Legislature(2009 - 2010)CAPITOL 106

03/15/2010 08:00 AM House EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 413 YOUTH ACADEMY FUNDING/REPORT TELECONFERENCED
Moved Out of Committee
<Bill Held Over from 3/12/10>
*+ HB 393 CHARTER/ALTERNATIVE SCHOOL FUNDING TELECONFERENCED
Heard & Held
<Bill Held Over from 3/12/10>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 350 PUBLIC SCHOOL FUNDING: LOCAL CONTRIBUTION TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         March 15, 2010                                                                                         
                           8:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Cathy Engstrom Munoz, Vice Chair                                                                                 
Representative Bryce Edgmon                                                                                                     
Representative Wes Keller                                                                                                       
Representative Peggy Wilson                                                                                                     
Representative Robert L. "Bob" Buch                                                                                             
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 350                                                                                                              
"An Act relating to the local contribution to public school                                                                     
funding; and providing for an effective date."                                                                                  
                                                                                                                                
     - MOVED HB 350 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 413                                                                                                              
"An Act relating to the Alaska Challenge Youth Academy."                                                                        
                                                                                                                                
     - MOVED HB 413 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 393                                                                                                              
"An Act relating to charter school approval and funding."                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 350                                                                                                                  
SHORT TITLE: PUBLIC SCHOOL FUNDING: LOCAL CONTRIBUTION                                                                          
SPONSOR(s): EDUCATION                                                                                                           
                                                                                                                                
02/17/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/10       (H)       EDC, FIN                                                                                               
02/17/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
02/17/10       (H)       <Bill Hearing Rescheduled to 02/19/10>                                                                 
02/19/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
02/19/10       (H)       Heard & Held                                                                                           
02/19/10       (H)       MINUTE(EDC)                                                                                            
02/22/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
02/22/10       (H)       <Bill Hearing Rescheduled to 02/26/10>                                                                 
02/26/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
02/26/10       (H)       Heard & Held                                                                                           
02/26/10       (H)       MINUTE(EDC)                                                                                            
03/03/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/03/10       (H)       Heard & Held                                                                                           
03/03/10       (H)       MINUTE(EDC)                                                                                            
03/10/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/10/10       (H)       Scheduled But Not Heard                                                                                
03/12/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/12/10       (H)       Heard & Held                                                                                           
03/12/10       (H)       MINUTE(EDC)                                                                                            
03/15/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 413                                                                                                                  
SHORT TITLE: YOUTH ACADEMY FUNDING/REPORT                                                                                       
SPONSOR(s): EDUCATION                                                                                                           
                                                                                                                                
03/10/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/10       (H)       EDC, FIN                                                                                               
03/12/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/12/10       (H)       Scheduled But Not Heard                                                                                
03/15/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 393                                                                                                                  
SHORT TITLE: CHARTER/ALTERNATIVE SCHOOL FUNDING                                                                                 
SPONSOR(s): KELLER                                                                                                              
                                                                                                                                
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       EDC, FIN                                                                                               
03/12/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/12/10       (H)       Scheduled But Not Heard                                                                                
03/15/10       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
EDDY JEANS, Director                                                                                                            
School Finance and Facilities Section                                                                                           
Department of Education and Early Development (EED)                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 350 and HB 413.                                                                                                
                                                                                                                                
KATIE KOESTER, Staff                                                                                                            
Representative Paul Seaton                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented HB  413 on  behalf of  the prime                                                             
sponsor,  Representative Seaton,  Chair  of  the House  Education                                                               
Committee.                                                                                                                      
                                                                                                                                
MCHUGH PIERRE, Deputy Commissioner                                                                                              
Chief of Staff                                                                                                                  
Office of the Commissioner/Adjutant General                                                                                     
Department of Military & Veterans' Affairs (DMVA)                                                                               
Ft. Richardson, Alaska                                                                                                          
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 413.                                                                                                           
                                                                                                                                
JIM POUND, Staff                                                                                                                
Representative Wes Keller                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB  393, on behalf prime sponsor,                                                             
Representative Wes Keller,.                                                                                                     
                                                                                                                                
SAM KITO, III, Engineer                                                                                                         
School, Finance, and Facilities Section                                                                                         
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 393.                                                                                                           
                                                                                                                                
KIKI ABRAHAMSON                                                                                                                 
Lead Teacher                                                                                                                    
Fireweed Academy Charter School                                                                                                 
Anchor Point, Alaska                                                                                                            
POSITION STATEMENT:  Testified during the discussion of HB 393.                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:03:40 AM                                                                                                                    
                                                                                                                                
CHAIR PAUL  SEATON called the House  Education Standing Committee                                                             
meeting to order at 8:03 a.m.   Present at the call to order were                                                               
Representatives  Munoz,  Keller,   Edgmon,  Gardner  and  Seaton.                                                               
Representatives Buch and P. Wilson  arrived as the meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
8:03:59 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                              
        HB 350-PUBLIC SCHOOL FUNDING: LOCAL CONTRIBUTION                                                                    
                                                                                                                                
8:04:07 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  first order of business would be                                                               
HOUSE BILL  NO. 350, "An  Act relating to the  local contribution                                                               
to public school funding; and providing for an effective date."                                                                 
                                                                                                                                
8:05:04 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, after  first  determining no  one  else wished  to                                                               
testify, closed public testimony on HB 350.                                                                                     
                                                                                                                                
8:05:38 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  refreshed members on the  purpose of HB 350.   This                                                               
bill  would address  the local  contribution to  the "basic  need                                                               
component,"  which is  funded under  the  foundation formula  for                                                               
school funding.   Under the bill,  the amount of the  "basic need                                                               
component" does  not change,  but the amount  of state  and local                                                               
effort will  change.  He  stated that the bill  effectively would                                                               
provide  differential  tax  relief to  various  school  districts                                                               
across  the state.    Thus,  funds are  removed  from the  school                                                               
education  fund   and  used  for  differential   tax  relief  for                                                               
municipalities.   The goal of HB  350 is to apply  an even method                                                               
of  taxation, one  that is  proportionally fair  and economically                                                               
sustainable by setting a uniform  mill rate at the lowest current                                                               
rate.   The result will be  that a municipality will  not have to                                                               
pay more  than its current local  tax mill rate.   He paraphrased                                                               
from a  portion of the  sponsor statement, which read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Legislation  enacted   in  2001  changed   the  funding                                                                    
     formula  to require  that only  half  of the  increased                                                                    
     current  year's property  value  over  the base  year's                                                                    
     value be  counted.   However it added  this to  a fixed                                                                    
     year (FY  99) to determine  the property value  for the                                                                    
     purposes  of  calculating  required  local  effort  for                                                                    
     education.   Use of  a fixed base  year instead  of the                                                                    
     previous  year to  calculate full  and  true value  and                                                                    
     local  effort  contribution  has   lead  to  a  growing                                                                    
     disparity between districts.                                                                                               
                                                                                                                                
     HB  350  will address  this  problem  by requiring  the                                                                    
     local  contribution   of  a  city  or   borough  school                                                                    
     district to  be derived  from a uniform  rate of  a 2.7                                                                    
     mill  tax  levy on  the  full  and  true value  of  the                                                                    
     taxable property  in the  district as  of January  1 of                                                                    
     the  second  preceding  fiscal year  plus  50%  of  the                                                                    
     increase in value to the following year.                                                                                   
                                                                                                                                
     Under   the  current   formula,   areas  with   growing                                                                    
     populations are  given an ever  greater tax  break than                                                                    
     stable areas.   Districts containing  older communities                                                                    
     are  therefore  required  to   pay  higher  taxes  than                                                                    
     expanding districts.  HB 350  will apply an even method                                                                    
     of  taxation,  one  that  is  proportionally  fair  and                                                                    
     economically sustainable.   It  has set a  uniform mill                                                                    
     rate  at the  lowest  current rate  so no  municipality                                                                    
     will have to  pay more than its current  local tax mill                                                                    
     rate                                                                                                                       
                                                                                                                                
CHAIR SEATON  referred to  a chart  in members'  packets, stating                                                               
that  currently the  state transfers  $77 million  a year  out of                                                               
available money  for education to  municipalities as  tax relief.                                                               
This  does  not change  the  districts'  funding, but  funds  are                                                               
transferred  differentially  to   districts.    The  continuously                                                               
mounting increase in education costs  will result in limiting the                                                               
base student  allocation (BSA) increases.   Most school districts                                                               
support "fixing" this  system before it consumes  a major portion                                                               
of the state's education funds.                                                                                                 
                                                                                                                                
