Legislature(2025 - 2026)DAVIS 106

05/02/2025 08:00 AM House EDUCATION

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Audio Topic
08:10:14 AM Start
08:11:05 AM HB183
08:40:24 AM Presentation: Bond Reimbursement and Grant Review Update
09:45:20 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 183 EARLY EDUCATION PROGRAMS TELECONFERENCED
Moved HB 183 Out of Committee
+ Presentation: Bond Reimbursement and Grant TELECONFERENCED
Review Update by Department of Education & Early
Development
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                          May 2, 2025                                                                                           
                           8:10 a.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Rebecca Himschoot, Co-Chair                                                                                      
Representative Andi Story, Co-Chair                                                                                             
Representative Maxine Dibert                                                                                                    
Representative Ted Eischeid                                                                                                     
Representative Rebecca Schwanke                                                                                                 
Representative Bill Elam                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Jubilee Underwood                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 183                                                                                                              
"An Act relating to district-wide early education programs; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 183 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PRESENTATION: BOND REIMBURSEMENT AND GRANT REVIEW UPDATE                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 183                                                                                                                  
SHORT TITLE: EARLY EDUCATION PROGRAMS                                                                                           
SPONSOR(s): REPRESENTATIVE(s) STORY                                                                                             
                                                                                                                                
04/11/25       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/25       (H)       EDC, FIN                                                                                               
04/23/25       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
04/23/25       (H)       Heard & Held                                                                                           
04/23/25       (H)       MINUTE(EDC)                                                                                            
04/28/25       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
04/28/25       (H)       Heard & Held                                                                                           
04/28/25       (H)       MINUTE(EDC)                                                                                            
05/02/25       (H)       EDC AT 8:00 AM DAVIS 106                                                                               
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE ANDI STORY                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   As prime  sponsor, presented HB 183  to the                                                             
committee.                                                                                                                      
                                                                                                                                
HEATHER HEINEKEN, Director                                                                                                      
Division of Finance & Support Services                                                                                          
Department of Education & Early Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered committee questions on HB 136.                                                                  
                                                                                                                                
MICHAEL MASON, Staff                                                                                                            
Senator Loki Tobin                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered committee questions on HB 136.                                                                  
                                                                                                                                
HEATHER HEINEKEN, Director                                                                                                      
Division of Finance & Support Services                                                                                          
Department of Education & Early Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Gave   a   presentation  titled   "Bond                                                             
Reimbursement and Grant Review Update".                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:10:14 AM                                                                                                                    
                                                                                                                                
CO-CHAIR REBECCA  HIMSCHOOT called  the House  Education Standing                                                             
Committee meeting  to order at  8:10 a.m.   Representatives Elam,                                                               
Eischeid, Dibert, Schwanke, Story,  and Himschoot were present at                                                               
the call to order.                                                                                                              
                                                                                                                                
                HB 183-EARLY EDUCATION PROGRAMS                                                                             
                                                                                                                                
8:11:05 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT announced  that the  first order  of business                                                               
would be  HOUSE BILL NO.  183, "An Act relating  to district-wide                                                               
early education programs; and providing for an effective date."                                                                 
                                                                                                                                
8:11:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDI STORY,  Alaska State  Legislature, as  prime                                                               
sponsor, presented HB  183 to the committee.   She explained that                                                               
the proposed  legislation would change  current funding  for pre-                                                               
kindergarten students  from half full-time equivalent  (FTE) to a                                                               
whole and further  explained how the Alaska Reads  Act is causing                                                               
for the Department  of Education and Early  Development (DEED) to                                                               
adapt  to  regulations   through  feedback  its  pre-kindergarten                                                               
programs that it established.                                                                                                   
                                                                                                                                
8:15:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE asked how  a series of recommendations to                                                               
the Alaska State Board of  Education made by an unspecified group                                                               
were being implemented.                                                                                                         
                                                                                                                                
CO-CHAIR    HIMSCHOOT    replied   that    the    recommendations                                                               
Representative Schwanke  was referring had been  submitted to the                                                               
DEED without any response.                                                                                                      
                                                                                                                                
8:16:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE   shared  her  belief  that   the  early                                                               
learning  program application  process  was too  great for  small                                                               
school districts and  shared a series of  recommendations to ease                                                               
the administrative  burden that the applications  pose to certain                                                               
school districts in Alaska.                                                                                                     
                                                                                                                                
