Legislature(2005 - 2006)SENATE FINANCE 532
05/02/2006 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB318 | |
| HB380 | |
| HB105 | |
| HB16 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 318 | TELECONFERENCED | |
| + | HB 380 | TELECONFERENCED | |
| + | HB 105 | TELECONFERENCED | |
| + | HB 16 | TELECONFERENCED | |
| += | HB 218 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 16(RLS)
"An Act relating to funding for school districts operating
secondary school boarding programs, to funding for school
districts from which boarding students come, and to the
effectiveness of district secondary school boarding
programs; and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken moved to adopt committee substitute Version 24-
LS0125\C as the working document.
Co-Chair Green objected for explanation.
10:15:07 AM
RYNNIEVA MOSS, Staff to Representative John Coghill, the bill's
sponsor, informed the Committee that five years prior,
Representative Coghill had spent time in Nenana on a building
remodeling project. Students attending the Nenana Boarding
School assisted in that project. Those students communicated to
Representative Coghill the newfound optimism they were
experiencing as a result of attending the boarding school. The
experience "changed their opinion of where they were going with
their life" and expanded their opportunities for becoming
"productive citizens".
Ms. Moss stated that, because of this interaction,
Representative Coghill became "interested in the so-called
boarding school concept". This bill is a product of that
interest. This bill has generated tremendous discussion. She
cited Co-Chair Wilken as instrumental in prompting the
Department of Education and Early Development (DOE) and the
State Board of Education "to actually propose regulations that
will regulate these boarding schools". Representative Coghill
viewed student attendance at a boarding school "as an issue of
choice, and an opportunity for students all over the State to
enter into a program that can basically change their life". For
example, the Nenana Boarding School graduated 14 students in
2005: 11 of those graduates continued their postsecondary
education with financial assistance; two enlisted in the United
States Marines, and one entered the Job Corps. The entire
graduating class improved their life "and became productive on-
going citizens".
Ms. Moss stated that Version "C" would allow any Statewide
Secondary Residential Program (SSRP), commonly referred to as a
boarding school, established prior to January 1, 2005, to be
reimbursed for operating the residential program through a
stipend. To qualify for this program, the SSRP must have a
suitable student dormitory, daily access to a public school
offering grades nine through 12, and be a full time school. The
stipend rate would be determined by the DOE with the stipulation
that it could not to exceed the statutory limits as specified in
Section 1(b)(2) lines 8 through 12 of Version "C".
Ms. Moss stated that Version "C" also defined what would
constitute a school district and what would qualify as a
district-operated Statewide Residential Educational Programs.
Furthermore, Version "C" would align language with existing
regulations. An effective date of July 1, 2006 is specified in
the bill.
10:18:51 AM
Senator Dyson asked whether the bill's sponsor was "comfortable
with the changes" included in Version "C".
Ms. Moss affirmed he was.
Senator Dyson asked whether the sponsor considered the $20 per
student per day stipend adequate to feed, clothe, and house a
student at the school.
Ms. Moss responded in the negative. The sponsor believed that
students' parents and school districts should contribute toward
the expense of the program. Thus, the stipend is "a portion" of
the actual costs.
Senator Dyson acknowledged.
Senator Bunde understood the stipend would be paid to the school
district rather than to the individual.
Ms. Moss affirmed.
Senator Bunde asked regarding the provision that would provide
each student a round trip ticket to the school, as he felt that
requiring a student to personally "buy-in" would result in the
student being "more dedicated" to the endeavor. Requiring a
student to be responsible for their travel expenses might
further their "incentive to achieve".
Ms. Moss responded that the majority of students who attend the
schools live in remote areas of the State, thus "the cost of
travel is fairly expensive". While a student might make two or
three trips home during a school year, the school would
compensate for only one round-trip ticket. The travel expense
would amount "to only a small part" of the total student cost.
Senator Bunde viewed the round-trip ticket offering as "a
marketing tool: come to our school and we'll give you a free
trip." The provision to pay for the round-trip ticket was of
concern to him.
Co-Chair Green noted that, in addition to the stipend and the
trip, the State's Base Student Allocation (BSA) formula funding
would also be applicable.
Ms. Moss responded in the affirmative.
