Legislature(2007 - 2008)BUTROVICH 205

02/06/2008 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 16 EDUCATION FUNDING/COST FACTOR COMMISSION TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 2/1/08>
*+ SB 219 GOV PANEL ON SCHOOL DISTRICT COST FACTORS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled:
= SB 241 UNIV. REPORT: TEACHER TRAINING/RETENTION
Moved CSSB 241(SED) Out of Committee
        SB 219-GOV PANEL ON SCHOOL DISTRICT COST FACTORS                                                                    
                                                                                                                              
8:11:38 AM                                                                                                                    
CHAIR STEVENS  announced consideration  of SB  219. This  was the                                                               
first hearing of the bill.                                                                                                      
                                                                                                                                
8:12:13 AM                                                                                                                    
SENATOR HUGGINS joined the meeting.                                                                                             
                                                                                                                                
SENATOR WILKEN  presented an overview  of SB 219. He  listed what                                                               
was in the packet in addition  to the sponsor statement: a bullet                                                               
sheet  giving the  highlights of  the legislation;  a time  line,                                                               
some  fiscal notes;  an ISIS  (Institute of  Social and  Economic                                                               
Research) study  cover sheet dated 2005;  the American Institutes                                                               
for Research  (AIR) report dated  2003; the McDowell  study dated                                                               
1998; and  a historical review that  looked back to 1983  and the                                                               
difficulties in establishing district cost factors (DCF).                                                                       
                                                                                                                                
SENATOR WILKEN read the following sponsor statement:                                                                            
                                                                                                                                
     Senate  Bill 219  offers a  unique opportunity  for the                                                                    
     Legislature to  step back from the  current debate over                                                                    
     the accuracy  of the  proposed geographic  cost indices                                                                    
     used in  the education  funding formula  and encourages                                                                    
     the  legislative body  to consider  a  new approach  to                                                                    
     this difficult, recurring policy issue.                                                                                    
                                                                                                                                
     Senate Bill 219 establishes  a Select Panel on District                                                                    
     Cost Factors within the Office  of the Governor for the                                                                    
     purpose of  developing an  updatable and  durable model                                                                    
     to   measure  actual   relative  cost   differences  in                                                                    
     providing   public   education.   Placement   of   this                                                                    
     important  panel  under  the purview  of  the  governor                                                                    
     affords  an  open,  statewide perspective  and  fosters                                                                    
     cooperation between all school districts.                                                                                  
                                                                                                                                
     How to  accurately measure the relative  cost variances                                                                    
     between  Alaska's  53  school   districts  has  been  a                                                                    
     constant   source   of  aggravation,   discourse,   and                                                                    
     contention  within the  legislature  and the  education                                                                    
     community for  the past 24  years. The  Legislature has                                                                    
     attempted many  times to develop an  updatable model to                                                                    
     measure   the  differences   in  cost   between  school                                                                    
     districts,  but unfortunately  an  acceptable plan  has                                                                    
     been elusive.                                                                                                              
                                                                                                                                
     The  Select Panel  will take  a  fresh look  at how  to                                                                    
     measure these  differences with  the goal  of providing                                                                    
     the State  of Alaska with a  fair, objective, accurate,                                                                    
     and durable district cost model  that educators and the                                                                    
     public can  support. The panel's finished  work product                                                                    
     will  remove  a  perennial source  of  frustration  for                                                                    
     many.                                                                                                                      
                                                                                                                                
     It is time to try  the approach outlined in Senate Bill                                                                    
     219. Please join me in support of this legislation.                                                                        
                                                                                                                                
SENATOR WILKEN said  that what this does is put  together a group                                                               
of eight  voting members. In 1983,  the issue of DCF  came up and                                                               
the state was under pressure  from the federal government to come                                                               
up with  an education formula.  The legislature drafted  one then                                                               
and again  in 1998, 2002,  and 2005  and there is  still acrimony                                                               
about  DCFs. He's  not sure  why  they can  do it  now when  they                                                               
haven't been  able to come  up with  an agreeable formula  in the                                                               
past. In  1994, then candidate-for-Governor Tony  Knowles put out                                                               
a questionnaire  in which 80  percent of Alaskans  responded that                                                               
they had  no faith  in the  school foundation  formula. Education                                                               
funding had  gone up 54  percent and  many asked where  the money                                                               
went. He said that part of the  problem was that the DCF had been                                                               
jimmied in 1985 and the acrimony has continued into the present.                                                                
                                                                                                                                