8:23:07 AM                                                                                                                    
                                                                                                                                
HEATHER  HEINEKEN,  Director,  Division   of  Finance  &  Support                                                               
Services, Department  of Education & Early  Development, answered                                                               
committee questions on  HB 136.  She explained  that the original                                                               
fiscal noted associated with HB 183  was based off of the current                                                               
Base  Student Allocation  (BSA) of  $5,960 and  detailed how  the                                                               
proposed  $700 increase  to the  BSA  would be  reflected in  the                                                               
newer fiscal note for HB 183.                                                                                                   
                                                                                                                                
8:26:36 AM                                                                                                                    
                                                                                                                                
MICHAEL   MASON,  Staff,   Senator  Loki   Tobin,  Alaska   State                                                               
Legislature,  answered  committee  questions   on  HB  136.    He                                                               
contextualized Representative Schwanke's  comments by detailing a                                                               
change  made  to  House  Bill   148  of  the  33rd  Alaska  State                                                               
Legislature.                                                                                                                    
                                                                                                                                
8:28:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE   asked  why   there  was  such   a  big                                                               
difference between fiscal year 2026 and the following years.                                                                    
                                                                                                                                
8:29:55 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:29 a.m. to 8:31 a.m.                                                                       
                                                                                                                                
8:31:28 AM                                                                                                                    
                                                                                                                                
MR. MASON  clarified that the  proposed legislation  would remove                                                               
the limit on the number  of pre-kindergarten students in programs                                                               
that can be funded as outlined by the Alaska Reads Act.                                                                         
                                                                                                                                
8:33:02 AM                                                                                                                    
                                                                                                                                
MS. HEINEKEN clarified that the  expensive fiscal note for fiscal                                                               
year 2026 was  based off of a  multi-million dollar appropriation                                                               
made to the DEED.                                                                                                               
                                                                                                                                
8:34:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DIBERT  moved to  report HB  183 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 183 was reported  from the                                                               
House Education Standing Committee.                                                                                             
                                                                                                                                
8:35:41 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:35 a.m. to 8:40 a.m.                                                                       
                                                                                                                                
^PRESENTATION: Bond Reimbursement and Grant Review Update                                                                       
    PRESENTATION: Bond Reimbursement and Grant Review Update                                                                
                                                                                                                              
8:40:24 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT announced  that the  final order  of business                                                               
would  be   the  Bond  Reimbursement  and   Grant  Review  Update                                                               
presentation.                                                                                                                   
                                                                                                                                
8:43:03 AM                                                                                                                    
                                                                                                                                
HEATHER  HEINEKEN,  Director,  Division   of  Finance  &  Support                                                               
Services,  Department of  Education &  Early Development,  gave a                                                               
presentation   titled  "Bond   Reimbursement  and   Grant  Review                                                               
Update".    She  began  by   providing  a  history  of  the  Bond                                                               
Reimbursement  and   Grant  Review  (BRGR)  committee   from  its                                                               
incipience in 1993 and described  the committee's role within the                                                               
Alaska  education system.   She  detailed the  committee's recent                                                               
meetings  on April  9th,  2025  and April  10th,  2025 that  both                                                               
concerned  the Capitol  Improvement Project  (CIP) grant  report,                                                               
school  capital project  funding,  Regional Education  Attendance                                                               
Area  (REAA) and  small  municipal fund  reports,  and CIP  grant                                                               
applications.  She  explained how the BRGR  committee had created                                                               
a  subcommittee to  review a  supplemental CIP  grant application                                                               
that  it  did  not  have  enough  time  to  properly  review  and                                                               
emphasized that  the Average Daily  Membership (ADM)  figure used                                                               
to evaluate  CIP grant applications  was not the same  ADM figure                                                               
that was being used in HB 183.                                                                                                  
                                                                                                                                
8:58:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELAM asked  if the  DEED has  made any  effort to                                                               
assist school  districts in beginning CIP  grant applications and                                                               
asked if  the BRGR committee has  taken up review of  the lack of                                                               
funding for many CIP grant projects in Alaska.                                                                                  
                                                                                                                                
MS.  HEINEKEN clarified  that the  BRGR committee  has worked  to                                                               
simplify the  CIP grant application to  reduce its administrative                                                               
burden  on  school  districts  and  agreed  that  the  CIP  grant                                                               
application is  costly and often  not funded  by the state.   She                                                               
opined that the  CIP grant dashboard was not  likely to encourage                                                               
many more  school districts to apply  to the CIP grant  but was a                                                               
helpful tool in comparing costs  and scope of projects across the                                                               
state.                                                                                                                          
                                                                                                                                
