Legislature(1993 - 1994)
02/02/1993 03:00 PM House HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES
STANDING COMMITTEE
February 2, 1993
3:00 p.m.
MEMBERS PRESENT
Rep. Cynthia Toohey, Co-Chair
Rep. Con Bunde, Co-Chair
Rep. Gary Davis, Vice Chair
Rep. Al Vezey
Rep. Pete Kott
Rep. Harley Olberg
Rep. Bettye Davis
Rep. Tom Brice
MEMBERS ABSENT
Rep. Irene Nicholia
COMMITTEE CALENDAR
*HB 45: "An Act making appropriations to the Department of
Education for support of kindergarten, primary,
and secondary education and community schools
programs and for school construction debt
retirement; and providing for an effective date."
PASSED OUT OF COMMITTEE
WITNESS REGISTER
REP. RON LARSON
Alaska State Legislature
Capitol Building, Room 502
Juneau, Alaska 99811
Phone: (907) 465-3878
Position Statement: Spoke on behalf of House Finance
Committee, sponsor of HB 45
LARRY WIGET
Legislative Liaison
Anchorage School District
4600 DeBarr Road
Anchorage, Alaska 99508-3195
Phone: (907) 269-2255
Position Statement: Supported full funding of schools and
increase in foundation formula
DUANE GUILEY, Director
Division of Education Finance and Support Services
Department of Education
801 W. 10th St.
Juneau, Alaska 99801-1894
Phone: (907) 465-2891
Position Statement: Answered questions on HB 45
GARY BADER, Director
Division of Administrative Services
Department of Education
801 W. 10th St.
Juneau, Alaska 99801-1894
Phone: (907) 465-2875
Position Statement: Available for questions
STEPHEN T. MCPHETRES
Executive Director
Alaska Council of School Administrators
326 Fourth St. Suite 404
Juneau, Alaska 99801-1101
Phone: (907) 586-9702
Position Statement: Supported HB 45
PREVIOUS ACTION
BILL: HB 45
SHORT TITLE: APPROP: EDUCATION FUNDING/SCHOOL DEBT
BILL VERSION:
SPONSOR(S): FINANCE
TITLE: "An Act making appropriations to the Department of
Education for support of kindergarten, primary, and
secondary education and community schools programs and for
school construction debt retirement; and providing for an
effective date."
JRN-DATE JRN-PG ACTION
01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 36 (H) HEALTH, EDUCATION & SS, FINANCE
02/02/93 (H) HES AT 03:00 PM CAPITOL 106
ACTION NARRATIVE
TAPE 93-9A, SIDE A
Number 000
CHAIR BUNDE called the meeting to order at 3:03 p.m. and
noted members present. He announced that the purpose of the
meeting was to hear HB 45: APPROPRIATION, EDUCATION FUNDING
AND SCHOOL DEBT. He announced that the meeting was being
teleconferenced to Anchorage and Delta Junction.
CHAIR BUNDE opened the meeting for public testimony, and
invited the sponsor, Rep. Ron Larson, to testify.
Number 048
REP. RON LARSON, speaking on behalf of the HOUSE FINANCE
COMMITTEE, which sponsored HB 45, said the bill was
introduced to give Alaska's 54 school districts advance
notice of the state's minimum educational funding level in
the coming year. The bill would provide funding at the
statutory level for kindergarten, primary and secondary
education and community school programs, and for school
construction debt retirement, he said. Those levels
included:
1) foundation program, $615 million, at $61,000 per
educational unit;
2) pupil transportation, $28,572,000, despite the
governor's proposed 10.5 percent cut;
3) community schools, $600,000 for community schools,
the same as last year; and
4) debt service, $99,795,200, instead of $127 million.
REP. LARSON said HB 45 does not address the issue of single-
site schools, but leaves that and other sensitive issues up
to the committee. He called the bill a vehicle to raise the
issue of early funding, not necessarily the bill that must
pass.
REP. KOTT asked Rep. Larson whether the governor's budget
cut takes into consideration the administrative costs of the
child nutrition/student lunch program, and the $51.5 million
it receives in matching funds.
REP. LARSON answered that the $18.1 million in the FY94
budget is the same number as FY93. He continued, saying
that the Alaska 2000 initiative considers taking
approximately $4 million from the $8.4 million public school
trust fund to provide school improvement grants. He said
the bill is based on existing, not possible future,
conditions.
CHAIR BUNDE called for testimony from the remote sites.
Number 152
LARRY WIGET, LEGISLATIVE LIAISON FOR THE ANCHORAGE SCHOOL
DISTRICT, testified from Anchorage. Answering a question
raised by Rep. Larson regarding pupil transportation, he
said he had been told that HB 45 included 90 percent of the
preferred allocation for pupil transportation.
