Legislature(2015 - 2016)CAPITOL 106

02/02/2015 08:00 AM House EDUCATION


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08:05:49 AM Start
08:07:05 AM Presentation: Role of the State Board of Education and Department of Education and Early Development Federal Grant Programs and Corresponding Mandates
10:02:35 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentations: TELECONFERENCED
"Role of the State Board of Education" &
"Federal Grant Programs & Corresponding Mandate"
by Mike Hanley, Commissioner & Susan McCauley,
Director, Teaching & Learning Support, Dept. of
Education & Early Development
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                        February 2, 2015                                                                                        
                           8:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Wes Keller, Chair                                                                                                
Representative Lora Reinbold, Vice Chair                                                                                        
Representative Liz Vazquez                                                                                                      
Representative Harriet Drummond                                                                                                 
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Jim Colver                                                                                                       
Representative Paul Seaton                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION:  ROLE OF THE STATE BOARD OF EDUCATION AND                                                                         
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT FEDERAL GRANT                                                                     
PROGRAMS AND CORRESPONDING MANDATES                                                                                             
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MIKE HANLEY, Commissioner                                                                                                       
Department of Education and Early Development (EED)                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Assisted in the EED presentation, and                                                                    
responded to questions.                                                                                                         
                                                                                                                                
SUSAN MCCAULEY, PhD, Director                                                                                                   
Teaching and Learning Support                                                                                                   
Department of Education and Early Development (EED)                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Assisted in the EED presentation, and                                                                    
responded to questions.                                                                                                         
                                                                                                                                
PAUL PRUSSING, Deputy Director                                                                                                  
Teaching and Learning Support                                                                                                   
Department of Education and Early Development (EED)                                                                             
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Responded  to questions  during  the  EED                                                             
presentation.                                                                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:05:49 AM                                                                                                                    
                                                                                                                                
CHAIR  WES KELLER  called the  House Health  and Social  Services                                                             
Standing Committee meeting to order at  8:05 a.m.  Present at the                                                               
call  to  order  were Representatives  Seaton,  Vazquez,  Colver,                                                               
Reinbold,  Kreiss-Tomkins, and  Keller.   Representative Drummond                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
^PRESENTATION:    ROLE  OF  THE  STATE  BOARD  OF  EDUCATION  AND                                                               
DEPARTMENT  OF  EDUCATION  AND EARLY  DEVELOPMENT  FEDERAL  GRANT                                                               
PROGRAMS AND CORRESPONDING MANDATES                                                                                             
    PRESENTATION:  ROLE OF THE STATE BOARD OF EDUCATION AND                                                                 
  DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT FEDERAL GRANT                                                               
              PROGRAMS AND CORRESPONDING MANDATES                                                                           
                                                                                                                              
8:07:05 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER announced  that the  only order  of business  today                                                               
would  be a  presentation from  the Department  of Education  and                                                               
Early  Childhood Development  addressing  the role  of the  State                                                               
Board  of  Education  and  Department   of  Education  and  Early                                                               
Development federal grant programs and corresponding mandates.                                                                  
                                                                                                                                
8:08:28 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER,  following some  housekeeping measures,  asked each                                                               
committee  members  to  introduce   themselves  and  include  the                                                               
district  they  represent,  as   well  as  personal  interest  in                                                               
education and  to mention  any history they  may have  of working                                                               
with  the committee  in  past legislatures.    [All members  took                                                               
turns complying with Chair  Keller's request, save Representative                                                               
Drummond,  who arrived  while the  meeting was  in progress.   In                                                               
order   of  comment:     Representative   Seaton,  Representative                                                               
Vazquez,   Representative    Reinbold,   Representative   Colver,                                                               
Representative Kreiss-Tomkins, and Chair Keller finished.]                                                                      
                                                                                                                                
8:15:43 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER mentioned  the Moore,  et al.  v. State  of Alaska,                                                             
3AN-04-9756   CI,  (2010),   decision   as   the  vehicle   which                                                               
underscored  the  legislature's  role  of  oversight  for  public                                                               
education in  the State of  Alaska.   Federal money has  a direct                                                               
effect on  the state  system, and it  is important  to understand                                                               
these effects when applied to the  context of the budget, as well                                                               
as  the  classroom.   He  recalled  that the  federal  government                                                               
provides  two  thirds of  the  departments  funding, as  recently                                                               
reported in  an education sub-committee.   The  budgetary sources                                                               
are  necessary  to  understand  in   order  to  ensure  that  the                                                               
legislature's intent,  goals, and mission to  provide and improve                                                               
the  public  education  system   can  be  appropriately  met,  he                                                               
stressed.                                                                                                                       
                                                                                                                                
8:18:28 AM                                                                                                                    
                                                                                                                                
MIKE  HANLEY, Commissioner,  Department  of  Education and  Early                                                               
Development  (EED),   described  the  structure  of   the  Alaska                                                               
Department of  Education and Early  Development (EED),  as unique                                                               
among  state  agencies  by  being  subordinate  to  the  governor                                                               
appointed  State  Board  of  Education.    He  clarified  federal                                                               
receipts account  for two thirds  of the funding for  the agency;                                                               
however, that  does not translate  to two thirds of  the employee                                                               
costs, as  many of the  funds are directed to  specific programs.                                                               
Returning  to the  uniqueness  of the  flow  chart structure,  he                                                               
pointed  out  that  the  commissioner  is not  the  head  of  the                                                               
department; a position  held by the State Board  of Education and                                                               
Early  Development.   The board  is comprised  of seven  members,                                                               
representing  the four  judicial  districts.   Three members  are                                                               
appointed  at  large, with  at  least  one representing  a  Rural                                                               
Education  Attendance Area  (REAA).   No  more than  four of  the                                                               
members can be of the same  party as the governor.  Board members                                                               
are appointed by  the governor and confirmed  by the legislature,                                                               
and serve at  the pleasure of the governor.   Directing attention                                                               
to the  committee handout, titled:   "House  Education Committee,                                                               
Role of the State Board of  Education & Department of Education &                                                               
Early  Development  Federal   grant  Programs  and  Corresponding                                                               
Mandates," he indicated the five  EED divisions directly overseen                                                               
by  the commissioner's  office.   Three additional  divisions are                                                               
structured  within   the  department;  however,   these  specific                                                               
divisions  operate with  a level  of autonomy  as council  to the                                                               
department  under  the  oversight  of  separate  boards.    These                                                               
divisions are:   the Professional Teaching  Practices Commission,                                                               
charged with  ensuring integrity within the  teaching profession;                                                               
the Alaska State  Council on the Arts; and  the Alaska Commission                                                               
on  Postsecondary  Education,   which  oversees  state  sponsored                                                               
student  loans   and  administers  the   performance  scholarship                                                               
program.                                                                                                                        
                                                                                                                                
