Legislature(2005 - 2006)

04/21/2005 05:11 PM House EDU


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05:11:53 PM Start
05:12:11 PM HB173
05:29:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON EDUCATION                                                                            
                         April 21, 2005                                                                                         
                           5:11 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mark Neuman, Chair                                                                                               
Representative Bob Lynn                                                                                                         
Representative Bill Thomas                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Les Gara                                                                                                         
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Gatto                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
HOUSE BILL NO. 173                                                                                                              
"An Act relating to school funding and adjusting the district                                                                   
cost factors; and providing for an effective date."                                                                             
                                                                                                                                
     - MOVED CSHB 173(EDU) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 267                                                                                                              
"An Act authorizing credit in a public correspondence study                                                                     
program for privately purchased curriculum materials from a                                                                     
religious institution."                                                                                                         
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 233                                                                                                              
"An Act relating to preventing harassment, intimidation, or                                                                     
bullying in public schools; and providing for an effective                                                                      
date."                                                                                                                          
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: HB 173                                                                                                                  
SHORT TITLE: SCHOOL DISTRICT COST FACTORS                                                                                       
SPONSOR(S): RULES BY REQUEST OF LEG BUDGET & AUDIT                                                                              
                                                                                                                                
02/24/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/05       (H)       EDU, FIN                                                                                               
03/15/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
03/17/05       (H)       EDU AT 5:30 PM CAPITOL 106                                                                             
03/17/05       (H)       -- Meeting Canceled --                                                                                 
03/22/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
03/22/05       (H)       Heard & Held                                                                                           
03/22/05       (H)       MINUTE(EDU)                                                                                            
04/05/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
04/05/05       (H)       Scheduled But Not Heard                                                                                
04/07/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
04/07/05       (H)       -- Meeting Canceled --                                                                                 
04/21/05       (H)       EDU AT 11:00 AM CAPITOL 106                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REX SHATTUCK, Staff                                                                                                             
to Representative Neuman                                                                                                        
House Special Committee on Education                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Explained  the new  district cost  factors                                                               
encompassed in Version Y.                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  MARK   NEUMAN  called  the  House   Special  Committee  on                                                             
Education meeting to order at  5:11:53 PM.  Representatives Lynn,                                                             
Thomas,  Wilson, Gara,  and Salmon  were present  at the  call to                                                               
order.                                                                                                                          
                                                                                                                                
HB 173-SCHOOL DISTRICT COST FACTORS                                                                                           
                                                                                                                                
5:12:11 PM                                                                                                                    
                                                                                                                                
CHAIR NEUMAN announced  that the only order of  business would be                                                               
HOUSE  BILL NO.  173,  "An  Act relating  to  school funding  and                                                               
adjusting  the  district  cost  factors;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR  NEUMAN opined  that the  committee  members have  received                                                               
contacts  from constituents,  school  boards, and  administrators                                                               
and  have  read  the  reports   and  summaries.    Therefore,  he                                                               
announced  that  he   would  entertain  a  motion   to  move  the                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to   adopt  CSHB  173,  Version  24-                                                               
LS0644\Y, Mischel, 4/21/05, as the working document.                                                                            
                                                                                                                                
5:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA  objected  for purposes  of  discussion  and                                                               
amendments.                                                                                                                     
                                                                                                                                
CHAIR NEUMAN  objected to Representative Gara's  amendment [which                                                               
had not yet been moved].                                                                                                        
                                                                                                                                
REPRESENTATIVE  GARA  inquired  as  to  from  where  the  numbers                                                               
[specified in Version Y] come.                                                                                                  
                                                                                                                                
5:13:25 PM                                                                                                                    
                                                                                                                                
CHAIR NEUMAN answered  that the numbers are  basically an average                                                               
of  the American  Institutes for  Research (AIR)  report and  the                                                               
Institute  of Social  and Economic  Research (ISER)  report.   He                                                               
noted  that  the numbers  would  be  phased  in over  a  two-year                                                               
period.                                                                                                                         
                                                                                                                                
5:13:49 PM                                                                                                                    
                                                                                                                                
CHAIR NEUMAN explained  that the new numbers, in  bold in Version                                                               
Y, amount to an increase in education of $44 million plus.                                                                      
                                                                                                                                
5:14:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA  expressed  interest  in  hearing  from  the                                                               
committee aide with regard to  how these new district cost factor                                                               
numbers were determined.                                                                                                        
                                                                                                                                
