03/27/2023 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| HB21 | |
| Presentation(s): University of Alaska | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 21 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
March 27, 2023
8:03 a.m.
MEMBERS PRESENT
Representative Jamie Allard, Co-Chair
Representative Justin Ruffridge, Co-Chair
Representative Mike Prax
Representative Tom McKay
Representative Rebecca Himschoot
Representative Andi Story
MEMBERS ABSENT
Representative CJ McCormick
COMMITTEE CALENDAR
HOUSE BILL NO. 21
"An Act relating to group insurance coverage and self-insurance
coverage for school district employees, employees of the
University of Alaska, and employees of other governmental units
in the state; and providing for an effective date."
- MOVED HB 21 OUT OF COMMITTEE
PRESENTATION(S): UNIVERSITY OF ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 21
SHORT TITLE: SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
SPONSOR(s): REPRESENTATIVE(s) VANCE
01/19/23 (H) PREFILE RELEASED 1/9/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) CRA, EDC, L&C
01/27/23 (H) CRA REFERRAL REMOVED
01/27/23 (H) BILL REPRINTED
03/13/23 (H) EDC AT 8:00 AM DAVIS 106
03/13/23 (H) Heard & Held
03/13/23 (H) MINUTE(EDC)
03/27/23 (H) EDC AT 8:00 AM DAVIS 106
WITNESS REGISTER
REPRESENTATIVE SARAH VANCE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 21.
NATHAN ERFURTH, President
Kenai Peninsula Education Association
Kenai, Alaska
POSITION STATEMENT: Provided public testimony in support of HB
21.
KATHY LEARY, City Administrator
City of Gustavus
Gustavus, Alaska
POSITION STATEMENT: Provided public testimony in support of HB
21.
CANDY MILLER, representing self
Matanuska-Susitna Valley, Alaska
POSITION STATEMENT: Provided public testimony in opposition to
HB 21.
PAT PITNEY, President
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation, titled
"University of Alaska Empower Alaska."
PAUL LAYER, Vice President
Academics, Students, and Research
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Answered questions during the PowerPoint
presentation, titled "University of Alaska Empower Alaska."
CHAD HUTCHINSON, Director
State Relations
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Answered questions during the PowerPoint
presentation, titled "University of Alaska Empower Alaska."
ACTION NARRATIVE
8:03:27 AM
CO-CHAIR JAMIE ALLARD called the House Education Standing
Committee meeting to order at 8:03 a.m. Representatives Prax,
McKay, Himschoot, Story, Ruffridge, and Allard were present at
the call to order.
HB 21-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
8:04:01 AM
CO-CHAIR ALLARD announced that the first order of business would
be HOUSE BILL NO. 21, "An Act relating to group insurance
coverage and self-insurance coverage for school district
employees, employees of the University of Alaska, and employees
of other governmental units in the state; and providing for an
effective date."
8:04:16 AM
The committee took an at-ease from 8:04 a.m. to 8:06 a.m.
8:06:35 AM
REPRESENTATIVE SARAH VANCE, Alaska State Legislature, as prime
sponsor, presented HB 21. She stated that the proposed
legislation would give the school districts, University of
Alaska, and governmental units the option to participate in the
state's health care program, AlaskaCare. She stated that this
would create the potential for school districts to save millions
of dollars in health care costs, while providing more health
care options.
8:07:49 AM
CO-CHAIR RUFFRIDGE requested a description of the process that
would save "millions." He expressed the understanding that the
University of Alaska may not join the plan, as it would see no
savings; however, the school district he represents has
expressed support, as there may be savings for it.
REPRESENTATIVE VANCE replied that the savings would come from
pooling larger numbers of people together. For some school
districts, the option is having a health care program that will
accept them. Being a part of a larger pool would allow new
people to be taken on, as some are having a difficult time
obtaining a comparable plan. She expressed the understanding
that the Matanuska-Susitna (Mat-Su) Borough School District
would save about $3,000 per employee. She suggested that as
people pool in, eventually the overall cost per employee would
drop.
