Legislature(2003 - 2004)
03/01/2004 01:35 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 91-INCREASE AMT OF BASE STUDENT ALLOCATION
MR. RICHARD BENAVIDES, staff to Senator Bettye Davis, presented
SSSB 91 on behalf of the sponsor. He said originally SSSB 91
was introduced last February. SSSB 91 brings the base student
allocation to $4,600 and includes an inflation-proofing
provision and an annual increase for class size reduction and
compliance with the NCLB act. He said he wanted to echo
statements of the previous two speakers that the time has come
to look into changing the base student allocation.
CHAIR DYSON asked if the department wanted to testify on the
three bills.
MR. EDDY JEANS, Manager of the School Finance and Facilities
Section, Department of Education and Early Development (DEED),
testified that fiscal notes have been prepared for each of the
three bills. Analysis includes additional local contributions
or local caps that will be increased by each district. The
department believes the increase in state support goes hand-in-
hand with increased local support, and wanted to show the
impacts of those dollar amounts on districts' abilities to
contribute additional local revenue. He mentioned looking
forward to working further on this issue in Senate Finance.
CHAIR DYSON then took public testimony.
MS. ANDI STORY, a parent of three children in the Juneau School
district and also a Juneau School Board member, testified as
follows:
I became interested in running for the school board
because the class sizes were getting high in Juneau
and I felt that public education was going down. I
ran and now I'm seeing the realities of what the
school board members are facing across the state.
The increase to the PERS/TRS contribution is $1
million to the Juneau School District alone, and much
more to the bigger school districts. Eighty-eight
percent of the Juneau School District budget is
salaries and benefits and we cannot absorb a cost of
this size without negatively impacting class sizes.
The current ratio in our high school in Juneau is 31
students per classroom teacher, 31 in the middle
school, and about 25 in elementary. This is not
quality in my opinion. Quality is eroding across
Alaska without a long-term plan for providing for
adequate education. Without increases in cost for
living expenses, students hurt. In Juneau alone,
increases in property taxes, property insurance,
liability insurance, and workers' comp [indisc.] will
be $202,000, next year. Just flat funding is not
enough to retain quality. In order to pay the
$202,000 it comes out of programs or class sizes. The
requirements of NCLB and the exit exams, again, we see
pockets of students who aren't performing, so we need
to provide extra math teachers, tutors; we have to
pull those teachers out of teaching other classes, so
then the class sizes go up again. And so students are
hurting because of all these factors.
I had signed up to testify under all three [bills] and
I will say to you that SB 1 is too little - SB 14 and
SB 91 - SB 91 actually provides for this cost of
living, and to make us be more than mediocre schools.
I believe we are mediocre schools and people are not
going to stay here, we are not going to attract people
unless we invest in putting dollars into providing
quality education and programs.
2:22 p.m.
MS. MELODY DOUGLAS testified via teleconference that she
supports additional funding to public education but wanted to
speak specifically in support of SSSB 14. She said that $4,500
has been the needed figure in the Kenai Peninsula for several
years, and as the chief financial officer, when she calculated
the numbers for the Kenai School District, $4,570 would hold
them on par with FY 04. This includes an accounting for the
PERS/TRS rate; if that were not factored in, $4,392 would be
needed to hold them equal to FY 04. She recalled that 10
percent of the classroom staff was cut last year, so they are
well in excess of $4,500 and [indisc.] to try to give back to
some level of normalcy from an educational classroom standpoint.
MR. MIKE FORD, parent of a second grader in the Juneau School
System, said he spends time in the classroom and also in Juneau
School District budget negotiations. He said the system is
stressed because there aren't resources to meet the standards
the Legislature has created, and the system won't work unless
there are resources to meet those standards. The state is
obsessed with the PFD, but he submits there is no system that
pays better dividends than the public school system. By
investing in that system, dividends pay off for years. He said
if the Legislature is truly a reflection of public priorities,
the priorities are to increase funding for public education.
