02/09/2022 09:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB10 | |
| HB272 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 10 | TELECONFERENCED | |
| *+ | HB 273 | TELECONFERENCED | |
| *+ | HB 272 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
February 9, 2022
9:10 a.m.
MEMBERS PRESENT
Representative Harriet Drummond, Co-Chair
Representative Andi Story, Co-Chair
Representative Tiffany Zulkosky
Representative Grier Hopkins
Representative Mike Prax
Representative Mike Cronk
Representative Ronald Gillham
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 10(FIN) AM
"An Act establishing a grant program to provide to essential
workers and laid-off workers the tuition and fees to attend
certain postsecondary institutions."
- HEARD & HELD
HOUSE BILL NO. 272
"An Act relating to education; increasing the base student
allocation; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 273
"An Act relating to education; increasing the base student
allocation; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 10
SHORT TITLE: FREE/REDUCED TUITION FOR ESSENTIAL WORKER
SPONSOR(s): SENATOR(s) BEGICH
01/22/21 (S) PREFILE RELEASED 1/8/21
01/22/21 (S) READ THE FIRST TIME - REFERRALS
01/22/21 (S) L&C, EDC, FIN
02/08/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/08/21 (S) Moved SB 10 Out of Committee
02/08/21 (S) MINUTE(L&C)
02/10/21 (S) L&C RPT 4DP 1NR
02/10/21 (S) NR: COSTELLO
02/10/21 (S) DP: GRAY-JACKSON, STEVENS, HOLLAND,
REVAK
03/17/21 (S) EDC AT 9:00 AM BUTROVICH 205
03/17/21 (S) Heard & Held
03/17/21 (S) MINUTE(EDC)
03/22/21 (S) EDC AT 9:00 AM BUTROVICH 205
03/22/21 (S) Moved CSSB 10(EDC) Out of Committee
03/22/21 (S) MINUTE(EDC)
03/24/21 (S) EDC RPT CS 1DP 2AM SAME TITLE
03/24/21 (S) AM: HOLLAND, HUGHES
03/24/21 (S) DP: BEGICH
04/08/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/08/21 (S) -- Invited & Public Testimony --
04/16/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/16/21 (S) Heard & Held
04/16/21 (S) MINUTE(FIN)
04/20/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/20/21 (S) <Bill Hearing Rescheduled to
04/21/2021>
04/21/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/21/21 (S) Heard & Held
04/21/21 (S) MINUTE(FIN)
04/27/21 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/27/21 (S) Moved CSSB 10(FIN) Out of Committee
04/27/21 (S) MINUTE(FIN)
04/28/21 (S) FIN RPT CS 4DP 2DNP SAME TITLE
04/28/21 (S) DP: BISHOP, HOFFMAN, WIELECHOWSKI,
OLSON
04/28/21 (S) DNP: WILSON, VON IMHOF
05/17/21 (S) TRANSMITTED TO (H)
05/17/21 (S) VERSION: CSSB 10(FIN) AM
05/18/21 (H) READ THE FIRST TIME - REFERRALS
05/18/21 (H) EDC, FIN
02/09/22 (H) EDC AT 9:00 AM DAVIS 106
BILL: HB 272
SHORT TITLE: INCREASE BASE STUDENT ALLOCATION
SPONSOR(s): REPRESENTATIVE(s) STORY
01/18/22 (H) PREFILE RELEASED 1/14/22
01/18/22 (H) READ THE FIRST TIME - REFERRALS
01/18/22 (H) EDC, FIN
02/09/22 (H) EDC AT 9:00 AM DAVIS 106
WITNESS REGISTER
SENATOR TOM BEGICH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented CSSB 10(FIN)
am.
L?KI TOBIN, Staff
Senator Tom Begich
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Read the sectional analysis to CSSB 10(FIN)
am on behalf of Senator Begich, prime sponsor.
SARAH PERMAN, Government Relations Manager
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation during the
hearing on CSSB 10(FIN) am.
DON ETHERIDGE, Lobbyist
Alaska American Federation of Labor and Congress of Industrial
Organizations
Juneau, Alaska
POSITION STATEMENT: Testified in support of CSSB 10(FIN) am.
ARIEL SVETLIK, Staff
Representative Andi Story
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Addressed the sectional analysis and fiscal
notes and answered questions during the hearing on HB 272 on
behalf of Representative Story, prime sponsor.
DAYNA DEFEO, Director
Center for Alaska Education and Policy Research
Institute of Social and Economic Research
University of Alaska Anchorage
Anchorage, Alaska
POSITION STATEMENT: Presented a research summary document
during the hearing on HB 272.
BILL HILL, Superintendent
Bristol Bay School District
Bristol Bay, Alaska
POSITION STATEMENT: Provided invited testimony in support of HB
272.
JAMIE BURGESS, Superintendent
Nome School District
Nome, Alaska
POSITION STATEMENT: Provided invited testimony in support of HB
272.
