Legislature(2007 - 2008)SENATE FINANCE 532

03/25/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 152 CHARTER SCHOOL FUNDING TELECONFERENCED
Heard & Held
+= HB 125 BUDGET PLANNING & LONG-RANGE FISCAL PLAN TELECONFERENCED
Moved CSHB 125(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 28 LIMIT OVERTIME FOR REGISTERED NURSES
Moved CSSB 28(FIN) Out of Committee
SENATE BILL NO. 152                                                                                                           
                                                                                                                                
     "An Act relating to charter school funding."                                                                               
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT  a new CS for SB 152, labeled                                                                   
25-LS0754\K, Mischel, 3/17/08.                                                                                                  
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion purposes.                                                                              
                                                                                                                                
DARWIN  PETERSON,  STAFF,  CO-CHAIR   STEDMAN  explained  the                                                                   
changes  in the  new CS.   If  the  average daily  membership                                                                   
(ADM)  in a charter  school is  less than  150, the  adjusted                                                                   
student count  will be calculated  by multiplying the  ADM by                                                                   
1.08 instead of by 1.27 as in the original bill.                                                                                
                                                                                                                                
9:11:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
Senator Dyson OBJECTED.  He questioned  why the funding level                                                                   
was  changed.   Mr. Peterson  explained  that it  was at  the                                                                   
request of Senator  Stevens and the Senate  Special Committee                                                                   
on Education.   Mr. Peterson said  it was considered  to be a                                                                   
more reasonable  funding level for charter schools.   Senator                                                                   
Dyson requested an explanation from the bill sponsor.                                                                           
                                                                                                                                
Senator Dyson MAINTAINED his OBJECTION.                                                                                         
                                                                                                                                
9:13:28 AM                                                                                                                    
                                                                                                                                
Senator Thomas,  sponsor, explained  that the 1.08  level was                                                                   
more palatable and better than nothing.                                                                                         
                                                                                                                                
9:13:59 AM                                                                                                                    
                                                                                                                                
TIM  LAMKIN,  STAFF,  SENATOR  GARY  STEVENS,  explained  the                                                                   
increase in  funding was a  compromise and would  represent a                                                                   
modest  increase,  but  not  one as  substantial  as  in  the                                                                   
original bill.                                                                                                                  
                                                                                                                                
Co-Chair  Hoffman  asked  how  the new  number  would  affect                                                                   
Bethel's  Yup'ik  Immersion  Charter  School  and  Fairbanks'                                                                   
Effie Kokrine  School.  Senator  Thomas explained  that Effie                                                                   
Kokrine School  is above  150 now and  will have  no problem.                                                                   
He did not have the status of the Yup'ik Immersion School.                                                                      
                                                                                                                                
9:15:51 AM                                                                                                                    
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF EDUCATION AND EARLY DEVELOPMENT,  reported that the Yup'ik                                                                   
Immersion  program in  Bethel has  over 150  students and  is                                                                   
funded as a separate site.                                                                                                      
                                                                                                                                
Senator Olson asked  about Nome's school.  Mr.  Jeans related                                                                   
that the Nome  school has remained at about  44 students each                                                                   
year  and  receives   supplemental  grants  outside   of  the                                                                   
foundation  formula.    The Juneau  Charter  School  and  the                                                                   
Fireweed  Charter  School  in   Homer  also  fall  into  this                                                                   
category.                                                                                                                       
                                                                                                                                
Senator Olson  asked about a  comparison of the  multipliers,                                                                   
as  found in  the two  fiscal notes,  resulting in  different                                                                   
funding levels.   Mr.  Jeans explained  that the fiscal  note                                                                   
for SB 152 for $648.8 reflects  1.27.  Another fiscal note to                                                                   
CSSB 152(FIN) reflects the 1.08 level.                                                                                          
                                                                                                                                
9:17:58 AM                                                                                                                    
                                                                                                                                
Senator  Dyson  requested  a  copy of  the  new  fiscal  note                                                                   
accompanying  the new  CS.   He voiced  appreciation for  the                                                                   
intent of  the bill  and for Senator  Davis' work  on charter                                                                   
school  legislation.   He spoke  of the  financial burden  on                                                                   
charter schools.                                                                                                                
                                                                                                                                
Senator  Dyson maintained  his objection  to the adoption  of                                                                   
the new CS.  He stated support for the original version.                                                                        
                                                                                                                                
