Legislature(1999 - 2000)

02/16/2000 01:32 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
           SB 244-QUALITY SCHOOL GRANT FUND INCREASE                                                                            
                                                                                                                                
COMMISSIONER RICK CROSS, Department of Education and Early                                                                      
Development, informed committee members that SB 244 increases the                                                               
current $16 average daily membership amount paid in quality school                                                              
grants to $52.  The cost of this proposal will amount to about $7.6                                                             
million.  The quality school grant is a targeted, value added,                                                                  
accountability grant, designed to accomplish the State's goal of                                                                
bringing accountability and high standards of student achievement                                                               
in Alaska's public schools.  In 1998, when the Quality School                                                                   
Initiative and grant program was established, it was specifically                                                               
targeted by the Legislature to fund accountability.  The                                                                        
accountability grants will jump start the kind of changes that need                                                             
to occur in Alaska's schools to ensure that all students reach high                                                             
standards.                                                                                                                      
                                                                                                                                
COMMISSIONER CROSS said the State will save $19.9 million this year                                                             
as the result of three changes:  declining school enrollment;                                                                   
increased local property values which have shifted the                                                                          
responsibility for school funding from the State to local                                                                       
communities; and increases in federal Impact to Aid payments that                                                               
Alaska receives.  School districts anticipated higher revenues this                                                             
year and have had to make significant adjustments to their budgets                                                              
to accommodate for the loss of revenue.  Some districts are facing                                                              
as much as $4 million in reductions in expenditures.  The $7.6                                                                  
million of grants will give school districts money to raise                                                                     
standards and student achievement, and it will allow teachers to                                                                
spend more time on task with students.                                                                                          
                                                                                                                                
In 1998, Minnesota allocated $70 million to help school districts                                                               
implement new standards.  Last year, the Washington State                                                                       
Legislature passed a $113 million package of initiatives to support                                                             
reforms.  In 1999, the Connecticut Legislature passed a budget that                                                             
added $70 million to help schools get better results.  The State of                                                             
Louisiana set aside $200 million for reforms which amounts to about                                                             
$256 per student.  These states, and a number of others, are                                                                    
recognizing that additional resources are needed to support schools                                                             
as they raise standards and hold students and teachers accountable.                                                             
He hopes Alaska will do the same.                                                                                               
                                                                                                                                
Number 1239                                                                                                                     
                                                                                                                                
SENATOR WILKEN pointed out that DOE submitted a zero fiscal note                                                                
although the cost of the increase will be $7.6 million.                                                                         
                                                                                                                                
COMMISSIONER CROSS explained the zero fiscal note reflects the fact                                                             
that the Governor's budget for the foundation includes the $7.6                                                                 
million.  If a different budget is used, the fiscal note will need                                                              
to be changed.  He noted that the fiscal note contains a statement                                                              
explaining that the money has been accounted for in the Governor's                                                              
budget in the Foundation Program.                                                                                               
                                                                                                                                
SENATOR WILKEN maintained that fiscal notes are to reflect changes                                                              
in current spending.                                                                                                            
                                                                                                                                
SENATOR PETE KELLY agreed that the fiscal note should reflect the                                                               
$7.6 million.                                                                                                                   
                                                                                                                                
SENATOR WILKEN surmised that the fiscal note reflects a diversion                                                               
from the normal process and requires users to "connect the dots."                                                               
                                                                                                                                
CHAIRMAN MILLER agreed.                                                                                                         
                                                                                                                                
COMMISSIONER CROSS said his understanding is that DOE is to work                                                                
off of the Governor's budget and therefore the fiscal note is                                                                   
correct.  He added that the fiscal note is clear about the costs                                                                
associated with the bill.                                                                                                       
                                                                                                                                
CHAIRMAN MILLER stated that the next committee of referral is where                                                             
the fiscal note will be reviewed.                                                                                               
                                                                                                                                
Number 1282                                                                                                                     
                                                                                                                                
SENATOR PETE KELLY asked if DOE has written its fiscal notes based                                                              
on the current year's budget or the projected budget in the past.                                                               
                                                                                                                                
COMMISSIONER CROSS acknowledged that he has not been involved for                                                               
too many years but he repeated that the rules DOE is to go by                                                                   
require that the fiscal note reflect the cost if the money is not                                                               
accounted for in the Governor's budget.                                                                                         
                                                                                                                                
SENATOR ELTON asked for an explanation of the application process                                                               
the districts use and the number of districts that have                                                                         
participated in the Quality Schools grant program at the $16 level.                                                             
                                                                                                                                
COMMISSIONER CROSS replied that all districts have participated in                                                              
the grant program and the application process was designed by DOE.                                                              
Each district submits an application explaining how the money will                                                              
be targeted and on what programs.  The districts use the money for                                                              
various programs that target poor student performance, i.e. summer                                                              
school programs, tutoring, and extended-day programs.  DOE reviews                                                              
applications and asks for clarification if the use of the money is                                                              
unclear.  The program is not competitive: each district is allotted                                                             
a specific amount.                                                                                                              
                                                                                                                                