TERRI WALKER, Superintendent
Northwest Arctic Borough School District
Kotzebue, Alaska
POSITION STATEMENT: Provided invited testimony in support of HB
272.
SCOTT MACMANUS, Superintendent
Alaska Gateway School District
Tok, Alaska
POSITION STATEMENT: Provided invited testimony in support of HB
272.
BRIDGET WEISS, PhD, Superintendent
Juneau School District
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony in support of HB
272.
CHRIS REITAN, Superintendent
Craig City School District
Craig, Alaska
POSITION STATEMENT: Provided invited testimony on another bill
but related to HB 272.
CORY HUGHES, representing self
Nunapitchuk, Alaska
POSITION STATEMENT: Testified in support of HB 272.
EMMA MELKERSON, Teacher
McQueen School
Kivalina, Alaska
POSITION STATEMENT: Testified in support of HB 272.
LON GARRISON, Executive Director
Association of Alaska School Boards
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 272.
JESSIE EMBREE, Chair
Ketchikan Native Education Parent Committee
Ketchikan Gateway Borough School District
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of HB 272.
KEVIN SHOVE, Member
Haines Borough School Board
Haines Borough School District
Haines, Alaska
POSITION STATEMENT: Testified in support of HB 272.
PETE HOEPFNER, Member
Cordova School Board;
President
Alaska Association of School Boards
Cordova, Alaska
POSITION STATEMENT: Testified in support of HB 272.
ACTION NARRATIVE
9:10:05 AM
CO-CHAIR HARRIET DRUMMOND called the House Education Standing
Committee meeting to order at 9:10 a.m. Representatives Story,
Cronk, Gillham, Prax, Zulkosky (via Teams), Hopkins, and
Drummond were present at the call to order.
SB 10-FREE/REDUCED TUITION FOR ESSENTIAL WORKER
9:10:53 AM
CO-CHAIR DRUMMOND announced that the first order of business
would be CS FOR SENATE BILL NO. 10(FIN) am, "An Act establishing
a grant program to provide to essential workers and laid-off
workers the tuition and fees to attend certain postsecondary
institutions."
9:11:11 AM
SENATOR TOM BEGICH, Alaska State Legislature, as prime sponsor,
presented CSSB 10(FIN) am. He first noted that if the bill
progresses, some dates will need to be changed because "the
dates have become quickly outpaced by the circumstances." He
emphasized that frontline workers have given so much [during the
COVID-19 pandemic], and with the receipt of COVID-19 relief
funds, comes the opportunity to give back to those workers. He
gave examples of frontline workers as those delivering food,
transporting people, and cleaning offices all exposing
themselves to COVID-19. He cited a study by The Occupational
Environmental Medicine Journal reporting that over 20 percent of
grocery store employees tested positive for the initial phase of
COVID-19 when [non-frontline workers] were infected at rates of
1-3 percent. He pointed out that the lowest income workers were
"required by the jobs office to stay in those jobs."
SENATOR BEGICH opined that CSSB 10(FIN) am, which would give
free tuition to frontline workers, was the right step in
expressing thanks to those workers. It would provide a "limited
avenue for financial support" for those who wish to continue
their education. He spoke about the correlation between higher
education and higher earnings and offered some numerical
comparisons. He stated that going to school in Alaska keeps
people in Alaska. He spoke about paraprofessionals ready to
advance their education and how the proposed legislation would
help them to do so.
9:15:00 AM
SENATOR BEGICH highlighted the changes made to the proposed
legislation by means of CSSB 10(FIN) am. First, language was
updated to ensure the grant program would be available for all
state-supported postsecondary education programs, such as the
Alaska Vocational Technical Center (AVTEC) and the University of
Alaska Certificates Program. Changes were made to the
eligibility criteria to allow those laid off as a direct result
of the pandemic to take advantage of the grant program. The
legislation now references the definition of essential worker
established under the administration's 3/27/20 Essential
Services and Critical Workforce Infrastructure Order. Program
report repeal dates were updated to reflect the limited nature
of the grant program, with an application window of "a couple of
years" and a period of use up to four years. He highlighted
that there is a cap of $2.5 million a year for up to four years.
Further, the funding source is not the undesignated general fund
(UGF) but rather COVID-19 resources. He emphasized that so
often the legislature uses federal funding in ways that are
"less than appropriate" because of the flexibility of the funds.
He opined that the proposed legislation puts forth a way to use
the funds appropriately, in a manner that would be understood
and accepted by the public.
9:18:08 AM
L?KI TOBIN, Staff, Senator Tom Begich, Alaska State Legislature,
on behalf of Senator Begich, prime sponsor, read the sectional
analysis to CSSB 10(FIN) am [available in the committee packet].
She echoed the need for an amendment to the effective date. The
sectional analysis read as follows [original punctuation
provided]:
Section 1.