8:10:29 AM
REPRESENTATIVE STORY expressed agreement with the idea of the
proposed legislation. She expressed the understanding that it
would require an actuarial analysis in a separate fiscal note.
She questioned whether this would happen if it moved to the
House Finance Standing Committee.
REPRESENTATIVE VANCE expressed the belief that this is the
process. She stated that there has been discussion concerning
the current fiscal note from the Department of Administration
(DOA). She explained that, for the proposed legislation, the
first year would be just the cost of adopting regulations, which
should not require DOA to hire many new employees. After the
first year, there would be a better understanding of how many
school districts and municipalities want to join, and then a
reevaluation of DOA's new hires would need to be done. In
response to a follow-up question, she said that Mat-Su, which
has the second largest school district, and the Kenai Borough,
which has the third largest school district, are both
interested. She stated that other districts have also reached
out.
8:12:33 AM
REPRESENTATIVE PRAX expressed the understanding this is an opt-
in plan. He stated that with health insurance there is an
"adverse selection risk." He suggested that a potential problem
would be districts already paying less for health insurance
would not join, while those paying more would, and this presents
the risk. He questioned whether this has been considered.
REPRESENTATIVE VANCE responded that this might be a question for
DOA.
8:13:57 AM
CO-CHAIR ALLARD questioned whether the original zero fiscal note
had changed.
REPRESENTATIVE VANCE expressed the understanding that the
proposed legislation could add to DOA's workload, creating the
need for additional staff. She reiterated that the first year
would only be creating the regulations, hence the zero fiscal
note. She suggested that from past actions, the governor and
the current administration would support the legislation.
8:16:13 AM
CO-CHAIR RUFFRIDGE pointed out that there has not been a change
in the fiscal note; rather there are two separate fiscal notes.
He stated that the zero fiscal note is from the university
system, as it does not plan to participate, while the other
fiscal note is from DOA, and this would be for the additional
positions.
REPRESENTATIVE VANCE responded in agreement. She addressed the
problems with fiscal notes in general.
8:18:08 AM
CO-CHAIR ALLARD expressed concern about the balances on the
fiscal notes.
8:18:42 AM
CO-CHAIR ALLARD open public testimony on HB 21.
8:19:11 AM
NATHAN ERFURTH, President, Kenai Peninsula Education
Association, provided public testimony in support of HB 21. He
expressed support for the proposed legislation. He stated that
Alaska spends more on health care than any other state. He
suggested that allowing school districts to join a larger pool
would be a positive action, as health care costs cut into the
overall budget for districts. He stated that some educators
have moved districts because of the high cost of health care.
He continued that this cost should not negatively affect
instructional funding. He expressed understanding about the
adverse risk and fiscal note concerns. However, if the state
wants quality educators for its students, he argued that it
should support HB 21.
8:21:02 AM
KATHY LEARY, City Administrator, City of Gustavus, provided
public testimony in support of HB 21. She stated that Gustavus
is small with six or seven employees. Currently health
insurance is provided to employees working 30 hours or more a
week. She stated that the plan is affordable, but not very
good, as it does not cover families. She expressed excitement
over the proposed legislation, as the city could have something
more to offer perspective employees. She stated that a clerk
that had worked for the city for five years moved to the
National Parks Service because of the health insurance benefit.
She expressed the concern that the regulations would only allow
a minimum number of people [from an entity] to join the pool.
She argued that something needs to be done to help retain
employees, and this is a "big issue."
8:23:25 AM
CANDY MILLER, representing self, provided public testimony. She
stated that she lives in the Mat-Su Valley, and she and her
husband are retired. She shared the cost of health insurance
she pays and related the understanding of what other people pay.
She expressed the opinion that individuals should be able to
choose their own health care insurance, as opposed to having
only the choice of the state plan. She concluded that the
funding for health care should go directly to the individuals so
they can choose their own plan.
8:26:02 AM
CO-CHAIR ALLARD, after ascertaining that there was no one else
who wished to testify, closed public testimony.