Juneau has a $2 million budget gap. That means fewer teachers
and larger class sizes. That trend needs to be reversed.
MS. KATEY MANGELSDORF, parent of three children, testified via
teleconference and said she would support using part of the
earnings from the Permanent Fund.
TAPE 04-10, SIDE B
MS. MANGELSDORF continued as follows:
My main reason for speaking today is to encourage you
to put aside differences of opinion, don't look at
what has been done or what has not been done, but
answer this question with clarity of thought. "What
can we do right here today to ensure the children of
the state of Alaska will have a good, sound
education?" I know you know every school in the state
is hurting terribly. You also know how to work with
the finances to find a solution. The funding formula
needs to be increased in a significant way. What is
proposed will not meet the needs of the schools in
Alaska. Of one thing I am sure: There is a solution.
I know you can find it if you focus on the one
question I stated. Ideas are beginning to grow.
Build on these ideas. Forget the past and look at the
legacy you can set in place for our children. Please
do what is right and good. I want to trust your good
judgment. And I will support what is necessary to
guarantee my children and the children in Alaska to
get the solid, well-rounded education they deserve and
need.
MS. MARY HAKALA, a parent of three children and coordinator for
"Alaska Kids Count," noted there were quite a few members of
that organization in the room. She said a month ago there were
a handful of parents, whereas now "Alaska Kids Count" is a
statewide network of 400 parents, community members, and
grandparents. She told members parents were seeing the damage
and the regression that has occurred and will occur if "you
don't act." She said membership consists of volunteers, both in
and out of the classroom. Members see the system is strapped
with the current level of funding. She expressed appreciation
for anything that can be done to prevent dire consequences from
happening if action is not taken regarding cuts due to the
PERS/TRS issue and escalating costs due to inflation. She
stated that merely putting a band-aide on doesn't address the
systemic issue. She said they were asking not only for
impending cutbacks to be taken care of, but also to rejuvenate
the schools and to take the discussion to "Yes, we support
education."
MR. CARL ROSE testified that there are problems with PERS/TRS,
and with depleted resources available for maintenance and
operation of schools. He stated it matters whether the PERS/TRS
issue is addressed from inside a formula or not. He said
regarding monies distributed inside a formula, because of
calculations and the eroding floor, dollars directed toward a
specific issue might not reach there because it is impacted by
the distribution of funds and the foundation formula.
SENATOR GUESS commented that from her calculations, $4,590 was
needed to hold districts harmless on PERS/TRS, if it goes inside
the formula.
MR. DAVE JONES, Director of Finance for the Kodiak Island
Borough School District, and father of several children,
testified as follows:
Kodiak is in the same condition as districts across
the state. To just maintain our current programs,
we're facing a $2,047,000 revenue deficit. Roughly
half a million of that is related to declining
enrollments, so I'm not going to come to you and ask
for that; we need to deal with that internally. This
leaves us with $1.5 million deficit of that.
Approximately $700,000 is related to retirement system
increases. I'm going to be an optimist and believe
that you [indisc.] solve that problem as a separate
issue. This leaves us with a little over $800,000
deficit that's related to increases in salaries,
benefits, fuel, costs, freight costs, etc. We're at
the cap in Kodiak and we can't look locally for any
additional help. The solution for us has to come at
the state level. That's why I want to thank you for
considering the bills that are before you today. I
think it's imperative that the bills that come out of
your committee that are brought forward with the
substantial increases to the base student allocation,
[indisc.] for the fixed cost increases we incur.
If you set the retirement issue aside, SB 1 gives us
about half the money we need to get to the cost
increases we're looking at. A $200 increase, with the
corresponding ability to increase local support would
let us continue the programs that we have today.
I'm going to take five seconds to tell you that I'm
throwing my 'dad hat on' and tell you that I want you
to tax me. I want to pay an income tax. I want to
use the permanent fund earnings. And I want you to
let me help pay for my children's education by doing
that.
2:33 p.m.