Establishes an Essential Worker Grant Program as new
uncodified law of the State of Alaska by directing the
Alaska Commission on Postsecondary Education (ACPE) to
establish a postsecondary tuition grant program for
and award post-secondary tuition grants to essential
workers employed at the start of or during the
declared federal public health emergency or those who
were temporarily or permanently laid off as a direct
consequence of the declared federal public health
emergency.
Directs ACPE to establish policies and procedures for
application and admission to the program, including
consulting the Department of Health and Social
Services and reviewing the Alaska Essential Services
and Critical Workforce Infrastructure Order in
determining applicant eligibility.
Section 2.
Establishes an Essential Worker Grant Program Report
as new uncodified law of the State of Alaska and
directs ACPE to submit the report of program efficacy
to the Alaska State Legislature on or before December
31st.
Section 3.
Repeals Section 1 on June 30, 2025.
Section 4.
Repeals Section 2 on June 30, 2026.
9:20:52 AM
SENATOR BEGICH, in response to Co-Chair Drummond, confirmed he
would like the House Education Standing Committee to make the
aforementioned amendment to the dates.
9:22:39 AM
REPRESENTATIVE PRAX opined that all workers are essential and
questioned whether the scope of the bill was broad enough. He
suggested that it may help people more to have access to skills
training rather than a four-year college program, and he asked
whether the bill sponsor had considered that.
SENATOR BEGICH responded that the short answer is yes, the bill
was expanded to include vocational education; however, it does
not apply to everyone. He explained that there are always
limits to what can be encompassed. He said CSSB 10(FIN) am
focuses on a limited amount of money and to aid those most
deeply affected by the pandemic.
9:25:45 AM
MS. TOBIN directed attention to language on page 2, line 23,
which provides for an individual who does not have a four-year
degree to apply for funding to get vocational training.
REPRESENTATIVE PRAX surmised that it would be possible, under
CSSB 10(FIN) am, for the Alaska Commission on Postsecondary
Education (ACPE) to define "a program that helps you pass the
insurance exams."
SENATOR BEGICH replied that he believed that is true.
9:27:52 AM
REPRESENTATIVE CRONK asked for conformation that the goal of the
proposed legislation was "to get people an AA degree or a four-
year degree."
SENATOR BEGICH answered yes. He added that a person would have
to go for federal support before using the support proposed
under the bill as a last means of support. In response to a
follow-up question, he stated that there are criteria listed on
page 2, beginning on line 18, outlining what a recipient of the
fund must do, including maintaining a grade point average (GPA)
[above a specified minimum], making satisfactory progress toward
a degree, and maintaining enrollment as a half- or full-time
student. Further, he said ACPE would be required to report back
to the legislature regarding the progress of the program. He
noted that the amount of money going into the program would be
limited.
9:31:05 AM
REPRESENTATIVE HOPKINS, following up on the question from
Representative Cronk, asked for confirmation that if a person
does not graduate from a four-year program, for example, he/she
does not have to repay the funds. He indicated that the skills
developed to that point would still be of value.
SENATOR BEGICH confirmed that is correct. He said the proposed
legislation acknowledges that "a grant is a grant."
REPRESENTATIVE HOPKINS pointed to bill language on page 2, lines
10-12, regarding a required qualification of an applicant to
have "earned a cumulative grade point average of 2.0 or higher
in high school" or to have "otherwise demonstrated an equivalent
academic ability", and he asked whether a general education
diploma (GED) would count.
SENATOR BEGICH answered that he believed it would count as a
qualification. He noted a similar law in Michigan.
9:35:05 AM
CO-CHAIR DRUMMOND noted that GED was listed on page 2, line 9.
9:35:19 AM
CO-CHAIR STORY expressed appreciation for the acknowledgement
that there are federal dollars to be used first. She commented
on the shortage of skilled workers in Alaska, and said she views
CSSB 10(FIN) am as an answer.
SENATOR BEGICH advised that bi-partisan infrastructure
legislation passed by Congress would result in federal money
coming to Alaska in the next five years, and Alaska does not
have the trained workforce necessary.
9:37:36 AM
CO-CHAIR DRUMMOND announced the committee would hear invited
testimony.
9:38:08 AM
SARAH PERMAN, Government Relations Manager, University of
Alaska, gave a PowerPoint presentation, titled "Reskilling &
Upskilling for Alaskans," [hard copy included in the committee
packet], during the hearing on CSSB 10(FIN) am. She commented
on the lack of skilled workforce in Alaska, and she said the
University of Alaska (UA) views CSSB 10(FIN) am as an
opportunity to train more Alaskans. She presented slide 2,
which was an overview with a map of Alaska showing campus
locations. She said UA is the most comprehensive workforce
provider in the state, which is one of UA's core missions, as
shown on slide 3. She pointed out the degrees offered by UA and
that many of the degrees serve toward filling those gaps in the
workforce. Slide 4 addressed the value of postsecondary
education; high school graduates earn a median of $35,000
annually, while those with professional degrees earn a median of
$77,000 annually. She also shared the correlation between
higher education levels and lower unemployment rates.