8:09:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER pointed  out  that  the "differential  tax                                                               
relief" has been  perceived as an unfair  allocation to districts                                                               
but was intended to provide  additional funds to school districts                                                               
that are  growing in size.   He referred  to a graph  in members'                                                               
packets titled  "Percent Change is Assessed  Valuation of Taxable                                                               
Property in  the Mat-Su  Borough."  He  explained that  the costs                                                               
increase  with additional  students in  the Mat-Su  Borough.   He                                                               
agreed that "something  may need to be fixed" but  the problem is                                                               
not an  "across the  board" difference in  taxes needed  from the                                                               
local  communities.   The tax  burden  on landowners  is "out  of                                                               
sight."  To  address this issue, the state  provided general fund                                                               
(GF) dollars to local districts that  are increasing in size.  He                                                               
said he  will oppose the  bill since he  does not agree  with the                                                               
approach taken in HB 350 to address the problem.                                                                                
                                                                                                                                
8:11:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON pointed out  that school bonds are being                                                               
voted down.  She remarked  that many students are using temporary                                                               
school  facilities yet  the communities  have  voted down  school                                                               
bonds for new schools.                                                                                                          
                                                                                                                                
8:11:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER requested  further information  on whether                                                               
the Matanuska-Susitna  Borough School  District has  not approved                                                               
school bonds.                                                                                                                   
                                                                                                                                
REPRESENTATIVE P. WILSON related it has  done so in the past, but                                                               
she was unsure what has currently happened.                                                                                     
                                                                                                                                
REPRESENTATIVE   KELLER  maintained   that  his   district  faces                                                               
challenges, noting  it is not  just the lack of  facilities since                                                               
expanding at  the rate  it has  costs money  for teachers  and to                                                               
provide start up costs for schools.                                                                                             
                                                                                                                                
8:12:34 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  stated HB  350 was  constructed to  accommodate the                                                               
growth in the various communities.   This bill would not directly                                                               
affect the mill  rate that is assessed on each  home or business.                                                               
This  bill  does   not  create  a  direct   tax.    Additionally,                                                               
communities also  have the option  to find other  funding sources                                                               
for  education.   Some  districts, such  as  the Kenai  Peninsula                                                               
Borough, have adopted  a sales tax dedicated to  education.  This                                                               
bill  provides a  method of  calculation based  on valuation,  he                                                               
stated.                                                                                                                         
                                                                                                                                
8:13:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ referred to  the handout in members' packets                                                               
titled "Mill Equivalent Change"and noted  that the City of Juneau                                                               
has participated  at 4  mills.   She asked for  the effect  of HB
350, and if it would lower the mill rate to 2.7 mills.                                                                          
                                                                                                                                
CHAIR SEATON agreed  it would lower the mill rate.   He explained                                                               
it would  treat all districts across  the state at the  same mill                                                               
rate.   He referenced  a table in  members' packets  titled "Mill                                                               
Equivalent Change" to indicate the  mill differences.  He further                                                               
explained  that if  a community  grew  substantially since  1999,                                                               
that the  millage rate  would be  at a much  less valuation.   He                                                               
referred  to  Craig,  which  is  still  paying  4  mills  on  its                                                               
valuation,  whereas Saint  Marys increased  its tax  base and  is                                                               
paying 2.7 mills.   He interpreted that communities  that are not                                                               
growing will contribute  a higher portion of the basic  need.  He                                                               
pointed  out  the  impact on  several  districts,  including  his                                                               
district, the Kenai Peninsula Borough, which is set at 3 mills.                                                                 
                                                                                                                                
8:16:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MUNOZ  asked   for   clarification  on   whether                                                               
communities have a choice.                                                                                                      
                                                                                                                                
CHAIR SEATON answered no.  He  elaborated that the basic need for                                                               
education is calculated in the  foundation formula.  The original                                                               
calculation  for local  contribution  was calculated  at 4  mills                                                               
times the assessed valuation.   In 2000, the statute was changed.                                                               
Initially, that  legislation had  a "rolling  look back"  but the                                                               
bill  was amended  to  establish a  "given year"  to  use as  the                                                               
inception  year.   He offered  his belief  that since  the change                                                               
happened late in the session  an unintended consequence happened.                                                               
This bill is to ensure adequate state funding for education.                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  noted that  if  the  committee takes  the                                                               
position that this should be  equitable across the state, has the                                                               
impact for unincorporated boroughs shall  be considered.  He also                                                               
asked if the bill should  contain a requirement for local payment                                                               
since   the   legislature   acts   as  the   school   board   for                                                               
unincorporated boroughs.                                                                                                        
                                                                                                                                
8:19:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON stated that  the overall costs are affected                                                               
by  how  schools are  constructed  and  heated, such  as  whether                                                               
diesel fuel  is used to heat  the school versus natural  gas.  He                                                               
offered to provide the "numbers" for his district.                                                                              
                                                                                                                                
CHAIR SEATON  asked members  to focus on  the specific  issue the                                                               
bill addresses.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER commented  that the  struggle is  with the                                                               
growth  or  the differential  costs  for  operation and  not  the                                                               
diesel costs.                                                                                                                   
                                                                                                                                
8:20:34 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  asked the  department  to  explain how  the  local                                                               
contribution occurs in the unorganized boroughs.                                                                                
                                                                                                                                
8:21:11 AM                                                                                                                    
                                                                                                                                
EDDY  JEANS, Director,  School  Finance  and Facilities  Section,                                                               
Department of  Education and  Early Development  (EED), explained                                                               
that the Regional Education Attendance  Areas (REAAs) do not have                                                               
a  required local  contribution based  on property  values.   The                                                               
REAAs' local contribution is through  the form of the "impact aid                                                               
contribution."   Thus,  the impact  aid  is in  lieu of  property                                                               
taxes paid  by the  federal government for  people who  reside on                                                               
federal lands that are not subject  to taxes.  He offered that he                                                               
would consider the  impact aid as the local  contribution for the                                                               
REAAs.   He pointed out that  some REAA's have more  federal land                                                               
than  others  and  those  with  a  smaller  or  larger  tax  base                                                               
contribute   more  or   less,  accordingly.      He  noted   some                                                               
municipalities  have  a larger  tax  base  than others,  and  are                                                               
required  to  contribute  more   to  support  education.    Those                                                               
municipalities  with a  smaller  tax base  would also  contribute                                                               
less.   The  change  that is  before the  committee  today is  to                                                               
achieve  uniformity  on  the  mill levy  in  the  required  local                                                               
effort.   As Chair Seaton  noted, the basic  education foundation                                                               
formula  calculates the  basic need,  which is  the adjusted  ADM                                                               
multiplied by the base student  allocation (BSA).  Once the basic                                                               
need is established,  "we determine who is going to  pay."  Three                                                               
components are  considered:  required local  contribution, impact                                                               
aid, and state aid.   The required local contribution ranges from                                                               
2.7 mills to 4 mills on  real and personal property values, using                                                               
the schedule previously  referred to by Chair Seaton.   This bill                                                               
would  level the  required local  contribution  from the  current                                                               
mill rate  to 2.7 mills across  the board.  It  does not increase                                                               
the amount of  funding for the foundation formula  program but it                                                               
simply shifts it from who is paying, local versus state.                                                                        
                                                                                                                                
CHAIR SEATON  asked for clarification  on the statement  that the                                                               
amount of funding to a school district would not change.                                                                        
                                                                                                                                
MR,  JEANS  responded that  he  is  referring  to the  amount  of                                                               
funding to a school district via the funding formula.                                                                           
                                                                                                                                
8:23:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  related her  understanding  that  the                                                               
impact aid from the REAAs would not be affected.                                                                                
                                                                                                                                
MR. JEANS responded that the  REAAs are required to contribute 90                                                               
percent of the impact aid that they receive.                                                                                    
                                                                                                                                
8:24:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER asked  whether  the committee  has used  a                                                               
property valuation to  assess how the impact aid  compares to the                                                               
2.7 mill rate under consideration.                                                                                              
                                                                                                                                
MR.  JEANS answered  that property  values  do not  exist in  the                                                               
unorganized areas.  He offered  that the closest comparison would                                                               
be the  per pupil valuation on  the impact aid compared  to local                                                               
effort.   He recalled comparisons  that showed a number  of REAAs                                                               
at  the top  of the  scale that  contribute more  money on  a per                                                               
student basis, through impact aid,  than many municipalities.  He                                                               
noted some REAAs at the bottom  of the scale are not contributing                                                               
much since  not many  people live  on federal  lands.   The range                                                               
varies considerably, he stated.                                                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER stated  that  if the  committee's goal  is                                                               
statewide  uniformity  the committee  will  need  to broaden  its                                                               
scope.                                                                                                                          
                                                                                                                                
8:25:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  asked whether  the impact  aid is  based on                                                               
economic activity on federal lands.                                                                                             
                                                                                                                                
