Legislature(2003 - 2004)
05/20/2003 10:37 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 20, 2003
10:37 AM
TAPE HFC 03 - 104, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 10:37 AM.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Richard Foster
Representative Mike Hawker
Representative Carl Moses
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
Representative Ethan Berkowitz
Representative Beth Kerttula
ALSO PRESENT
Eddy Jeans, Manger, School Finance and Facilities Section,
Department of Education and Early Development; Larry Wiget,
Public Affairs, Anchorage School District.
PRESENT VIA TELECONFERENCE
none
SUMMARY
CSSB 100(FIN)(brf sup maj fld)(efd fld)
"An Act making capital appropriations, supplemental
appropriations, and reappropriations; capitalizing
funds; and making other appropriations."
CSSB 100 (FIN ) (brf sup maj fld) (efd fld) was heard
and HELD in Committee for further consideration.
CSSB 202(FIN)
"An Act relating to school transportation; relating to
the base student allocation used in the formula for
state funding of public education; and providing for an
effective date."
CSSB 202 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and two fiscal impact notes from
the Department of Education and Early Development: #1
and #3.
CS FOR SENATE BILL NO. 202(FIN)
"An Act relating to school transportation; relating to
the base student allocation used in the formula for
state funding of public education; and providing for an
effective date."
Co-Chair Williams noted that the bill had been previously
discussed, and that public testimony had closed. There
being no further discussion, the committee took up
amendments.
Representative Chenault MOVED to ADOPT Amendment #2 for
discussion purposes only. Amendment 2 would require the
Department of Education and Early Development to provide
student transportation services. He maintained that if the
State provides funds for the program it ought to negotiate
the contracts. He maintained that the State ought to take
fiscal responsibility for the contracts.
Representative Chenault WITHDREW Amendment 2.
In response to a question by Co-Chair Harris, Representative
Chenault stated that he did not intend to offer the
amendment on the Floor.
EDDY JEANS, MANAGER, SCHOOL FINANCE AND FACILITIES SECTION,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT maintained
that the school districts are in a better position to
negotiate the contracts. He suggested that one of the main
contributors to the escalating cost of the program is that
it operates as a reimbursable program, rather than a grant
program with set allocations. He recommended that if the
Department becomes the negotiator that it be given the
authority to direct whether districts operate in house or
through contract, based on what would be most efficient. He
clarified that the legislation would not allow such
flexibility. The legislation would create a grant program,
which is better than the current reimbursable program. There
is no incentive to negotiate a contract under a reimbursable
program. He speculated that under the grant program, there
would be incentive to negotiate a better contract, since
they could keep any savings. In response to a question by
Co-Chair Harris, Mr. Jeans maintained that the program would
give districts incentives to look at different options for
the quality of program.
Co-Chair Harris expressed concern that quality not be
jeopardized in the pursuit of savings. Mr. Jeans noted that
the Department would still oversee safety, and minimum
standards would still be adhered to.
Co-Chair Harris asked if all school bus drivers in Alaska
receive double the minimum wage. Mr. Jeans confirmed they
were required by statute to be paid double the minimum wage.
Co-Chair Harris asked how many contracts in the state were
paying less than this amount due to special contract terms.
Mr. Jeans stated that he did not know how many contracts
were in this situation.
Co-Chair Williams, on behalf of Representative Kerttula,
MOVED to ADOPT Amendment #1. Amendment 1 would change
"2003" to "2004" on page 1 line 14. He OBJECTED for purposes
of discussion.
Mr. Jeans explained that this amendment would require the
Department to calculate student allocation based on actual
expenditures of FY 04. He spoke against the amendment and
pointed out that FY 03 was fully funded, and easily
determined. He stated that to require the use of FY 04
would delay the implementation of the program.
Co-Chair Williams WITHDREW the amendment.
Vice-Chair Meyer noted that inflation proofing was at 50
percent of the CPI [consumer price index].
LARRY WIGET, PUBLIC AFFAIRS, ANCHORAGE SCHOOL DISTRICT
testified in support of the legislation. He acknowledged
that the legislation would cause cuts to pupil
transportation within the Anchorage School District and
across the state, but emphasized the importance of the
transitional COLA [cost of living adjustment]. He noted that
most districts had fixed expenses in out years, and the bill
would provide a minimal amount of additional transition
funding as they go through contracts in the next couple
years. He pointed out that adequate funding was a concern
for all.
Vice-Chair Meyer referred transportation of special needs
students, and noted that there may need to be some future
adjustments in that area0. Mr. Wiget recognized that
transportation of special education students is a concern.
Transporting an intensive needs student cost $5 to $8
thousand per student per year; versus $500 for other
students. He noted that at this time, the districts did not
have a better way to address special needs students'
transportation.
Representative Foster MOVED to report CSSB 202 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION it was so
ordered.
CSSB 202 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and two fiscal impact notes from the
Department of Education and Early Development: #1 and #3.
CS FOR SENATE BILL NO. 100(FIN)(brf sup maj fld)(efd fld)
"An Act making capital appropriations, supplemental
appropriations, and reappropriations; capitalizing
funds; and making other appropriations."
There being no testifiers, Co-Chair Williams closed public
testimony.
CSSB 100 (FIN ) (brf sup maj fld) (efd fld) was heard and
HELD in Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 10:54 AM
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