9:43:14 AM
CO-CHAIR STORY pointed out that there are certificate programs
that result in higher earnings starting out in the workforce
compared to someone starting work with a bachelor's degree.
9:44:03 AM
MS. PERMAN acknowledged the point. She then continued to slide
5, which shows a snapshot of 18,000 UA graduates and their
earnings upon graduation compared to five years later, from
$50,000 average to just under $70,000 average, respectively. As
shown on slide 6, she spoke about UA's work with the Department
of Labor & Workforce Development (DLWD) to put together nine
industry workforce supports in the areas of administration and
finance, aviation, construction, fisheries and marine science,
health, information technology, mining, oil and gas, and teacher
education. Statistics gathered showed the number of people in
those industries, the average wage, and the projected trend for
those industries.
MS. PERMAN showed a 10-year projection, from 2018 to 2028,
reflecting anticipated workforce needs, as shown on slide 7.
She noted this information came out "before the infrastructure
bill." She highlighted some of the services, and she emphasized
the need to train people for the workforce. She said slide 8
shows to which industries UA graduates go in the first year
following graduation. Ms. Perman showed slide 9 while
expressing hope that the presentation underscored the value of
higher education to the state. She reaffirmed that UA supports
CSSB 10(FIN) am.
9:48:56 AM
MS. PERMAN, in response to Co-Chair Drummond confirmed that the
job loss trajectory addressed on slide 7 is "a moving target."
9:50:04 AM
DON ETHERIDGE, Lobbyist, Alaska American Federation of Labor and
Congress of Industrial Organizations (AK AFL-CIO), testified in
support of CSSB 10(FIN) am. He said training people gives them
"a hand up, not a handout." He related that he had supported a
relative through journeyman training that he otherwise would not
have been able to afford, and he said the proposed legislation
would provide that opportunity to people. He emphasized there
is already a shortage of skilled workers, and he opined that any
time there is opportunity to train workers, that opportunity
should be taken.
9:52:31 AM
CO-CHAIR DRUMMOND shared she had learned that every student that
completes the programs at AVTEC has a job waiting; there are
more jobs than students who complete the program.
9:53:15 AM
CO-CHAIR DRUMMOND opened public testimony on CSSB 10(FIN) am.
After ascertaining there was no one who wished to testify, she
closed public testimony.
CO-CHAIR DRUMMOND announced that CSSB 10(FIN) am was held over.
9:54:01 AM
ADJOURNMENT
CO-CHAIR DRUMMOND announced the House Education Standing
Committee would recess to 3:30 p.m.
3:37:29 PM
CO-CHAIR DRUMMOND called the House Education Standing Committee
back to order at 3:37 p.m. Present at the call back to order
were Representatives Story, Cronk, Gillham, Prax, and Drummond.
HB 272-INCREASE BASE STUDENT ALLOCATION
[Contains discussion of HB 273.]
3:38:22 PM
CO-CHAIR DRUMMOND announced that the next order of business
would be HOUSE BILL NO. 272, "An Act relating to education;
increasing the base student allocation; and providing for an
effective date."
3:38:48 PM
CO-CHAIR STORY, as prime sponsor, presented HB 272 via
PowerPoint presentation, titled "BASE," a term she coined as an
acronym for "Base Allocation for Student Excellence." The focus
of HB 272 is to increase the base student allocation (BSA). As
shown on slide 2, she noted that the Article 7, Section 1, of
the Constitution of the State of Alaska states: "The
legislature shall by general law establish and maintain a system
of public schools open to all children of the State." She
emphasized the words "maintain" and "all". Referring to slide
3, she said education is an economic investment, an
infrastructure that requires maintenance to prevent its erosion.
She emphasized that the state needs to invest in Alaska's
children today in order to ensure the workforce of the future,
noting that statistics show that Alaska's workforce is aging.
CO-CHAIR STORY showed slide 4 and said HB 272 "is not a major
overhaul" or "a huge hike." It would provide a two-year
planning window of predictability in terms of cost, which would
allow districts a two-year planning window to predictability,
with the ability to award contracts and avoid layoff notices.
Referring to slide 5, she stated that while the legislature has
increased the amount of education funding over time, that
funding actually has decreased nearly 10 percent over the last
decade when adjusted for inflation. As reflected on slide 6,
she said the proposed increases would make up half of the lost
education funding experienced since the BSA funding was last
increased in fiscal year 2017 (FY 17). She explained that to
arrive at the proposed amount for FY 23, the $30 million outside
of the formula and vetoed in FY 20 would be put back into the
BSA, and FY 21 and FY 22 would be inflation-proofed; then that
would be inflation-proofed for FY 24. She noted that the
inflation-proofing would be based on the consumer price index
for urban Alaska from the U.S. Bureau of Labor Statistics.
3:43:14 PM
CO-CHAIR DRUMMOND asked for confirmation that even though
inflation has grown 8 percent since the BSA was last increased,
HB 272 proposes a modest increase of only 5 percent.