8:26:14 AM
REPRESENTATIVE STORY expressed the understanding that there is
not a limit on the number of employees [within an entity] needed
to join the plan.
REPRESENTATIVE VANCE responded in the affirmative, stating that
there is no minimum threshold. She suggested that a
conversation with DOA would help understand the cost/benefit of
this. In response to a follow-up question, she expressed the
understanding that the fiscal note would eventually reflect how
many entities join the plan, as this is currently unknown. She
suggested that there would be additional costs.
8:28:37 AM
CO-CHAIR RUFFRIDGE questioned whether the state would be able to
not allow a person or entity to join the plan. He suggested
that with the proposed legislation, the state would have to
allow this.
REPRESENTATIVE VANCE answered in the affirmative. She quoted
from page 5 of the bill, which related that DOA would have the
flexibility to determine what is best for parties - whether this
is joining with a larger pool or having their own self insurance
policy. She stated that the proposed legislation would reduce
the burden for school districts and municipalities to shop for
their own health care. She stated that as written, the proposed
legislation would accept everyone. In response to a follow-up
question, she stated that she would report back to the committee
on the per-person cost for state insurance. She added that the
bill would require specifications on the best health care
options to be reviewed every five years. She discussed the
volatility of health insurance costs in the state.
8:34:55 AM
REPRESENTATIVE VANCE, in response to a question from
Representative Himschoot, stated that governmental units would
include municipalities, boroughs, and other entities defined by
statute. In response to a follow-up question, she stated that
if school districts opted into the state insurance plan, the
payouts on claims would transfer, and the closing balance would
go into the group insurance, and this pool would be available to
offer distributions. She continued that a 10-year window would
be given for this.
8:37:17 AM
CO-CHAIR RUFFRIDGE moved to report HB 21 out of committee with
individual recommendations and the accompanying fiscal notes.
8:37:39 AM
REPRESENTATIVE PRAX objected. He pointed out that there had
been questions on the fiscal note.
8:38:12 AM
REPRESENTATIVE PRAX withdrew his objection.
8:38:31 AM
[The committee continued as if an objection was maintained.]
A roll call vote was taken. Representatives Prax, McKay,
Himschoot, Story, Ruffridge, and Allard voted in favor of the
motion to report HB 21 out of committee with individual
recommendations and the accompanying fiscal notes. Therefore,
HB 21 was reported out of the House Education Standing Committee
by a vote of 6-0.
8:38:56 AM
The committee took an at-ease from 8:38 a.m. to 8:42 a.m.
^PRESENTATION(S): University of Alaska
PRESENTATION(S): University of Alaska
CO-CHAIR ALLARD announced that the final order of business would
be a presentation from the University of Alaska.
8:42:58 AM
PAT PITNEY, President, University of Alaska (UA), gave a
PowerPoint presentation, titled "University of Alaska Empower
Alaska" [hard copy included in the committee packet]. She
described UA as a unique system, as it encompasses low-technical
courses, community colleges, research, academic development, and
doctoral programs. She stated that most states have multiple
systems while Alaska only has one. She pointed out that there
are three distinct universities in the state system, and the
system covers the entire state. She referred to discussions
with the community campus directors on advocacy for the state's
workforce and economic development. She concluded that UA is
not just a university, but also the entire public higher
education system for the state.
MS. PITNEY moved to slide 3 and pointed out UA's priority focus
areas, which are all under the umbrella of fiscal stability.
She explained that the main focus is student enrollment in
degree programs for the workforce, working in conjunction with
the economic opportunities in the state. She added that other
focuses are Arctic involvement, teacher education, Alaska Native
success, finance and business partnerships, fisheries science
programs, and modernization of business models. She continued
to the next slide that showed the results of a survey concerning
the UA system. She pointed out that UA has an 81 percent
overall approval rating.