MR. GERRY DONOHOE, parent of two children in the Juneau School
District, said he and his family could have moved anywhere in
the world, but they chose to move back to Juneau because of the
quality of life and the great community. One of the only
compromises was the declining state of the educational system.
He said they were lucky in Pennsylvania because the kids had 18
- 20 students in their public school classrooms. That school
district spent $8,500 on each enrollee. He stated, "If you want
to attract people to Alaska, if you want to show progress in the
state, you've got to increase state education funding."
MS. MARY FRANCIS, Executive Director of Alaska Council of School
Administrators (ACSA), testified that all of the school
districts support the additional base student allocation and
would be grateful for any support, the higher the better to keep
pace. As a former superintendent, she said it was incredible
how erosion can occur in a year or two, and it might take eight
to ten years to reinstate some programs; good people providing
services will not be there and it's very hard to build programs
back. She supports consideration of these bills.
MS. AMY LUJAN, Business Manager in the Nome School District,
testified that Nome needs a $200 increase in basic needs to keep
on par with FY 04. She explained that about two thirds, or $134
would be for PERS/TRS, and about one third would be for
insurance and other increases encountered in planning for next
year. This still doesn't take into account cuts in programs in
the past few years. There are fewer junior and senior high
school offerings. There are larger class sizes, which is
especially problematic for elementary school. The nurse, social
worker, elementary assistant principal, and one of the two
counselor positions have been cut. There are fewer aides, some
large deferred maintenance needs, and professional development
is not paid for out of the school district general fund;
professional development is from grants. This is difficult when
trying to implement state and federal requirements for quality
schools. The $200 increase in basic needs won't bring back the
cuts just mentioned, but would help with PERS/TRS and basic cost
increases such as insurance and inflation.
MR. STUART COHEN, parent of two children in the Juneau School
District, reflected that his own third grade class had 34
students, but class composition didn't include students with
behavioral or learning problems. He pointed out that our
society has chosen to no longer place those children in separate
classrooms, condemning them to a lifetime of limited economic
possibilities. He also noted that if one has taught school or
worked with groups of kids, the reality is that one or two kids
who have difficulty learning or focusing can make the class 20
percent or 30 percent harder and limit what the other kids can
learn. He said it was important to realize that talk about
class size is of real concern, and he urged members to give as
much money as possible to the schools.
MS. SELINA EVERSON, representing the Alaska Native Sisterhood,
said she has four grandchildren in the school system, and
expressed concern for adequate funding, especially in the
village areas where "her people reside." She said, "Our history
should be taught in the school system and I can't believe that
it has been this long. Because when you understand another
race, you understand and can tolerate that person. You
understand where they're coming from." She said the teachers
called her dyslexic grandchild "stupid" and this was hurtful.
In short, the funding should not be cut. She said her parents
used to pay a school tax, and she would be willing to pay a
school tax for her grandchildren and her great grandchildren.
And she would be willing to pay an income tax.
MR. TIM STEELE testified from Anchorage and mentioned 332 jobs,
program cuts, increase in class size, and so forth. Regarding
solutions, he said the state is at a breaking point, and
additional funding is necessary. The superintendent has
indicated that about $238 will hold us harmless, assuming
PERS/TRS is outside. Just making it is not sufficient; adequacy
and sustainability need to be addressed. These Senate bills
don't have HB 471's two percent cost of living. We need some
way to not be back in this same fix, year after year.
Legislative research shows that $252 in purchasing power has
been lost since 1999.
2:45 p.m.
SENATOR GUESS said since Senator Davis wasn't there to speak to
her bill, she offered that SSSB 91 inflation-proofs the
foundation formula for future years.
MS. CHRIS MOORE, mother of four children and representing Valley
Voices for Children, an organization from the Mat-Su, testified
that children's needs are not being met. Children are not
receiving an adequate education and deserve a quality education.
Although she loves living in Alaska, the education issue is
looming like a dark cloud. She said she advocates for an
inflation-proofing component in the foundation formula.
