Legislature(2021 - 2022)SENATE FINANCE 532

04/06/2022 09:00 AM Senate FINANCE

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Audio Topic
09:02:03 AM Start
09:03:04 AM SB239
09:05:35 AM SB240
09:07:24 AM Governor's Confirmation: Alaska Mental Health Trust Authority (amhta): Agnes Moran
09:17:50 AM SB236
09:45:37 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 236 FACILITIES CONSTITUTING A SCHOOL TELECONFERENCED
Heard & Held
-- Invited Testimony --
-- Public Testimony <Time Limit May Be Set> --
+ Consideration of Governor’s Appointees: Agnes TELECONFERENCED
Moran, AK Mental Health Trust Authority
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 239 APPROVE PETRO STAR INC. ROYALTY OIL SALE TELECONFERENCED
Moved SB 239 Out of Committee
+= SB 240 APPROVE MARATHON PETRO ROYALTY OIL SALE TELECONFERENCED
Moved SB 240 Out of Committee
**Streamed live on AKL.tv**
SENATE BILL NO. 236                                                                                                           
                                                                                                                                
     "An Act relating to facilities constituting a school."                                                                     
                                                                                                                                
9:17:50 AM                                                                                                                    
                                                                                                                                
ED KING, COMMITTEE AIDE, SENATE EDUCATION COMMITTEE,                                                                            
introduced the legislation. He read from the Sponsor                                                                            
Statement:                                                                                                                      
                                                                                                                                
     SB  236 seeks  to  remedy a  technical  problem in  the                                                                    
     education funding  formula. The  problem occurs  when a                                                                    
     district  with  a  single  school  and  more  than  425                                                                    
     students  opens a  charter school.  Under current  law,                                                                    
     the existence of the charter  school implies that there                                                                    
     is  no  longer "only  one  facility  administered as  a                                                                    
     school." Consequently, the  district must calculate the                                                                    
     adjusted ADM in  the public school with  a lower school                                                                    
     size factor. As  a result, opening a  charter school in                                                                    
     such  a  district comes  with  a  financial penalty  of                                                                    
     about $1 million per year.                                                                                                 
                                                                                                                                
     SB  236 adds  three words  to existing  law: "excluding                                                                    
     charter schools." These three  words allow the district                                                                    
     to   maintain  its   full   funding   and  remove   the                                                                    
     disincentive a  school board  faces when  considering a                                                                    
     charter  school application.  While it  is tempting  to                                                                    
     consider  the fiscal  note  as a  $1  million per  year                                                                    
     funding  increase,  it's  important  to  remember  that                                                                    
     simply closing the charter school  would yield the same                                                                    
     result.                                                                                                                    
                                                                                                                                
     The   Senate  Education   Committee  supports   charter                                                                    
     schools  and requests  your  support  in removing  this                                                                    
     barrier  to  ensure  they  are  available  to  students                                                                    
     across the state.                                                                                                          
                                                                                                                                
9:19:25 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof  queried how  charter  schools  procured                                                                    
revenue.                                                                                                                        
                                                                                                                                
9:19:42 AM                                                                                                                    
                                                                                                                                
Mr. King deferred to Mr. Blackwell.                                                                                             
                                                                                                                                
9:20:03 AM                                                                                                                    
                                                                                                                                
ELWIN  BLACKWELL,  SCHOOL  FINANCE  MANAGER,  DEPARTMENT  OF                                                                    
EDUCATION, JUNEAU (via teleconference),  replied that once a                                                                    
charter  school was  approved, all  funding generated  would                                                                    
transfer  to the  charter school  for the  administration of                                                                    
the  program. He  said in  the  situation of  a K-12  school                                                                    
falling between 101 and 425  students, the K-12 school would                                                                    
receive two adjustments.  He said that the  Yukon and Hooper                                                                    
Bay schools exceeded 425 students,  which meant that the two                                                                    
adjustments  would  not  be  made,  except  for  single-site                                                                    
schools.  He  said that  with  the  opening of  the  charter                                                                    
school, the statute  saw the community as  having two school                                                                    
facilitates, which made them lose the secondary adjustment.                                                                     
                                                                                                                                