MR. JEANS  answered no, that it  is based on the  land being non-                                                               
taxable land.                                                                                                                   
                                                                                                                                
8:25:46 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked  if the people living  on federal, non-taxable                                                               
land are not taxed by the state.                                                                                                
                                                                                                                                
MR. JEANS  related that  the impact  aid is  for lands  that have                                                               
been  moved from  state tax  rolls due  to some  type of  federal                                                               
intervention.    Thus, lands  conveyed  under  the Alaska  Native                                                               
Claims  Settlement  Act  (ANCSA)   are  non-taxable  lands  until                                                               
developed and the  people living on those  lands generate federal                                                               
impact aid.   Additionally, people  living on military  bases are                                                               
not taxed and also generate federal impact aid.                                                                                 
                                                                                                                                
8:26:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ moved  to report  HB 350  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE KELLER objected.                                                                                                 
                                                                                                                                
8:27:34 AM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Seaton,  Munoz,                                                               
Gardner,  Buch, Edgmon,  and Wilson  voted  in favor  of HB  350.                                                               
Representative Keller  voted against it.   Therefore, HB  350 was                                                               
reported out of the House  Education Standing Committee by a vote                                                               
of 6-1.                                                                                                                         
                                                                                                                                
8:28:27 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
              HB 413-YOUTH ACADEMY FUNDING/REPORT                                                                           
                                                                                                                                
8:28:34 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced  that the next order of  business would be                                                               
HOUSE  BILL NO.  413, "An  Act relating  to the  Alaska Challenge                                                               
Youth Academy."                                                                                                                 
                                                                                                                                
8:28:49 AM                                                                                                                    
                                                                                                                                
KATIE KOESTER,  Staff, Representative  Paul Seaton,  Alaska State                                                               
Legislature,  paraphrasing  from  a prepared  sponsor  statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     The  Alaska Challenge  Youth Academy  is a  residential                                                                    
     high  school  for  students who  have  dropped  out  of                                                                    
     regular school.  The Academy  is highly successful with                                                                    
     a  70%  graduation  rate and  works  closely  with  the                                                                    
     National  Guard following  a  strict  model that  gives                                                                    
     students  structure, challenge,  and  discipline.   The                                                                    
     Academy is located in Anchorage  and has two sessions a                                                                    
     year where students  live on campus for  5 months while                                                                    
     going  through  the  rigorous   program.    After  they                                                                    
     graduate  from the  program, staff  continues to  track                                                                    
     their behavior  through a mentorship  program. Students                                                                    
     are  considered a  success if  a year  after graduation                                                                    
     they  are  enrolled  in a  postsecondary  program,  the                                                                    
     military, or in full time employment.                                                                                      
                                                                                                                                
     Funding  for   the  Academy  is  based   the  following                                                                    
     formula:  7 times  the  Base  Student Allocation  (BSA)                                                                    
     times all  residential students plus  .6 times  the BSA                                                                    
     times all non-residential students.   When this formula                                                                    
     was constructed  in 2002 it reflected  the dollars they                                                                    
     needed to operate.  However,  as the BSA has grown over                                                                    
     the  years   to  cover   retirement  costs   and  other                                                                    
     increases in education this has  resulted in a windfall                                                                    
     and is  no longer  reflective of the  true cost  of the                                                                    
     program.                                                                                                                   
                                                                                                                                
     HB 413 would  set a per child amount  for state dollars                                                                    
     in statute, $11,990 and multiply  that by the number of                                                                    
     residential  and   non-residential  students  enrolled.                                                                    
     The Academy  and the Department of  Education and Early                                                                    
     Development both agree this  would give them sufficient                                                                    
     dollars  to  run  the  program.     Under  HB  413  the                                                                    
     projected  total state  dollars they  would receive  in                                                                    
     fiscal year  2011 would be approximately  $5.2 million,                                                                    
     within  $300 of  the amount  they would  get under  the                                                                    
     current formula.   Alaska  Military Youth  Academy also                                                                    
     receives  separate federal  funds that  supplement this                                                                    
     amount ($2.7 million for FY2011).                                                                                          
                                                                                                                                
     The  Academy is  a valuable  alternative that  requires                                                                    
     higher  funding as  a residential  program for  at-risk                                                                    
     youth than  other boarding schools.   HB 413 identifies                                                                    
     an  appropriate  and  transparent   way  to  fund  this                                                                    
     important educational institution.                                                                                       
                                                                                                                                
8:30:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked whether  the allocation for the Alaska                                                               
Military Youth Academy (Academy) would  be adjusted if the BSA is                                                               
adjusted in the future.                                                                                                         
                                                                                                                                
MS. KOESTER  answered that the  legislature would need  to change                                                               
statute if the BSA rate is adjusted.                                                                                            
                                                                                                                                
8:31:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  recalled the legislature has  been trying                                                               
to avoid  "locking in" rates  in other  bills and works  to allow                                                               
flexibility for  funding changes.   She asked  how the  figure of                                                               
$11,990 was determined.                                                                                                         
                                                                                                                                
MS. KOESTER  responded that the  figure was based on  seven times                                                               
the BSA for  FY 11 and divided  by the number of  students at the                                                               
Academy.                                                                                                                        
                                                                                                                                
8:32:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  for  the  reason that  statute  change  is                                                               
necessary if the $11,990 is close to the BSA amount.                                                                            
                                                                                                                                
MS. KOESTER replied  that establishing a fixed  number is statute                                                               
is  more   reflective  of  the  actual   services  received,  but                                                               
maintains the  allocation through  the foundation  formula, which                                                               
allows for automatic contributions from the department.                                                                         
                                                                                                                                
8:33:25 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  added that  the question which  has arisen  is that                                                               
the base student allocation increases  and the academy receives a                                                               
seven  times multiplier  to calculate  the state's  contribution.                                                               
Additionally,  the  program  receives  a  substantial  amount  of                                                               
federal funding.  He explained the  desire to keep the program in                                                               
the realm of education instead of  moving it to the Department of                                                               
Military & Veterans' Affairs.   This maintains the program in the                                                               
Department of Education and Early Development.                                                                                  
                                                                                                                                
8:35:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BUCH asked  how  many  times funding  adjustments                                                               
have been requested for this program.                                                                                           
                                                                                                                                
MS. KOESTER answered  that since the inception of  the program in                                                               
2002, that this is the first  request for a funding adjustment to                                                               
the program.                                                                                                                    
                                                                                                                                
8:36:14 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON opened public testimony on HB 413.                                                                                 
                                                                                                                                
8:36:20 AM                                                                                                                    
                                                                                                                                
MCHUGH  PIERRE, Deputy  Commissioner, Chief  of Staff,  Office of                                                               
the  Commissioner/Adjutant  General,  Department  of  Military  &                                                               
Veterans' Affairs (DMVA),  said HB 413 is a priority  of the DMVA                                                               
and the department supports this  bill.  The AMYA was established                                                               
in 1996 and the formula  for the current funding structure, seven                                                               
times  the  BSA, was  established  in  2002.   He  reported  that                                                               
previously  40 to  50 cadets  graduated  per class  and with  the                                                               
funding formula increase the number  of cadets increased to about                                                               
100 cadets per class.   Due to the $2500 increase  in the BSA the                                                               
DMVA received  a substantial increase  and it has  become evident                                                               
that the  amount received  from the  state was  in excess  of the                                                               
need.   He  stated the  department supports  the change  the bill                                                               
makes.  The  bill would "freeze" the $11,990  per student figure.                                                               
He offered his  belief that if the AMYA  needs additional funding                                                               
the legislature will  respond appropriately.  He  stated that the                                                               
BSA was increased to cover  some of the Teacher Retirement System                                                               
(TRS) obligation.  The DMVA decided  to offset some of the Public                                                               
Employee  Retirement System  (PERS) costs.   While  the DMVA  has                                                               
used  the  funding  appropriately, sufficient  funding  has  been                                                               
received  to meet  cadet needs.   He  explained that  the federal                                                               
funding is provided based on  benchmarks.  He anticipated federal                                                               
funding will  continue to  increase as the  program expands.   He                                                               
reported  that the  AMYA  is  one of  the  best  programs in  the                                                               
nation, in part, due to the state contributions to the program.                                                                 
                                                                                                                                
8:39:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BUCH  asked for the  number of times  between 1996                                                               
and 2002  that the DMVA has  asked for funding increases  for the                                                               
AMYA.                                                                                                                           
                                                                                                                                
MR. PIERRE  indicated that he  was not  certain.  He  stated that                                                               
any  department requests  for additional  funding have  been made                                                               
based on an increase the number of cadets in the program.                                                                       
                                                                                                                                
