Legislature(2001 - 2002)

05/09/2002 09:37 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
     SENATE CS FOR HOUSE BILL NO. 239(HES)                                                                                      
     "An Act establishing a pilot program for a regional learning                                                               
     center."                                                                                                                   
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  RICHARD FOSTER, the  bill's sponsor, explained  that                                                            
this legislation  would provide  the Bering  Strait School  District                                                            
(BSSD) and the Nome City  School District with State funds to assist                                                            
in the  development  of a joint  regional pilot  program to  enhance                                                            
educational  opportunities for approximately  200 junior  and senior                                                            
high school  students from the 15  villages that comprise  the BSSD.                                                            
He communicated  that currently most  BSSD village school  graduates                                                            
remain in that  village and have limited  employment opportunities.                                                             
                                                                                                                                
Representative  Foster explained that on an annual  basis, this non-                                                            
traditional  boarding school style  program, which would  operate in                                                            
Nome, would  provide job shadowing  opportunities and courses,  some                                                            
with a  duration of  only one or  two weeks,  to educate BSSD  youth                                                            
about such things  as how to find a job or how to  work in retail or                                                            
the transportation  industry.  He stated that  once State funds  are                                                            
secured for  the program,  federal funds would  be sought to  assist                                                            
the program's continuing development.                                                                                           
                                                                                                                                
Senator Wilken  commented  that a similar  program is scheduled  for                                                            
the Fairbanks  area; however,  he stated,  the Fairbanks North  Star                                                            
Borough has  committed to pay 30 percent  of the construction  costs                                                            
of the  program's facility  and would additionally  provide  funding                                                            
for the program  through the Borough's school district  budget which                                                            
is supported by local property taxes.                                                                                           
                                                                                                                                
Senator Wilken  asked whether a pro forma plan has  been established                                                            
to outline  the program's  direction  and funding  requirements.  He                                                            
noted that  the fiscal note  specifies that  State support  would be                                                            
required for the  program's initial four years with  the expectation                                                            
that the program  would be self-supporting  after that time  period.                                                            
Senator Wilken  asked how the Bering Strait School  District and the                                                            
City of Nome propose to support the program.                                                                                    
                                                                                                                                
LARRY  LABOLLE, Chief  of Staff  to Representative  Richard  Foster,                                                            
noted  that responses  to the local  support  inquiry indicate  that                                                            
Nome would  support the program with  property tax revenue  and that                                                            
both the City  of Nome and the BSSD  have the option to use  federal                                                            
funds to support the program.                                                                                                   
                                                                                                                                
Dr. LaBolle asserted  that this program differs from  the Fairbanks'                                                            
program in that this program  would require students to be housed in                                                            
Nome in order  to be provided with opportunities for  such things as                                                            
driver's education,  water safety  programs, as well as exposure  to                                                            
expansive  career opportunities  that are  not readily available  in                                                            
their villages.                                                                                                                 
                                                                                                                                
Senator Wilken  specified that the May 1, 2002 letter  from Dr. John                                                            
A. Davis  and Dr. Stan  Lujon of the Bering  Strait School  District                                                            
[copy  on file],  addressed  to  the Senate  Finance  Committee  Co-                                                            
Chairs, does not  identify the source of the fifth  year funding. He                                                            
asked whether a financial analysis has been undertaken.                                                                         
                                                                                                                                
Dr.  LaBolle  commented  that no  additional  information  has  been                                                            
provided.                                                                                                                       
                                                                                                                                
Senator  Green commented  that a fifth  year analysis  has not  been                                                            
provided  because this  is  a four-year  pilot program.  She  voiced                                                            
concern regarding how the  State's school foundation formula funding                                                            
might be impacted since  the districts would be, in essence, sharing                                                            
students.  She  stated  that  the  Nome  School  District  would  be                                                            
required  to hire additional  teachers in  addition to housing  BSSD                                                            
students. She pointed out  that this scenario is not provided for in                                                            
the school  foundation formula funding.  She reminded the  Committee                                                            
that  expenses  for such  things  as a  program  coordinator,  food,                                                            
travel, and house parents  would also be a fiscal consideration. She                                                            
remarked that  even though she considers this to be  a good program,                                                            
fiscal concerns must be addressed.                                                                                              
                                                                                                                                
