Legislature(2007 - 2008)BUTROVICH 205

01/30/2008 08:00 AM Senate SPECIAL COMMITTEE ON EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SCR 15 AMEND UNIFORM RULES: STANDING COMMITTEES TELECONFERENCED
Moved CSSCR 15(SED) Out of Committee
*+ SB 240 EDUCATION FUNDING TELECONFERENCED
Moved SB 240 Out of Committee
                    SB 240-EDUCATION FUNDING                                                                                
                                                                                                                                
8:08:58 AM                                                                                                                    
CHAIR STEVENS announced the consideration of SB 240.                                                                            
                                                                                                                                
TIM LAMKIN, staff, Senator Stevens,  sponsor of SB 240, presented                                                               
an  overview. He  said the  Joint  Legislative Education  Funding                                                               
Task Force (JLEFT) that met  this summer forwarded five pieces of                                                               
legislation. The  first a three-year step-down  funding mechanism                                                               
for  schools  that  face  a   decrease  in  their  Average  Daily                                                               
Membership  (ADM). The  second component  is an  increase in  the                                                               
current  multiplier [of  5 times  Base Student  Allocation (BSA)]                                                               
for  intensive services  to  9, 11  and 13  over  the next  three                                                               
years.  The third  component is  a phase-in  of the  Institute of                                                               
Social and  Economic Research (ISER)  District Cost  Factor (DCF)                                                               
numbers and finally an increase of  $100 per year to the BSA over                                                               
the next three fiscal years.                                                                                                    
                                                                                                                                
8:11:05 AM                                                                                                                    
EDDY  JEANS, Director,  School Finance,  Department of  Education                                                               
and Early  Development, presented an  overview of the  task force                                                               
conclusions  and said  the  governor is  supportive  of the  task                                                               
force's  work. He  said that  adopting  the results  of the  ISER                                                               
study means  adopting the increases  over a five-year  period, 50                                                               
percent the first  year and then 12.5 percent  the following four                                                               
years.  It  also  proposed  that  declining  enrollment  be  held                                                               
harmless.  He said  the piece  that's  missing from  the bill  is                                                               
people transportation re-calibration.                                                                                           
                                                                                                                                
He said the  governor announced her education  funding package in                                                               
December and basically  endorses the work of the  task force with                                                               
one minor adjustment. She would like  to see the BSA increased to                                                               
$200 per  student over the  three year period. The  $100 increase                                                               
represents about a 2 percent  annual increase. Inflation has been                                                               
running 3 percent or more. The  $200 level represents a 4 percent                                                               
increase so it would be slightly ahead of inflation.                                                                            
                                                                                                                                
CHAIR  STEVENS said  he appreciated  the  governor's interest  in                                                               
increasing the BSA  but he said he would be  comfortable with the                                                               
$100  increase. He  said he  also prefers  not to  include people                                                               
transportation at this  time since it will probably  find its way                                                               
into the bill in the Finance Committee.                                                                                         
                                                                                                                                
8:15:05 AM                                                                                                                    
SENATOR HUGGINS asked what the  growth trend line was for funding                                                               
and  said  he  was  concerned  that   it  does  not  seem  to  be                                                               
sustainable over time.                                                                                                          
                                                                                                                                
MR. JEANS  replied that  the state  had pro-rated  the foundation                                                               
program only once  in 1987, when all state funding  was pro rated                                                               
10 percent due  to oil prices dropping. He  said education should                                                               
be the budget's highest priority.                                                                                               
                                                                                                                                
8:18:03 AM                                                                                                                    
JOHN   ALCANTRA,   Government  Relations   Director,   NEA-ALASKA                                                               
(National Education  Association-Alaska), said this  past weekend                                                               
400 of the 13,000 members met  in Anchorage and the members would                                                               
like  to  see  the  $200  increase. He  recalled  growing  up  in                                                               
Anchorage  when there  were no  fees  for public  school and  for                                                               
things  that provide  a well-rounded  education, for  example, to                                                               
play sports, buy science equipment  or join the band. His widowed                                                               
mother with  10 kids could not  have afforded any of  those fees.                                                               
This bill could address those problems.                                                                                         
                                                                                                                                