8:21:35 AM                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY spoke  specifically on the role  of the State                                                               
Board  of Education  and Early  Development,  and identified  the                                                               
board's  six major  tasks.   One:   Appoint  the Commissioner  of                                                               
Education,  who is  then  subject to  approval  by the  governor.                                                               
Two:   Promulgate  regulations  for  implementation of  statutes.                                                               
When a bill  is signed into law, the  commissioner's office works                                                               
with  the  State of  Alaska  Department  of  Law (DOL)  to  draft                                                               
regulations  for submission  to the  board, following  the public                                                               
comment period  and review by  the legislative  regulatory review                                                               
committee.   Three:  Approve  charter schools and  state boarding                                                               
schools.   Four:   Compile and  deliver an  annual report  to the                                                               
legislature.   Five:  Set  graduation requirements.  Six:   Adopt                                                               
the bylaws for overall management of EED.                                                                                       
                                                                                                                                
8:24:32 AM                                                                                                                    
                                                                                                                                
COMMISSIONER   HANLEY   indicated   that  the   duties   of   the                                                               
Commissioner of Education are established  under AS14.07.145.  He                                                               
restated that he is appointed by,  and serves at the pleasure of,                                                               
the State  Board of Education, and  the governor.  The  duties of                                                               
commissioner   include:     oversight  of   all  EED   personnel;                                                               
establishment  of vision  and direction  for state  education, as                                                               
guided  by  the  state  board; representing  the  governor  as  a                                                               
cabinet member; and  working with the legislature  to promote the                                                               
governor's  priorities and  assist  with legislative  priorities.                                                               
Expanding on the topic of vision  and direction, he said the goal                                                               
is to ensure that a student  not only graduates, but crosses that                                                               
benchmark  threshold  prepared  for  the  next  stages  of  life.                                                               
Statutorily  it is  stated that  the purpose  of education  is to                                                               
make sure that our students  can be successful in their continued                                                               
education and work.                                                                                                             
                                                                                                                                
8:26:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON   inquired   whether  the   three   named                                                               
commissions, which  act as council, also  promulgate regulations,                                                               
and, if so,  are the regulations also subject to  approval by the                                                               
state board.                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY  responded that  any regulation,  which might                                                               
be proposed  by one of  the councils,  would be forwarded  to the                                                               
commissioner's   office   and   follow  the   previously   stated                                                               
structural procedures.                                                                                                          
                                                                                                                                
8:26:43 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER acknowledged  that  the commission  answers to  two                                                               
bosses.   Further,  as stated,  the commissioner  establishes the                                                               
goals  and directions  for  the  department.   He  asked how  the                                                               
governor influences the  short term annual goals  and purposes of                                                               
education, as  opposed to  the legislature  and the  state board.                                                               
Additionally, when  the state board  reports to  the legislature,                                                               
it  seems it  will be  the year  in review,  and he  asked if  an                                                               
aspect of  the report will  contain future goals and  purposes in                                                               
the same context.                                                                                                               
                                                                                                                                
COMMISSIONER HANLEY responded that  the voluntary school board is                                                               
appointed  by  the  governor.    The  board  in  turn  hires  the                                                               
commissioner   to  be   the  principle   executive  officer;   an                                                               
individual who  is relied  upon to move  forward with  the vision                                                               
for the department.  The  appointed board members expect that the                                                               
commissioner  will  work closely  with  the  legislature and  the                                                               
governor.  However,  a level of autonomy is  allowed the position                                                               
of  the  commissioner,  as  a fulltime  employee.    He  provided                                                               
examples  of  how  this is  accomplished  through  the  quarterly                                                               
meetings  of the  board, as  well as  occasional teleconferences.                                                               
Certainly,  he  assured,  direction  is  sought  from  the  board                                                               
whenever a questionable situation arises.                                                                                       
                                                                                                                                
CHAIR KELLER  asked whether the  board and governor  meet outside                                                               
of the  quarterly meetings.   He also asked the  commissioner if,                                                               
anytime during his  tenure, he has witnessed  tension between the                                                               
board and the governor over pending issues or the process.                                                                      
                                                                                                                                
COMMISSIONER  HANLEY said  he could  not  recall any  significant                                                               
tension,  although board  members have  exhibited some  amount of                                                               
wrestling, no  direct conflict has  occurred between  members and                                                               
the governor.   The board  meets annually with the  governor, and                                                               
may choose to  weigh in on regulatory questions  at the quarterly                                                               
meetings.                                                                                                                       
                                                                                                                                
CHAIR  KELLER  inquired how  other  states  handle governance  of                                                               
education.    He observed  that  it  appears the  governor  holds                                                               
primary sway  in Alaska  and questioned  the amount  of authority                                                               
held by that positon.                                                                                                           
                                                                                                                                
COMMISSIONER HANLEY  responded that  the governor's  opinion does                                                               
carry weight, and said it is  up to the individual politician how                                                               
they  choose  to address  and  direct  EED.   Other  states  have                                                               
different structures.  He estimated  that about 50 percent of the                                                               
states elect  a commissioner of  education who then heads  up the                                                               
state's educational agency.                                                                                                     
                                                                                                                                
8:35:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD asked how many are employed at EED.                                                                     
                                                                                                                                
COMMISSIOENR  HANLEY said  about  126 employees  are required  to                                                               
facilitate  the  direct,  daily   functions  of  the  department;                                                               
however,  overall,   considering  the  number  of   division  and                                                               
department structure  components, a  total of  360 administrative                                                               
employees exist.   Just  under 100  of these  are members  of the                                                               
Alaska Commission  on Postsecondary  Education, 55  are employees                                                               
staffing the Mount  Edgecumbe Boarding School, and  a number also                                                               
work for Libraries, Archives, and Museums.                                                                                      
                                                                                                                                
REPRESENTATIVE REINBOLD followed up to state:                                                                                   
                                                                                                                                
     Well, on this slide it says that you set the direction                                                                     
     and vision for the department, but not for the entire                                                                      
     State of Alaska.  Is that correct?                                                                                         
                                                                                                                                
COMMISSIONER HANLEY responded, "That's correct."                                                                                
                                                                                                                                
8:36:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COLVER  inquired   how   many  employees   staff                                                               
postsecondary education.                                                                                                        
                                                                                                                                
COMMISSIONER HANLEY approximated 91-92.                                                                                         
                                                                                                                                
REPRESENTATIVE  COLVER  asked   whether  postsecondary  has  seen                                                               
substantial growth.                                                                                                             
                                                                                                                                
COMMISSIONER  HANLEY  deferred to  comment  on  the growth  rate;                                                               
however,  he said  although it  is  a third  of the  size of  the                                                               
entire department  it does not  utilize general funds  but rather                                                               
operates under receipts.                                                                                                        
                                                                                                                                
REPRESENTATIVE COLVER expressed concern  over the number of staff                                                               
in the commission  versus the K-12 program,  which represents the                                                               
second largest budget component in Alaska.                                                                                      
                                                                                                                                
COMMISSIONER  HANLEY   agreed  to  provide   further  information                                                               
regarding the growth and functions of the commission.                                                                           
                                                                                                                                