Senator  Wilken noted  that  the letter  from  the City  of Nome  to                                                            
Representative  Foster,   [copy  on  file]  dated  April  26,  2002,                                                            
specifies that  "House Bill 239 is  needed to assist in sending  the                                                            
State portion  of school  funding with the  students as they  attend                                                            
school in the  Bering Straits School District or in  the Nome Public                                                            
Schools." He  reiterated Senator Green's  concern regarding  how the                                                            
State  school foundation  formula  funding  would provide  for  this                                                            
program.                                                                                                                        
                                                                                                                                
Senator  Wilken declared  that  it is  "uncomfortable"  to  consider                                                            
committing  State funds to a project  that has "no plan."  He stated                                                            
that the Fairbanks  North Star Borough has committed  local taxes to                                                            
support the program in  their community; however, this bill contains                                                            
no  local  participation  requirement.  He  opined  that  this  bill                                                            
"strikes  at the  very  heart of  the problem"  that  exists in  the                                                            
State, as  exampled by  the practice in  Rural Education  Attendance                                                            
Areas to  "spend as you  wish, because there  is no accountability,                                                             
there is no requirement  to have any local participation  so whether                                                            
it is sewer and water or  schools," they want to do it because there                                                            
is no local commitment involved.                                                                                                
                                                                                                                                
Senator  Wilken  announced   that  were  this  project  proposed  in                                                            
"organized  Alaska," it would  be accompanied  by a plan that  would                                                            
provide  assurances as  to how the  pilot program  would be  able to                                                            
continue after the fourth year.                                                                                                 
                                                                                                                                
Senator  Wilken argued  that  the expectation  should  be that  this                                                            
pilot program is a good  thing and would continue to operate through                                                            
local  involvement  and support,  and  not  because "the  people  of                                                            
Alaska are  being asked to shoulder  the burden." He suggested  this                                                            
program be set aside until  a plan is presented that provides viable                                                            
funding assurances for the program after the fourth year.                                                                       
                                                                                                                                
EDDY JEANS,  School  Finance Manager,  Department  of Education  and                                                            
Early Development,  informed the Committee  that the State's  school                                                            
foundation  formula funding  would be  allocated,  as routine,  to a                                                            
student's  home school district,  which he  clarified, in this  case                                                            
would be  the Bering Strait  School District.  He communicated  that                                                            
the BSSD  would contract  with the City of  Nome School District  to                                                            
provide  the   required  services.   He  characterized  this   as  a                                                            
"cooperative effort between the two school districts."                                                                          
                                                                                                                                
Mr. Jeans  voiced  the understanding  that, in  the program's  fifth                                                            
year,  other  grants would  be  sought  to support  the  program  in                                                            
addition  to  the  use of  the  State's  school  foundation  formula                                                            
funding.                                                                                                                        
                                                                                                                                
Co-Chair  Kelly questioned  whether the pilot  project school  would                                                            
qualify for the State school  foundation formula funding as a result                                                            
of the two school districts' contractual agreement.                                                                             
                                                                                                                                
Mr. Jeans clarified  that the students' home school  districts would                                                            
transfer  portions of  their foundation  formula  funding and  other                                                            
impact aid funding to support the pilot program.                                                                                
                                                                                                                                
Co-Chair  Kelly stated  that there  is no language  specifying  that                                                            
this funding support must occur.                                                                                                
                                                                                                                                
Mr. Jeans agreed,  but reiterated that school districts  are allowed                                                            
to enter into cooperative agreements.                                                                                           
                                                                                                                                
Co-Chair  Kelly asked  Senator Wilken  whether  Mr. Jeans'  comments                                                            
provided the pertinent funding information he requested.                                                                        
                                                                                                                                
Senator Wilken replied that, "they did not."                                                                                    
                                                                                                                                
Senator Green  asked whether the funding  agreement between  the two                                                            
districts  could begin  with the  programs' first  year rather  than                                                            
with the fifth year.                                                                                                            
                                                                                                                                
Mr. Jeans clarified  that the State  funding requested in  this bill                                                            
would supply "the  seed money" required to initiate  the program. He                                                            
continued that  this "seed money" would provide the  foundation upon                                                            
which  to  approach  the  federal  government  for  further  funding                                                            
assistance  to address  such needs  as housing  facility  renovation                                                            
expenses and on-going operational costs.                                                                                        
                                                                                                                                