CHAIR  STEVENS  reiterated that  he's  not  opposed to  the  $200                                                               
level,  but that  it's more  appropriate to  be addressed  by the                                                               
Finance Committee.                                                                                                              
                                                                                                                                
8:22:27 AM                                                                                                                    
MARY   FRANCIS,    Executive   Director,   Council    of   School                                                               
Administrators,   said  the   council's   Resolution  Number   16                                                               
supported the  task force's recommendation.  It also  supported a                                                               
$200 BSA  with a three-year  implementation of the  District Cost                                                               
Factor (DCF).                                                                                                                   
                                                                                                                                
CHAIR STEVENS  commented that he  was blown  away by the  cost of                                                               
special education.                                                                                                              
                                                                                                                                
8:24:53 AM                                                                                                                    
SENATOR WILKEN said  he appreciated the fact that  the Council of                                                               
School  Administrators  is  one  of the  few  organizations  that                                                               
supported  using the  earnings from  the Permanent  Fund to  fund                                                               
government.                                                                                                                     
                                                                                                                                
8:25:27 AM                                                                                                                    
BRUCE  JOHNSON, Director,  Alaska  Association  of School  Boards                                                               
(AASB), said his organization supports the bill.                                                                                
                                                                                                                                
8:28:24 AM                                                                                                                    
SENATOR  HUGGINS asked  him what  he  recommended concerning  the                                                               
audit of the special needs component.                                                                                           
                                                                                                                                
MR.  JOHNSON  replied   that  the  association  sees   it  as  an                                                               
appropriate  role  for  the Department  of  Education  and  Early                                                               
Childhood  Development. Districts  need  time  frames that  allow                                                               
enough lead  time to implement  audits effectively. Their  job is                                                               
to secure as much money as  they can within the guidelines. It is                                                               
more punishing  to children  than it is  to districts  when there                                                               
are errors.                                                                                                                     
                                                                                                                                
8:31:02 AM                                                                                                                    
DAVE  JONES, Kodiak,  said as  a participant  of the  task force,                                                               
that he supported moving the bill.                                                                                              
                                                                                                                                
8:33:20 AM                                                                                                                    
SENATOR  WILKEN said  that  when  the bill  gets  to the  Finance                                                               
Committee, they should have Mr.  Jeans talk about the Moore study                                                               
[Moore, et  al. v.  State of  Alaska]. The  judge found  that the                                                             
state was  funding education  adequately although  some districts                                                               
were found  to need  better student  preparation for  exit exams.                                                               
The judge  who ruled on  the conclusions  based on the  study has                                                               
scheduled a final hearing for June.                                                                                             
                                                                                                                                
SENATOR HUGGINS  said he  is looking  forward to  finally funding                                                               
early education this session.                                                                                                   
                                                                                                                                
SENATOR  HUGGINS  moved to  report  SB  240 from  committee  with                                                               
individual recommendations and the attached fiscal note(s).                                                                     
                                                                                                                                
SENATOR WILKEN  objected and added  that he agreed  with changing                                                               
the BSA with the proviso that funding  is from new money  and not                                                               
taken  from someplace  else. He  also agreed  with the  step-down                                                               
provision. He  didn't agree with the  basis for the BSA.  He also                                                               
said the  ISER study is  not understandable or defendable  and he                                                               
did not support the bill moving forward.                                                                                        
                                                                                                                                
8:39:17 AM                                                                                                                    
CHAIR STEVENS  said the  bill may  not be  perfect but  moves the                                                               
issue forward.                                                                                                                  
                                                                                                                                
8:39:40 AM                                                                                                                    
SENATOR OLSON joined the meeting  and said that he fully supports                                                               
moving the bill forward.                                                                                                        
                                                                                                                                
8:40:38 AM                                                                                                                    
CHAIR  STEVENS  called for  a  roll  call vote.  Senators  Davis,                                                               
Olson, Huggins and  Stevens voted yea; Senator  Wilken voted nay;                                                               
and SB 240 moved out of committee.                                                                                              

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