education                                                               
Innovation Grant Fund.  There are different draws on  the Fund in                                                               
both the House and Senate, so  she cannot provide a balance after                                                               
those are taken. Also, two  other bills before the committee will                                                               
draw from  the Fund,  should SB  103 pass. If  the APS  stays the                                                               
same, it will also draw from  the Fund. In addition, they propose                                                               
to use a one-time expense in  the e-rate bill, and the curriculum                                                               
bill will  probably pay  for a DEED  advisor. She  concluded that                                                               
she does  not know what the  final number will look  like because                                                               
there are  different ways the  money could be reduced  over time.                                                               
She is  expecting fiscal  notes for  SB 102, SB  103, and  SB 104                                                               
soon.                                                                                                                           
                                                                                                                                
She spoke of the APS funding ramp down over four years.                                                                         
                                                                                                                                
4:09:39 PM                                                                                                                    
SENATOR  MACKINNON discussed  the huge  budget shortfall  and the                                                               
fact that she  has met with districts regarding  their needs. She                                                               
said the  bill is designed  with no funds available,  except from                                                               
drawing from savings to keep  afloat the current system. The bill                                                               
retools  a fund  where  there are  dollars  available to  provide                                                               
students with  better outcomes  at state  and global  levels. The                                                               
bill  is intended  to keep  afloat the  current system  and allow                                                               
students  to have  better outcomes.  It takes  existing resources                                                               
and uses  them for a  constitutionally required benefit  for K-12                                                               
students.                                                                                                                       
                                                                                                                                
4:11:26 PM                                                                                                                    
SENATOR  BEGICH agreed  there is  a constitutional  obligation to                                                               
provide an adequate education. He  noted that the Grant Fund does                                                               
not continue into perpetuity.                                                                                                   
                                                                                                                                
SENATOR MACKINNON said that is  dependent on the legislature. She                                                               
countered that  "we are  required to  provide a  basic education,                                                               
not an  adequate education." She  said she wants all  children to                                                               
succeed  and pursue  their dreams  and it  is her  hope that  the                                                               
Grant Fund  would continue to  be a bridge to  provide additional                                                               
opportunities. She explained that the  Senate's budget is using a                                                               
portion of  the Grant Fund to  pay the debt down  of the unfunded                                                               
PERS  and TRS  liability.  The conference  committee, should  the                                                               
budgets pass, would  have the option of leaving the  money in the                                                               
Grant Fund or  using it for a one-time  expense. There originally                                                               
was much more in the Grant  Fund and it has decreased. About $350                                                               
million is available now for  the legislature and the Governor to                                                               
consider its best use.                                                                                                          
                                                                                                                                
4:14:06 PM                                                                                                                    
She added that  e-rate and reoccurring costs would  also come out                                                               
of the Grant Fund.                                                                                                              
                                                                                                                                
SENATOR BEGICH stated  that the bill phases out the  APS by 2021.                                                               
He asked if it was also phasing out the needs-based Scholarship.                                                                
                                                                                                                                
SENATOR MACKINNON said yes.                                                                                                     
                                                                                                                                
SENATOR BEGICH  noted there would  be future competition  for the                                                               
grants  by 53  school districts  resulting in  inequities created                                                               
due to the skill level of  grant writers. He hoped there would be                                                               
consideration for a fairer playing field.                                                                                       
                                                                                                                                
4:15:28 PM                                                                                                                    
SENATOR MACKINNON  replied that DEED  is involved in  the process                                                               
of working with districts to provide a level playing field.                                                                     
                                                                                                                                
CHAIR HUGHES  noted that DEED  is present  in the room  and hears                                                               
the discussion.                                                                                                                 
                                                                                                                                
She  understood  that  the  Innovation Grants  will  be  able  to                                                               
continue without ongoing funds.                                                                                                 
                                                                                                                                
4:16:40 PM                                                                                                                    
SENATOR MACKINNON  said that is one  way to look at  it. The bill                                                               
provides that DEED  would come to the legislature in  the form of                                                               
a budget request  after working with school  districts across the                                                               
state and after  gaining support by the State  Board of Education                                                               
and  the Governor.  They could  be ongoing,  depending on  what a                                                               
district chooses to do.                                                                                                         
                                                                                                                                
SENATOR  MACKINNON stated  that it  is not  fun to  close down  a                                                               
program  that is  benefitting students,  however, the  state must                                                               
prioritize  the money  it is  currently utilizing.  This proposal                                                               
would  benefit all  students in  Alaska, while  the APS  benefits                                                               
only a few hundred  or a thousand. She said her  desire is not to                                                               
pit one program against the other,  but to have the same students                                                               
benefit from the program, sooner  rather than later, so that they                                                               
are prepared to enter college or a vocational program.                                                                          
                                                                                                                                