5:15:01 PM                                                                                                                    
                                                                                                                                
REX  SHATTUCK,  Staff  to Representative  Neuman,  House  Special                                                               
Committee on Education, Alaska  State Legislature, explained that                                                               
Version Y  details the phasing in  of a new cost  factor over two                                                               
years,  beginning  in  fiscal  year   2007.    The  numbers  were                                                               
developed  after  hearing  the  testimony and  concerns  of  this                                                               
committee and  the House  and the Senate.   Realizing  that there                                                               
were  numerous  likes  and  dislikes  from  the  AIR,  ISER,  and                                                               
McDowell  Group studies,  an average  between them  was utilized.                                                               
The phase-in  provision addressed the  concern of starting  in an                                                               
earlier  year and  the  impact  it might  have  on the  Anchorage                                                               
School  District, which  receives  no increase  because it's  the                                                               
base line.  He explained:                                                                                                       
                                                                                                                                
     We  worked  to  bring  those numbers  in  '07  and  '08                                                                    
     because if the  existing number is $4,919,  to phase in                                                                    
     that new  factor might see some  decreases in districts                                                                    
     and that was not the intent  of this CS [rather] it was                                                                    
     to try and  keep all districts at a  positive and phase                                                                    
     it  in over  the  two years  after  $4,919 was  brought                                                                    
     online in '06, if indeed  that is what this legislative                                                                    
     body does in the end.                                                                                                      
                                                                                                                                
5:17:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA opined  that picking a number  in between two                                                               
studies  isn't   an  appropriate  manner  in   which  to  develop                                                               
legislation.   Therefore, he announced his  intention, if members                                                               
would  support  him, to  report  out  the original  version  that                                                               
targets a  study.  He then  explained that the amendment  he will                                                               
offer will  ensure that those  school districts that  fall behind                                                               
under this  proposal are held harmless.   He said that  he didn't                                                               
want to  take money away from  one school district to  give it to                                                               
another.  "I think we should lift all boats," he opined.                                                                        
                                                                                                                                
CHAIR NEUMAN  stated that Version Y  has been adopted and  is the                                                               
working document.                                                                                                               
                                                                                                                                
REPRESENTATIVE   GARA  informed   the  committee   that  at   the                                                               
appropriate time  he will  make an amendment  to strip  Version Y                                                               
and adopt the original version of HB 173.                                                                                       
                                                                                                                                
The committee took an at-ease from 5:19 p.m. to 5:20 p.m.                                                                       
                                                                                                                                
5:20:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA then announced  that he wouldn't count votes,                                                               
but if another member of the  committee decides to [make a motion                                                               
to return to  the original version of HB 173],  he would [support                                                               
that].   He  explained  that he  didn't want  to  go through  the                                                               
process to be out voted 5-2.                                                                                                    
                                                                                                                                
CHAIR  NEUMAN  remarked  that  the   desire  is  to  ensure  that                                                               
education increases  are met across  the state.  He  reminded the                                                               
committee  that  the  numbers [encompassed  in  Version  Y]  were                                                               
viewed  as a  compromise.   Moreover,  Chair  Neuman related  his                                                               
belief  that Version  Y provides  the best  opportunity for  this                                                               
legislation to  make it  through both the  House and  the Senate.                                                               
"This is  our best effort  to try and  do what  we can to  do the                                                               
most that we can," he offered.                                                                                                  
                                                                                                                                
5:21:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  opined that this legislation  doesn't come                                                               
anywhere  close to  what  she would  like to  see.   She  further                                                               
opined  that legislation  should be  put forth  that is  fair and                                                               
right.  However, she said she  realized that it's the only option                                                               
she has at  this point and thus  would be willing to  move it out                                                               
of this committee.                                                                                                              
                                                                                                                                
5:22:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA  said that if  the choice is to  require that                                                               
the legislation die in committee or  vote it out, he said that he                                                               
would vote  to move  it out  in order to  get it  somewhere where                                                               
someone will  actually to work  on it.   "I think it's  wrong for                                                               
one committee  to ask  somebody who's not  on the  committee what                                                               
they'll  accept  and  then  decide  how to  vote  based  on  what                                                               
somebody else  tells us  to do,"  he opined.   He  further opined                                                               
that the committee should do its job.                                                                                           
                                                                                                                                
5:23:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA  moved that the committee  adopt Amendment 1,                                                               
which read:                                                                                                                     
                                                                                                                                
     Page 5, Line  18:                                                                                                          
                                                                                                                                
     Insert:                                                                                                                    
                                                                                                                                