10:21:46 AM
Co-Chair Wilken pointed out that the inclusion of the Lower
Kuskokwim in the Residential School Program details, as
specified on page 2 of the DOE fiscal note #2, dated May 2, 2006
was an error, as "the Bethel program was no longer part of this
bill".
10:22:10 AM
EDDY JEANS, Director, School Finance, Department of Education
and Early Development, affirmed. The Department would revise the
fiscal note to reflect the removal of the Bethel Lower Kuskokwim
School from the Residential Program.
Co-Chair Green acknowledged that a corrected fiscal note would
be developed.
Co-Chair Wilken shared that a few years prior, because of his
concerns about the boarding school program, he had been accused
of eliminating State funding for the Nenana Boarding School. To
that point, he appreciated Representative Coghill, Ms. Moss',
and the Department's efforts to address his concerns, as
evidenced by the inclusion of the phrase "approved by the
department under regulations" in Section 1, Article 2(a) page 1
on line 9 of Version "C"; specifically the inclusion of the
reference to State regulations. He displayed a compilation of
DOE regulations [copy not provided], which were currently under
review. Because of the State Board of Education's lack of action
on overseeing the boarding school program, the Department
updated regulations and developed criteria, which must be met
before someone could establish a boarding school program. As a
result, the State could "analyze whether it's in the best
interest of the State" to allow the formation of another
boarding school program.
10:23:40 AM
Co-Chair Wilken appreciated the endeavor to replace the term
"boarding school" with Secondary School Residential Program.
Co-Chair Wilken warned that the Federal No Child Left Behind
(NCLB) program would force the State to change its approach to
education. Many outlying communities might be unable to provide
a curriculum and education that would allow a student "to
perform on the world stage". Thus, some students might be forced
to participate in such things as a SSRP. One area of concern is
the negative impact this would have on a community desiring to
keep their youth in their community. Another concern is one
relating to economic development. State facilities such as the
King Career Center in Anchorage, the Hutchison Career Center in
Fairbanks, and vocational technical schools in Kotzebue, Nome,
Bethel, Seward, and Galena should be developed in anticipation
of the pressure to meet NCLB standards. To that point, his
recent decision not to support funding for the St. Mary's school
in the FY 07 capital budget was a difficult one, as that
community was attempting "to do exactly" what is being discussed
in this bill.
Co-Chair Wilken stated that were the proposed DOE boarding
school regulations not adopted as presented, the discussions on
this issue would continue during the next Legislative session.
The regulations are "good" and have widespread support. He
supported the bill and the sponsor's "efforts to take us to the
next step in rural education".
10:25:58 AM
Senator Bunde informed the Committee he would be offering an
amendment to the bill that would provide the funds to address
the one million dollar fiscal impact reflected in fiscal note
#2.
Co-Chair Green removed her objection to the committee
substitute.
Without further objection, committee substitute, Version "C" was
ADOPTED as the working document.
Amendment #1: This amendment deletes all language in Sec. 5 line
28 of CS HB 16(RLS) and replaces it with the following. [NOTE:
The amendment must be conformed to Version "C".]
Sec. 5. The uncodified law of the State of Alaska is
amended by adding a new section to read:
CONTINGENT EFFECT OF SECTIONS 1-4. Sections 1 -4 of
this Act are contingent on the passage by the Second
Regular Session of the Twenty-Fourth Alaska State
Legislature and enactment into law of a version of SB 112
that imposes a tax on residents of and individuals employed
in regional educational attendance areas.
Sec. 6. If sections 1-4 of this Act take effect, they take
effect on the effective date of a version of SB 112 passed
by the Twenty-Fourth Alaska State Legislature and enacted
into law that imposes a tax on residents of and individuals
employed in regional educational attendance areas.
Sec. 7. Sections 5 and 6 of this Act take effect
immediately under AS 01.10.070(c).
Senator Bunde moved Amendment #1.
Senator Dyson objected.
Senator Bunde agreed with Co-Chair Wilken that, in the
foreseeable future, the State would experience an increase in
the number of boarding schools.
10:26:43 AM
Senator Bunde proclaimed that many of these boarding schools
would be located in Rural Education Attendance Areas (REAAs)
"where the folks unfortunately haven't chosen to accept the
personal responsibility to support their schools". Therefore,
this amendment would impose a tax that would assist in
supporting the expenses of a boarding school in an REAA.