Senator Elton asked for the rational  behind the 1.08 number.                                                                   
Mr. Lamkin  explained that the  numbers for school  size come                                                                   
from statute.   The  number 1.27  is reflective  of a  school                                                                   
that is between 75-150 students.   The number 1.08 represents                                                                   
a  modest  increase  from  what  the  schools  are  currently                                                                   
getting.  Senator  Elton said he is trying to  figure out the                                                                   
1.08 figure as it relates to school size.                                                                                       
                                                                                                                                
9:22:41 AM                                                                                                                    
                                                                                                                                
Mr. Jeans  said the  1.08 is in  statute and  is part  of the                                                                   
school  size  adjustment  table  for  schools.    It  is  the                                                                   
adjustment factor  for schools from  150-250 students.   If a                                                                   
school is under 150, it is funded  with the largest school in                                                                   
the district.   For example, the charter school  in Juneau is                                                                   
funded with the  high school at a .84.  In  Kenai the charter                                                                   
school is  funded with the  high school  at .92, and  in Nome                                                                   
the charter  school is funded  with the elementary  school at                                                                   
.97.   The  three  schools below  150  all  have a  different                                                                   
adjustment  factor.   This proposal will  set one  adjustment                                                                   
factor for  all charter schools  below 150.   It is  a policy                                                                   
call on  the Committee's part  if it is  1.27 or 1.08.   This                                                                   
applies  in the  formula to  the school  size adjustment  for                                                                   
ADM.   Then  there  are cost  factor  adjustments.   It  will                                                                   
establish  a uniform application.   At  1.08, it provides  an                                                                   
additional  $338,922.     He   explained  that   the  highest                                                                   
supplemental  in the past  was $250,000  for charter  schools                                                                   
below  150.   He  related that  during  the hearing,  Senator                                                                   
Stevens asked each  charter school if they would  support the                                                                   
1.08 and all replied in the affirmative.                                                                                        
                                                                                                                                
Senator Elton noted the pending  two-high-school situation in                                                                   
Juneau  and wondered  how that  would  affect charter  school                                                                   
funding.   Mr. Jeans  related that  the charter school  would                                                                   
not  receive close  to the  1.08 funding  level because  each                                                                   
high school would  be over 750 students, which is  at the top                                                                   
of  the school  size  adjustment  level, and  charter  school                                                                   
funding would remain at .84.                                                                                                    
                                                                                                                                
9:25:28 AM                                                                                                                    
                                                                                                                                
Senator  Dyson  said  1.27  does have  a  rational  base  for                                                                   
schools under 275.  He noted that  the Winterberry School had                                                                   
143 students in  2006 and received $400,000.   That created a                                                                   
significant financial crisis.                                                                                                   
                                                                                                                                
Senator Dyson  opined that charter schools  have historically                                                                   
been very  successful.   He stated  support for such  schools                                                                   
and wished  to provide an extra  boost in the form  of higher                                                                   
funding.                                                                                                                        
                                                                                                                                
9:27:09 AM                                                                                                                    
                                                                                                                                
Senator Thomas  referred to a  chart in the members'  packets                                                                   
regarding school  size and eligibility.   He reiterated  that                                                                   
the 1.08 level was acceptable to the charter schools.                                                                           
                                                                                                                                
Co-Chair Hoffman  inquired if the Anvil City  Science Academy                                                                   
would  get funded  at  1.97  under the  new  CS.   Mr.  Jeans                                                                   
responded  that they  would  be  funded at  1.08.   They  are                                                                   
currently funded at .97.                                                                                                        
                                                                                                                                
Senator  Olson  clarified  that Anvil  City  Science  Academy                                                                   
would be  funded at  1.08 under  the new  CS instead  of 1.27                                                                   
under the original bill.  Mr. Jeans said that was correct.                                                                      
                                                                                                                                
Senator Dyson thought  the real issue was an  attempt to keep                                                                   
spending down.  He agreed that  1.08 was better than nothing.                                                                   
He thought the original bill was better.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Stedman, Hoffman                                                                                                      
OPPOSED: Elton, Olson, Thomas, Dyson                                                                                            
                                                                                                                                
The motion FAILED (2-4).                                                                                                        
                                                                                                                                
SB  152  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
9:30:41 AM                                                                                                                    
                                                                                                                                

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