9:22:17 AM                                                                                                                    
                                                                                                                                
Senator von  Imhof understood that  425 was  the demarcation                                                                    
of a  secondary adjustment. She hypothesized  that under the                                                                    
legislation  a community  with  500  students, one-third  of                                                                    
which  attended  charter  school, two-thirds  attended  K-12                                                                    
public school.  She continued that  the community  still had                                                                    
500   students,  only   in  two   separate  buildings.   She                                                                    
understood that  the community would still  be considered as                                                                    
having  500 students  and the  community  would receive  the                                                                    
same amount of money as in the past.                                                                                            
                                                                                                                                
9:23:39 AM                                                                                                                    
                                                                                                                                
Mr.  Blackwell   replied  that  in  a   community  with  500                                                                    
students,  where 100  went  to a  charter  school, the  K-12                                                                    
school  would only  receive  one  adjustment. The  community                                                                    
would receive  funding for  100 kids  in charter  school and                                                                    
one  adjustment for  the 400  kids  in the  K-12 school.  He                                                                    
noted that the  funding the went to charter  schools was not                                                                    
as much as for K-12 schools.                                                                                                    
                                                                                                                                
9:25:27 AM                                                                                                                    
                                                                                                                                
Senator Wilson  assumed that the charter  school in question                                                                    
was not a private school.                                                                                                       
                                                                                                                                
9:25:41 AM                                                                                                                    
                                                                                                                                
Mr.  Blackwell replied  that  individuals  in the  community                                                                    
approached  the  school  board  asking  to  open  a  charter                                                                    
school.  The  school  was community  driven  as  opposed  to                                                                    
having been initiated by the school district.                                                                                   
                                                                                                                                
9:26:19 AM                                                                                                                    
                                                                                                                                
Senator  Wilson  wondered  whether  there  were  schools  in                                                                    
communities within the  state that would be  affected by the                                                                    
legislation.                                                                                                                    
                                                                                                                                
9:26:36 AM                                                                                                                    
                                                                                                                                
Mr.  Blackwell responded  that  the  legislation would  only                                                                    
affect the Lower Yukon School District.                                                                                         
                                                                                                                                
9:27:11 AM                                                                                                                    
                                                                                                                                
Senator Hoffman asked  whether the intent was  that there be                                                                    
only a charter school in Hooper Bay.                                                                                            
                                                                                                                                
9:27:27 AM                                                                                                                    
                                                                                                                                
Mr. Blackwell asked Senator Hoffman to repeat the question.                                                                     
                                                                                                                                
9:27:35 AM                                                                                                                    
                                                                                                                                
Senator Hoffman restated his question.                                                                                          
                                                                                                                                
9:27:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop asked whether the  sponsors  staff wanted to                                                                    
speak to the question.                                                                                                          
                                                                                                                                
9:28:00 AM                                                                                                                    
                                                                                                                                
Mr. King deferred to Mr. Stone.                                                                                                 
                                                                                                                                
9:28:13 AM                                                                                                                    
                                                                                                                                
GENE  STONE, SUPERINTENDENT,  LOWER  YUKON SCHOOL  DISTRICT,                                                                    
MOUNTAIN VILLAGE  (via teleconference),  said that  the bill                                                                    
was about  school choice  at the local  level. He  said that                                                                    
the  intent  was  not  for  the charter  school  to  be  the                                                                    
exclusive school at Hooper Bay.                                                                                                 
                                                                                                                                
9:29:34 AM                                                                                                                    
                                                                                                                                
Senator Hoffman noted  that it had been implied  that the K-                                                                    
12 and  charter schools  would have separate  facilities. He                                                                    
wondered where  the charter  school in  Hooper Bay  would be                                                                    
physically located.                                                                                                             
                                                                                                                                
9:29:48 AM                                                                                                                    
                                                                                                                                
Mr. Stone  replied that  the two  schools shared  space. The                                                                    
charter  school was  provided two  classrooms and  the Yupik                                                                    
Cultural  Room. He  thought that  the  charter school  would                                                                    
like to find and finance a separate facility in the future.                                                                     
                                                                                                                                
9:30:45 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  asked  whether the  two  schools  had                                                                    
enough funds to operate.                                                                                                        
                                                                                                                                