10:27:22 AM
Ms. Moss stated the bill's sponsor would be opposed to the
amendment. "There already is an existing stipend that's being
paid for students that come into boarding schools." This bill
would broaden the opportunity so that more students could attend
such a school. The sponsor would argue that the tax proposed in
this amendment "is a whole separate issue that doesn't belong in
this piece of legislation".
Senator Bunde was concerned that the proposals in this bill
could provide REAAs an opportunity to "double-dip", as schools
in those areas are already fully supported by State funds.
Senator Olson voiced "strong objection" to the amendment.
Support of it would be contrary to the "spirit" of the original
bill.
A roll call was taken on the motion.
IN FAVOR: Senator Bunde, Co-Chair Wilken and Co-Chair Green
OPPOSED: Senator Hoffman, Senator Olson, Senator Dyson and
Senator Stedman
The motion FAILED (3-4)
Amendment #1 FAILED to be adopted.
Conceptual Amendment #2: This amendment deletes the entirety of
material in Section 1(b)(1) beginning on page 2, lines 2 through
4, which reads as follows.
(1) one round trip on the least expensive means of
transportation between the student's community of residence
and the school during the school year if the district
expends money for the trip; and
Senator Bunde moved Amendment #2.
Senator Olson objected.
Senator Bunde echoed his earlier comments against providing
travel for students. Eliminating the free travel provision is
"an attempt to encourage people to invest in their own
education". People work harder when they have a personal
investment.
Ms. Moss communicated that the bill's sponsor would object to
the amendment. While waivers are available in hardship cases,
parents of students attending the Nenana Boarding School are
currently required to provide $1,000 toward their child's room
and board. The students to whom a round trip travel ticket would
be provided are those with no road access to the school.
Attending the school is "an extra hardship" for such students
due to the expense and distance that must be traveled. While
attending the school is optional, it should be recognized that
the school is graduating students who are becoming productive
Alaskans, who otherwise might become "a burden to the State".
10:30:41 AM
Senator Bunde voiced concern that instead of attending the
school in pursuit of furthering their education, some students
might view the free travel as an opportunity to escape from a
small town or their parents. "That would defeat the purpose of
what the bill is trying to achieve."
Co-Chair Wilken shared that the round trip travel was an issue
of discussion during the development of the bill. The State
currently provides a round trip ticket to students attending the
Mt. Edgecumbe School in Sitka, and, while the Nenana Boarding
School is not exactly the same model as that school, "the
thought was" that providing a round trip ticket to the Nenana
Boarding School might alleviate pressure on Mt. Edgecumbe, which
has a waitlist of students. In addition, the decision was made
to include in the bill the requirement that the "least
expensive" mode of transportation be utilized.
A roll call was taken on the motion.
IN FAVOR: Senator Bunde and Co-Chair Green
OPPOSED: Senator Olson, Senator Hoffman, Senator Dyson, Senator
Stedman and Co-Chair Wilken
The motion FAILED (2-5)
Conceptual Amendment #2 FAILED to be adopted.
10:33:03 AM
Mr. Jeans communicated that the Department worked diligently
with the State Board of Education to develop "regulations that
would limit the number of communities that could participate in
this program" to the communities of Nenana and Galena. In
addition, the proposed regulations would require the State Board
of Education to determine a need and an application process
before allowing any other school district to begin to operate a
boarding school. Furthermore, this legislation would require an
additional step to be taken in that the Department must seek
Legislative approval in order to expand the program. The
necessary safeguards would be in place.
Mr. Jeans shared that an annual report on the boarding school
program would also be required. The report would include such
things as the number of students applying, accepted, and
enrolling in the boarding school program as well as the Mt.
Edgecumbe program. The data would be shared with the
Legislature.
Co-Chair Green recalled that the FY 07 capital budget would
include one million dollars each for the Galena and Nenana
boarding schools. She asked whether the funds specified in this
bill would be in addition to that money.
Ms. Moss stated that the money included in the capital budget
would be in addition to the funding specified in this bill. The
capital budget funds would be utilized to expand dormitory
facilities.
There being no further discussion, Co-Chair Green ordered the
bill HELD in Committee.
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