Legislature(2013 - 2014)SENATE FINANCE 532

03/28/2013 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 22 CRIMES; VICTIMS; CHILD ABUSE AND NEGLECT TELECONFERENCED
Moved CSSB 22(FIN) Out of Committee
*+ SB 83 INTEREST ON CORPORATION INCOME TAX TELECONFERENCED
Moved CSSB 83(FIN) Out of Committee
+ SB 57 LITERACY, PUPIL TRANSP, TEACHER NOTICES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 57                                                                                                            
                                                                                                                                
     "An Act  relating to parental involvement  in education;                                                                   
     adjusting  pupil  transportation funding;  amending  the                                                                   
     time  required for  employers to  give tenured  teachers                                                                   
     notification  of their nonretention;  and providing  for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
TIM  LAMKIN,  STAFF,  SENATOR  GARY  STEVENS,  spoke  to  the                                                                   
legislation.  He related  that  the bill  accomplished  three                                                                   
objectives.  The first  objective contained  in Section  1 of                                                                   
the  legislation encouraged  increased  parental  involvement                                                                   
in developing  children's reading  skills. Under  the state's                                                                   
direction,  the school  districts  would publish  information                                                                   
regarding   the  importance   of   parental  involvement   in                                                                   
developing  reading  skills  in  kindergarten  through  third                                                                   
grade.  The  second   section  and  objective   of  the  bill                                                                   
involved  pupil  transportation.  The  legislation  realigned                                                                   
the  funding for  pupil transportation  by annually  matching                                                                   
the Consumer  Price Index (CPI)  for Anchorage.  He explained                                                                   
that  the  school districts  contracted  with  transportation                                                                   
providers.  The contracts  contained a  3 percent  adjustment                                                                   
for  inflation according  to  the Anchorage  CPI.  Currently,                                                                   
the  state  provided  a 1.5  percent  annual  adjustment  for                                                                   
pupil transportation  funding  for the  next two years.  Most                                                                   
districts  were  forced  to  subsidize  pupil  transportation                                                                   
costs  at the  expense of  education  programs. He  indicated                                                                   
that the third  objective found in Section 3  was referred to                                                                   
as   the  "pink   slip"   section.   He  pointed   out   that                                                                   
historically March  16 was established  as an  arbitrary date                                                                   
to provide  notification  of layoff or  retention. Section  3                                                                   
moved the notification  date forward to May  15th when school                                                                   
districts funding  levels were  known. He added  that Section                                                                   
4   of   the   legislation   repealed   the   current   pupil                                                                   
transportation   funding   provisions.  Lastly,   Section   5                                                                   
allowed  existing  contracts  with teachers  and  faculty  to                                                                   
expire before the legislation took effect.                                                                                      
                                                                                                                                
Senator Hoffman inquired  why the bill used  Anchorage as the                                                                   
CPI base  and wondered whether  there were other  indexes for                                                                   
higher costs  areas. Mr.  Lamkin related  that other  indexes                                                                   
existed  but  that using  the  Anchorage  CPI was  a  "policy                                                                   
call."  Senator Hoffman  thought  that it  would  be fair  to                                                                   
consider a  higher index for  Fairbanks and other  high index                                                                   
areas of the state.                                                                                                             
                                                                                                                                
Senator  Bishop  inquired about  the  difference  in the  CPI                                                                   
between  Fairbanks  and  Anchorage.  Mr.  Lamkin  offered  to                                                                   
provide the information.                                                                                                        
                                                                                                                                
Co-Chair  Meyer  cited Section  3  and inquired  whether  the                                                                   
provision  only  applied  to  tenured  teachers.  Mr.  Lamkin                                                                   
confirmed that  Section 3 only  applied to tenured  teachers.                                                                   
He  added that  subsection  (b) of  the  statute referred  to                                                                   
non-tenured teachers  which required notification  by the end                                                                   
of the school year.                                                                                                             
                                                                                                                                