8:37:48 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER   stressed  the  importance   to  have   a  working                                                               
comprehension  of the  statute  and  regulation requirements,  in                                                               
order to take  the best approach for funding education.   He said                                                               
legislators are  striving to understand  the effect of  the money                                                               
being  spent on  the education  system, as  it now  exists.   The                                                               
federal  government provides  money  to the  state, however,  the                                                               
funds are  attached to  goals, which  are often  dated.   How the                                                               
money effects  supervision of education and  educational results,                                                               
requires exploration, he finished.                                                                                              
                                                                                                                                
8:39:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON inquired  about the  vision and  direction                                                               
held  by   the  commissioner  position,  and   whether  there  is                                                               
alignment  with  those  of  the  state  board,  as  well  as  the                                                               
governor.   He noted that  independently established  goals could                                                               
place the agency at odds.                                                                                                       
                                                                                                                                
COMMISSIONER HANLEY assured  the committee that the  goals of the                                                               
three  entities  are  aligned and  operating  effectively.    The                                                               
states  that have  elected commissioners  may have  not have  the                                                               
same accord.   He added that,  on a personal level,  he considers                                                               
it  important, and  effective to  work together  with the  board,                                                               
governor, and legislature.                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON agreed,  and said that a  divide of visions                                                               
would cause a disparity.                                                                                                        
                                                                                                                                
8:40:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ asked when he was appointed.                                                                             
                                                                                                                                
COMMISSIONER HANLEY  answered that  the State Board  of Education                                                               
put his  name forward in 2010,  and he was sworn  in, by Governor                                                               
Sean Parnell, in February 2011.   Most recently he was reapproved                                                               
by Governor Walker and will be sworn in later this month.                                                                       
                                                                                                                                
REPRESENTATIVE  VAZQUEZ   asked  what  have  been   the  two  top                                                               
priorities,  during  his  tenure,  and  how  has  the  department                                                               
accomplished those goals.                                                                                                       
                                                                                                                                
COMMISSIONER  HANLEY  recalled  that  he  conducted  a  statewide                                                               
assessment of the  education situation, upon taking  office.  The                                                               
findings indicated  that a  large number  of Alaskan  high school                                                               
graduates  required  remedial   classes  when  entering  college;                                                               
employers were  hiring outside of  the state  due to the  lack of                                                               
qualified   in-state   workers;   and  potential   armed   forces                                                               
candidates  were  failing the  qualification  exam.   Given  this                                                               
information, he  determined that  status quo  was not  an option.                                                               
Removal   of   educational   barriers,  expansion   of   learning                                                               
opportunities,  and  an  increase   of  the  vision  for  student                                                               
learning  were  identified  goals.     In  2012,  a  new  set  of                                                               
educational standards were established.   During the process, old                                                               
baggage was reviewed  and some items eliminated.   The TerraNova®                                                               
assessment  was  eliminated, while  still  retaining  a means  to                                                               
maintain important  data on fifth  and seventh graders.   A model                                                               
for   variable   boarding   school  schedules   was   cultivated.                                                               
Expanding on  that, he explained  that boarding  school schedules                                                               
generally require  either a one or  a four year commitment.   The                                                               
variable model  allows for shorter, intensive  courses, which are                                                               
especially  beneficial  for  small,   rural  schools  to  provide                                                               
students  a means  for gaining  instruction that  otherwise would                                                               
not be  available.  These two  actions are good examples  of what                                                               
the department  has accomplished to better  prepare students, and                                                               
remove obstacles for enhanced learning.                                                                                         
                                                                                                                                
8:45:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  what occurs  when  local  school                                                               
board  agendas conflict  with departmental  directives; does  the                                                               
commissioner's office  have the authority to  withhold funding in                                                               
order to constrict local control.                                                                                               
                                                                                                                                
COMMISSIONER  HANLEY  said  that there  are  sometimes  conflicts                                                               
among  educational  stakeholders,  which the  department  follows                                                               
because, if a local school board  were in violation of the law, a                                                               
state level reaction  would be required.   Withholding funding is                                                               
an  option,  but not  the  approach  that the  administration  he                                                               
serves would choose to take.   Improvement of education could not                                                               
be served by withholding financial  support, he opined, but there                                                               
is a responsibility  to ensure legal compliance.   To a follow-up                                                               
question,  he responded  that he  would not  willingly allow  the                                                               
department  to operate  outside of  the  law.   Oversight of  his                                                               
position, by  the governor's office  and state board, as  well as                                                               
the   legislature,  ensures   EED's  adherence   and  appropriate                                                               
interpretation of the statutes.                                                                                                 
                                                                                                                                
8:48:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  inquired  about  the  number  of  school                                                               
districts in Alaska.                                                                                                            
                                                                                                                                
COMMISSIONER HANLEY reported 53  districts; 54 with the inclusion                                                               
of Mount Edgecumbe.                                                                                                             
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  requested  a   list  of  the  districts,                                                               
including attendance numbers.                                                                                                   
                                                                                                                                
CHAIR KELLER  offered that the  EED website  is a good  source of                                                               
basic information  and pointed out  that it includes the  size of                                                               
each school.                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY  added that over  100 schools have  less than                                                               
100 students.                                                                                                                   
                                                                                                                                
8:49:03 AM                                                                                                                    
                                                                                                                                
CHAIR  KELLER  underscored  that  the committee  will  be  making                                                               
budgetary  choices and  must keep  in  mind the  need to  provide                                                               
appropriate, adequate funding  to ensure the best  education.  He                                                               
reviewed  how,  after  a  law   is  passed,  the  regulation  for                                                               
enactment  is handled  through the  department.   The legislators                                                               
are blind  to the facet of  the process in which  the regulations                                                               
are  drafted, reviewed  by legal  authority and  approved by  the                                                               
governor.  He observed that  the structural, department flowchart                                                               
does not include the governor.                                                                                                  
                                                                                                                                
8:51:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ  asked what the general  funds totaled for                                                               
EED in FY14.                                                                                                                    
                                                                                                                                
COMMISSIONER HANLEY agreed to provide the information.                                                                          
                                                                                                                                
REPRESENTATIVE  VAZQUEZ asked  what  efficiencies the  department                                                               
might take given the current fiscal outlook.                                                                                    
                                                                                                                                
COMMISSIONER  HANLEY  responded  that   the  FY15  agency  budget                                                               
represents a 6.6  percent reduction over FY14;  the agency budget                                                               
has been decreased  the last couple of years.   Interestingly, he                                                               
pointed out, the balance that  the agency carries represents only                                                               
about 5 percent  of the total budget, which is  also supported by                                                               
federal  receipts.    Further,  95   percent  of  the  budget  is                                                               
distributed via grants  to the local districts,  which are relied                                                               
upon to identify and comply  with efficiency requirements.  Thus,                                                               
the  department  identifies  and implements  internal  efficiency                                                               
measures and school  districts are called on  to respond locally.                                                               
To  a follow-up,  he opined  that, although  a third  eye can  at                                                               
times  be  helpful, a  view  from  a  distance  may not  be  well                                                               
informed or be in keeping with  the context of a given situation.                                                               
With  that, he  declined  to conjecture  on  how districts  might                                                               
affect efficiencies.                                                                                                            
                                                                                                                                