MR. JEANS clarified  that HB 413 would remove the  direct link to                                                               
the  BSA and  place  a "per  student" amount  in  statute in  the                                                               
amount of  $11,990.  He said  that the AMYA will  need to justify                                                               
further increase requests.                                                                                                      
                                                                                                                                
8:41:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked how the  funding for the AMYA compares                                                               
to  other  residential programs,  such  as  Mount Edgecumbe  High                                                               
School.                                                                                                                         
                                                                                                                                
MR. JEANS  responded that it  is comparable overall.   He offered                                                               
that the AMYA has a  component that other residential programs do                                                               
not  currently  have, which  is  the  "student tracking"  for  an                                                               
additional year.                                                                                                                
                                                                                                                                
CHAIR SEATON  asked whether he  was indicating the  state funding                                                               
or the federal funding for the AMYA.                                                                                            
                                                                                                                                
MR. JEANS clarified that the  state funding is comparable to what                                                               
is provided for Mt. Edgecumbe,  Nenana Academy of Higher Learning                                                               
(NAHL) and Galena Interior Learning Academy (GILA).                                                                             
                                                                                                                                
8:42:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER asked for  clarification on whether Nenana                                                               
and Galena also receive federal funding.                                                                                        
                                                                                                                                
MR. JEANS answered  no, they do not.  He  explained that Nenana's                                                               
NAHL and Galena's GILA obtain  their educational funding from the                                                               
foundation program.   Several years  ago, the  legislature passed                                                               
"boarding   school  funding"   so   the   schools  receive   some                                                               
residential funding.   Mt. Edgecumbe  High School is  operated by                                                               
the  state   and  receives  instructional  funding   through  the                                                               
foundation program and their residential  component is within the                                                               
Department of Education and Early Development (DEED).                                                                           
                                                                                                                                
8:42:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked for  the rationale for  funding the                                                               
AMYA differently than the other programs in the state.                                                                          
                                                                                                                                
MR.  JEANS explained  that the  AMYA is  not part  of the  public                                                               
school system,  but is operated by  the DMVA.  In  2002, the DMVA                                                               
asked for a funding formula to  support them in a fashion similar                                                               
to  public schools,  including the  residential  facilities.   At                                                               
that time  the DEED  developed the formula  and increases  to the                                                               
BSA were targeted  for specific reasons.  The  big increases came                                                               
from the  increases to  the PERS  and Teachers  Retirement System                                                               
(TRS) contributions.   The  TRS increased at  a rate  much higher                                                               
than the  PERS rate.   Thus,  increases in the  BSA were  made to                                                               
help districts offset  the additional costs.   The DMVA employees                                                               
are PERS employees  so their rate of  contribution was increasing                                                               
at a  smaller rate.  This  did not necessarily equate  to needing                                                               
seven times BSA multiplier each time  the BSA was increased..  He                                                               
noted that the AMYA funding has  been highlighted for a number of                                                               
years during the  budget process and the funding  for the program                                                               
contained in HB 413 is a "little simpler" method.                                                                               
                                                                                                                                
8:44:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BUCH   inquired  as   to  whether   the  tracking                                                               
mechanism of students is a useful tool for the DMVA.                                                                            
                                                                                                                                
MR. JEANS answered yes.                                                                                                         
                                                                                                                                
REPRESENTATIVE BUCH related  that post-graduation information has                                                               
been identified  as valuable information.   He asked  whether the                                                               
legislature  might  consider  expanding  the  tracking  to  other                                                               
student programs in the future.                                                                                                 
                                                                                                                                
8:45:38 AM                                                                                                                    
                                                                                                                                
MR.  JEANS stated  that  the unique  student  identifier in  K-12                                                               
education  will   become  a  means  for   tracking  throughout  a                                                               
student's career,  including trend analysis.   He stated  that it                                                               
may also apply to pre-Kindergarten programs, as well.                                                                           
                                                                                                                                
8:46:42 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, after  first  determining no  one  else wished  to                                                               
testify, closed public testimony on HB 413.                                                                                     
                                                                                                                                
8:47:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ moved  to report  HB 413  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 413 was reported  from the                                                               
House Education Standing Committee.                                                                                             
                                                                                                                                
                                                                                                                                
           HB 393-CHARTER/ALTERNATIVE SCHOOL FUNDING                                                                        
                                                                                                                                
8:47:37 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  final order of business would be                                                               
HOUSE BILL NO.  393, "An Act relating to  charter school approval                                                               
and funding."                                                                                                                   
                                                                                                                                
8:48:16 AM                                                                                                                    
                                                                                                                                
JIM  POUND,  Staff,  Representative   Wes  Keller,  Alaska  State                                                               
Legislature,  paraphrasing  from  a prepared  sponsor  statement,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Over  the  years,   this  legislature  has  continually                                                                    
     searched  for answers  to improve  the  quality of  the                                                                    
     education our  children receive. We have  promoted both                                                                    
     verbally  and financially  many  ideas.  Some of  those                                                                    
     have worked while others have failed.                                                                                      
                                                                                                                                
     One  area   that  continues  to   show  promise   in  a                                                                    
     traditional  classroom  scenario are  charter  schools.                                                                    
     Charter  Schools  succeed  because of  efforts  by  the                                                                    
     school district,  principals, teachers,  and especially                                                                    
     parents. This  team effort has  proven to  be extremely                                                                    
     effective.                                                                                                                 
                                                                                                                                
     House Bill  393 will continue  to show our  support for                                                                    
     these  successful  education  programs  by  creating  a                                                                    
     grant program  within the  Department of  Education for                                                                    
     charter   school   construction,    leases   or   major                                                                    
     maintenance.  The Department  will create  a five  year                                                                    
     program  of   grants  based   on  existing   per  pupil                                                                    
     formulas.  The legislature  will  be able  to gage  the                                                                    
     success  of  the  program  annually  by  reviewing  and                                                                    
     providing the necessary funding.                                                                                           
                                                                                                                                
     HB 393 rewards  the success of the  program by allowing                                                                    
     more  school districts  to  open  and maintain  charter                                                                    
     schools.  Your  support will  ensure  that  one of  the                                                                    
     successful education  programs we  have approved  of in                                                                    
     the past will continue to prosper.                                                                                         
                                                                                                                                
MR.  POUND  indicated  that  HB  393  would  assist  charter                                                                    
schools  in   obtaining  federal   grants,  by   ending  the                                                                    
restriction  on the  number of  charter schools.   It  would                                                                    
provide  for   a  Supplemental  Charter   School  Facilities                                                                    
Program, through a combination  of federal and state grants,                                                                    
charter schools would be able to apply for state grants.                                                                        
                                                                                                                                
8:50:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked for clarification.   She asked for the                                                               
specific cite in  HB 393 that removes the limit  on the number of                                                               
charter schools.                                                                                                                
                                                                                                                                
MR. POUND referred to page 1, lines 6-9, of Section 1 of HB 393.                                                                
                                                                                                                                
8:50:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  referred  to  the  percentage  of  funding                                                               
allowances for  federal funding and  asked if the intent  is that                                                               
the local district be required to fund the balance.                                                                             
                                                                                                                                
MR. POUND  related that HB  393 would set  up a program  in which                                                               
the Department  of Education and  Early Development  (DEED) would                                                               
apply to  the federal grant  program, which would  be cultivated,                                                               
and the local district would apply for grant funds.                                                                             
                                                                                                                                
8:51:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  noted the  school would  be eligible  for a                                                               
percentage of allowable costs.   She asked which entity would pay                                                               
the additional percentage of costs to make the project viable.                                                                  
                                                                                                                                
MR.  POUND  related  his  understanding  that  the  local  school                                                               
district would pick up the additional costs.                                                                                    
                                                                                                                                
8:51:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER remarked that the  intent is to establish a                                                               
policy  that demonstrates  the  state has  a  vested interest  in                                                               
obtaining  facilities  for  charter   schools.    The  cap  seems                                                               
insignificant  to him,  he  stated.   The  Alaska Charter  School                                                               
Association  (ACSA) asked  the state  to make  a contribution  of                                                               
state funds  to charter  schools in order  to meet  federal grant                                                               
eligibility requirements.   If the charter  schools receive $1.00                                                               
per  student per  year, it  would cost  approximately $1,000  per                                                               
year.   That  amount represents  minimal state  funding with  the                                                               
balance to be picked up by the local school district.                                                                           
                                                                                                                                
REPRESENTATIVE  MUNOZ expressed  concern that  there would  be no                                                               
guarantee that a charter school would receive local support.                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER agreed.    He commented  that  there is  a                                                               
companion bill in the other  body.  Additionally, charter schools                                                               
are public schools  with an option for local bonding.   He agreed                                                               
that funding is difficult in some districts.                                                                                    
                                                                                                                                
8:54:21 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON read from page 2, line 2, which read as follows:                                                                   
                                                                                                                                