Co-Chair  Meyer wondered  why  the bill  was structured  with                                                                   
two  separate notification  dates.  Mr.  Lamkin replied  that                                                                   
notification  was a  policy  decision which  was  established                                                                   
many years ago.                                                                                                                 
                                                                                                                                
Vice-Chair Fairclough  speculated that  due to the  nature of                                                                   
tenure,   a  tenured   position  deserved   as  much   layoff                                                                   
notification as possible[BSW3].                                                                                                 
                                                                                                                                
Senator Olson  remarked that the  March 15th date  offered as                                                                   
much notification  as possible, which  was more helpful  to a                                                                   
person  facing a  layoff. Vice-Chair  Fairclough  ascertained                                                                   
that the pink  slips were issued before the  budget cycle for                                                                   
the  state was  completed and  the  school districts  funding                                                                   
levels were known.                                                                                                              
                                                                                                                                
Mr.  Lamkin concurred.  He added  that unnecessarily  issuing                                                                   
pink  slips  caused  teacher stress  that  could  affect  the                                                                   
classroom. He  voiced that  it was a  matter of fairness  and                                                                   
transparency.                                                                                                                   
                                                                                                                                
Senator  Dunleavy commented  that things  were done  backward                                                                   
from the school  districts' point of view. He  noted that the                                                                   
districts  were legally  compelled  to enter  into  contracts                                                                   
before  budgets were  known. He  believed  the change  placed                                                                   
the notifications in line with the budget process.                                                                              
                                                                                                                                
9:44:50 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  relayed  that   he  had  heard  comments  on                                                                   
Section 2  of the bill on  both sides of the  issue. Indexing                                                                   
was  not  a   typical  budget  practice  and   might  set  an                                                                   
unwelcome precedent.  The alternative  of dealing  with pupil                                                                   
transportation  increases each  year was  also not ideal.  He                                                                   
preferred supporting the legislation.                                                                                           
                                                                                                                                
Mr.  Lamkin  communicated   that  the  issue   was  a  policy                                                                   
question.  He  pointed  out  that   the  cost  was  real.  He                                                                   
deferred to  school district  financial officers  for further                                                                   
discussion.                                                                                                                     
                                                                                                                                
Senator Hoffman  believed that  in this particular  case, the                                                                   
additional  expenses would "diminish"  classroom funding  and                                                                   
was the core of the argument.                                                                                                   
                                                                                                                                
Vice-Chair Fairclough OPENED public testimony.                                                                                  
                                                                                                                                
AMY LUJAN, EXECUTIVE  DIRECTOR, ALASKA ASSOCIATION  OF SCHOOL                                                                   
BUSINESS  OFFICIALS, spoke  in favor  of SB  57. She  offered                                                                   
that  the  Anchorage  CPI was  the  standard  for  contracts,                                                                   
recommended  by   the  Department  of  Education   and  Early                                                                   
Development  (DEED)  statewide.  Contracts in  Fairbanks  and                                                                   
even Nome  use the  Anchorage  CPI. The costs  were real  and                                                                   
increasing.  Authorizing the  Anchorage  CPI budget  increase                                                                   
keeps  pace with  the actual  cost. She  discussed Section  3                                                                   
and  agreed  with  the  comments  of  Senator  Dunleavy.  She                                                                   
mentioned the  unnecessary stress  caused by issuance  of the                                                                   
premature  notification and  keeping the  pink slips  in line                                                                   
with the state and municipal budget processes.                                                                                  
                                                                                                                                
Senator Olson  inquired whether it  would be fairer to  use a                                                                   
higher  CPI.  Ms.  Lujan  reminded  the  committee  that  the                                                                   
contracts  were  based  on  the Anchorage  CPI  and  was  the                                                                   
standard.                                                                                                                       
                                                                                                                                