REP. LARSON said it was his intent to include in the bill
money to fulfill the state's full funding obligation for
transportation, and he would update the numbers before
passage.
Number 189
DUANE GUILEY, DIRECTOR OF THE DIVISION OF EDUCATION FINANCE
AND SUPPORT SERVICES IN THE DEPARTMENT OF EDUCATION,
testified in Juneau that the $28,572,000 included in HB 45
for pupil transportation is the best estimate of full
funding, and the governor's budget includes an estimated
proration of about 90 percent of the reimbursable amount.
Mr. Giley continued, noting that the bill reflects a bond
debt reimbursement cut of about $27 million, down to
$99,795,200.
Number 200
REP. BRICE asked what the value of the instructional unit
would be today if it had been inflation-proofed when
established at $60,000 per unit in 1987.
MR. GILEY said he did not know the inflation rate and so
could not answer the question.
Number 226
REP. GARY DAVIS asked whether full funding of the debt
obligation took into account the different levels of
reimbursement required under the terms of the obligation.
Number 228
MR. GILEY answered affirmatively. Some of the bonds payable
through the debt reimbursement program were to be reimbursed
at from 70 percent to 90 percent, and it includes some cash
reimbursement for projects approved prior to the current
debt program, which provides construction through direct
grants.
Number 235
REP. BRICE asked what the next year's reduction in debt
reimbursement funding would be.
MR. GILEY said such an estimate is difficult to make, as the
Department of Education has some outstanding cash
reimbursement obligations. But, he said, given the
department's plans to see the state's share of debt
obligations drop to less than 60 percent in five years, he
could estimate the amount for next year at $85 million to
$90 million.
Number 255
GARY BADER, DIRECTOR OF THE DIVISION OF ADMINISTRATIVE
SERVICES IN THE DEPARTMENT OF EDUCATION, offered himself and
his staff to answer questions.
CHAIR BUNDE, hearing no questions, invited Mr. Wiget to
testify.
MR. WIGET said that, while he had not analyzed all bills
relating to the foundation formula, the Anchorage School
District supports full funding for education. He asked the
legislature to raise the foundation formula to $63,000 per
educational unit, from the current $61,000 level, to help
the district overcome its $10 million to $13 million budget
deficit.
CHAIR BUNDE invited Stephen McPhetres to testify.
Number 296
STEPHEN McPHETRES, EXECUTIVE DIRECTOR OF THE ALASKA COUNCIL
OF SCHOOL ADMINISTRATORS, testified from Juneau in support
of EO 84, saying that early funding helps school districts
plan their budgets, negotiate with labor unions, and perform
other activities in advance. He added Anchorage's support
for full funding of education. He said the question of
equitable funding single-site schools remains to be
addressed.
Number 334
REP. KOTT asked if there had been any analysis done of how
the closure of the Ft. Richardson army installation in
Anchorage would affect the PL874 revenue allocations for
Anchorage schools.
MR. McPHETRES responded that the military bases in Alaska
have a significant impact on the state's education revenue
through the PL874 program. He added that the Anchorage
district had made some study of the question.
REP. BRICE referred to a proposed bill to fund the state
foundation formula program at $621 million, and asked what
increase that would bring in the education unit value.
MR. GILEY answered that each $1,000 in instructional unit
value costs the state $12 million.
Hearing no further questions, CHAIR BUNDE asked the pleasure
of the committee.
REP. TOOHEY moved that the committee pass HB 45 out of the
committee with individual recommendations.
REP. B. DAVIS asked what effect such passage of HB 45 would
have on other bills pertaining to the foundation formula, on
the governor's other education bills, and on education bills
from other legislators.
CHAIR BUNDE responded that the committee would hear the
governor's bills and decide on them later. At Rep. B.
Davis' insistence, Chair Bunde said he did not intend not to
hear education bills from other legislators.
REP. AL VEZEY questioned whether the committee should pass
out HB 45 before addressing other education bills, as Rep.
Davis noted.
Number 382
CHAIR BUNDE noted these concerns, but noted also that the
bill originated in the House Finance Committee, which had
asked its passage to benefit the state school districts.
REP. AL VEZEY expressed concern that school districts might
begin to plan their budgets based on the committee's passage
of the bill, which might not be the final funding bill.
Number 400
REP. LARSON said HB 45 was an attempt to set a minimum
funding level early in the year, while the legislature
considered other measures that might increase the funding
level.
CHAIR BUNDE repeated the motion to move HB 45 out with
individual recommendations. Hearing no objections, the
motion carried.
CHAIR BUNDE adjourned the meeting.
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