Senator  Green explained  that the State  school foundation  formula                                                            
allots  annual funds  to schools  based  on the  number of  students                                                            
enrolled in that  district, and she specified that  this funding and                                                            
student/teacher  ratio  guidelines  determine  staffing  needs.  She                                                            
voiced concern that a long-term  funding plan for this program might                                                            
be difficult  to develop because of  the uncertainty of this  annual                                                            
funding amount.                                                                                                                 
                                                                                                                                
Senator Green  stated; however, that  if the BSSD does not  allocate                                                            
their money to hire District  staff; they could support this project                                                            
by providing  funds  to the  Nome School  District  to hire  program                                                            
teachers.                                                                                                                       
                                                                                                                                
Mr. Jeans  commented  that it  has not  been established  that  Nome                                                            
would be  required to hire  additional teachers.  He stated  that as                                                            
part of  the program, students  from the  BSSD would be temporarily                                                             
housed  in   Nome  as   a  means  to  supplement   the  educational                                                             
opportunities provided  by their own District; however, he noted, no                                                            
mechanism exists to offset  the boarding home expenses because these                                                            
students  are disqualified  from  receiving boarding  home  stipends                                                            
since their  participation  in the program  would be funded  through                                                            
their home district. He  stated that the boarding home expenses "are                                                            
really a core issue."                                                                                                           
                                                                                                                                
Mr.  Jeans opined  that  the  interaction  between Nome  and  remote                                                            
village students would additionally provide cultural benefits.                                                                  
                                                                                                                                
Senator Green  understood that three or four additional  staff would                                                            
be required to  facilitate the program. She stated  that even though                                                            
the  formula  funding  might  not provide  a  funding  mechanism  to                                                            
support  the boarding  home  component of  the program,  the  Bering                                                            
Strait School  Board could  choose to allot  money from its  formula                                                            
funding to support it.                                                                                                          
                                                                                                                                
Mr.  Jeans  reiterated   that  he  is  not  aware  that   additional                                                            
instructional  staff would be required;  however, he noted  that the                                                            
Department  of  Education   and  Early  Development's   fiscal  note                                                            
specifies  that the  program would  require three  staffers: one  of                                                            
whom  would be  the program  coordinator  with the  other two  being                                                            
housing staffers.                                                                                                               
                                                                                                                                
Senator  Green  expressed  the  understanding  that  the  additional                                                            
staffers would be teachers.                                                                                                     
                                                                                                                                
Mr.  Jeans  commented  that  the  school  districts  could  allocate                                                            
portions of  their "discretionary  money" to fund housing  and other                                                            
program expenses.                                                                                                               
                                                                                                                                
STAN LUJAN, Superintendent,  Nome Public School District,  testified                                                            
via teleconference  from Nome  and informed  the Committee  that the                                                            
BSSD has Rural  Education Attendance  Area (REAA) funding  available                                                            
to hire  vocational education  staff; however,  those funds  are not                                                            
currently  being  accessed  because the  District  does  not have  a                                                            
vocational  technical  training facility.  He continued  that  those                                                            
funds could  be accessed  to fund  three staffers  if BSSD  students                                                            
were in this program.                                                                                                           
                                                                                                                                
Senator Green asked who would supervise the staff.                                                                              
                                                                                                                                
Mr. Lujan  stated  that a  Memorandum of  Agreement  (MOA) would  be                                                            
developed between  the two school  districts to address this  issue.                                                            
He stated  that in  order for  the REAA  funds to  be realized,  the                                                            
instructors  would be required  to hold  either a  Type A or  Type C                                                            
vocational education certification.                                                                                             
                                                                                                                                
Senator Austerman  asked whether local  matching funds are  required                                                            
to receive State foundation formula funding.                                                                                    
                                                                                                                                
Mr.  Jeans  replied  that  Nome  residents   do  contribute  to  the                                                            
education  formula funding  and that the BSSD  "is an REAA  and make                                                            
their contribution through impact aid."                                                                                         
                                                                                                                                