     Section 5.  Contingent Effect:                                                                                             
                                                                                                                                
     Sections  1 and 2 of  this bill shall only apply if all                                                                    
     school districts  receive funding that is  at least the                                                                    
     equivalent  of  the  foundation  formula  funding  they                                                                    
     would have received under a  base student allocation of                                                                    
     $4919 per student,  in 2005 inflation-adjusted dollars,                                                                    
     under the foundation  formula in effect as  of April 1,                                                                    
     2004.    Inflation  shall   be  calculated  under  this                                                                    
     section as reflected by the  United State Department of                                                                    
     Labor's consumer price index for Anchorage, Alaska.                                                                        
                                                                                                                                
CHAIR objected for purposes of discussion.                                                                                      
                                                                                                                                
REPRESENTATIVE  GARA explained  that Version  Y takes  money away                                                               
from the  Anchorage and the  Mat-Su School Districts  starting in                                                               
2006.  This amendment says:                                                                                                     
                                                                                                                                
     We should  lift all  the other school  districts boats.                                                                    
     They've been  underfunded.  Let's  give them  the extra                                                                    
     money that  this bill  provides for,  but in  doing so,                                                                    
     you  shouldn't  take  money away  from  another  school                                                                    
     district to do  it.  So, this bill says  that when this                                                                    
     is  implemented   starting  next  year,   every  school                                                                    
     district should  get at least the  equivalent of $4,919                                                                    
     under  the  current  formula, adjusted  for  inflation,                                                                    
     because this isn't  going to go into  effect next year.                                                                    
     As long  as every  school district  gets at  least what                                                                    
     they  would've gotten  under $4,919  under the  current                                                                    
     formula,  then I  can live  with that.   And  then more                                                                    
     money  will come  to  the other  school  districts.   I                                                                    
     don't want  to do  something, which you  can do  as the                                                                    
     alternative, which  is in  order to  protect Anchorage,                                                                    
     let's  take money  away from  some other  district.   I                                                                    
     don't want  to do that.   You  want to lift  the school                                                                    
     districts that don't  do very well under  the study and                                                                    
     lift everybody else at the  same time.  And that's what                                                                    
     this does.                                                                                                                 
                                                                                                                                
CHAIR  NEUMAN  said  that  he  didn't like  the  portion  of  the                                                               
amendment  dealing  with  inflation-adjusted dollars  because  he                                                               
wasn't  sure as  to  its effect  on the  $4,919  and funding  for                                                               
education next year.  Chair Neuman removed his objection.                                                                       
                                                                                                                                
5:26:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA  pointed out that  Version Y doesn't  go into                                                               
effect this  coming year,  but rather the  year after.   Although                                                               
$4,919 might  be an  acceptable amount for  this coming  year, in                                                               
another year  it might actually  be a cut  to some of  the school                                                               
districts in the state.                                                                                                         
                                                                                                                                
CHAIR  NEUMAN said  that  he  wasn't clear  as  to the  long-term                                                               
effect of this.                                                                                                                 
                                                                                                                                
REPRESENTATIVE WILSON moved  to amend Amendment 1,  such that the                                                               
last  sentence  would  be  deleted  and  replaced  with  language                                                               
specifying that the  first phase would go into  effect this year,                                                               
June 30, 2005, and the second phase on June 30, 2006.                                                                           
                                                                                                                                
REPRESENTATIVE  GARA accepted  the aforementioned  as a  friendly                                                               
amendment.                                                                                                                      
                                                                                                                                
The committee took an at-ease from 5:27 p.m. to 5:28 p.m.                                                                       
                                                                                                                                
[The committee  seemed to treat  the amendment to Amendment  1 as                                                               
adopted.]                                                                                                                       
                                                                                                                                
5:28:33 PM                                                                                                                    
                                                                                                                                
A  roll  call vote  was  taken.   Representatives  Wilson,  Lynn,                                                               
Thomas,  Gara, and  Salmon  voted  in favor  of  Amendment 1,  as                                                               
amended.   Representative  Neuman voted  against it.   Therefore,                                                               
Amendment 1, as amended, was adopted by a vote of 5-1.                                                                          
                                                                                                                                
5:29:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to  report  CSHB  173,  Version  24-                                                               
LS0644\Y,  Mischel, 4/21/05,  as amended,  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection,  CSHB 173(EDU)  was reported  from the                                                               
House Special Committee on Education.                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee  on Education meeting was  adjourned at 5:29:27                                                             
PM.                                                                                                                           
                                                                                                                                

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