REPRESENTATIVE VAZQUEZ asked whether  the department is routinely                                                               
audited, and inquired about federal  receipts and distribution of                                                               
general funds.                                                                                                                  
                                                                                                                                
COMMISSIONER HANLEY replied that  EED undergoes and annual audit.                                                               
Further, districts  have significant flexibility  for expenditure                                                               
of funds, he explained; however,  a primary restriction is for 70                                                               
percent of the  funds to be designated  for instruction purposes,                                                               
which could include teacher salaries  and classroom supplies.  To                                                               
a follow-up, he agreed to  provide a more complete definition for                                                               
what is included under "instruction."                                                                                           
                                                                                                                                
8:56:28 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER inquired whether  anticipated legislation is pending                                                               
from the governor's office.                                                                                                     
                                                                                                                                
COMMISSIONER  HANLEY  answered  that  he  is  not  aware  of  any                                                               
governor sponsored bills, thus far.                                                                                             
                                                                                                                                
8:57:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  how many  districts hold  waivers                                                               
for the 70 percent requirement.                                                                                                 
                                                                                                                                
COMMISSIONER HANLEY, on request of  the chair, expanded on the 70                                                               
percent restriction, stating  that it is in place  to ensure that                                                               
funds are used for learning/instruction  items that have a direct                                                               
impact on  the student.   He established that waivers  are issued                                                               
to  districts  with  small  populations,  where  meeting  the  70                                                               
percent  requirement is  difficult due  to the  local economy  of                                                               
scale.  He estimated that  15-25 districts operate under a waiver                                                               
to  the  70:30  requirement.     When  a  waiver  application  is                                                               
received,  the  EED  staff work  with  the  district's  financial                                                               
advisors  to review  the  efforts  made towards,  as  well as  to                                                               
elicit,  compliance.   Typically, he  said, these  districts have                                                               
fixed costs  to meet, and,  with perhaps only 10-20  students, it                                                               
is impossible to comply with the rule.                                                                                          
                                                                                                                                
REPRESENTATIVE REINBOLD  noted that EED received  $100 million in                                                               
extra  funds for  [the FY14-15]  school year.   In  addition, the                                                               
number of reported  positions for FY14 were 333,  with a breakout                                                               
of 300  teachers and 30 EED  staff.  Today, she  recalled, it has                                                               
been reported  that EED counts  360 staff.   She inquired  why 27                                                               
employees needed to  be hired and asked if this  is a sustainable                                                               
number.                                                                                                                         
                                                                                                                                
COMMISSIONER  HANLEY  offered  to  scrutinize  the  numbers,  and                                                               
assured  the committee  that 30  positions  were not  added.   He                                                               
agreed to provide the committee with further information.                                                                       
                                                                                                                                
9:01:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  for  a  separate  presentation  to                                                               
consider   the  pros   and  cons   for   maintaining  the   70:30                                                               
requirement.   The practice  is an area  that represents  a dated                                                               
classroom  model  and requires  further  discussion.   The  chair                                                               
agreed.                                                                                                                         
                                                                                                                                
9:02:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ  opined that agency efficiencies  have not                                                               
been specifically stated, and she  asked to have consideration be                                                               
given  and that  a few  ideas be  formulated and  brought to  the                                                               
committee.                                                                                                                      
                                                                                                                                
COMMISSIONER HANLEY pointed out that,  thus far, EED has cut $2.8                                                               
million from the agency as well  as $32 million from the formula,                                                               
and  asked  if  efficiencies  in addition  to  the  6.6  percent,                                                               
previously  mentioned, are  being  sought.   The member  affirmed                                                               
that  additional  efficiencies   are  expected  and  Commissioner                                                               
Hanley  said  the  figures  will be  forthcoming  and  agreed  to                                                               
provide further budget considerations.                                                                                          
                                                                                                                                
9:04:58 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER  suggested that  EED may be  the most  challenged to                                                               
provide   structural,   money   saving  changes,   due   to   the                                                               
multiplicity of the agency.                                                                                                     
                                                                                                                                
9:05:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND asked  if the  6.6 percent  reduction is                                                               
reflected  in the  proposed  budget from  Governor  Walker, or  a                                                               
holdover from the previous administration.                                                                                      
                                                                                                                                
COMMISSIONER  HANLEY  answered  that  it is  a  combination  both                                                               
budgets.   What is reflected in  Governor Walker's budget is  a 5                                                               
percent reduction from the work  in progress budget, as submitted                                                               
by Governor  Parnell, which represented a  1.6 percent reduction.                                                               
The combined  total is a  reduction of  6.6 percent for  the next                                                               
fiscal year.                                                                                                                    
                                                                                                                                
9:07:00 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER  pointed out that only  5 percent of the  EED budget                                                               
is directed to  administration, which is highly  acceptable.  The                                                               
sticking point,  he opined, is that  two thirds of the  budget is                                                               
derived  from federal  receipts, and,  additionally, the  waivers                                                               
related  to NCLB  pose a  question.   The impact  of the  federal                                                               
funds, and  how that funding  intermingles with the  state effort                                                               
is difficult to grasp, he said.                                                                                                 
                                                                                                                                
COMMISSIONER  HANLEY acknowledged  the  chair's  statement as  an                                                               
appropriate segue  to the continuation  of the  presentation that                                                               
directly reports  on how  the federal  funds, which  are received                                                               
with  specific requirements  attached, impact  the classroom  and                                                               
represent a complex aspect of the education budget.                                                                             
                                                                                                                                
9:08:44 AM                                                                                                                    
                                                                                                                                
SUSAN  MCCAULLY, PhD,  Director, Teaching  and Learning  Support,                                                               
Department of Education and Early  Development (EED) said the law                                                               
of  the  land  is  the Elementary  and  Secondary  Education  Act                                                               
(ESEA), passed in  1965 as part of President  Lyndon B. Johnson's                                                               
"War on Poverty."   The ESEA was designed  as supplementary funds                                                               
for elementary  and secondary education.   Quoting from  the act,                                                               
she said  the emphasis is  "to provide  each child with  fair and                                                               
equal opportunities  for academic achievement."   Originally, the                                                               
intent was for  the program to be reauthorized  every five years;                                                               
however, the most recent reauthorization  was in 2001, dubbed the                                                               
No Child  Left Behind Act (NCLB),  and that is the  version which                                                               
continues  today.   The seven  federal  programs affiliated  with                                                               
this act  are:  Title I,  Title IIA, Title III,  Title IVB, Title                                                               
VI, Title VIII, and Title XC.                                                                                                   
                                                                                                                                