4:18:28 PM                                                                                                                    
SENATOR BEGICH voiced concern, not about  the end of the APS, but                                                               
about  the  $69 million  removed  from  the BSA  for  competitive                                                               
grants.  He asked  if they  are directing  districts as  to where                                                               
they can put their resources.                                                                                                   
                                                                                                                                
SENATOR  MACKINNON said  no. She  recalled  the press  conference                                                               
yesterday where  the bill was  mentioned as innovation  she hoped                                                               
districts could use.  She said the $68 million cut  to the BSA is                                                               
a different discussion and  SB 103 is not tied to  it. The cut is                                                               
in response  to a proposed $13  billion to be drawn  from savings                                                               
with  a section  of government  she  believes is  taking over  30                                                               
percent of  designated general  funds and  applying a  small cut,                                                               
compared to other cuts that are being made in other departments.                                                                
                                                                                                                                
She  said her  intent  is  to provide  a  bridge  to the  future.                                                               
Everyone wants  what is  best for  kids, but there  is a  need to                                                               
change together.  She looks to  the Board of Education  and DEED,                                                               
working  with  school  districts,   to  come  up  with  something                                                               
everyone can support.                                                                                                           
                                                                                                                                
She  spoke of  how  the  e-rate bill  could  be  used to  support                                                               
smaller  districts.  She  pointed  out that  none  of  the  bills                                                               
mandate anyone to do anything. She  hoped to work together on BSA                                                               
concerns. She  concluded that  cuts to  the budget  are difficult                                                               
for  everyone and  are part  of a  process. They  will try  to do                                                               
everything possible to put students first.                                                                                      
                                                                                                                                
4:23:05 PM                                                                                                                    
CHAIR HUGHES  said during all exploratory  hearings on education,                                                               
it  has  been  highlighted  that  Alaska  is  not  fully  meeting                                                               
students'   education  needs   and  there   is  a   disparity  in                                                               
achievement.  The Senate  Education Committee  is trying  to step                                                               
out of the box to be  innovative and to change those results. She                                                               
said the  timing is  right, with good  leadership and  the Alaska                                                               
Innovative Challenge.  She has had  conversations with  people in                                                               
other states  and has concluded that  Alaska will be a  leader in                                                               
this mission. She said they  will work together with both bodies,                                                               
the administration,  and districts  to effect  change and  make a                                                               
difference. She appreciated Senator MacKinnon's work.                                                                           
                                                                                                                                
4:25:24 PM                                                                                                                    
SENATOR GIESSEL underscored Chair  Hughes comments. She said that                                                               
there  have been  discussions about  innovation in  education the                                                               
past four  years. She said  the state  cannot continue to  do the                                                               
same thing and  expect different results. Funding  is not getting                                                               
to  the  classrooms  and  allowing teachers  to  teach  to  their                                                               
highest capacity. She said she is supportive of SB 103.                                                                         
                                                                                                                                
4:26:33 PM                                                                                                                    
CHAIR  HUGHES  agreed  that  teachers  need  the  freedom  to  be                                                               
flexible and creative.                                                                                                          
                                                                                                                                
4:26:51 PM                                                                                                                    
SENATOR BEGICH  related that he  believes in the same  things and                                                               
supports innovation.  He agreed that these  bills are innovative,                                                               
however, the  process is concerning.  There is an  odd disconnect                                                               
between these bills  and what is going on  overall with education                                                               
funding. He  requested looking at everything  together. The three                                                               
bills are  laudable. He requested  to be sure that  due diligence                                                               
is used.                                                                                                                        
                                                                                                                                
CHAIR HUGHES held SB 103 in committee.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 102 - Sponsor Statement.pdf SEDC 4/4/2017 3:30:00 PM
SB 102
SB 102 - Legislation Ver. A.PDF SEDC 4/4/2017 3:30:00 PM
SB 102
SB 102 - Sectional Analysis.pdf SEDC 4/4/2017 3:30:00 PM
SB 102
SB 102 - Supporting Document - Alaska Schools Under 25mbps.pdf SEDC 4/4/2017 3:30:00 PM
SB 102
SB 102 - Supporting Document - FY17 BAG Awards (2).pdf SEDC 4/4/2017 3:30:00 PM
SB 102
SB 103 - Sponsor Statement.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Legislation Ver. O.PDF SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Sectional Analysis.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Supporting Document - APS.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Supporting Document - High School to College.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Supporting Document - UA Remediation Rates 2006-2016.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Supporting Document - 2015-2016 Graduation Rates.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 103 - Supporting Document - AEG.pdf SEDC 4/4/2017 3:30:00 PM
SB 103
SB 104 - Sponsor Statement.pdf SEDC 4/4/2017 3:30:00 PM
SB 104
SB 104 - Legislation Ver. J.PDF SEDC 4/4/2017 3:30:00 PM
SB 104
SB 104 - Sectional Analysis.pdf SEDC 4/4/2017 3:30:00 PM
SB 104