     (b) The department shall apply for available federal                                                                       
     funding and award federal funding made available under                                                                     
     the grant program established under (a) of this                                                                            
     section for not more than five years for approved                                                                          
     projects for charter school facilities construction,                                                                       
     lease, or major maintenance as follows:                                                                                    
                                                                                                                                
CHAIR SEATON also referred to page 2, line 10, which read,                                                                      
"(3) 60 percent of the allowable costs for the third fiscal                                                                     
year for the approved project;."  He said that in the third                                                                     
year, 60 percent of the allowable costs would be absorbed                                                                       
by the community.  He then referred to page 2, lines 19-22,                                                                     
which read:                                                                                                                     
                                                                                                                                
     (d)  A school  district or  regional educational  attendance                                                               
     area  that submits  an application  for  a proposed  project                                                               
     under AS  14.11.011 for funding  under this section  that is                                                               
     approved  for  funding by  the  department  shall provide  a                                                               
     participating share that is equal to the difference between                                                                
     available federal funding and the state aid provided under                                                                 
     AS 14.11.126.                                                                                                              
                                                                                                                                
CHAIR SEATON interpreted  that to mean the  school district would                                                               
absorb 40 percent  of the cost and the next  year would absorb 60                                                               
percent of  the cost.   He  clarified that  the funds  would come                                                               
from the  school district for  construction project,  which would                                                               
"bypass  the vote  of  the  people in  the  district."   Thus,  a                                                               
municipality could  take on a  significant funding  liability for                                                               
building  new schools  and the  voters would  not decide  if they                                                               
want  to  assume  the  bonding   authority.    He  asked  for  an                                                               
explanation.                                                                                                                    
                                                                                                                                
8:56:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER   stated  that  the  assumption   is  that                                                               
construction project would  be happening.  The link  to the local                                                               
voters  is "very  real." He  pointed  out that  the school  board                                                               
would approve any construction project.   He interpreted that the                                                               
intent of the language is  not to obligate a district, community,                                                               
or a borough  to pay for a construction project.   He stated that                                                               
if the  community decides  to build a  charter school,  this bill                                                               
would provide the  structure.  The intent is to  "leave the state                                                               
harmless:  and ensure  that the  state  general fund  is not  the                                                               
funding source,  unless the  legislature decides to  do so."   He                                                               
related that in  every district the participation will  vary.  He                                                               
offered his  view that his  district would be very  supportive of                                                               
building charter schools; in fact,  his district has already done                                                               
so since as a "nice facility" exists in Palmer.                                                                                 
                                                                                                                                
8:57:58 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  said  he  understood the  bill's  intent,  but  in                                                               
reviewing  page 2,  lines 19-23,  he related  that it  stipulates                                                               
that   the  school   district  or   the  REAA   will  provide   a                                                               
participating  share  that is  equal  to  the difference  between                                                               
available federal funding and the  state aid provided.  Under the                                                               
bill, the  school district  would be 100  percent liable  for the                                                               
project and in  the third year would be liable  for 60 percent of                                                               
the cost; and  in the fourth year would be  liable for 80 percent                                                               
of the cost.   He stated that this bill  provides a mechanism for                                                               
the school district  to circumvent the will of  the people, since                                                               
it will  not require a  vote.  He remarked  that this may  not be                                                               
the sponsor's intent.                                                                                                           
                                                                                                                                
REPRESENTATIVE  KELLER offered  that  HB 393  applies to  charter                                                               
schools,  which  operate on  a  contract  with the  local  school                                                               
district, but are also public  schools.  Charter schools exist in                                                               
the "good graces" of the school district, he stated.                                                                            
                                                                                                                                
MR. POUND  offered that  essentially the intent  is to  "get them                                                               
going."                                                                                                                         
                                                                                                                                
8:59:58 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  emphasized  that  he is  not  speaking  about  the                                                               
intention, which  is understood.   However, the bill  may require                                                               
amendments  to clarify  who will  own  the building  and will  be                                                               
responsible  for the  funding to  build the  charter school.   He                                                               
underscored that the bill's language must support the intent.                                                                   
                                                                                                                                
REPRESENTATIVE  KELLER  responded  that the  community  would  be                                                               
liable for a building that it agrees to build.                                                                                  
                                                                                                                                
CHAIR SEATON  maintained that under  the structure of HB  393 the                                                               
municipality is  not required to vote  to adopt bonds to  build a                                                               
school  facility.    He  referred   to  page  2,  line  2,  which                                                               
stipulates  that  the  department  "shall"  apply  for  available                                                               
federal funding.   He  surmised that the  district is  liable for                                                               
the funds, but  the building would be owned  by the municipality.                                                               
He suggested  that perhaps there  is another way to  analyze this                                                               
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  KELLER offered  to  examine  the provisions  more                                                               
closely and try to provide a more definitive answer.                                                                            
                                                                                                                                
9:02:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked  what would happen if  a federal grant                                                               
covered  100 per  cent  of the  cost.   She  thought the  current                                                               
language seems to be limiting.                                                                                                  
                                                                                                                                
REPRESENTATIVE KELLER  offered his belief  that the program  is a                                                               
statewide  program, so  if  one charter  school  is fortunate  to                                                               
receive 100  percent federal funding, funds  would be distributed                                                               
among other districts.                                                                                                          
                                                                                                                                
REPRESENTATIVE MUNOZ  suggested insertion  of "pursuant  to local                                                               
support"  somewhere  in  the paragraphs  that  pertain  to  local                                                               
participation.                                                                                                                  
                                                                                                                                
9:03:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER referred to page 2, line 4, and read:                                                                    
                                                                                                                                
     (b) The  department shall  apply for  available federal                                                                    
     funding and award federal  funding made available under                                                                    
     the  grant  program  established   under  (a)  of  this                                                                    
     section  for  not more  than  five  years for  approved                                                                    
     projects  for charter  school facilities  construction,                                                                    
     lease, or major maintenance ..."                                                                                           
                                                                                                                                
REPRESENTATIVE  GARDNER asked  what  mechanism would  be used  to                                                               
approve the projects.                                                                                                           
                                                                                                                                
9:04:04 AM                                                                                                                    
                                                                                                                                
MR.  POUND answered  that "approved  projects" would  be a  local                                                               
decision.    However,  a  local school  district  or  REAA  would                                                               
determine the  approval requirements for  a charter school.   The                                                               
state does  not normally establish  the requirements  for charter                                                               
schools, he stated.                                                                                                             
                                                                                                                                
REPRESENTATIVE  GARDNER asked  whether  an automatic  application                                                               
would be  made for a building  to house a charter  school that is                                                               
approved by the local district.                                                                                                 
                                                                                                                                
MR.  POUND  responded  that  there   is  no  requirement  for  an                                                               
automatic  application   from  the   district,  since   only  the                                                               
department is required to apply for  federal funding.  He said it                                                               
is  up to  the  school  district to  decide  whether  to make  an                                                               
application.  He said, "We're  not forcing the districts to apply                                                               
for this."                                                                                                                      
                                                                                                                                
9:04:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked for  the  mechanism  that a  local                                                               
community  or a  school  district would  use  to determine  which                                                               
charter schools would apply for the funding.                                                                                    
                                                                                                                                
MR.  POUND  answered  that  no   rules  would  apply  as  to  the                                                               
disbursement of  funds.  He  surmised that  it may be  covered in                                                               
the grant.  It said, "It's  strictly up to the local district how                                                               
and which charter schools they want to apply money to."                                                                         
                                                                                                                                
REPRESENTATIVE  GARDNER related  that some  charter schools  have                                                               
satisfactory  buildings,  some  do  not,  and  there  must  be  a                                                               
mechanism to make that decision.                                                                                                
                                                                                                                                
REPRESENTATIVE  KELLER related  that typically  a charter  school                                                               
operates  under  a  contract  with  the  local  school  district,                                                               
including  for   its  facilities.    Many   charter  schools  may                                                               
experience minimal space issues.   The decision would be made via                                                               
the local  decisions in the  community at the local  school board                                                               
level.                                                                                                                          
                                                                                                                                
9:07:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  recalled  having  helped  form  a  charter                                                               
school and  said it is  an arduous process.   She agreed it  is a                                                               
contract between the  charter school and the  school district and                                                               
must also be  approved by the Board of Education.   She said that                                                               
the  federal  awards are  not  limited  by  a percentage  of  the                                                               
project.   Thus, she asked  why the  bill limits the  granting of                                                               
the awards.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KELLER   replied  that  he  has   had  a  similar                                                               
question.   He related  that he  has been  working to  mirror the                                                               
language in  the companion bill.   He  also had questions  on the                                                               
fiscal  note  since  the bill  requires  $1.00  contribution  per                                                               
student per  year, yet  it translates to  $150,000 in  the fiscal                                                               
note.  He deferred to the department to answer her question.                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ stated  that based on her  experience in the                                                               
past, the  charter schools' facilities  have been paid  for using                                                               
the BSA.   She pointed  out the  difficulty it poses  for charter                                                               
schools to  pay for  the facility in  addition to  the curriculum                                                               
strictly  using  the BSA.    She  said,  "I really  support  this                                                               
legislation.  I think you are on  the right track, but I do think                                                               
there are some opportunities to make it even better."                                                                           
                                                                                                                                