Senator Olson  suggested moving  the notification date  up to                                                                   
May 1, which  corresponds to the boroughs budgets.  Ms. Lujan                                                                   
observed that  the dates  vary according  to the borough  and                                                                   
opined that May 15 might be a safer date.                                                                                       
                                                                                                                                
DEENA   PARAMO,   SUPERINTENDENT,   MAT-SU   BOROUGH   SCHOOL                                                                   
DISTRICT, MAT-SU  (via teleconference),  spoke in  support of                                                                   
SB  57. She  referenced  increased parental  involvement  and                                                                   
related that  tools and resources  made available  to parents                                                                   
enriched education.  She restated that all  school district's                                                                   
contracts were  based on the  Anchorage CPI. She  shared that                                                                   
when  school districts  budgets  were developed  "global  big                                                                   
picture  thinking"  was balanced  with  financial  realities.                                                                   
She believed that  the current factor of 1.5  percent was not                                                                   
sufficient to  fully support pupil transportation  costs. She                                                                   
based  that  assessment  on  the  's    Anchorage  CPI's  2.6                                                                   
percent  five--year average.  The  funding shortfall  reduced                                                                   
instruction  funding. She stated  that the  Matanuska-Susitna                                                                   
borough   school   district  was   preparing   to   subsidize                                                                   
transportation  funding   with  its  general  fund   at  $1.5                                                                   
million  in FY  2014 with  impacts  to classroom  instruction                                                                   
funding.  The  amount  was  the   equivalent  to  15  teacher                                                                   
positions. The  bill reduced  the shortfall by  approximately                                                                   
$500 thousand.                                                                                                                  
                                                                                                                                
Ms.  Paramo   turned  to   non-retention  notification.   She                                                                   
related  that  under  the  year  to  year  funding  structure                                                                   
enacted (HB  273) by the state  in 2008, funding  levels were                                                                   
not  known  before statutorily  mandated  timelines  required                                                                   
contract   renewal   and  non-retention   notification.   She                                                                   
relayed  the  Matanuska-Susitna   Borough  School  District's                                                                   
support of  the notification date  change and  furthered that                                                                   
the  contract   dates   should  be  changed   as  well.   The                                                                   
Matanuska-Susitna  Borough School  District thought  that the                                                                   
timeline was a  "prudent and responsible fiscal  policy." She                                                                   
thanked  the   committee  and   urged  for  support   of  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
9:56:08 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman   inquired  how  Mat-Su  derived   the  $1.5                                                                   
million  figure which contrasted  with  the DEED fiscal  note                                                                   
FN2 (EED).                                                                                                                      
                                                                                                                                
LUKE  FULP, CHIEF  BUSINESS  OFFICER, MAT-SU  BOROUGH  SCHOOL                                                                   
DISTRICT, MAT-SU  (via teleconference),  replied that  he was                                                                   
not  certain how  the fiscal  note was  developed. He  stated                                                                   
that the borough  developed the budget using the   CPI five--                                                                   
year average  of 2.6 percent in  relation to the  1.5 percent                                                                   
increase instituted in SB 182 last year.                                                                                        
                                                                                                                                
DAVE   JONES,  ASSISTANT   SUPERINTENDENT,  Kenai   Peninsula                                                                   
BOROUGH   SCHOOL   DISTRICT,  KENAI   (via   teleconference),                                                                   
testified in support  of SB 57. He concurred with  all of the                                                                   
previous testimony.  He added that DEED's  standardization of                                                                   
school  district  contracts  to  the  Anchorage  CPI  was  an                                                                   
attempt to  rein in costs  and attract more contractors.  The                                                                   
increase  to the  Anchorage  CPI in  SB  57 helped  stabilize                                                                   
transportation  funding;  not  at the  expense  of  education                                                                   
funding.  He discussed  the  notification  issue. He  related                                                                   
that  the current  system  left  teachers to  wonder  whether                                                                   
they had  a job and the  district in the situation  that they                                                                   
will find  another  job and not  be available  if their  jobs                                                                   
were retained.                                                                                                                  
                                                                                                                                
