Legislature(2001 - 2002)
03/28/2001 01:58 PM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 1-FOUNDATION FORMULA INCREASE
CHAIRWOMAN GREEN thanked Senator Taylor and asked Senator Wilken
to present SB 1.
SENATOR WILKEN, sponsor of SB 1, said that SB 1 is the most
efficient bill regarding school funding. It simply increases the
student dollar amount. He feels the case has been made by
constituents that increased funding is needed for many good
reasons. He asked that Jim Holt come forward and testify.
MR. JIM HOLT, Superintendent of the Fairbanks School District,
informed the committee that he has been with that school district
for 30 years. He said he understands the reluctance of the
Legislature to open up the formula in SB 36. The complexities
described by Senator Taylor make that obvious. He also
understands the Legislature's reluctance to tie the student
dollar to a permanent inflation factor because the question of
what inflation factor to use continues. He noted that grant
funding allows the Legislature to target specific educational
issues, hold school districts accountable, and not worry that the
additional funding is being spent on salaries rather than
students but it has become critical that additional funding be
placed in the student dollar.
MR. HOLT said no matter what numbers one believes, the bottom
line is that inflation has eaten away at the educational dollar.
If it cannot be tied to some kind of factor that takes that into
consideration, the Legislature will periodically need to adjust
that amount. For example, Fairbanks has had the second warmest
winter on record. Even under those conditions, the fuel oil bill
for the school district cost $200,000 more this year than last,
purely due to inflation. He cannot use grant funds to pay that
bill. He pointed out that raising property taxes to pay for
school bonds is not a well received idea by retirees on fixed
incomes. Likewise, all school superintendents in this state have
been running their districts on a fixed income for almost all of
the last 12 years. Every time there is an increase in inflation,
fuel bills or teacher salaries increase and districts can spend
less on the students. He asked legislators, when considering
additional funding for education, that all of that money not be
put into quality schools grants and learning opportunity grants,
but to consider increasing the student dollar.
Number 963
SENATOR LEMAN said he disagrees that the $200,000 increase in the
fuel bill was due to inflation. Rather, it was an increase in
the price of fuel. He noted both have the same effect on
spending power.
SENATOR WILKEN asked Mr. Holt to describe to the committee what
the learning opportunity grants fund.
MR. HOLT said the quality school grant that the Fairbanks School
District received first was used to offer summer school for the
first time in Fairbanks in about 20 years. The learning
opportunity grants have allowed the Fairbanks district to fund
special programs, particularly in reading, and hopefully next
year in math, for elementary students who are unable to keep up.
MR. JEFF WALTERS stated support for SB 1 and increases in funding
for education. The Legislature must acknowledge losses due to
inflation over the last 10 years. He said employees in his
district are being squeezed by inflation, rising health costs,
expectations of student performance on the high school qualifying
exam and more. If districts do not get an increase, they will
lose safety monitors on school buses, supplies and equipment, and
the pupil-teacher ratio will have to be raised in grades 4
through 12. That seems counterproductive in light of state
mandated exams. In addition, attracting and retaining high
quality teachers is critically important across the state. He
feels districts need a long range solution to funding, not a stop
gap measure.
Number 806
SENATOR LEMAN informed Mr. Walters that the Legislature fully
funded pupil transportation so to draw any link between SB 1 and
pupil transportation is a misrepresentation.
CHAIRWOMAN GREEN noted that crossover on budgets can cause
confusion.
MR. DAVE JONES, Kodiak Island Borough School District Director of
Finance, stated support for SB 1. He has calculated the amount
of state revenue per student for each year since 1989. With
quality schools initiative funds and the learning opportunity
grants included, the Kodiak school district is receiving $30 less
per student than it did in 1989. Over that same time period,
inflation has increased over 30 percent. In addition, fuel costs
have increased 56 percent since 1990. The lack of inflation
proofing has resulted in severe cuts in Kodiak. Over $1 million
has been cut in the last two fiscal years and Kodiak is facing
another $500,000 next year if it receives no additional revenues.
Passage of SB 1 will eliminate the need for further cuts and
might allow the district to reinstate some of the programs cut in
recent years.
Number 677
CHAIRWOMAN GREEN announced that both SB 94 and SB 1 will be
scheduled in committee again next week. She pointed out that the
issue of supplemental equalization has been discussed at the Mat-
Su school district. She plans to review that issue at the next
meeting also.
MR. EDDY JEANS, School Finance and Facilities Section, DOEED,
stated support of SB 1. However, he suggested the committee
consider rolling the learning opportunity grants into SB 1 as
part of the ongoing funding formula so that school districts do
not have to lobby for that money every year.
CHAIRWOMAN GREEN asked if that creates a lot of work.
MR. JEANS replied, "It keeps it interesting, Madame Chairman. I
think you would remember the single site issues that we debated -
single site funding on an annual basis for about 10 years." He
pointed out that money is being allocated to districts at the
same time quality school grants are allocated. The allocation
methods are a little bit different but the monies are being
targeted for the same purposes. If the money is going to be
allocated to DOEED, it would prefer to have the money in the
formula.
MR. JEANS said that SB 1 and the learning opportunity grants are
very close to the funding level recommended by the [Governor's]
funding task force. The only thing missing is about a 1.5 percent
annual increase for the next five years, also recommended by the
task force.
CHAIRWOMAN GREEN announced both bills will be heard on Monday and
that next Wednesday, the committee will begin discussing the
State of Alaska's reliance on Medicaid.
SENATOR WILKEN asked if the committee will be discussing the
competency exam again.
CHAIRWOMAN GREEN said it would not. She then adjourned the
meeting at 3:28 p.m.
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