SENATOR ELTON asked if DOE checks to see whether it is substituting                                                             
Quality Schools Initiative grant funding for programs that would                                                                
have otherwise been funded from other sources, thereby freeing up                                                               
dollars in an existing budget to be spent on functions not related                                                              
to quality schools.                                                                                                             
                                                                                                                                
COMMISSIONER CROSS indicated that DOE's auditing of school                                                                      
districts is fairly broad but is getting better as time goes on.                                                                
If DOE found a district was substituting quality school money for                                                               
a different program funded through a different grant, it would                                                                  
question that expenditure.                                                                                                      
                                                                                                                                
Number 1497                                                                                                                     
                                                                                                                                
SENATOR ELTON commented that he is not opposed to the concept of SB
244, but he sees several ways to tackle this problem.  He noted                                                                 
that if DOE does not audit to ensure that the additional money will                                                             
be spent on academics, then Senator Wilken's approach (SB 198)                                                                  
might be better.                                                                                                                
                                                                                                                                
COMMISSIONER CROSS said he supports Senator Wilken's bill but he is                                                             
asking for support of SB 244 because it will ensure that money is                                                               
targeted to meet an immediate need that school districts face.                                                                  
Regarding the auditing, DOE follows up to make sure the districts                                                               
are providing the services they were given the grant money for.                                                                 
                                                                                                                                
CARL ROSE, Executive Director of the Association of Alaska School                                                               
Boards (AASB), expressed support for SB 244 for the following                                                                   
reasons.  Many school districts anticipated the $19 million that is                                                             
not forthcoming so they are going through severe budget reductions                                                              
as a result.  Two issues face Alaska school districts:  operational                                                             
costs and the quality initiatives that have been mandated.  The                                                                 
quality initiatives serve a purpose but will require school                                                                     
districts to address student achievement on the upcoming exams.  He                                                             
does not believe Alaska will see wholesale success on those exams                                                               
at the start.  As younger students go through the bench marking                                                                 
process at the third, sixth and eighth grades, they will be ready                                                               
for the qualifying exam.  He is very concerned about remediation                                                                
for those students who do not fare well in the new system.  The                                                                 
AASB supports both SB 244 and SB 198.  Each bill addresses a                                                                    
different issue: one is categorical through grants, the other gives                                                             
districts latitude for operations.  Alaska has the responsibility                                                               
of ensuring that its students are as successful as possible in our                                                              
global economy.                                                                                                                 
                                                                                                                                
SENATOR ELTON asked if remediation programs would be eligible for                                                               
funding from a quality school grant.                                                                                            
                                                                                                                                
MR. ROSE said the question of why students do not score well on the                                                             
upcoming exam and what we can do to help those students will be on                                                              
the table.  Providing those students with more of the same is                                                                   
probably not the answer so the AASB is looking at new strategies.                                                               
                                                                                                                                
SENATOR ELTON asked if the grant money is used for remediation,                                                                 
whether the district would receive $52 per student who needed                                                                   
remediation or whether it would get $52 per ADM in the district                                                                 
which could be used to remediate fewer students.                                                                                
                                                                                                                                
MR. ROSE said he believes each school district will come up with                                                                
strategies they feel will meet their students' needs and they will                                                              
apply to DOE.                                                                                                                   
                                                                                                                                
Number 1880                                                                                                                     
                                                                                                                                
VERNON MARSHALL, NEA-Alaska, stated support for SB 244 and                                                                      
commended the committee for acting on SB 198.  The Senate HESS                                                                  
committee has been the first committee to step to the plate and try                                                             
to deal with the school funding issue as it applies to 2001 and                                                                 
beyond.  The school year of 1999-2000 will probably be remembered                                                               
as the year of the "test."  In March the first exit exam will be                                                                
administered and he assumes that before the end of the school term,                                                             
the bench mark testing at grades 3,6, and 8 will occur.  The next                                                               
significant date will be the year 2002 because the exam given in                                                                
March will be given to seniors and determine whether they receive                                                               
a diploma.  During that year every school will be designated. The                                                               
next two years are years of opportunity.  Test results will be                                                                  
available in the fall of the year 2000 and at that time educators                                                               
will have to review the results and look at the curriculum to                                                                   
educate better.  The issue of remediation will also have to be                                                                  
addressed.  He hopes the remediation programs in place in Fairbanks                                                             
are replicated throughout Alaska because that model is held up with                                                             
respect.  The average teacher salary in Alaska has fallen to                                                                    
$47,100.  The average is decreasing, but the money saved does not                                                               
appear to be used for other personnel services by school districts.                                                             
He suspects that much of that money is being plowed into                                                                        
remediation, curriculum realignment, and other things.  He asked                                                                
for support of SB 244 and said it is a good coupler with SB 198.                                                                
                                                                                                                                
There being no further testimony or discussion, SENATOR WILKEN                                                                  
moved SB 244 with individual recommendations and its accompanying                                                               
fiscal note.  There being no objection, the motion carried.                                                                     
                                                                                                                                

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