Senator  Austerman  asked  Senator  Wilken to  further  explain  his                                                            
concern about local funding participation in the Nome program.                                                                  
                                                                                                                                
Senator  Wilken explained  that  his concern  is  that these  school                                                            
districts  have a $30 million  school budget  and are requesting  an                                                            
additional  $1  million  of  State money  to  undertake  this  pilot                                                            
program. He stressed that  no information is included in the request                                                            
regarding how  the Districts would fund the program  after the four-                                                            
year pilot program  funding concludes. He asserted  that no business                                                            
plan  has  been provided  and  that  no  local  community  financial                                                            
support has been established.                                                                                                   
                                                                                                                                
Mr. Jeans  responded  that Nome  is a "first  class  city" and  is a                                                            
separate  school  district  within  the Bering  Straits  region.  He                                                            
clarified  that  Nome  does  locally  contribute  funds  to  support                                                            
education.                                                                                                                      
                                                                                                                                
Senator  Wilken agreed and  acknowledged that  Nome contributes  the                                                            
maximum four-mils in support of education.                                                                                      
                                                                                                                                
Senator Hoffman  stated that other  entities, such as the  Kuskoquim                                                            
School  District, could  contribute  to this  program,  as there  is                                                            
great demand for vocational  training in the region, particularly in                                                            
the health  care field. He detailed  some of the possible  non-State                                                            
funding opportunities  that could  materialize. He stated  that many                                                            
entities  support the program  and that the  benefits realized  from                                                            
the State investment would offset the expense.                                                                                  
                                                                                                                                
Senator  Hoffman continued  that this demonstration  project  at the                                                            
high school level  could unite the region in retaining  and training                                                            
local people for jobs rather  than continuing the current "revolving                                                            
door"  employment situation.  He stressed  that the  success of  the                                                            
program  would  spawn  continuing  support  momentum  from  regional                                                            
entities.                                                                                                                       
                                                                                                                                
Senator Wilken  voiced appreciation  for Senator Hoffman's  comments                                                            
that "helped  define" the program  goals; however, he asked  why the                                                            
region's students  could not attend one of the three  existing rural                                                            
vocational/technical  schools instead of duplicating  those efforts.                                                            
He voiced concern that  this program might defer funds away from the                                                            
existing programs.                                                                                                              
                                                                                                                                
Senator  Hoffman  responded  that  there might  be  duplications  of                                                            
efforts;  however, there  are benefits  in keeping  students  within                                                            
their region  as it provides support  groups and a familiarity  with                                                            
regional needs  and job opportunities. He stated that  some students                                                            
would  suffer  "cultural  shock"  if  they  were  sent  to  a  large                                                            
community which might result  in them "dropping out" of the program.                                                            
He stated  that regional  job needs could  more easily be  addressed                                                            
were the program located within the region.                                                                                     
                                                                                                                                
Senator  Olson addressed  the  duplication  of efforts  question  by                                                            
commenting that were this  program looked at through the eyes of one                                                            
of  the rural  high  school students  from  a small  remote  village                                                            
rather than through the  eyes of someone from outside of the region,                                                            
it would be  determined that a program  in their region would  be an                                                            
easier  transition  than being  sent to  a larger,  unfamiliar,  and                                                            
distant area.                                                                                                                   
                                                                                                                                
Senator  Wilken questioned  whether  a student  who attends  similar                                                            
programs in Nome rather  than the existing program in Kotzebue would                                                            
recognize any  differences. He stated that if the  Committee decides                                                            
to support a new four-year  pilot program in Nome, perhaps a similar                                                            
vocational  technical  program  slated for  construction  in  Bethel                                                            
should  instead be  located in  Nome since  facility infrastructure                                                             
already exists.                                                                                                                 
                                                                                                                                
Senator  Wilken reiterated  his  request for  a program  plan to  be                                                            
provided to the Committee.                                                                                                      
                                                                                                                                
Co-Chair Kelly  requested Superintendent  Lujan to submit  a program                                                            
plan to the Committee to address concerns about the bill.                                                                       
                                                                                                                                
Senator  Olson commented  that  Kawerak,  a Nome  non-profit  social                                                            
services  agency,  is  successful  at  securing  federal  funds  for                                                            
training programs and that  a local union is also a strong supporter                                                            
of training  programs.  He reminded  the Committee  that the  Bethel                                                            
vocational  training  center  is,  specifically   a  post  secondary                                                            
education facility,  whereas the Nome  program would be provided  to                                                            
high school students.                                                                                                           
                                                                                                                                