CO-CHAIR STORY confirmed that is correct. She moved on to slide
7 and reported findings of the Institute of Social and Economic
Research (ISER), sourced from the U.S. Census, that when the
cost of living and remote geography are factored in, Alaska's
average annual per pupil costs are about $12,000 per student,
which is slightly below the national average.
3:44:55 PM
REPRESENTATIVE PRAX asked for clarification.
3:45:41 PM
ARIEL SVETLIK, Staff, Representative Andi Story, Alaska State
Legislature, on behalf of Representative Story, prime sponsor of
HB 272, explained that the calculation is "inflation-adjusted"
for Alaska's consumer price index (CPI) compared to the value of
the dollar in the Lower 48. She noted there were
representatives from ISER available to answer questions.
3:47:43 PM
CO-CHAIR STORY continued with the PowerPoint. She noted that a
representative of ISER would be offering details regarding some
of the slides. She turned to slide 9 and talked about cost
drivers. She mentioned the Hootch v. Alaska case regarding the
inadequacy of sending children to boarding schools and the
resulting numerous small schools in rural Alaska. She advised
that small schools do not benefit from power cost equalization
(PCE), and all costs in Alaska are higher than in the Lower 48.
She added that Alaska's health care costs are the highest in the
nation. She next pointed to a pie chart on slide 10 and stated
that an investment in Alaska's children is really an investment
in the state's future workforce and meets the obligation of the
Constitution of the State of Alaska. She concluded the
presentation by urging her fellow committee members to support
HB 272.
3:50:55 PM
MS. SVETLIK read the sectional analysis for HB 272 [available in
the committee packet], which read as follows [original
punctuation provided]:
Section 1: Amends AS 14.17.470, increasing the Student
Base Allocation from $5930 by $223 to $6,153.
Section 2: Amends AS 14.17.470, increasing the Student
Base Allocation from $6,153 by $55 to $6,208.
Section 3: Sets an effective date for Section 1 of
July 1, 2022.
Section 4: Sets an effective date for Section 2 of
July 1, 2023.
MS. SVETLIK moved on to highlight the fiscal notes. She noted
one of them was a zero fiscal note from the Department of
Education and Early Development (DEED). She turned next to "a
Fund Capitalization fiscal note," which outlines how the BSA
would increase over time. She said the first year would see an
increase of approximately $57 million in BSA spending in FY 23;
beginning FY 24, the BSA would increase by $71 million annually.
3:53:17 PM
REPRESENTATIVE PRAX opined that innovations in technology need
to be considered when looking at inflation. He disagreed that
to "maintain" a constitutional requirement means keeping it the
same.
CO-CHAIR STORY explained her interpretation of "maintained" was
aimed at providing necessary services to schools. She said,
"When we keep the base student allocation flat, it eats into the
services that they can provide for the kids." She noted there
would be superintendents to testify.
REPRESENTATIVE PRAX challenged the assumption that it is beyond
the control of the school district to make adjustments to
address inflation.
CO-CHAIR STORY pointed to mandatory expenses, such as heating
buildings and paying for insurance. Certainly districts can
lower costs in some areas, she allowed.
3:59:02 PM
CO-CHAIR DRUMMOND offered her understanding that health care
costs are rising at a higher rate, which effects those working
in school districts.
3:59:46 PM late
CO-CHAIR DRUMMOND announced the committee would hear invited
testimony.
4:00:42 PM
The committee took two consecutive at-eases from 4:00 p.m. to
4:04 p.m. to address technical issues.
4:04:49 PM
DAYNA DEFEO, Director, Center for Alaska Education and Policy
Research (CAEPR), Institute of Social and Economic Research
(ISER), University of Alaska Anchorage (UAA), drew attention to
a six-page "Research Summary" document authored by herself, Matt
Berman, [Alexandra Hill,] and Diane Hirshberg [included in the
committee packet]. She said she had been asked to speak on
public spending on K-12 education, and she would focus on what
is paid compared to other states, as well as costs unique to
Alaska. Ms. Defeo said the last time ISER compared Alaska's
spending to other states was in 2019 when the statistics used
were from 2017. Those statistics showed spending that was 46
percent higher than the national average the sixth highest in
the nation. The latest numbers from 2019 show Alaska is still
in sixth place, but per pupil spending is now only 39 percent
higher than the national average. She indicated this had to do
with local economies growing faster in some other states.
MS. DEFEO said the question is whether Alaska pays more than the
U.S. average. She said the answer, pertaining to "raw dollars,"
is yes; however, she pointed out that everything in Alaska costs
more, exponentially so the smaller the community is. She
explained that some adjustments must be made to compare Alaska's
spending to that of other states. She said the ISER report
shows two adjustments were made to the buying power of the
dollars spent. First, ISER used the foundation formula's
geographic cost differential, which is weighted by district
average daily membership. That adjustment alone explained half
the difference between Alaska and other states; Alaska spent 22
percent above the national average. Next ISER adjusted
"Anchorage dollars" to the nation, which then reflected that
Alaska's costs were actually 2 percent below the national
average. That was in 2017. By 2019 Alaska was falling further
behind, she stated.