9:11:35 AM                                                                                                                    
                                                                                                                                
DR.   MCCAULEY  explored   Title   I,   Improving  the   Academic                                                               
Achievement of the  Disadvantaged.  She said the  purpose of this                                                               
act  is to  ensure  that all  children have  a  fair, equal,  and                                                               
significant  opportunity  to  obtain  a  high-quality  education.                                                               
Four programs  are affiliated with  Title I, which are  Title IA,                                                               
another Title IA, Title IC, and  Title ID.  She said each program                                                               
would  be  presented  in  a  four part  outline  to  include  the                                                               
purpose, eligibility, requirements and  amount funded.  "Title IA                                                               
- Improving  Basic Programs"  is also referred  to as  the "Basic                                                               
Title" program.   The purpose is to  provide financial assistance                                                               
to local  educational agencies and  schools with high  numbers or                                                               
high  percentages of  children from  low-income  families.   Each                                                               
Title  program focuses  on reaching  a  specific population,  and                                                               
Title  IA   is  directed  to   low  income  families.     Funding                                                               
eligibility  includes all  State  Education  Agencies (SEAs)  and                                                               
Local  Education  Agencies (LEAs).    She  pointed out  that  SEA                                                               
refers to  EED and  LEA relates  to each district.   The  fund is                                                               
based  on  a  complicated  formula   that  utilizes  census  data                                                               
regarding  income; however,  once  the funds  are  directed to  a                                                               
district, the  means in  which money is  disbursed to  schools is                                                               
based on free and reduced lunch  data.  If for example, she said,                                                               
a school  has 75 percent  or more  students, receiving a  free or                                                               
reduced  lunch, the  district must  be served  with Title  funds.                                                               
There is no  possible discretion that would allow  a state agency                                                               
to not provide Title I funding  to such a school.  Districts with                                                               
free and reduced  lunches provided to 35 percent or  less, of the                                                               
student population,  are able  to provide Title  I funds,  but at                                                               
the lower  threshold, the distribution  must be made at  a higher                                                               
proportion.  Between the 35  and 75 percent ranges, districts are                                                               
able to set the  threshold and make the best use  of the funds by                                                               
identifying what percentage  of their schools will  have free and                                                               
reduced lunch  programs, to optimize  the Title I benefits.   She                                                               
said:                                                                                                                           
                                                                                                                                
     Even with  the strict  requirements ... that  come with                                                                    
     it,  districts do  have some  flexibility for  how they                                                                    
     provide those funds.   What a district and  we must do,                                                                    
     is  develop  a  plan   that  identifies  strategies  to                                                                    
     address the needs of low achieving students.                                                                               
                                                                                                                                
DR. MCCAULEY  pointed out that  low achieving students,  from low                                                               
income  families,  are  not  the  population  of  concern.    She                                                               
stressed that  low achieving  students are  the target  and, once                                                               
identified,  that  is who  will  receive  benefits regardless  of                                                               
family income.   The formula mechanism that  generates the amount                                                               
of funding  uses a separate set  of criteria to identify  who can                                                               
benefit  from the  funding.   Fund  disbursement,  at the  school                                                               
level, is  to be used  for low achieving students.   Requirements                                                               
include a  plan that identifies  strategies to address  the needs                                                               
of  low-achieving  students (tutoring,  instructional  materials,                                                               
small-group  instruction,  parent involvement,  and  professional                                                               
development  for   staff).    The  total   funding  disbursed  to                                                               
districts  under Title  IA  is  95 percent  of  the receipts  and                                                               
approximates $38,150,000.                                                                                                       
                                                                                                                                
9:16:53 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY  continued  with the  second  category,  "Title  IA                                                               
School  Improvement  Grants (SIG),"  which  is  a specific  grant                                                               
element targeted  at LEAs for assistance  with school improvement                                                               
for the  lowest performing schools.   Eligibility is the  same as                                                               
the  Basic  Title  with  the   additional  requirement  that  the                                                               
district   have  schools   designated  as   priority,  or   focus                                                               
facilities.   The  requirements  are that  an intervention  model                                                               
must be implemented.  The  intervention models that are currently                                                               
in  place  include:   turn  around,  transformation,  restart  as                                                               
charter,  and closure.    The federal  government  has three  new                                                               
programs in draft form that will  allow for a state defined model                                                               
an  early learning  model,  and an  evidence  based whole  school                                                               
reform approach.   When the  school applies for the  funding, the                                                               
model  being  used  and  the means  for  implementation  must  be                                                               
stipulated.  The annual funding is approximately $1.5 million.                                                                  
                                                                                                                                
9:18:34 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY   moved  to  "Title   IC  Education   of  Migratory                                                               
Children,"  focused   funding  to  help  students   overcome  the                                                               
challenges  of mobility:    frequent  absences, late  enrollment,                                                               
social  isolation,  and  other  difficulties  associated  with  a                                                               
migratory life  style.   Eligibility are SEAs  and LEAs  based on                                                               
the  number of  students who  are identified  as migratory.   The                                                               
requirement  is for  the development  of programs  and strategies                                                               
that  address the  identified needs  of  migratory children  that                                                               
result from their lifestyle and  which will permit these children                                                               
to  participate  effectively in  school.    Programs may  include                                                               
tutoring,  summer school,  book  distributions, credit  recovery,                                                               
educational  supplies,  and health  and  safety  education.   The                                                               
annual funding is $6,875,000.                                                                                                   
                                                                                                                                
9:19:49 AM                                                                                                                    
                                                                                                                                
DR. MCCAULEY said  the last of the Title I  programs is "Title ID                                                               
Prevention and  Intervention Programs for Children  and Youth Who                                                               
are  Neglected,  Delinquent, or  At-Risk,"  with  the purpose  of                                                               
providing  education  continuity  for  students  in  correctional                                                               
institutions.   The funds are  available to districts  which have                                                               
youth  correctional  facilities  within  the  district  boundary.                                                               
Eligibility is  extended to LEAs  and is  based on the  number of                                                               
students served  by an institutional facility.   The requirements                                                               
are  for the  provision of  supplementary education  services and                                                               
transition services to students  in correctional institutions and                                                               
may  include  counseling  support,  tutoring,  and  instructional                                                               
materials.   Currently,  she  reported,  eight districts  receive                                                               
these funds, which total $250,000.                                                                                              
                                                                                                                                
9:20:59 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY said  the  next category,  "Title  IIA Teacher  and                                                               
Principal  Training  and  Recruiting,"   serves  the  purpose  of                                                               
increasing student  academic achievement through  strategies that                                                               
may  include   improving  teacher   and  principal   quality  and                                                               
increasing  the  number  of  highly  qualified  teachers  in  the                                                               
classroom and  highly qualified principals on  site.  Eligibility                                                               
includes SEAs and LEAs for  these formula-driven funds, which are                                                               
again based  on census data.   The requirements are  programs and                                                               
strategies aimed  at recruiting,  retaining, and  training highly                                                               
qualified teachers  and principals.   She  reported that  this is                                                               
used  as  the primary  funding  source,  in many  districts,  for                                                               
professional development activities  of staff.  The  goal is that                                                               
these  activities   will  result   in  an  increase   of  student                                                               
achievement.  Total funds received is $10,870,000.                                                                              
                                                                                                                                