He said  there are ways to  take multiple inputs and  update them                                                               
with  a reliable  model but  the committee  needs to  be free  of                                                               
politics  and include  technical people,  one from  the Anchorage                                                               
School  Board, two  legislators, and  three people  with base  in                                                               
mathematical models  and statistics. According to  the time line,                                                               
in May 2008 the committee would  be organized and they would have                                                               
16  months  to get  two  competing  solicitations and  then  come                                                               
forward in September 2010 with a  suggested model in time for the                                                               
Governor's budget. Current  DCFs would fall away in  2011 and the                                                               
legislature would be under the mandate to come up with new DCFs.                                                                
                                                                                                                                
8:21:24 AM                                                                                                                    
SENATOR   WILKEN  said   he's  very   concerned  that   what  the                                                               
legislature is  trying to do has  already been tried and  that it                                                               
is setting  itself up  for failure.  He proposed  doing something                                                               
new with  the hope that  in ten years all  that would need  to be                                                               
done every  year is provide  new data. He reminded  the committee                                                               
that  it  is   not  measuring  actual  costs   but  the  relative                                                               
differences between actual costs.                                                                                               
                                                                                                                                
CHAIR STEVENS asked  Senator Wilken to look at  the second fiscal                                                               
note regarding the child care program.                                                                                          
                                                                                                                                
SENATOR WILKEN  said it  has to  do with  the termination  of the                                                               
DCFs on  the first day of  the session. He said  that today child                                                               
care grants  are adjusted by the  DCF and if changes  aren't made                                                               
by  2011, the  Department of  Health and  Social Services  (DHSS)                                                               
doesn't  have any  way to  allocate the  child care  grants. This                                                               
provides the authority to DHSS  to make the adjustments until the                                                               
legislature is able  to do it. It doesn't kick  in until 2011 and                                                               
only if the legislature fails to come up with the DCF.                                                                          
                                                                                                                                
8:25:16 AM                                                                                                                    
EDDY  JEANS,  Director,  School  Finance,  Alaska  Department  of                                                               
Education,  Juneau,  AK,  said he  understands  Senator  Wilken's                                                               
concerns; but  the Joint Education  Funding Task  Force suggested                                                               
that  a  new joint  task  force  be established  specifically  to                                                               
address area  cost factors.  He said  that is  the next  piece of                                                               
legislation before  the committee and the  administration will be                                                               
supporting  that  piece  of legislation  as  recommended  by  the                                                               
Education Funding Task Force.                                                                                                   
                                                                                                                                
SENATOR OLSON said that since the cost differential is so fluid                                                                 
he is  not convinced there  ever will be  a final answer;  and he                                                               
thought they should  "bite the bullet, accept what  we've got and                                                               
continue on."                                                                                                                   
                                                                                                                                
MR. JEANS  said it is just  as Senator Wilken describes  it: when                                                               
the studies  are done, every  one goes down  the list to  see how                                                               
their  districts are  impacted. He  was surprised  there was  not                                                               
more  support for  the ISER  study because  the amount  for every                                                               
single  school district  in  the state  went  up. He  understands                                                               
concerns about the actual data that  went into the study and said                                                               
that debate will  never go away. He remembered  hearing years ago                                                               
that it  was the best data  they had available at  the time; that                                                               
is what it is  today; and when they get a new  report in 5 years,                                                               
that will be the best data at the time.                                                                                         
                                                                                                                                
SENATOR OLSON  asked why they  should even have this  bill before                                                               
them.                                                                                                                           
                                                                                                                                
MR. JEANS said  it's because there are concerns with  some of the                                                               
factors that  were considered  in the ISER  report and  that they                                                               
need to  be addressed. He said  they hope to improve  on the cost                                                               
factors as  time moves on,  because they  do need to  be adjusted                                                               
periodically;  but he  doesn't expect  100  percent agreement  on                                                               
what  the components  are and  how much  weight to  give each  of                                                               
those components.                                                                                                               
                                                                                                                                
SENATOR  OLSON asked  if the  concerns Mr.  Jeans has  raised are                                                               
addressed in the bill.                                                                                                          
                                                                                                                                
MR.  JEANS replied  that they  are not;  what this  bill does  is                                                               
establish  a commission  in  the governor's  office.  It is  very                                                               
specific on who the people  appointed would represent. It creates                                                               
a specific  timeline in  which the commission  has to  report. If                                                               
the  commission  does  not   make  recommendations,  it  actually                                                               
repeals  the  cost  differentials  in  statute,  which  would  be                                                               
painful for all school districts in the state.                                                                                  
                                                                                                                                
CHAIR  STEVENS pointed  out that  Mr.  Jeans has  made a  25-year                                                               
career of understanding these  matters and expressed appreciation                                                               
for his efforts.                                                                                                                
                                                                                                                                
8:30:14 AM CHAIR STEVENS said SB 19 would be held over.                                                                       
                                                                                                                              

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