8:48:08 AM
MS. PITNEY, in response to a committee question, stated that
fiscal stability for the university system means consistent
state funding, increasing enrollment, monetizing UA's assets,
and consistent revenue for research. She added that research at
the university is funded both federally and independently. She
pointed out UA's unique position concerning Arctic and climate
research, resource development, and involvement with the US
Department of Defense. She stated that the current fiscal year
is the first in nine years that the UA system has not taken
major state budget reductions. In response to a follow-up
question, she stated that the House Finance Standing Committee
has been provided with documents on UA's revenue and goals.
8:51:56 AM
MS. PITNEY discussed the sources of the COVID-19 relief funds UA
received, as seen on slide 6. She stated that these funds
totaled around $90 million. She stated that slide 7 shows the
breakdown of this funding that went directly to students, as
around $23 million went out to around 10,000 students. She
pointed out the breakdown on slide 8 of the uses of the COVID
funding.
MS. PITNEY moved to the next slide and addressed UA's
enrollment. She stated that there had been an expectation that
the enrollment in the UA system would be down between 5 percent
and 6 percent; however, this past fall the decrease was only 1
percent. Since this past spring, she said that there is a
growing student enrollment, especially at the community campuses
and technical schools. She added that since the pandemic UA has
more online offerings.
8:55:13 AM
MS. PITNEY, in response to a committee question, stated that she
took over her role at UA in August 2020. In response to a
follow-up committee question, she stated that UA's current
success is because of fiscal stability and the building back of
confidence and trust in the system. She noted that the Alaska
Performance Scholarship program has had positive effects. She
highlighted that the programs at UA are fewer, but the ones now
available "are here to stay."
MS. PITNEY discussed dual enrollment, as seen on slide 9. She
stated that high school student enrollment in UA's courses has
increased by 10 percent. She discussed the benefits to high
school students, such as being able to achieve a bachelor's
degree in two years after graduating from high school. In
response to a committee question concerning funding equity in
the dual enrollment program, she stated that this is district
specific, and the districts drive the financial support.
9:01:06 AM
MS. PITNEY, in response to a question from the committee, stated
that every student comes in with test scores and transcripts.
If there were not a test score, the student would take a
placement exam. She suggested that these exams have improved
concerning assessment of where the student should be placed, and
with the middle colleges and dual enrollment, students are now
placed substantially higher with a more seamless transition. In
response, she answered that ACCUPLACER is used along with tests,
such as SATs and ACTs, and other assessment tools.
MS. PITNEY, continuing on slide 9, addressed the UA Scholars
award, which is funded by the UA Land Grant Trust. She stated
that this has helped build confidence in the university system.
She stated that the three teacher preparation schools are
working together in a consortium to promote teachers in the
state. She referenced financial support for individuals who are
doing their teacher internship. She mentioned the expansion of
nursing programs with financial support for clinical programs.
She stated that overall UA students graduate with less student
debt.
MS. PITNEY, in response to a committee question concerning the
teaching program, stated that the program has capacity for more
students. She referenced the advertising campaign to recruit
more students and the website that provides guidance on how to
become a teacher. She added that UA is developing internship
models with school districts and working with paraprofessionals
seeking teaching degrees. Addressing the nursing program, she
stated that UA is overcapacity with students, and it is working
on recruiting more instructors. She stated that there is a
waiting list for health care programs in general, as the need in
the state is "tremendous." She referenced state funds that
helped expand these programs.
9:13:54 AM
REPRESENTATIVE STORY pointed out the $1 million put aside to
help with internships and paying teachers. She questioned
whether there is an income threshold to receive this.
9:14:55 AM
PAUL LAYER, Vice President, Academics, Students, and Research,
University of Alaska, responded that he would follow up to the
committee with this information.
REPRESENTATIVE STORY questioned the outreach on the part of UA
teaching instructors to districts concerning requirements for
the Alaska Reads Act, teaching the science of reading, and other
assessments districts use. She expressed the need for a strong
partnership so teachers graduating from the university are
ready.
MS. PITNEY replied that UA, the Department of Education and
Early Development, and the school districts have had conferences
specific to reading education. She explained that the
[graduation assessment of teachers] requires a tremendous amount
of interaction between the school districts and UA faculty, and
the assessments are "very rigorous."