9:22:17 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY directed  attention to  the subcategory  "Title IIB                                                               
Mathematics  and  Science  Partnerships,"  and  said  this  is  a                                                               
competitive  grant  program  specifically  purposed  to  increase                                                               
student  academic achievement  in  the areas  of mathematics  and                                                               
science.   Eligibility are  SEAs through  formula funds  based on                                                               
the funding  received under  Title I (census  data) and  LEAs are                                                               
eligible  to submit  application for  a competitive  grant.   She                                                               
explained  that  several  Title programs  begin  with  the  basic                                                               
component  and   are  then   expanded  using   competitive  grant                                                               
elements.  The requirements are  that there must be a partnership                                                               
between  an  institution of  higher  education,  and a  high-need                                                               
district.  The  partnership must reflect the  purpose of creating                                                               
opportunities for  enhanced and ongoing  professional development                                                               
in the areas  of mathematics and science  through activities such                                                               
as  summer  workshops.    The  total funding  of  this  grant  is                                                               
$750,000.                                                                                                                       
                                                                                                                                
9:23:37 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY  turned  to "Title  III  Language  Instruction  for                                                               
Limited  English Proficient  and  Immigrant  Students," which  is                                                               
purposed   to   increase   English   proficiency   and   academic                                                               
achievement of  limited English proficient  children in  the core                                                               
academic subjects.   SEAs are eligible  for formula-driven funds.                                                               
The  LEAs  must   have  a  minimum  number   of  limited  English                                                               
proficient  (LEP)   students  to   qualify  for  funding.     The                                                               
requirements  are for  schools  to  provide language  instruction                                                               
educational  programs and  professional development  to teachers,                                                               
principals,  or other  staff who  work  with LEP  students.   The                                                               
total amount of funding is $1.2 million.                                                                                        
                                                                                                                                
9:24:46 AM                                                                                                                    
                                                                                                                                
DR. MCCAULEY moved to "Title  IVB 21st Century Community Learning                                                               
Centers," which  provides for the  establishment or  expansion of                                                               
activities  in  community  learning centers  that  host  academic                                                               
enrichment  opportunities during  non-school hours  for children,                                                               
particularly students who  attend high-poverty and low-performing                                                               
schools.   Eligibility is for  LEAs and  non-profit organizations                                                               
through a competitive grant process,  i.e. a local boys and girls                                                               
club where  a school  partners with a  non-profit to  provide off                                                               
hour, or summer, activities.   The requirements are restricted to                                                               
activities offered  before or after school,  or summer activities                                                               
to  enhance academic  performance.   The  total  funding is  $5.6                                                               
million; currently being distributed  to 11 different entities in                                                               
Alaska.                                                                                                                         
                                                                                                                                
9:26:13 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY directed  attention  to "Title  VI Flexibility  and                                                               
Accountability," funding that is purposed  to allow SEAs and LEAs                                                               
flexibility  to   target  federal  funds  for   existing  federal                                                               
programs  that  most  effectively  address the  unique  needs  of                                                               
states  and localities.   This  category has  three subcategories                                                               
beginning with "Title VIA -  Improving Academic Achievement.  The                                                               
purpose of  this law is to  pay the costs of  the development and                                                               
implementation  of  state  assessments  and  standards  that  are                                                               
required by  ESEA.   All states  are eligible  for $3  million of                                                               
funding  with additional  funding  prorated based  on the  census                                                               
data that drives  Title I.  These funds require  that plans be in                                                               
place to  develop, implement,  and disseminate  information about                                                               
state  assessments and  standards.   The annual  funding is  $3.5                                                               
million.                                                                                                                        
                                                                                                                                
9:27:29 AM                                                                                                                    
                                                                                                                                
DR. MCCAULEY explained that the  next two categories are eligible                                                               
to LEAs;  however a  district may  not receive  both.   "Title VI                                                               
B(1) Small, Rural School Achievement  Program (SRSA) and Title VI                                                               
B(2)  Rural and  Low-Income  School Program  (RLIS) are  programs                                                               
that  are both  purposed to  address  the unique  needs of  rural                                                               
school  districts   that  frequently   lack  the   personnel  and                                                               
resources needed  to compete effectively for  federal competitive                                                               
grants and  those receiving formula grant  allocations in amounts                                                               
too small  to be  effective in  meeting their  intended purposes.                                                               
She said Alaska  has nineteen eligible districts, as  well as Mt.                                                               
Edgecumbe.  Under Title VI B(1) an  LEA is eligible if it meets a                                                               
definition of  rural, as  based on  student count  and population                                                               
density.   The  Unites  States Department  of Education  provides                                                               
these funds  directly to  the LEAs.   The  requirement is  to use                                                               
these  funds, as  authorized, in  conjunction  with funding  from                                                               
other Title programs:   Title IA, Title II, Title  III, Title IV,                                                               
and Title  V.   She explained  that the  only reason  this direct                                                               
funding  appears  in  the  EED   budget  is  that  Mt.  Edgecumbe                                                               
qualifies, and  the department  administers that  boarding school                                                               
program.   The total  funding is $20,000.   The  subcategory that                                                               
shares the same  purpose, Title VIB(2), has  eligibility for SEAs                                                               
which apply on  behalf of LEAs with 20 percent  or more children,                                                               
ages 5-17, with family incomes below  the poverty line.  Only one                                                               
district qualifies  for this fund,  namely Lower Kuskokwim.   The                                                               
funding amount is $88,000.                                                                                                      
                                                                                                                                
9:31:41 AM                                                                                                                    
                                                                                                                                
DR. MCCAULEY  turned to "Title  XC Homeless  Education (McKinney-                                                               
Vento Homeless Education  Assistance Act of 2001)."   The purpose                                                               
is to  ensure that children  of homeless individuals, as  well as                                                               
homeless youth, have  equal access to the  same free, appropriate                                                               
public  education  as  provided  to other  children  and  youths.                                                               
Eligibility  applies to  SEAs  based on  the  number of  students                                                               
identified  as homeless,  and LEAs  through  a competitive  grant                                                               
process.   The requirements are  that a district have  a homeless                                                               
liaison/coordinator  to assist  with  identification of  homeless                                                               
students  and   the  provision  of   services  to   that  defined                                                               
population.   She reported that  four districts qualify  for this                                                               
funding, that has an annual receipt of $170,000.                                                                                
                                                                                                                                
9:32:48 AM                                                                                                                    
                                                                                                                                
DR.  MCCAULEY  said  that  ends   the  Title  programs  that  are                                                               
affiliated with  the SEA.   Two  other acts  bring in  funding to                                                               
specific  populations.    The  first  is  the  "Individuals  with                                                               
Disabilities  Act   Title  VI,"  also  referred   to  as  special                                                               
education.   The  purpose is  to  ensure that  all children  with                                                               
disabilities  have available  to them  a free  appropriate public                                                               
education.   These funds are  eligible to  all SEAs based  on the                                                               
average daily  membership (ADM)  of the  LEAs; LEAs  are eligible                                                               
based on  the ADM and the  number of students living  in poverty.                                                               
The requirements for  use of the funds is  that districts provide                                                               
services  for the  identification  and support  of students  with                                                               
disabilities, up  to age 21,  or for students from  birth-2 years                                                               
with  developmental  delays.    Allowable  expenditures  are  for                                                               
staff,  programs, equipment,  and  instructional  supplies.   The                                                               
annual funding  for the  general program is  $36 million  and for                                                               
the preschool element of the program $1.1 million.                                                                              
                                                                                                                                