Senator  Wilken acknowledged  that  the Nome  and Bethel  facilities                                                            
would  serve differing  age  groups; however,  he  asked, "what  the                                                            
difference  is between the proposed  Nome facility and the  Kotzebue                                                            
tech facility, three years from now."                                                                                           
                                                                                                                                
Dr. LaBolle  communicated  that  the Kotzebue  vocational  technical                                                            
program is a concentrated  post-secondary education  program through                                                            
which students  learn a trade. He  continued that the program  being                                                            
considered in  Nome would expose high school juniors  and seniors to                                                            
a variety of careers  that the region supports. He  stated that this                                                            
process would  provide students with job shadowing  opportunities as                                                            
well  as  introducing   students  to  the  needs  of   the  regions'                                                            
industries.                                                                                                                     
                                                                                                                                
Dr. LaBolle informed  the Committee that individuals  from "outside"                                                            
of the region  are employed  in the majority  of the viable  jobs in                                                            
the region,  and he asserted,  the goal of  the program would  be to                                                            
have area  students  choose an  educational path  which would  allow                                                            
them to assume these jobs over time.                                                                                            
                                                                                                                                
Co-Chair Kelly  asked for confirmation that the BSSD  would contract                                                            
with  the Nome  School District  and thereby  provide  a portion  of                                                            
their  student  foundation   formula  funding  to  the  Nome  School                                                            
District to support the program.                                                                                                
                                                                                                                                
Dr. LaBolle  replied  that the  BSSD would  continue  to claim  BSSD                                                            
students in  the community in which  they reside, and that  the BSSD                                                            
would  contract  with  the  Nome  School  District  to  provide  the                                                            
educational  services in  "short block" programs.  He asserted  that                                                            
this is not a boarding school scenario.                                                                                         
                                                                                                                                
Co-Chair Kelly  requested Mr. Lujan  to supply the Committee  with a                                                            
more detailed plan. He  voiced support for the concept, but stressed                                                            
that further  information  is necessary to  address the Committee's                                                             
program  funding  concerns. He  stated  the need  for  the State  to                                                            
undertake  steps "to  transition rural  Alaska out  of the past  and                                                            
into the future."                                                                                                               
                                                                                                                                
Senator  Hoffman  informed the  Committee  that because  many  rural                                                            
residents   "live  off  the  land,"   many  professionally   trained                                                            
individuals  regard  these  Native  peoples as  "the  experts"  when                                                            
regional  geophysical   and  wildlife  information   is  needed.  He                                                            
asserted  that residents  of the area  are well  equipped to  assume                                                            
area jobs once  formal training is acquired, and he  shared that one                                                            
of his  relatives pursued  a wildlife  degree and  is now  gainfully                                                            
employed in the region.                                                                                                         
                                                                                                                                
Senator Wilken  interjected  for clarification  that the BSSD  has a                                                            
current  school budget  in excess  of $30  million,  and that  Nome,                                                            
being a first  class city, provides the maximum local  funding match                                                            
required to receive State school foundation formula funds.                                                                      
                                                                                                                                
Senator  Green suggested  that  a study  be conducted  to  determine                                                            
whether State funds would  be required to further the development of                                                            
this type of program  in the State. She additionally  requested that                                                            
the  two school  districts  investigate  methods to  implement  this                                                            
program without requiring State support.                                                                                        
                                                                                                                                
Mr. Lujan stated  that the BSSD receives annual grants  amounting to                                                            
approximately  $2.5  million  and  that future  increases  of  grant                                                            
receipts  would alleviate  some of the District's  demand for  State                                                            
funds.                                                                                                                          
                                                                                                                                
Co-Chair Kelly  asked Mr. Lujan to include this type  of information                                                            
in the project plan.                                                                                                            
                                                                                                                                
Co-Chair Kelly ordered the bill HELD in Committee.                                                                              
                                                                                                                                
                                                                                                                                
SFC 02 # 91, Side B 10:24 AM                                                                                                    
                                                                                                                                
                                                                                                                                

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