MS. PITNEY moved to slide 10, which showed UA's current numbers
on enrollment and the academic profile. In response to a
committee question concerning the number of tenured faculty, she
replied there are four categories of faculty. There is adjunct
and full-time faculty. The full-time faculty consists of
tenured, tenured track, and non-tenured track. There are just
under 1,000 full time faculty; however, she stated that she does
not have the specific number of tenured faculty. She stated
that she would report back to the committee with this
information.
MS. PITNEY continued the presentation on slide 11 and addressed
the Alaska Performance Scholarship. She expressed the opinion
that this scholarship is the best workforce program for Alaska,
as 80 percent of these graduates go to work in Alaska within a
year. She cited national statistics that relate that most
college graduates reside within 100 miles of the place they
graduated from, and she argued that getting students in UA would
add to Alaska's workforce. She reiterated that the Alaska
Performance Scholarship is "hugely" important for this.
9:20:35 AM
MS. PITNEY moved to a graph on slide 12, which showed how UA's
employee headcount follows state funding. She stated that this
addresses UA's fiscal stability. She continued to the next
slide on the programs in the fiscal year 2024 (FY 24) budget.
She pointed out the WWAMI (Washington, Wyoming, Alaska, Montana,
and Idaho) medical school program. She stated that in the
budget with the finance committee is a small amount of state
funding for the expansion of WWAMI from 20 students to 30
students in UA Anchorage program. She stated that this also
entails $2 million to create clinical lab space for this
expansion of the WWAMI program. She added that there is also
base funding for the Alaska Commission to Postsecondary
Education to pay the University of Washington out of state
tuition for the WWAMI program. She stated the needed $1.647
million would be for the addition of 10 students to the program.
She added that if students do not return to Alaska after
graduation, they would have to repay this tuition back to the
commission.
9:23:47 AM
MS. PITNEY, in response to a committee question concerning the
high demand on the nursing program and whether WWAMI could be
involved, stated that there are some out of state private
providers working with hospitals in the state because of the
acute need for nurses. She stated that the board just approved
a new program at UA Fairbanks; however, the problem is hiring
the faculty to teach it. She further discussed the nursing
programs in the state.
MS. PITNEY continued the presentation on slide 14 and referenced
the current budget, and the continuation of funding for the UA
Drone Program. She stated that the intent of this program is to
set Alaska as the first place in the nation to have commercial,
unmanned aerial vehicle enterprises. This would entail creating
safety standards for manned and unmanned flights. She pointed
out the uses of this, which include monitoring coastal erosion,
pipeline safety, searches, and delivery of supplies. She stated
that now there is $10 million in the budget that will be added
to the $20 million from last year.
9:30:23 AM
MS. PITNEY moved to the next slide, which listed the UA programs
with major initiatives for FY 23 to FY 24, which include drones,
health, mariculture, critical minerals, alternate energy, and
heavy oil recovery. She stated that on slide 16 and slide 17
each of these programs are addressed. In response to a
committee question on training in mariculture, she stated that
UA has strong partnerships, with multiple components of funding,
including the Build Back Better grant, which resulted from the
Southeast Conference. She stated that this and other industry
grants have supported UA's education and research areas, and
UA's campuses in Southeast have a mariculture program. She
pointed out that on the research side the Alaska Sea Grant
program is available in most coastal communities throughout the
state. She also discussed UA Fairbank's programs on fisheries
and ocean science. She expressed the opinion that the reason
the Southeast Conference has been so successful is because of
the 10-year partnership with industry, UA, and the community.
MS. PITNEY, in response to a question concerning the coal
gasification project, replied she would report back to the
committee on this. She expressed the opinion that this would be
viable in Alaska.