9:09:24 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON referred to page 2,  line 21.  The language on lines                                                               
19-25 read, as follows:                                                                                                         
                                                                                                                                
     (d)  A school  district or  regional educational  attendance                                                               
     area  that submits  an application  for  a proposed  project                                                               
     under AS  14.11.011 for funding  under this section  that is                                                               
     approved  for  funding by  the  department  shall provide  a                                                               
     participating share that is equal  to the difference between                                                               
     available federal  funding and the state  aid provided under                                                               
     AS 14.11.126.  Allowable costs for a  project approved under                                                               
     this section  shall be based  on the adjusted  student count                                                               
     for a  charter school  calculated under AS  14.17.450(a) and                                                               
     (c), as determined by the commissioner.                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  again deferred  to  the  department.   He                                                               
interpreted that the  department makes its decisions  on where to                                                               
distribute the  funds in the  program, but  that the DEED  is not                                                               
providing  approval  for  a construction  project.    The  DEED's                                                               
decision is whether the department  is "sending the money" to the                                                               
district.                                                                                                                       
                                                                                                                                
9:10:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON referred to  page 2, line 30, which read                                                               
as follows, "...amount that is not  less than one dollar for each                                                               
pupil  enrolled  in the  charter  school."    She asked  if  that                                                               
language is to obtain the federal grant.                                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER   answered  yes.    He   stated  that  the                                                               
eligibility  requires  that  the  local school  district  have  a                                                               
specific statute that establishes a  charter school program.  The                                                               
intent of this  bill is to provide access to  federal funds.  The                                                               
Alaska  Charter School  Association determined  that its  charter                                                               
schools are not  eligible for federal funds since  the program is                                                               
not  established  by  statute.   This  bill  would  address  that                                                               
matter.                                                                                                                         
                                                                                                                                
9:12:05 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  whether  the state  needs to  set  up a  BSA                                                               
formula for  charter school students  or if the  school districts                                                               
are  allowed to  have a  separate allocation  for charter  school                                                               
students within their districts.                                                                                                
                                                                                                                                
REPRESENTATIVE KELLER related his  understanding that the federal                                                               
requirement is  for a state  program to support  charter schools,                                                               
in statute,  but is not connected  to the BSA.   He restated that                                                               
the  state statute  must  have a  program  for assisting  charter                                                               
schools to obtain facilities.                                                                                                   
                                                                                                                                
CHAIR SEATON  said that  this would establish  a new  per student                                                               
allocation specifically  for every charter school  student, which                                                               
is basically a BSA.  He pointed  out the amount could be $500 per                                                               
student or  any amount.   He offered his  view that the  $1.00 is                                                               
merely a place holder.  The  intent of the federal requirement is                                                               
to direct more funding to charter school students, he stated.                                                                   
                                                                                                                                
REPRESENTATIVE KELLER  responded that is  it is "per  student" in                                                               
the sense  of what  the state contributes,  and not  a guarantee.                                                               
The  funding  is  designated  to a  program  that  would  provide                                                               
facilities  for  charter  schools.   The  dollar  figure  is  per                                                               
student, but is a merely a means  to achieve the funding.  He was                                                               
not certain if the requirement is based on federal regulations.                                                                 
                                                                                                                                
CHAIR SEATON  suggested the  questions are  merely placed  on the                                                               
table for  consideration.   He understood this  bill is  based on                                                               
language contained in a companion bill.                                                                                         
                                                                                                                                
REPRESENTATIVE KELLER said he appreciated the questions.                                                                        
                                                                                                                                
9:15:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER related  her  understanding that  charter                                                               
schools  often struggle  to  stay  open.   She  asked what  would                                                               
happen if  a charter school  received funding, built  a building,                                                               
and then  the charter school  was dismantled.  In  that scenario,                                                               
the respective school district would  have a building that it may                                                               
not have be able to use since the charter school was dissolved.                                                                 
                                                                                                                                
REPRESENTATIVE KELLER  offered his  belief those issues  would be                                                               
part of the  contract and the district would own  the building as                                                               
an asset.                                                                                                                       
                                                                                                                                
9:16:19 AM                                                                                                                    
                                                                                                                                
SAM  KITO,   III,  Engineer,  School,  Finance,   and  Facilities                                                               
Section, Department  of Education  and Early  Development, stated                                                               
that  the EED  has done  some research  on charter  schools.   He                                                               
reported that that federal legislation  passed several years ago,                                                               
which was funded  at a small level for charter  schools.  Indiana                                                               
and California applied and received  funding.  The past two years                                                               
the program was  not funded, but there has  been renewed interest                                                               
with  the  American  Recovery  and  Reinvestment  Act  (ARRA)  to                                                               
encourage development  of facilities  for charter  schools, which                                                               
has resulted in renewed interest in  the program.  The process is                                                               
that  states apply  to the  federal government  for participation                                                               
and based on  the competitive responses, the  schools are granted                                                               
funding.    The  Congress  has  not  currently  appropriated  any                                                               
additional funding  for this program.   However, the applications                                                               
are handled  in a  competitive manner.   One scoring  criteria is                                                               
the level  of per student  funding related to facilities.   While                                                               
per  student   funding  in   HB  393   would  meet   the  federal                                                               
requirement,  it does  not necessarily  meet the  intent.   Thus,                                                               
since  Alaska would  compete  with other  states,  the $1.00  per                                                               
student  may not  help the  application score  particularly high.                                                               
Once the  federal application is granted,  a "stair-step" process                                                               
is used,  beginning with a  90 percent  level of funding  for the                                                               
first year.   The intent  is for  the federal government  to help                                                               
stair-step a facilities funding  program for charter schools, but                                                               
funding is uncertain, he stated.                                                                                                
                                                                                                                                
9:20:15 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  related the intended  purpose of the  federal funds                                                               
is  to "ramp  up"  a state  facilities program  based  on a  "per                                                               
student" cost and other factors,  including a per student funding                                                               
for charter schools.  It  is likely that the administration would                                                               
need  to  demonstrate  the  state is  initiating  a  program  for                                                               
charter school  facilities.  The  state needs federal  funding to                                                               
establish the state's program.                                                                                                  
                                                                                                                                
MR. KITO agreed.                                                                                                                
                                                                                                                                
REPRESENTATIVE  KELLER clarified  that the  federal intent  is to                                                               
"ramp up"  a facilities program for  the states.  He  related his                                                               
understanding  of  the federal  intent  was  to provide  start-up                                                               
costs for schools.                                                                                                              
                                                                                                                                
9:21:46 AM                                                                                                                    
                                                                                                                                
MR.  KITO  responded  that  it   is  for  "ramping  up"  a  state                                                               
facilities program.   He explained that the state  has not scored                                                               
well on  the two  components the state  uses to  obtain operating                                                               
funds for  charter schools.  This  is not addressed in  the bill.                                                               
The department  expresses concern on  whether these items  can be                                                               
effectively  implemented  in  the  state.    First,  the  charter                                                               
schools  are administered  under  the  local education  agencies.                                                               
The competitive process requires that  the charter schools have a                                                               
statewide  appeals  process  if  the local  education  agency  is                                                               
responsible  for  establishing  charter   schools;  or  that  the                                                               
charter schools are administered  through a statewide program and                                                               
not through the local education agencies.                                                                                       
                                                                                                                                
9:23:19 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked whether the  reason that some states  are not                                                               
eligible for  operating costs is  that their charter  schools are                                                               
administered by the local school district.                                                                                      
                                                                                                                                
MR. KITO answered that is correct.   He explained that Alaska has                                                               
been  applying for  federal funding  through the  federal charter                                                               
school program  for operational funding.   Alaska has  not scored                                                               
well  enough to  receive those  funds, but  the state  does apply                                                               
each year.                                                                                                                      
                                                                                                                                
CHAIR SEATON stated that the  federal government is attempting to                                                               
leverage state regulation and state  operation of charter schools                                                               
via  grant qualifications  as opposed  to having  charter schools                                                               
under local control.                                                                                                            
                                                                                                                                
MR. KITO agreed.                                                                                                                
                                                                                                                                
9:24:17 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON recapped  that the federal program  requires a state                                                               
appeals process be in place to  conduct appeals in the event that                                                               
a local district turns down a local charter school application.                                                                 
                                                                                                                                