DR. MCCAULEY introduced  the final federal program,  which is the                                                               
"Carl D.  Perkins Vocation and  Applied Technology  Education Act                                                               
(VTE)."     The  purpose  here   is  to  develop   the  academic,                                                               
vocational,  and  technical  skills  of  secondary  students  and                                                               
postsecondary  students who  elect  to enroll  in vocational  and                                                               
technical education  programs.  Eligibility  to SEAs is  based on                                                               
the  state's  population in  certain  age  groups and  per-capita                                                               
income.   The LEAs must have  a sufficient number of  students to                                                               
generate a  minimum allocation  of $15,000.   The  requirement is                                                               
for planned  development aimed at strengthening  the academic and                                                               
career/technical skills  of CTE  students.   The funding  is $4.2                                                               
million.                                                                                                                        
                                                                                                                                
9:35:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COLVER returned  to Title  I to  ask whether  the                                                               
funds  are primarily  used  for staffing  purposes,  and how  the                                                               
department handles  the positions  dependent on  federal funding,                                                               
if the grant money is not received.                                                                                             
                                                                                                                                
DR.  MCCAULEY concurred  that the  majority of  Title funding  is                                                               
used  at  the  district  school  level to  support  staff.    The                                                               
department  is  permitted  to  retain   a  percentage  for  state                                                               
administration,  and typically  EED uses  this allowance  pay for                                                               
support staff, such  as those approving applications  for Title I                                                               
and  the monitoring  that is  required, as  well as  professional                                                               
development activities.   The  funding allows  the state  to host                                                               
training conferences to instruct staff  from around the state for                                                               
implementing   the    required   elements   of    the   programs.                                                               
Additionally,  technical support  is  provided  and webinars  are                                                               
supported through this funding.                                                                                                 
                                                                                                                                
REPRESENTATIVE COLVER provided a  scenario of a district refusing                                                               
to accept Title I funding.  He asked:                                                                                           
                                                                                                                                
      [If the district] decided not to accept the federal                                                                       
     money, are we still on the hook to follow the federal                                                                      
     requirements, at the district level.                                                                                       
                                                                                                                                
COMMISSIONER HANLEY  responded that specific programs  would need                                                               
to be  considered in that  scenario, as legal obligations  may be                                                               
in  place.   He stressed  that obligations  exist outside  of the                                                               
federal funding mandates.                                                                                                       
                                                                                                                                
9:38:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD referred  to  "Title IA-Improving  Basic                                                               
Programs," and asked how many LEA schools participate.                                                                          
                                                                                                                                
DR.  MCCAULEY  answered that  all  schools  qualify for  Title  I                                                               
funding and  offered to  provide a  list indicating  the specific                                                               
schools within each district that participate.                                                                                  
                                                                                                                                
REPRESENTATIVE REINBOLD stated her  understanding that in several                                                               
schools it has  been reported that the  free/reduced lunch option                                                               
is offered  to all students,  and requested the list  be provided                                                               
to the committee.                                                                                                               
                                                                                                                                
9:41:24 AM                                                                                                                    
                                                                                                                                
CHAIR KELLER clarified program eligibility, stating:                                                                            
                                                                                                                                
     The free  and reduced lunch  is a criteria  for whether                                                                    
     or not  they receive  the funds,  not the  criteria for                                                                    
     whether or  not they have  free and reduced lunch.   Is                                                                    
     that a correct statement?                                                                                                  
                                                                                                                                
DR. MCCAULEY concurred.                                                                                                         
                                                                                                                                
CHAIR KELLER  pointed out that  the EDC state  budget spreadsheet                                                               
carries a nutrition increment, which,  given the understanding of                                                               
how it  ties in  with the  federal funding,  could not  simply be                                                               
eliminated,   as  a   $38.150   million   cost  saving   measure.                                                               
Additionally,  he stated  his understanding  of  how other  Title                                                               
programs,  such as  science  and  math, are  linked  to the  same                                                               
eligibility criteria  using the free  or reduced lunch data.   He                                                               
asked if his  belief is correct:  75 percent  of the students, in                                                               
a  given school,  would need  to qualify  for a  free or  reduced                                                               
lunch in order to receive the science and math funding.                                                                         
                                                                                                                                
DR. MCCAULEY reviewed  how a school, that has a  population of 75                                                               
percent of the  students qualifying for a free  or reduced lunch,                                                               
must be  served with Title I  funding.  Expanding on  that point,                                                               
she explained:                                                                                                                  
                                                                                                                                
     A  district would  not be  able  to say,  'We have  two                                                                    
     schools and  one is 75  percent and one is  76 percent,                                                                    
     and we  are going to  serve the 76 percent,  instead of                                                                    
     the  75  percent.'   As  soon  as  a school  reaches  a                                                                    
     percentage of students  that is 75 percent  or above, a                                                                    
     district   must  provide,   through   a  formula   that                                                                    
     considers  how  many  students  there  are,  they  must                                                                    
     provide Title  I funds  to the school.   Below  that 75                                                                    
     percent the district does have  autonomy for where they                                                                    
     set the floor.   ...  If a district  decides to serve a                                                                    
     school that has  lower than 35 percent  of its students                                                                    
     receiving free and reduced lunch,  they have to do that                                                                    
     in a  way that  provides the  schools above  35 percent                                                                    
     with a higher  proportion of the funds,  125 percent of                                                                    
     the  funds.   Basically, the  federal government  says,                                                                    
     between  35 percent  and 75  percent, the  schools with                                                                    
     populations between  those percentages of  students who                                                                    
     qualify  for  free  and   reduced  lunch,  you've  some                                                                    
     autonomy.   You  can  say we're  not  going to  provide                                                                    
     Title funds to a school  unless they have 50 percent or                                                                    
     more.   ...  And,  if they want  to dip down  and serve                                                                    
     schools with  lower than  35 percent,  they can  do it,                                                                    
     but they have  to serve the ones above 35  percent at a                                                                    
     higher proportion;  they have to give  them 125 percent                                                                    
     of  the  funding,  in  terms of  the  formula.    Those                                                                    
     percentages ... do not apply  to the school improvement                                                                    
     grants.  ...  The basic  funding formula is the same in                                                                    
     the  manner that  it considers  census  data, which  is                                                                    
     income data, as  how funding is generated.   ...  Those                                                                    
     funds have  nothing to do  with the 75  percent; that's                                                                    
     just Title IA.                                                                                                             
                                                                                                                                
CHAIR KELLER queried how that  translates into actual application                                                               
for a child to be offered  a free lunch; reportedly some children                                                               
are offered lunches  when they are not eligible  based on income.                                                               
He surmised that  a district may choose to serve  free or reduced                                                               
lunches to  an entire school  population, and asked  whether that                                                               
type  of action  could be  tracked to  the $38  million [budgeted                                                               
nutrition increment].                                                                                                           
                                                                                                                                