MS. PITNEY, in response to a committee question, replied that
there was a marijuana class offered once in the state. It is an
industry in the state; however, she expressed uncertainty
concerning the tax revenue. In response to a follow-up question
concerning how a university class comes into existence, she
stated that on the academic side, it is faculty monitored and
approved. She explained that each university has a faculty
senate, and if a department or faculty wants to provide a
course, it must be approved by this entity, and then it would go
to the provost for the final signoff. She added that from there
the registrar would do the scheduling.
9:41:31 AM
CHAD HUTCHINSON, Director, State Relations, University of
Alaska, stated that the cannabis class was discontinued because
of lack of enrollment. In response to a follow-up question, he
stated that the class taught all things industry related,
including laws, banking, and biology.
9:42:41 AM
MS. PITNEY stated that UA's legislative priorities beyond the
budget are listed on slide 18, with the main priority being
student financial support. She mentioned the Alaska Performance
Scholarship, and the important work the legislature is doing to
allow it to be awarded earlier and to adjust the size, as the
amount of the scholarship was set over 10 years ago. She
pointed out the extension of Alaska's education tax credit, as
this encourages partnerships between education entities and
industry. She argued that the education tax credit should not
be allowed to sunset. She also advised that this amount go back
to the amount before it was reduced. She next advocated for the
reauthorization of the Technical Vocational Education Program
(TVEP). [It was acknowledged that there is a bill that would
continue the TVEP program.]
9:46:48 AM
MR. LAYER interjected that he has the information regarding
Representative Story's question concerning the teacher practicum
program. He stated the criteria are very basic, as a student
must be in good academic standing, eligible for financial aid,
and be in the initial licensure program while not currently
teaching. He said there is a priority for Alaska residents and
for those who intend to work in rural Alaska. He stated that it
provides $30,000, including tuition, and a $10,000 stipend for
the students during their internship. In response to a follow-
up question concerning participation, he replied that the money
allocated covers around 30 students. He stated that this might
be supplemented with internal foundation-type monies to get the
number up to 40 students.
9:49:04 AM
REPRESENTATIVE MCKAY requested a discussion on the loss of
accreditation on the teacher education programs.
MS. PITNEY replied that UA Anchorage initial licensure education
program lost accreditation in 2018 or 2019. Because of the
tumultuous financial situation at the time, the choice was to
drop these programs, and it was the specialized accreditation
programs that were eliminated. She explained that the
accreditation process is a paperwork process, with an external
validation of quality. She continued that if the information is
not put forward to the external group to validate the quality,
this does not mean the program is not qualified. She stated
that all other programs are fully accredited. She further
explained the early education program, which is in an in-between
process of accreditation.
9:54:57 AM
MS. PITNEY concluded the presentation on slide 21, emphasizing
the progress for the UA Land Grant program. She advised that
this is an excellent opportunity, but it will take five to ten
years to materialize the funding. She compared it to "planting
a tree."
9:56:35 AM
REPRESENTATIVE HIMSCHOOT requested a future follow up on the
Alaska Statewide Mentor Project. She stated that the project is
going well, and she expressed the hope that it is protected and
expanded. She also commented that the state needs more teachers
and more could be done.
9:57:34 AM
REPRESENTATIVE STORY expressed appreciation for the focus on the
state's workforce. She expressed interest in any plans on
deferred maintenance. She also questioned how the UA Land Grant
program is being administered and the initiatives that were not
in the governor's budget.
9:58:37 AM
REPRESENTATIVE PRAX expressed appreciation for the active
approach UA is taking and the focus on workforce development.
9:59:58 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 10:00 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 21 - Fiscal Note - University of Alaska.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB 21 - Letter of Support from KPBSD.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB 21 - Presentation.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| HB21A.PDF |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| UA House Education Committee Presentation FINAL 3 27 2023.pdf |
HEDC 3/27/2023 8:00:00 AM |
UA House Presentation |
| HB 21 - Fiscal Note - DOA.pdf |
HEDC 3/27/2023 8:00:00 AM |
HB 21 |
| faculty by tenure status & university.pdf |
HEDC 3/27/2023 8:00:00 AM |
Facilty Information - Questions & Answers |