MR. KITO replied  that is correct.  In further  response to Chair                                                               
Seaton, he  agreed to  provide the  application criteria  for the                                                               
committee to review.                                                                                                            
                                                                                                                                
MR.  JEANS  responded that  the  specific  criteria will  not  be                                                               
outlined  in  the  scoring  rubric.    However,  in  the  federal                                                               
comments it  is quite apparent that  a state will score  very low                                                               
unless it has  a separate appeals board to  allow charter schools                                                               
to appeal  the local education  agency decisions.   Additionally,                                                               
this  is  not  limited  to state  charter  schools,  but  charter                                                               
schools could operate independent of  local school districts.  He                                                               
reported that  Alaska has a  cap of 60 in  our state, and  due to                                                               
that cap, the  state scores low.  These three  areas are ways the                                                               
federal  government  asserts  its   agenda  via  the  application                                                               
process  for charter  school  funding.   In  further response  to                                                               
Chair Seaton, he offered to provide copies to the committee.                                                                    
                                                                                                                                
9:27:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  offered his  belief  that  there is  some                                                               
confusion.   He explained that  the criteria that "we  don't live                                                               
up to"  in our charter  school statutes does not  relate directly                                                               
to the  facilities being  built.  The  operating grants  have not                                                               
been  granted  to Alaska  and  the  applications are  scored  low                                                               
because the  federal government  does not  view the  structure as                                                               
appropriate  for "a  good charter  school."   He  viewed this  as                                                               
"mixing  apples and  oranges".   He  said he  supports having  an                                                               
appeal process for  approval for initiating a  charter school but                                                               
it is not a requirement for the facilities grant.                                                                               
                                                                                                                                
MR. KITO offered his understanding  that some overlap exists, but                                                               
to be  competitive the state  must meet the criteria  for charter                                                               
school operations.                                                                                                              
                                                                                                                                
CHAIR SEATON suggested that it  will be helpful for the committee                                                               
to receive the information.                                                                                                     
                                                                                                                                
9:29:59 AM                                                                                                                    
                                                                                                                                
MR. KITO, in response to P.  Wilson, answered that it is not that                                                               
the charter schools  must be stand alone  facilities, but charter                                                               
schools must  exercise financial  independence and  control their                                                               
own curriculum.                                                                                                                 
                                                                                                                                
9:30:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  offered  her  belief  that  the  topic  is                                                               
broader  since  the  federal  law touches  on  hiring  and  other                                                               
things.                                                                                                                         
                                                                                                                                
MR. JEANS  cautioned the committee  that these  requirements will                                                               
not be  indicated in the  federal regulations or law,  but rather                                                               
it  is a  policy  issue.   These  policy  requests  come via  the                                                               
evaluation  of  the  state  applications  of  the  federal  grant                                                               
program for  charter schools.   Thus, these  items appear  in the                                                               
evaluator's scoring  sheets and  Alaska receives very  low scores                                                               
due to the  lack of components the federal  government would like                                                               
to  see in  charter  school  legislation.   This  equates to  the                                                               
federal policy asserted via the grant process, he stated.                                                                       
                                                                                                                                
9:31:56 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if  the process  is similar  to "Race  to the                                                             
Top."                                                                                                                         
                                                                                                                              
MR. JEANS agreed the process is similar.                                                                                        
                                                                                                                                
9:32:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER commented that  the issues on evaluation of                                                               
charter  schools  began  some  time  ago.   The  reason  for  the                                                               
requirements is the  success of the charter school  students.  He                                                               
acknowledged that Alaska does score  low in the federal review of                                                               
states'  charter  school governance.    However,  he offered  his                                                               
belief that  the standards  arise from  the associations  and not                                                               
the federal  government.  He  asked for further  clarification of                                                               
the $150,000 appropriation request.                                                                                             
                                                                                                                                
9:33:53 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON clarified that a fiscal  note does not appear in the                                                               
packet.                                                                                                                         
                                                                                                                                
REPRESENTATIVE KELLER asked  why there is not a  fiscal note from                                                               
the DEED.                                                                                                                       
                                                                                                                                
MR.  KITO  responded  that  a  fiscal note  was  prepared  as  an                                                               
identical  fiscal note  to  the one  provided  for the  companion                                                               
bill.                                                                                                                           
                                                                                                                                
CHAIR SEATON related the fiscal note will be distributed.                                                                       
                                                                                                                                
MR. KITO explained  that the fiscal note for HB  393 is identical                                                               
to the  one prepared for the  companion bill.  The  fiscal impact                                                               
is based  on the actual cost  of administering the program.   The                                                               
federal funding is  based on the state's  program being approved.                                                               
The state's program would need  to take into consideration all of                                                               
the  items   in  the  bill,   but  would   also  need  to   be  a                                                               
prioritization program.   Thus, currently  the state has  a grant                                                               
program and  a funding program for  debt.  If the  state receives                                                               
applications from charter schools  for facilities the state would                                                               
need to establish a program  for prioritizing those projects.  He                                                               
said it  is not  anticipated that the  state will  receive enough                                                               
federal, state,  or local  funding for all  the projects.   Thus,                                                               
the  state  would  need  to   develop  a  program  to  prioritize                                                               
applications for facilities projects.                                                                                           
                                                                                                                                
9:36:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER pointed out  that the fiscal note indicates                                                               
$150,000 but  the Charter School Association  is not anticipating                                                               
receiving  this much.   He  said  he thought  that 1.5  employees                                                               
seemed  high.     When  the  original   charter  school  enabling                                                               
legislation  passed, there  was a  fulltime position  approved to                                                               
work in EED as an advocate  for charter schools.  That person has                                                               
had performed duties beyond the charter school responsibilities.                                                                
                                                                                                                                
MR.  KITO  explained that  he  reviewed  the current  program  to                                                               
manage debt projects,  which he thought was over  $100 million in                                                               
grant  projects annually.    This grant  program  and grant  debt                                                               
function  is administered  by 3  of 4  of the  DEED's staff.   He                                                               
anticipated  that  based on  the  anticipated  number of  charter                                                               
school  applications by  the DEED,  the cost  would be  about $20                                                               
million for one  project.  He discussed  the prior administration                                                               
of  federal grants  with other  staff and  determined at  least a                                                               
fulltime person would  be needed to administer  the program, plus                                                               
clerical work, and arrived at 1.5  positions.  He pointed out the                                                               
necessity  to   meet  reporting   requirements  to   the  federal                                                               
government.  He wanted to  ensure appropriate staff was available                                                               
to   administer   the   state's   grant   program,   he   stated.                                                               
Additionally,  after the  program terminates  in five  years, the                                                               
grants are active and the length  of time included "the wind down                                                               
process"  to close  out  the  grants.   However,  staff would  be                                                               
required for one to two years beyond the program completion.                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  requested a report on  the fulltime person                                                               
that has  been functioning  as the charter  school advocate.   He                                                               
recalled  the person  had other  duties.   An  accounting of  the                                                               
positions  function  would be  helpful  for  the committee.    He                                                               
expressed  disappointment that  the  position  may be  performing                                                               
other projects.                                                                                                                 
                                                                                                                                
CHAIR SEATON appreciated  his comments.  He  clarified the intent                                                               
of the  new grant  program delineated  in HB  393.   He suggested                                                               
that this relates back to the  fiscal note, but he wanted to stay                                                               
on track.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KELLER related  his intent is to  "reason with the                                                               
department" and negotiate a smaller fiscal impact.                                                                              
                                                                                                                                
9:42:29 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  stated it  is a  reasonable and  relevant question.                                                               
It is  useful to know  the time  the DEED spends  on prioritizing                                                               
maintenance  of  its  grants.    Additionally,  this  bill  would                                                               
require a  priority list for  statewide grant applicants  and for                                                               
leasing, which  would need to  be discussed.   He did  not recall                                                               
the DEED currently  having a grant leasing program in  place.  He                                                               
suggested that  the duties of  the new position might  be "rolled                                                               
into"  the  existing  position,   although  he  acknowledged  the                                                               
position might be totally different.                                                                                            
                                                                                                                                
MR.  KITO offered  to  provide  a report  on  the charter  school                                                               
position.                                                                                                                       
                                                                                                                                
9:44:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON referred  to  an  article in  members'                                                               
packets  that  indicated some  objections  from  the home  school                                                               
community.  She asked for input from that segment.                                                                              
                                                                                                                                
REPRESENTATIVE EDGMON  asked for  a position from  the Department                                                               
of Education and Early Development (DEED).                                                                                      
                                                                                                                                
MR. KITO  stated the DEED does  not currently have a  position on                                                               
the bill.                                                                                                                       
                                                                                                                                
