Legislature(2005 - 2006)SENATE FINANCE 532

04/12/2006 08:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
-- Agenda Change --
+= SB 305 OIL AND GAS PRODUCTION TAX TELECONFERENCED
<Above Item Removed from Agenda>
+= SB 243 TOBACCO REV. FOR UNIV. & CORR. FACILITIES TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
Presentation by Bond Raters Regarding
Tobacco Bond Issuance
*+ SB 231 BUDGET: CAPITAL & OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
ALMR
Statewide Information Technology Request
Governor's Priority Projects
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 235 SCHOOL PERFORMANCE BONUSES
Moved CSSB 235(FIN) Out of Committee
10:41:22 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 235                                                                                                        
     "An Act relating to a public school performance incentive                                                                  
     program; and providing for an effective date."                                                                             
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Green  noted interest  expressed  by  the Committee  to                                                               
discuss certain aspects of this legislation.                                                                                    
                                                                                                                                
10:41:58 AM                                                                                                                   
                                                                                                                                
Amendment #1: This amendment inserts  language to Sec. 14.03.123.                                                               
Public school performance incentive  program., added by Section 2                                                               
of the bill on page 3, following line 3 to read as follows.                                                                     
                                                                                                                                
          (d) Notwithstanding (a) of this section, the                                                                          
     department   may  not   distribute   a  school   performance                                                               
     incentive  payment  to  more than  850  certified  employees                                                               
     annually. The limitation of this  subsection does not affect                                                               
     the  number of  noncertified  employees  and central  office                                                               
     personnel  to  whom  the  department  distributes  a  school                                                               
     performance  incentive payment  under  (a) and  (b) of  this                                                               
     section.  The department's  regulations  adopted under  this                                                               
     section   shall   implement   the   requirements   of   this                                                               
     subsection.                                                                                                                
          (e) The public school performance incentive program                                                                   
     described  in  this  section  expires  June  30,  2009.  The                                                               
     program   may  be   continued   or   reestablished  by   the                                                               
     legislature.  The  Legislative  Budget and  Audit  Committee                                                               
     shall review the  program not later than  December 31, 2008,                                                               
     and may submit its  recommendations to the respective houses                                                               
     of the  legislature in the form  of a bill that,  if enacted                                                               
     into law,  would continue or  reestablish the program  on or                                                               
     before July 1, 2009.                                                                                                       
                                                                                                                                
Senator Bunde moved for adoption.                                                                                               
                                                                                                                                
Senator Bunde  explained he  supported the  basic concept  of the                                                               
legislation. Co-Chair  Wilken had  made a compelling  argument on                                                               
the benefits  of providing incentives to  reward good performance                                                               
of employees in private enterprises.                                                                                            
                                                                                                                                
Senator  Bunde,  however,  had concerns  about  the  considerable                                                               
expense  of   the  proposed   program.  He   therefore  suggested                                                               
establishing  it  as  a  pilot   program,  and  one  that  school                                                               
districts could  choose to participate  in rather  than providing                                                               
another  State mandate.  These changes  would  reduce the  fiscal                                                               
note cost from $15 million to $5.8 million.                                                                                     
                                                                                                                                
10:43:49 AM                                                                                                                   
                                                                                                                                
Senator  Bunde  detailed that  the  pilot  program would  operate                                                               
through the year  2008, at which time the  Legislative Budget and                                                               
Audit Committee would submit a  recommendation to the legislature                                                               
to  expand  or  eliminate  the program.  This  would  provide  an                                                               
acceptable compromise.                                                                                                          
                                                                                                                                
Senator Bunde commented that the  argument could be made that the                                                               
funding for this proposed program  should instead be appropriated                                                               
to   the   education   foundation   funding   formula.   However,                                                               
improvements in  education are  necessary and  this program  is a                                                               
method that could assist in achieving improvements.                                                                             
                                                                                                                                
10:44:51 AM                                                                                                                   
                                                                                                                                
Senator  Hoffman asked  how the  participating  schools would  be                                                               
selected.                                                                                                                       
                                                                                                                                
10:45:14 AM                                                                                                                   
                                                                                                                                
Senator Bunde responded that the  program would be available on a                                                               
"first  come  first  served"  basis in  which  schools  would  be                                                               
accepted in the order their applications were received.                                                                         
                                                                                                                                
10:45:25 AM                                                                                                                   
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
10:45:32 AM                                                                                                                   
                                                                                                                                
Senator Bunde  offered a motion  to report the bill,  as amended,                                                               
from  Committee with  individual recommendations  and new  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
Without objection, CS  SB 235(FIN) was MOVED  from Committee with                                                               
a new fiscal note dated  2/23/06 from the Department of Education                                                               
and Early Development in the amount of $5,800,000.                                                                              
                                                                                                                                
10:46:00 AM                                                                                                                   
                                                                                                                                
Co-Chair Green noted the representatives  from citigroup would be                                                               
available   to  meet   with  Members   individually  to   provide                                                               
additional  information  on  the   proposal  to  reissue  tobacco                                                               
settlement revenue bonds.                                                                                                       
                                                                                                                                

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