Senator  Dunleavy  commented  that  the  May  15th  date  was                                                                   
minimal  in light  of the  possibility  that the  legislature                                                                   
could end in special session on any given year.                                                                                 
                                                                                                                                
BRUCE JOHNSON,  EXECUTIVE DIRECTOR, ALASKA COUNCIL  OF SCHOOL                                                                   
ADMINISTRATORS,  supported the  legislation.  He shared  that                                                                   
school  districts   took  lying   off  teachers   and  school                                                                   
district employees  seriously. He  agreed with Mr.  Jones and                                                                   
did not  want to lose  teachers who  sought and gained  other                                                                   
employment  due to  premature  notification. Rural  districts                                                                   
commonly issued  contracts to  staff in February,  especially                                                                   
in  schools   with  high   turnover  in   order  to   develop                                                                   
recruitment  strategies  for  the  next  year.  Most  of  the                                                                   
teachers  were issued  contracts  well  before  the May  15th                                                                   
deadline. He  appreciated the  flexibility of the  later date                                                                   
and  believed  it was  more  advantageous  to have  a  stable                                                                   
employment force.                                                                                                               
                                                                                                                                
Vice-Chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
SB  57   was  HEARD  and   HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:05:35 AM                                                                                                                   

Document Name Date/Time Subjects
SB022CS(JUD)-LAW-CRIM-03-06-13.pdf SFIN 3/28/2013 9:00:00 AM
SB 22
SB 83 26 USC 460.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Interest on Under-Overpayments on Fed Taxes.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Sponsor Statement scanned.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 57 SampleParentInvolvement_Pamphlet_Idaho.pdf HEDC 4/8/2013 8:00:00 AM
SFIN 3/28/2013 9:00:00 AM
SB 57
SB 57 Third Grade Reading Policies.pdf HEDC 4/8/2013 8:00:00 AM
SFIN 3/28/2013 9:00:00 AM
SB 57
SB 57 ECS_Third Grade Literacy Policies.pdf HEDC 4/8/2013 8:00:00 AM
SFIN 3/28/2013 9:00:00 AM
SB 57
SB 57 SupportLetters.pdf HEDC 4/8/2013 8:00:00 AM
SFIN 3/28/2013 9:00:00 AM
SB 57
SB 57 SponsorStatement_VersionC.pdf SFIN 3/28/2013 9:00:00 AM
SB 57
SB 57 Sectional_VersionC.pdf SFIN 3/28/2013 9:00:00 AM
SB 57
SB49_Backup_ 2001 Planned Parenthood Case from Alaska Supreme Court.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_ Administrative Law Judge Decision from Sept. 24, 2012.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_ Citation from Dr. Priscilla Coleman.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_ Executive Order 13535 from President Obama.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Bibliography of Peer Review Studies on Abortion and Mental Health from Dr. Priscilla Coleman.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Definition of Abortion.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Evidence for Casual Association between Abortion and Mental Health.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Guttmacher_State Funding for Abortions under Medicaid.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Hyde Amendment.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_NCSL Statistics for State Funding of Abortions Under Medicaid.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Quantitative Reasons Women have Abortions.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Statistics from Alaska Borough of Vital Statistics on Abortion.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Backup_Written Testimony of Dr. Priscilla Coleman.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Sectional_Analysis.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Sponsor_Statement.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Summary_of_Changes.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB49_Supporting_Documents.pdf SFIN 3/28/2013 9:00:00 AM
SB 49
SB 83 Support Letter - Davis.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Support Letter - FMStrand.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Support Letter - KC Corp.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Support Letter - Udelhoven.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 Support Letter - FNBA.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 83 work draft Version U.pdf SFIN 3/28/2013 9:00:00 AM
SB 83
SB 22 work draft version P.pdf SFIN 3/28/2013 9:00:00 AM
SB 22