4:07:57 PM
MS. DEFEO highlighted that which drives the cost of public
education in Alaska [as shown on page 4 of the report]. She
echoed that the state has a legal obligation to provide
education to its children, and she noted there have been three
major cases between 1975 and 2004 that clearly define that
responsibility. The first driver is the small size of Alaska's
schools, which are costly to operate, because smaller
communities do not benefit from economies of scale in terms of
capital and labor costs. Another driver of cost is healthcare.
She reported that Alaska has the highest per capita cost of
healthcare in the U.S., which effects all sectors of the
economy. The third driver of costs is energy. The cost of fuel
varies based on area. She said the cost of electricity can be
three to five times higher in smaller communities.
MS. DEFEO stated that Alaska is not overspending on public
education. When the spending is readjusted to make a fair
comparison to other states, Alaska actually spends less than the
national average. She discussed the school funding formula,
which has been analyzed, and though it needs updating, the
formula works to distribute available funds equitably among
Alaska's school districts. She indicated a study needs to be
made as to what Alaska is spending its dollars on, to ensure the
best possible education outcomes for teachers, students,
schools, and communities.
4:12:02 PM
BILL HILL, Superintendent, Bristol Bay School District, provided
invited testimony in support of HB 272. He emphasized the
importance of providing students with what they need in order
for them to have a good education. He expressed that flat
incomes and flat costs challenge school districts to provide
such an education. While there has not been an increase to the
BSA in the last several years, costs have continued to escalate.
He echoed the issue of high health insurance, which he said has
increased by 24 percent since 2017. Additionally, it is
challenging to recruit and retain teachers. He shared that his
pay his first year teaching compared to current first-year
salaries for teachers shows that an 11 percent increase would be
needed "to catch up." He said one of the outcomes of reduced
incomes and a lack of a defined benefit retirement system is
that many schools in Alaska have a high turnover in workforce,
which he opined is detrimental to education. He said an
increase to and stability of the BSA is a good start in
correcting that and finding balance. Some decision making
pertaining to lack of funds will compromise the education of
students.
4:15:33 PM
JAMIE BURGESS, Superintendent, Nome School District, provided
invited testimony in support of HB 272. She gave examples of
how the flat funding system of the past six years has created
the current budget crisis. Property insurance premiums are
anticipated. She talked about the effects of climate change in
her region, which has brought strong winds and bitter cold,
resulting in high fuel bills, with anticipated rising costs in
heating oil fuel in the years to come. She stated that the
flattening of health costs during the pandemic were due to
teachers putting off procedures; however, even with the pandemic
continuing, healthcare costs are rising, and the expectation is
for at least a 10 percent rise in premiums in the next school
year.
MS. BURGESS said the cost of supplies and textbooks has risen,
so the district gets less for the same amount of money. Ms.
Burgess said the district used its COVID relief funding to
incentivize, recruit, and retain staff, but that funding will
soon be depleted. She talked about the fierce competition to
acquire educators, and she said Alaska does not have the
competitive edge it once had. She noted the district has moved
some of its key student behavioral support positions into its
COVID funding, but said that would be gone in two years, which
means positions will disappear unless another source of funding
can be found, or funding increased. She name vulnerable areas
of the school's programs that are reliant on outside funding
from the district's tribal partner, which questions why the
positions are not funded out of the general fund. She talked
about meeting the mandate while feeling that she is failing her
district. She commended those teachers committed to ensuring
students get a good education, and she said they deserve the
support of the legislature, and she stated her belief that HB
272 is a great start in that direction.
4:21:08 PM
TERRI WALKER, Superintendent, Northwest Arctic Borough School
District (NABSD), provided invited testimony in support of HB
272. She said the bill would inflation-proof the BSA, and she
offered a definition of "inflation," calling it insidious and at
a 40-year high. She said the current budget process does not
account for inflation, which results in budget cuts. She said
NABSD serves 13 schools in 11 communities. She reported that
from fiscal year 2019 (FY 19) to FY 21, the district has seen
the cost of freight to villages increase by about 10 percent;
freight minimums have also increased by about 20 percent. From
FY 21 to FY 22 to-date, there has been a 16 percent overall
increase to the district's heating fuel expenses. She talked
about bidding to buy fuel in bulk and the necessity to fly fuel
in during winter months because there are no accessible roads.
Some rivers are not deep enough to accommodate a barge. She
said the district qualifies for funding to feed students;
however, the U.S. Department of Agriculture (USDA) reimburses
only 40 percent of the cost. Because of the continuous
increased cost in food and shipping, the district supplements
over $1 million each year, and she said she is thankful for
CARES Act and ARPA funds that allow the district to cover these
funds through 2024.