9:31:32 AM                                                                                                                    
                                                                                                                                
Mr. Stone deferred to Mr. Leavitt.                                                                                              
                                                                                                                                
9:32:10 AM                                                                                                                    
                                                                                                                                
ANDREW LEAVITT, LOWER YUKON  SCHOOL DISTRICT, ANCHORAGE (via                                                                    
teleconference),    provided    some   historical    context                                                                    
concerning how  the charter school was  funded. He explained                                                                    
that,  historically,  the  moment   the  425  threshold  was                                                                    
crossed there would be a  $1 million decrease in funding. He                                                                    
said that the  law was changed to reflect that  if there was                                                                    
only one facility  in a community, and  the numbers exceeded                                                                    
425, the school  still received the two  adjustments. If the                                                                    
community  had a  K-12  school and  a  charter school,  with                                                                    
numbers exceeding  425 combined,  funding would  decrease by                                                                    
$1 million.                                                                                                                     
                                                                                                                                
9:33:36 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  asked  whether  the  community  could                                                                    
support two schools under the current foundation formula.                                                                       
                                                                                                                                
9:34:19 AM                                                                                                                    
                                                                                                                                
Mr. Stone  replied that the  intent of the bill  was receive                                                                    
both  adjustments while  maintaining both  a charter  school                                                                    
and a K-12  school. He lamented that the $1  million loss to                                                                    
the funding  formula had significant  impact on  Hooper Bay.                                                                    
The problem could easily be  remedied by adding the language                                                                    
to exclude charter schools.                                                                                                     
                                                                                                                                
9:35:57 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  understood that  the $1 million  was spread                                                                    
across the entire school district.                                                                                              
                                                                                                                                
9:36:22 AM                                                                                                                    
                                                                                                                                
Mr.  Stone replied  that it  was district  funding, and  the                                                                    
statute  was  designed  to  include   the  total  number  of                                                                    
students.  He said  that with  charter  schools the  funding                                                                    
followed  the students.  The total  revenue to  the district                                                                    
was affected by the statute.                                                                                                    
                                                                                                                                
9:37:24 AM                                                                                                                    
                                                                                                                                
Senator Wilson asked for more  information about the charter                                                                    
school.  He   wondered  whether  the  school   district  had                                                                    
considered  the statute  and the  possible  loss of  funding                                                                    
when planning to open the charter school.                                                                                       
                                                                                                                                
9:37:52 AM                                                                                                                    
                                                                                                                                
Mr. Stone  replied that  the issue  had been  considered. He                                                                    
said that the bottom line  was that the charter was approved                                                                    
through  a local  decision.  He said  that  the charter  was                                                                    
important well  fitted to  the community  of Hooper  Bay. He                                                                    
said that in the past  the state had provided waivers, which                                                                    
was no longer  the practice. He said that  a special mission                                                                    
school was  not an option  for skirting the  funding penalty                                                                    
while urban schools are allowed school choice.                                                                                  
                                                                                                                                
9:42:12 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman thought  that  if the  statue been  changed                                                                    
previously,   the  state   waivers  would   not  have   been                                                                    
necessary.  He wondered  whether there  would be  two school                                                                    
boards  in Hooper  Bay     one for  the  charter school  and                                                                    
another for the K-12 school.                                                                                                    
                                                                                                                                
9:42:55 AM                                                                                                                    
                                                                                                                                
Mr. Stone replied that there  would be only one school board                                                                    
as charter  schools had to  operate under a  district school                                                                    
board and its  policies. He said that the  charter would not                                                                    
have to follow a district  defined curriculum but would have                                                                    
to operated under board policies specific to Alaska law.                                                                        
                                                                                                                                
9:44:23 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop OPENED and CLOSED public testimony.                                                                             
                                                                                                                                
9:44:23 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:45:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:45:11 AM                                                                                                                    
                                                                                                                                
Co-Chair Bishop                                                                                                                 
                                                                                                                                
SB  236  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 236 Sponsor Statement.pdf SFIN 4/6/2022 9:00:00 AM
SB 236
SB 236 LYSD Letter.pdf SFIN 4/6/2022 9:00:00 AM
SB 236
Confirmations 2022 AMHTA - Agnes Moran Application_Redacted.pdf SFIN 4/6/2022 9:00:00 AM