9:45:18 AM                                                                                                                    
                                                                                                                                
MR.  KITO  explained that  if  the  legislature decides  to  move                                                               
forward with  this bill,  the goal  would be  to craft  a program                                                               
that will work  throughout the state.   Additionally, the program                                                               
should be stable,  since this program is only  effective for five                                                               
years and is contingent on the federal program participation.                                                                   
                                                                                                                                
9:45:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  asked how  many students are  being served                                                               
in  the 25  charter  schools in  Alaska  and whether  introducing                                                               
additional  schools  to  compete for  scare  educational  dollars                                                               
would result.                                                                                                                   
                                                                                                                                
MR. KITO  answered at  this time there  are 2,500  charter school                                                               
students and are housed in 24 independent facilities.                                                                           
                                                                                                                                
CHAIR SEATON suggested  a summary report on  the existing charter                                                               
schools.                                                                                                                        
                                                                                                                                
MR. KITO agreed.                                                                                                                
                                                                                                                                
REPRESENTATIVE  GARDNER  asked the  report  to  also include  the                                                               
number of  charter schools that  were created but are  not longer                                                               
operational.                                                                                                                    
                                                                                                                                
9:47:23 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  asked  how  the   facilities  will  be  owned  and                                                               
operated, such as  by the school district  or the municipalities.                                                               
He asked  whether this  would establish  a new  classification of                                                               
ownership.                                                                                                                      
                                                                                                                                
9:48:18 AM                                                                                                                    
                                                                                                                                
MR.  KITO  answered  that the  charter  school  facilities  would                                                               
operate  in  a fashion  similar  to  the current  charter  school                                                               
operation.   The DEED currently  requires that a  school district                                                               
must  have adequate  interest  in a  facility  to receive  public                                                               
funding.   He  described a  scenario in  which a  leased facility                                                               
would be improved by public dollars  and the lease lapsed.  Thus,                                                               
a  greatly improved  building  would be  returned  to the  owner.                                                               
Additionally, use of federal funds  could require an agreement to                                                               
grant assurances, which require the  facility be operated for the                                                               
public's interest  for a  certain period of  time.   He expressed                                                               
concern that  if a charter school  was built and no  longer used,                                                               
that the  facility would  need to  be used  or maintained  by the                                                               
school district until  the grant assurance expired.   He recalled                                                               
a similar experience in rural Alaska on a school facility.                                                                      
                                                                                                                                
MR.  KITO, in  response to  Chair Seaton,  explained that  twenty                                                               
years has been the norm for grant assurances.                                                                                   
                                                                                                                                
CHAIR  SEATON related  that in  the Homer  district, the  charter                                                               
school is  not in a school  facility.  He asked  whether it would                                                               
be the  school district  and not the  municipality that  would be                                                               
affected.                                                                                                                       
                                                                                                                                
MR.  KITO explained  that the  school district  receives adequate                                                               
title  interest, but  it can  be a  facility that  is owned  by a                                                               
municipality, although  an agreement must exist  between the two.                                                               
The  DEED considers  ownership by  the  municipality as  adequate                                                               
title interest, he stated.                                                                                                      
                                                                                                                                
CHAIR  SEATON   asked  whether  HB   393  would  allow   for  the                                                               
construction of  a school, including assuming  liability, without                                                               
a  vote of  the people.   He  inquired as  to whether  this would                                                               
violate the requirements for incurring general obligation bonds.                                                                
                                                                                                                                
MR.  KITO said  he was  unsure.   He offered  his belief  that by                                                               
submitting  an application,  the  school  district is  obligating                                                               
itself to  the future  expense.   However, he  further understood                                                               
that  subject to  the regulation  process, the  application would                                                               
need to  indicate the  support of the  local Board  of Education.                                                               
This is  similar to how the  Board of Education approves  the six                                                               
year  plan for  the DEED's  grant program.   Thus,  the Board  of                                                               
Education  would acknowledge  it is  applying for  charter school                                                               
funding.  He  stated the application would be  clear and indicate                                                               
the  potential  school  district's  liability in  regard  to  the                                                               
program.                                                                                                                        
                                                                                                                                
9:52:55 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON   asked  if  the   facilities  are  owned   by  the                                                               
municipality, does HB  393 allow for the school  district to make                                                               
application, without being  subject to voter approval.   He asked                                                               
whether the DEED has considered this issue.                                                                                     
                                                                                                                                
MR. KITO  stated that  he has  not evaluated  that issue  and was                                                               
unsure of  how to  approach that  issue.  He  said that  he would                                                               
"take a look" at it.                                                                                                            
                                                                                                                                
CHAIR  SEATON pointed  out  that  is an  area  of  the bill  that                                                               
requires clarification  from the  Legislative Legal  Services, or                                                               
Department of  Law.   He said  he knew it  was not  the sponsor's                                                               
intention to disenfranchise  voters.  He said he did  not want to                                                               
have  an   unintended  consequence.    He   related  that  school                                                               
districts want bonds  but the voters do not  always approve them.                                                               
He stated  that the application  would initiate  several "shalls"                                                               
on the DEED and indicate an obligation that is unclear.                                                                         
                                                                                                                                
9:54:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  asked for clarification on  the $1,000 per                                                               
year, based on the 2,500 students in charter schools.                                                                           
                                                                                                                                
MR.  KITO  estimated  that  40   percent  of  the  schools  would                                                               
participate in the program based on his own intuition.                                                                          
                                                                                                                                
9:56:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  highlighted that the advocates  for HB 393                                                               
consider this to be a modest request.                                                                                           
                                                                                                                                
9:56:35 AM                                                                                                                    
                                                                                                                                
KIKI ABRAHAMSON,  Lead Teacher, Fireweed Academy  Charter School,                                                               
stated  she is  also a  former  president of  the Alaska  Charter                                                               
School Association.   She indicated  her understanding  that only                                                               
three  charter schools  have closed  their doors  in the  past 14                                                               
years.  She said  she did not think that more  than 40 percent of                                                               
schools  would apply  for this  funding.   Many existing  schools                                                               
have already established support  in their communities, including                                                               
adequate facilities,  through their  school boards.   She thought                                                               
that  the Matanuska-Susitna  Borough and  Anchorage may  not have                                                               
adequate facilities  and would likely  apply for the funds.   She                                                               
recalled  an  evaluation  of charter  school  law  that  outlined                                                               
criteria.  She reported that Alaska  has been "at the bottom" but                                                               
she disagreed that  the federal government is  pushing its agenda                                                               
via the  grant program.   However, she  did think that  the state                                                               
scores  so low  that  it  indicates the  state  does not  support                                                               
charter schools at a level  acceptable to the federal government.                                                               
She related  that charter  schools must meet  or exceed  the test                                                               
scores and  academic progress  of all schools  in the  state, but                                                               
have the handicap of lacking funding and access to facilities.                                                                  
She offered to provide further information to the committee.                                                                    
                                                                                                                                
10:00:28 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON welcomed further submission of information.  [HB
393 was held over.]                                                                                                             
                                                                                                                                
10:00:50 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Education Standing Committee meeting was adjourned at 10:00 a.m.                                                                

Document Name Date/Time Subjects
HB 393 Sponsor Statement.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HEDC 3/24/2010 8:00:00 AM
HEDC 3/29/2010 8:00:00 AM
HEDC 3/31/2010 8:00:00 AM
HB 393
HB 393 Charter School statutes.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HEDC 3/24/2010 8:00:00 AM
HB 393
back up AMYA.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 413
HB413-EED-ESS-3-10-10.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 413
sponsor statment HB413.docx HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 413
HB 393 Charter School Background.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HEDC 3/24/2010 8:00:00 AM
HB 393
Support ltr fed dir.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 393
Per pupil fac aid.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 393
Fed Funding.pdf HEDC 3/15/2010 8:00:00 AM
HB 393
Discret Grants.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 393
AK Grade 10.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HEDC 3/29/2010 8:00:00 AM
HB 393
Support public.pdf HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HEDC 3/31/2010 8:00:00 AM
HB 393
FY02-11LocalEffortAssessed&educationWithMills-2Pager_10-22-09.xlsx HEDC 2/19/2010 8:00:00 AM
HEDC 3/3/2010 8:00:00 AM
HEDC 3/10/2010 8:00:00 AM
HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 350
HB350-EED-ESS-2-18-10.pdf HEDC 2/19/2010 8:00:00 AM
HEDC 3/3/2010 8:00:00 AM
HEDC 3/10/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 350
current program flow chart.docx HEDC 3/3/2010 8:00:00 AM
HEDC 3/10/2010 8:00:00 AM
HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 350
Sponsor Statement HB 350.doc HEDC 3/12/2010 8:00:00 AM
HEDC 3/15/2010 8:00:00 AM
HB 350