9:08:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE   shared  her  concern  related   to  an                                                               
experience of a  rural school within her House  District that had                                                               
experienced  major  mechanical failures  as  a  result of  delays                                                               
caused by an already lengthy CIP grant process.                                                                                 
                                                                                                                                
9:13:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT   shared  her   agreement  about   CIP  grant                                                               
applications  causing harm  in rural  school districts  and asked                                                               
about the membership of the BRGR subcommittees.                                                                                 
                                                                                                                                
MS.  HEINEKEN  replied  that  the  subcommittees  are  made  from                                                               
committee  members  and added  that  the  DEED  does not  have  a                                                               
funding mechanism to respond to school district emergencies.                                                                    
                                                                                                                                
9:15:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY asked  how  the  DEED makes  effort  to change  a                                                               
school district's standing  within the CIP grant  waiting list in                                                               
the case of a funding emergency.                                                                                                
                                                                                                                                
MS. HEINEKEN explained that only some  of the schools in the news                                                               
with  terrible learning  conditions  have applied  for CIP  grant                                                               
funding.                                                                                                                        
                                                                                                                                
9:21:25 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY shared  her opinion  that  the BRGR  subcommittee                                                               
provide recommendations  for statutory  changes to the  CIP grant                                                               
application process.                                                                                                            
                                                                                                                                
9:23:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE  expressed her  concern that  the current                                                               
CIP  grant   application  process  might  incentivize   a  school                                                               
district  to wait  until catastrophic  failure to  apply for  CIP                                                               
funding.                                                                                                                        
                                                                                                                                
9:25:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EISCHEID  asked if the  BRGR provides a  CIP grant                                                               
application rubric for school districts to be successful.                                                                       
                                                                                                                                
MS.  HEINEKEN   affirmed  that  the  DEED   does  provide  school                                                               
districts  with a  rubric to  be  successful in  their CIP  grant                                                               
application.                                                                                                                    
                                                                                                                                
9:26:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY  asked  if  the   BRGR  committee  discussed  the                                                               
upcoming moratorium on bond debt  reimbursement funding and asked                                                               
what the percentage  split of a bond debt would  be reimbursed by                                                               
the DEED.                                                                                                                       
                                                                                                                                
MS.  HEINEKEN answered  that the  DEED would  currently reimburse                                                               
school districts  60-40 on necessary  projects and 50-50  on non-                                                               
necessary projects.                                                                                                             
                                                                                                                                
9:29:53 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY  asked how the bond  debt reimbursement moratorium                                                               
being lifted would affect REAA schools.                                                                                         
                                                                                                                                
MS.  HEINEKEN   explained  that  the  moratorium   on  bond  debt                                                               
reimbursement has  negatively affected REAA schools  and detailed                                                               
how  the  lifting  of  the  moratorium  could  increase  new  and                                                               
maintenance construction in REAA schools.                                                                                       
                                                                                                                                
9:38:19 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HIMSCHOOT asked  if the  Alaska  State Legislature  has                                                               
been  periodically funding  the  REAA fund  since  the bond  debt                                                               
moratorium went into effect.                                                                                                    
                                                                                                                                
MS.  HEINEKEN  affirmed that  the  Alaska  State Legislature  has                                                               
added  funding  to  the  REAA  every year  since  the  bond  debt                                                               
moratorium   went  into   effect  and   said  that   the  funding                                                               
appropriated by the Alaska State  Legislature would be given to a                                                               
school district at the top of the CIP grant applicant list.                                                                     
                                                                                                                                
9:43:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE  asked if there  are any bond  debts that                                                               
the  DEED is  currently expecting  to immediately  reimburse upon                                                               
the bond debt moratorium's lifting.                                                                                             
                                                                                                                                
MS. HEINEKEN answered that school  districts with bond debts from                                                               
2015-2025  would not  qualify  to be  reimbursed  for their  bond                                                               
debts upon the lifting of the bond debt moratorium.                                                                             
                                                                                                                                
9:44:36 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HIMSCHOOT  thanked the invited testifiers  and delivered                                                               
committee announcements.                                                                                                        
                                                                                                                                
9:45:20 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Education Standing Committee meeting was adjourned at 9:45 a.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
BRGR packet Index 5.2.25.pdf HEDC 5/2/2025 8:00:00 AM
Bond Reimbursement and Grant Review Committee.pdf HEDC 5/2/2025 8:00:00 AM
HB 183 DEED Answers to HEDC Q's re FN.pdf HEDC 5/2/2025 8:00:00 AM
HB 183