COMMISSIONER HANLEY  answered that it  would be more  accurate to                                                               
identify  Title  I funds  as  support  for students  of  poverty,                                                               
qualifying them  for free or reduced  lunch.  In a  school of 100                                                               
or 500  students, perhaps only  two are qualified, but  they will                                                               
receive  a free  and reduced  lunch.   How  the school  districts                                                               
administer that program to the  qualified students, is largely up                                                               
to the district.   A school may choose to  supplement the Title I                                                               
funds  to   cover  additional  lunches,  beyond   the  qualifying                                                               
students.                                                                                                                       
                                                                                                                                
CHAIR KELLER acknowledged the complexity of the Title funding.                                                                  
                                                                                                                                
9:47:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  asked  whether  a district  is  able  to                                                               
receive  direct   federal  grants  for  reduced   or  free  lunch                                                               
programs.                                                                                                                       
                                                                                                                                
DR. MCCAULEY allowed  that the student nutrition  program was not                                                               
detailed  in this  presentation, and  offered to  provide further                                                               
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VAZQUEZ inquired,  if a  school district  were to                                                               
decide  to  provide free  lunch  for  10 additional  schools  "no                                                               
questions asked," do those schools then qualify for Title I.                                                                    
                                                                                                                                
DR. MCCAULEY deferred.                                                                                                          
                                                                                                                                
COMMISSIONER HANLEY  reiterated that  the qualifying  criteria is                                                               
generated  from census  data.   Whether  or not  to provide  free                                                               
lunch is not a decision made by a school.                                                                                       
                                                                                                                                
REPRESENTATIVE VAZQUEZ  posited that a district,  that decides to                                                               
provide a  free, or  reduced, lunch  program no  questions asked,                                                               
does not automatically receive Title I funds.                                                                                   
                                                                                                                                
COMMISSIONER HANLEY said  the funds would not be  allocated on an                                                               
automatic  basis.   The  fact  that a  school  district pays  for                                                               
student  lunches  has  no  impact on  whether  they  qualify  for                                                               
federal  funding;  the  school  census  data  is  the  qualifying                                                               
factor.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  VAZQUEZ  directed  attention  to page  8  of  the                                                               
committee handout, titled "House  Education Committee Role of the                                                               
State  Board  of Education  &  Department  of Education  &  Early                                                               
Development  Federal Grant  Programs and  Corresponding Mandates"                                                               
to clarify the eligibility bullet  point which reads "funds based                                                               
on census  data and  free and  reduced lunch data."     She asked                                                               
whether the census  data is the overriding  criteria for granting                                                               
a free or reduced lunch program.                                                                                                
                                                                                                                                
COMMISSIONER HANLEY deferred.                                                                                                   
                                                                                                                                
9:51:37 AM                                                                                                                    
                                                                                                                                
PAUL PRUSSING,  Deputy Director,  Teaching and  Learning Support,                                                               
Department  of Education  and Early  Development (EED)  explained                                                               
that the  census data  qualifies the  district, and  the district                                                               
uses   free  and   reduced  lunch   data   to  determine   school                                                               
eligibility.    He  approximated  that, of  the  500  schools  in                                                               
Alaska, about 250 are Title I recipients.                                                                                       
                                                                                                                                
9:52:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COLVER commented  that typically  a local  school                                                               
board,  does  not  dive into  the  transportation  and  nutrition                                                               
budget,  rather it  allocates the  base student  allocation (BSA)                                                               
and the local  contribution.  The districts have  latitude on how                                                               
the  nutrition,  transportation,  and federal  dollars  are  then                                                               
distributed.                                                                                                                    
                                                                                                                                
9:53:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  asked  for  clarity on  the  number  of                                                               
eligible schools, and further inquired  if welfare recipients are                                                               
accounted for or are they receiving overlapping services.                                                                       
                                                                                                                                
MR. PRUSSING approximated  that 250 out of  506 statewide schools                                                               
receive Title  I funds.   Once  funds are  received at  the local                                                               
level,  any identity  falls away  and  the money  is directed  to                                                               
benefit students  who are  academically at  risk; poverty  is not                                                               
the identifier.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  REINBOLD reported  having telephone  contact from                                                               
the local  school to  ask if  her children would  like to  have a                                                               
free lunch.   She suggested that  there may be disconnect  in the                                                               
system, as  her students are ranked  high in their class  and are                                                               
not poverty qualified.                                                                                                          
                                                                                                                                
9:55:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VAZQUEZ  tallied the  federal funds  accounted for                                                               
in the Title  presentation, and noted a total of  $110 million in                                                               
federal receipts.  She asked what EED's budget totals.                                                                          
                                                                                                                                
COMMISSIONER  HANLEY  responded  that  there  are  other  federal                                                               
receipts; namely Impact Aide, and  Child Nutrition Services.  The                                                               
2015 total budget is approximately $1.7 billion.                                                                                
                                                                                                                                
REPRESENTATIVE VAZQUEZ noted that  the federal receipts represent                                                               
a small slice of the pie.                                                                                                       
                                                                                                                                
CHAIR   KELLER   restated   that  the   department's   cost   for                                                               
administration requires  only 5  percent of  the budget;  a small                                                               
increment.                                                                                                                      
                                                                                                                                
9:58:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND   interjected  that  the   $1.6  billion                                                               
includes  the   foundation  formula  funding,  as   well  as  the                                                               
department's  budget.   She  suggested  further presentations  to                                                               
detail how the total EED budget is put together.                                                                                
                                                                                                                                
COMMISSIONER HANLEY offered that  the foundation formula overview                                                               
is typically presented separately.                                                                                              
                                                                                                                                
9:59:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  returned to  page  10,  of the  committee                                                               
handout, and  asked whether the  department reviews  the required                                                               
program plans  and strategies  for migratory  children, or  is it                                                               
handled independently at the local level.                                                                                       
                                                                                                                                
DR.  MCCAULEY  answered  that  the plans  must  be  reviewed  and                                                               
approved by  EED and includes  onsite monitoring, on a  five year                                                               
cycle.    The  federal  government  requires  the  department  to                                                               
maintain oversight.                                                                                                             
                                                                                                                                
10:01:02 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  REINBOLD returned  to her  comment regarding  the                                                               
telephone  call she  received offering  her children  free lunch.                                                               
To  her amazement,  she was  told  that there  were no  financial                                                               
restrictions  and  the offer  was  being  made to  all  students.                                                               
Additional confusion  surrounds the academic challenge  aspect of                                                               
the  funding,  and  she  asked for  further  clarification.    An                                                               
analysis may  be order,  she suggested, if  the state  is helping                                                               
pay for  food via  welfare, and the  federal government  is also.                                                               
Additionally, share  tables, or  other means  for redistribution,                                                               
could be established  in cafeterias, to ensure food  is not being                                                               
wasted, she opined.                                                                                                             
                                                                                                                                
10:02:35 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There  being  no  further business  before  the  House  Education                                                               
Standing Committee, the meeting was adjourned at 10:03 a.m.                                                                     

Document Name Date/Time Subjects
House Education Committee Fed Programs 1 27 15 457pm.pdf HEDC 2/2/2015 8:00:00 AM