MS. WALKER listed programs cut as a result of flat funding:
pre-K, career and technical education (CTE); 50 percent of the
district's counselors; and all elementary and middle school
student activities. She said the district has greatly reduced
funding for high school activities and has made cuts to
administrative, teaching, and support staff positions. She
emphasized the difficulty when faced with the choice of whether
to feed or education students. With a decreasing value [of the
dollar], students have fewer opportunities. She promoted
discussion of inflation-proofing the BSA.
4:28:33 PM
SCOTT MACMANUS, Superintendent, Alaska Gateway School District,
provided invited testimony in support of HB 272. He described
his district's demographics. He shared a PowerPoint, titled
"The Cost of Inflation," [included in the committee packet], and
he directed attention to slide 2, which shows that the Alaska
Gateway School District's (AGSD's) fixed costs have risen 19
percent since FY 17. Further, the CPI shows that the district
has lost $1.8 million in buying power since last year. He
observed that the cost of a Ticonderoga pencil increased by 61
percent. He brought attention to slide 3, which shows a 9
percent increase in maintenance costs, and he remarked on
deferred maintenance concerns. He reviewed the information on
slides 4 and 5, regarding heat and [electricity], and spoke
about energy efficiency. In regard to slide 6, he reported that
liability insurance was up 30 percent, and worker's
compensation, shown on slide 7, was up 58 percent. He stated
that health insurance, slide 8, rose 43 percent since FY 17. He
said AGSD "went out to bid" and found a way to save some money,
but [costs] are "still half a million dollars higher" than half
a year ago.
MR. MACMANUS moved on to the final slide, regarding teacher
salaries, to discuss recruitment and retention, which he said is
"currently a hot topic in education." He said the district has
a 90 percent retention goal, and although he reached 92 percent
this year, meeting that goal requires addressing rising costs of
meeting those teacher salaries. The average cost in FY 17 was
$65,000 a year, and that has risen to an average of $79,000 a
year this year. He underlined his dedication to expending money
on retention of good teachers.
4:35:39 PM
REPRESENTATIVE CRONK, as a former teacher, acknowledged the
continued rise of health coverage, and he asked whether "a total
state group" has "stepped in" to determine where money could be
saved in that area.
4:36:57 PM
MR. MACMANUS answered that a couple years ago, a study of that
issue was conducted by the State of Alaska, and he described a
proposal to remove a certain amount of money in exchange for
buying into the state health insurance pool; however, the study
done showed that would not save the school districts any money.
4:38:05 PM
The committee took an at-ease from 4:38 p.m. to 4:40 p.m.
4:40:16 PM
BRIDGET WEISS, PhD, Superintendent, Juneau School District,
shared that she is also president elect for the Alaska
Superintendents Association. She stated support for HB 272.
She described the effects of inflation on the Juneau School
District. With the 7.2 percent CPI increase last year, public
schools must make tough decisions regarding funding. She said
over the last five years, education has received flat funding,
while the fixed costs of running schools has seen significant
increases. She said counselors and health team members have
been lost. Class sizes have increased. The district has made
many adjustments in its schools that are hurting students. She
reported that in 2017, the price of water, sewer, and telephone
services for the district was $396,000; in FY 22, those same
items cost $464,000 an increase of 17 percent. Likewise, the
cost of electricity and heating oil in FY 17 was $1,258,439; in
FY 22, the cost was $1,527,200 an increase of 21 percent. She
shared further increased costs, including a 64 percent increase
in insurance coverage. She said projected costs for FY 23 are
$1.5 million a 155 percent increase since FY 17, and a 55
percent cost increase over the last year.
MS. WEISS said the current budget proposal does not account for
education. The district knows this results in a decline in
funding, given basic costs. She said the district will be
expected to find the funds to pay for the essential services and
coverage, while ensuring staff has a living wage, all while
receiving the same funding received in FY 17. She said the
district has been doing "more with less" for years and [the
legislature] is hurting Alaska's children the state's future
leaders by not fully funding education and accounting for
inflation. She talked about her commitment to education and
asked the legislature to help districts continue to deliver a
robust education.
4:44:14 PM
The committee took an at-ease from 4:44 p.m. to 4:45 p.m.
4:45:18 PM
CHRIS REITAN, Superintendent, Craig City School District, stated
support for HB 273 [which was not on the agenda], but noted
there were similarities in HB 272, which he indicated he also
supported. In response to a question from Co-Chair Drummond, he
said he had not explored the possibility of going in on orders
with another district; Craig City School District gets most of
its freight by barge.
4:49:33 PM
CO-CHAIR DRUMMOND opened public testimony on HB 272.