MR. BOB DOYLE, Chief School Administrator for the Mat-Su Valley
School District, representing about 14,000 children and their
parents, suggested a three-prong approach. This includes an
increase to the base student allocation of $210, which would be
sufficient as long as TRS/PERS cost increases from this year
were also dealt with, and it could be either inside or outside
the formula. Also, as the base student allocation is moved up,
we're able to get additional support from the local assembly to
get full support for the schools, as well. With that approach,
we would be held harmless this year and the focus could be on
improving student learning and getting on with efforts in
curriculum alignment.
CHAIR DYSON asked if anybody wanted to add to his/her testimony.
MR. COHEN addressed the issue of taxes, saying that he was
already taxed so to speak, because he writes checks to the
school, as do other parents. In his 20 years in business,
traveling to countries such as Mongolia or Argentina, he has
observed different philosophies of taxation, ranging from
communist China to Bolivia. In some countries, people in charge
have a philosophy of not re-distributing wealth through taxation
and because they have been "too successful" in implementing that
philosophy, educational systems are such that the wealthy
children go to excellent private schools. However, if you're of
the middle class, your child probably goes to a church-run
Catholic school and gets an O.K. education, whereas if you're
living in poverty as 60 to 95 percent of the country's
population does, your child probably has to share a pencil at
school. Those countries have lost much of their human capital,
as represented by their children, and for other reasons also,
they'll never get out of the situations they're in. He asked
members to consider, "A little bit of taxation can be a good
thing."
CHAIR DYSON closed public testimony.
SENATOR WAGONER mentioned that $4,500 would hold the district
harmless for 2004, and PERS would be outside of that. He wanted
to reiterate for the record, that for the year prior to that,
Kenai Peninsula Borough School District cut an additional 56
positions, amounting to about $2.5 million. He said the
discrepancy was due to his thinking of 2003, not 2004. He said
they have been cutting for a long time, and that "I stick pretty
tight to the $4,500 without the PERS being in it. That would
heal a little bit of the problems they've got on student numbers
and classroom numbers."
SENATOR GREEN said the discussion has been on whether these
funding pieces were handled separately, and questioned if it
would be better for funds to go directly to retirement and
benefits - a portion of it - and not accrue to the school
district. Or, would it be necessary to send it directly to the
district and, in turn, pay for a portion of PERS/TRS? She said
this information was still important, and the conversation was
continuing.
SENATOR GREEN moved to report SSSB 1 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. There being none,
it was so ordered.
SENATOR GUESS moved to report SSSB 91 out of committee with
individual recommendation and attached fiscal note.
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.
SENATOR GUESS moved to report SSSB 14 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.
SENATOR GUESS said since others in committee were in Senate
Finance while she wasn't, she told members that PERS/TRS is not
a one-time hit, and that serious consideration needs to be given
to putting it in the foundation formula. She said this issue
would need to be dealt with in multiple years, and we don't know
what will happen with the market, which caused this problem to
begin with. She suggested that as a policy matter, one-time
money sometimes does more harm than good over the long run,
although this isn't a one-time problem. Anchorage looks at $22
million as part of PERS/TRS. Every district is going to deal
with this next year. She recommended putting it in, and keeping
all districts harmless.
SENATOR GUESS told members that because the minority has been
recently criticized for not making policy intentions clear
[enough], that Democrats believe SSSB 91 is the best policy for
education funding. Democrats will be offering amendments on the
Floor if they're not in the final bill. She said, "I don't want
to surprise anyone, since we got criticized for some reason for
not giving you guys enough heads-up, so I'm just on the record,
stating that."
SENATOR GREEN said she believed there was still more information
to follow on the PERS/TRS issue, particularly because of the
board meeting scheduled for the third week in March. She noted
that the numbers continue to float, so there needs to be
sensitivity to that.
There being no further business to come before the committee,
Chair Dyson adjourned the meeting at 2:58 p.m.
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