Legislature(2003 - 2004)
02/03/2004 11:00 AM House BUD
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
JOINT COMMITTEE ON LEGISLATIVE BUDGET AND AUDIT
February 3, 2004
11:00 a.m.
MEMBERS PRESENT
Representative Ralph Samuels, Chair
Representative Mike Chenault
Representative Mike Hawker
Representative Vic Kohring
Representative Beth Kerttula
Representative Reggie Joule, alternate
Senator Gene Therriault, Vice Chair
Senator Ben Stevens
Senator Con Bunde
Senator Gary Wilken
Senator Lyda Green, alternate
MEMBERS ABSENT
Senator Lyman Hoffman
OTHER LEGISLATORS PRESENT
Representative Carl Gatto
Representative Paul Seaton
Representative Peggy Wilson
Representative Mary Kapsner
COMMITTEE CALENDAR
^PRESENTATION: ISER'S PEER REVIEW OF THE SCHOOL DISTRICT COST
STUDY
TAPES
04-2, SIDE(S) A & B
CHAIR RALPH SAMUELS convened the meeting of the Joint Committee
on Legislative Budget and Audit at 11:00 a.m. Representatives
Samuels, Chenault, Hawker, Kohring, and Joule, and Senators
Therriault, Ben Stevens, Bunde, Wilken, and Green were present
at the call to order. Representative Kerttula arrived as the
meeting was in progress. Representatives Gatto, Seaton, Wilson,
and Kapsner were also present.
SUMMARY OF INFORMATION
BRADFORD H. TUCK, Ph.D., Professor Emeritus of Economics,
Institute of Social and Economic Research (ISER), University of
Alaska Anchorage, explained that the Joint Committee on
Legislative Budget and Audit asked the ISER to review the Alaska
School District Cost Study, and the American Institutes for
Research (AIR) prepared the study. He said the study was done
to provide a "geographic cost of education index" the state
could use to help equalize the purchasing power of educational
dollars it allocates to school districts in Alaska. The
committee asked ISER to focus specifically on the methodology
AIR used, and to address four questions.
DR. TUCK stated that the first question asked if the methodology
was generally acceptable. The choice of index-number type was
found to be appropriate and the methodology sound, but ISER
raised a number of issues regarding measurement of components of
the index. The second question asked if there was anything
unique to Alaska that made the use of this methodology
inappropriate in Alaska. The findings suggest the methodology
is appropriate in Alaska, but there are problems in the
measurement of index components, he said.
DR. TUCK explained question three, which asked, if the
methodology used by AIR is generally acceptable for use in
Alaska, but is deficient in some respects, can it be adapted so
that it is appropriate. Here, the problem areas regarding
measurement of index components were addressed: the estimation
of teacher compensation needs to be modified, the energy costs
based on the prototype model are prone to significant error when
compared with actual energy costs, travel costs should be
reviewed, the cost-of-goods component needs more work, and the
definition and measurement of budget categories may or may not
be adequate. In answer to question four, ISER concluded that an
alternative general methodology was not necessary.
DR. TUCK, in addition to addressing the four original questions,
added several other observations. He pointed out the poor
quality of editing, documentation, and accuracy of the report,
but stated that the validity of the methodology was not at
stake. He also believed the "ACCESS Model" to be of limited
usefulness, and suggested changes to certain components and
better documentation. He stated that one area not addressed in
the study was that of variations in specific elements of the
index when making comparisons between districts or schools.
DR. TUCK concluded his presentation by answering questions about
the report. He stated that the general framework was correct,
but some of the components needed to be fixed.
ANNOUNCEMENTS
There were no announcements.
COMMITTEE ACTION
The committee took no action.
ADJOURNMENT
There being no further business before the committee, the Joint
Committee on Legislative Budget and Audit meeting was adjourned
at 12:15 p.m.
NOTE: The meeting was recorded and handwritten log notes were
taken. A copy of the tape(s) and log notes may be obtained by
contacting the House Records Office at State Capitol, Room 3,
Juneau, Alaska 99801 (mailing address), (907) 465-2214, and
after adjournment of the second session of the Twenty-Third
Alaska State Legislature this information may be obtained by
contacting the Legislative Reference Library at (907) 465-3808.
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