4:50:00 PM
CORY HUGHES, representing self, said his community is in the
Lower Kuskokwim School District. He stated support for HB 272,
and he emphasized its importance for rural schools, many of
which have no local bureau or municipal support and rely on
state funding. He echoed the effects of a stagnant BSA while
prices have soared across every aspect of school needs. He said
he has felt the loss, as the school he is involved in has lost
two full-time educators and multiple aides, which has resulted
in a drastic increase in class sizes, which is not the best
environment for teaching. Mr. Hughes said an increase in the
BSA would allow for after school activities, and he named
activities where school busses are not an option and funding is
necessary to transport students, such as sports travel, science,
technology, engineering, and mathematics (STEM) camp, art
competitions, and CTE activities that rely on other modes of
transportation via planes, boats, or snow machines. He talked
about rising costs in maintaining those vehicles. He noted that
after school activities can pull at-risk children into school,
and a transformation can occur once they are there. He implored
the committee to move HB 272 out of committee. In response to
Co-Chair Drummond, he confirmed he is a teacher.
4:53:53 PM
EMMA MELKERSON, Teacher, McQueen School, testified in support of
HB 272. She said she teaches kindergarten and first-grade
students. She spoke about her pride in watching students
advance through K-12. She emphasized the increasing costs of
operating a school and the cuts that have occurred in the
Northwest Arctic Borough School District, including CTE, pre-K,
health professionals, and activities. Educators are being asked
to take on the role of teaching vital social emotional learning
(SEL) skills with little training to do so. She emphasized the
importance of basketball in the district and noted that the
weekly games have been cut back to "just a handful." She asked
the committee to imagine her kindergarteners coming to school
without the exposure they would have had in pre-K. Teachers are
being asked to do more with less, and children should have
better than they are receiving. She asked the committee to pass
HB 272.
4:56:44 PM
LON GARRISON, Executive Director, Association of Alaska School
Boards, testified in support of HB 272. [He also stated support
for HB 273, which was not on the agenda.] He pointed out the
similarities between the school districts' and legislature's
processes of figuring out a budget and the effect of budgetary
decisions on Alaska's students. He said the BSA is distributed
through the Alaska Education Foundation formula. He said HB 272
would provide moderate increases in the BSA in the next two
years to reverse the trend of flat funding education; it would
create the opportunity for school boards and superintendents to
consider decisions with lasting effects. He discussed the
complex nature of education funding and urged the committee to
support the proposed legislation.
5:00:07 PM
JESSIE EMBREE, Chair, Ketchikan Native Education Parent
Committee, Ketchikan Gateway Borough School District, said she
also works as an administrative assistant for the Ketchikan
Gateway Borough School District (KGBSD), and she stated her
support for HB 272. [She also stated support for HB 273, which
was not on the agenda.] She said the district is experiencing
staff shortages that affect the programs that support students.
She offered her understanding that the current flat funding has
not changed since 2017 and has not included adjustments for
inflation. She talked about a cultural program in the district
and collaboration between the district, the local tribal
government, and allocation of federal grant funding through a
Title VI grant. She said the current grant provides funding for
a district cultural coordinator position, as well as partial
funding for two preschool teacher salaries; it is a limited
grant fund that relies on the district for support and growth.
She talked about working with tribal governments in support of
Native students, parenting, and cultural connectivity, and she
expressed the need for support staff and funding to meet goals.
She emphasized the need through the pandemic for added SEL and
academic support services, provided through intervention
programs. She asked the committee to support the proposed
legislation.
5:05:13 PM
KEVIN SHOVE, Member, Haines Borough School Board, Haines Borough
School District, stated support for HB 272 on behalf of the
school board. [He also conveyed support for HB 273, which was
not on the agenda.] He said his experience as manager of a
supermarket gives him knowledge of the increased cost of
products and services as a result of inflation, and specifically
how the hike in fuel prices affects the price of goods. He
opined that properly funding education is crucial to attracting
educators to Alaska, and he emphasized the importance of
predictable funding for goal setting. Increasing the BSA and
making it inflation-proof would help school boards plan budgets,
he stated.
5:08:31 PM
PETE HOEPFNER, Member, Cordova School Board;, President, Alaska
Association of School Boards, opined that adequately funded
public education for Alaska's children needs to be a top
priority for the legislature. There have been 15 years of
steadily declining education funding, while costs have always
been increasing. He named health insurance as one of the
highest costs to a school district; that cost has risen to
almost 20 percent of the Cordova School District's budget. He
talked about the state's backing away from a promise to fund the
school bond debt reimbursement. He said public schools are
suffering across the state. The Cordova School District has
limited administration, no assistants, only one counselor, no
nurse, librarian, or reading specialist, no physical education
teacher, a "highly overwhelmed" special education instructor,
and increasing class sizes. He mentioned the goal of every
student reading by third grade and said overcrowded classrooms
are not supportive of that goal. He said the pre-K program had
been cut. He stated support for HB 272 [and HB 273, although it
was not on the agenda]. He said schools are at the mercy of
funding choices made by the legislature, and he expressed
appreciation for "this very first step" in addressing adequately
funded education for children in Alaska.
5:11:52 PM
CO-CHAIR DRUMMOND explained she would leave public testimony
open for a future meeting, and she announced that HB 272 was
held over.
5:12:16 PM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 5:12 p.m.