Legislature(1999 - 2000)

02/16/1999 03:03 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE HEALTH, EDUCATION AND SOCIAL                                                                                     
            SERVICES STANDING COMMITTEE                                                                                         
                 February 16, 1999                                                                                              
                     3:03 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Fred Dyson, Co-Chair                                                                                             
Representative John Coghill, Co-Chair                                                                                           
Representative Jim Whitaker                                                                                                     
Representative Joe Green                                                                                                        
Representative Carl Morgan                                                                                                      
Representative Tom Brice                                                                                                        
Representative Allen Kemplen                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
* SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 5                                                                                       
"An Act relating to vouchers for education; and providing for an                                                                
effective date."                                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
(* First public hearing)                                                                                                        
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB   5                                                                                                                    
SHORT TITLE: VOUCHER SYSTEM FOR EDUCATION                                                                                       
SPONSOR(S): REPRESENTATIVES(S) KOHRING, Coghill                                                                                 
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/19/99        19     (H)  PREFILE RELEASED 1/8/99                                                                             
 1/19/99        19     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 1/19/99        19     (H)  HES, FINANCE                                                                                        
 2/05/99       147     (H)  COSPONSOR(S): COGHILL                                                                               
 2/10/99       184     (H)  SPONSOR SUBSTITUTE                                                                                  
                            INTRODUCED-REFERRALS                                                                                
 2/10/99       184     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 2/10/99       184     (H)  HES, FINANCE                                                                                        
 2/16/99               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
REPRESENTATIVE VIC KOHRING                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 421                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-2186                                                                                                      
POSITION STATEMENT:  Testified as sponsor of SSHB 5.                                                                            
                                                                                                                                
RANDY LORENZ, Researcher                                                                                                        
 for Representative Vic Kohring                                                                                                 
Alaska State Legislature                                                                                                        
Capitol Building, Room 421                                                                                                      
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 465-2186                                                                                                      
POSITION STATEMENT:  Testified and provided information on SSHB 5.                                                              
                                                                                                                                
CARL ROSE, Executive Director                                                                                                   
Association of Alaska School Boards                                                                                             
316 West 11th Street                                                                                                            
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 586-1083                                                                                                      
POSITION STATEMENT:  Testified on SSHB 5.                                                                                       
                                                                                                                                
KATHLEEN WIGHT-MURPHY                                                                                                           
P.O. Box 876166                                                                                                                 
Wasilla, Alaska  99687                                                                                                          
Telephone:  (907) 373-5204                                                                                                      
POSITION STATEMENT:  Testified on SSHB 5.                                                                                       
                                                                                                                                
ANNE KILKENNY                                                                                                                   
P.O. Box 870163                                                                                                                 
Wasilla, Alaska  99687                                                                                                          
Telephone:  (907) 376-6225                                                                                                      
POSITION STATEMENT:  Testified against SSHB 5.                                                                                  
                                                                                                                                
JOHN CYR, President                                                                                                             
National Education Association Alaska                                                                                           
114 Second Street                                                                                                               
Juneau, Alaska  99801                                                                                                           
Telephone:  (907) 586-3090                                                                                                      
POSITION STATEMENT:  Testified against SSHB 5.                                                                                  
                                                                                                                                
KENT BARKER                                                                                                                     
5531 Arctic Boulevard                                                                                                           
Anchorage, Alaska  99518                                                                                                        
Telephone:  (907) 561-8772                                                                                                      
POSITION STATEMENT:  Testified on SSHB 5.                                                                                       
                                                                                                                                
                                                                                                                                
LEY SCHLEICH                                                                                                                    
P.O. Box 874216                                                                                                                 
Wasilla, Alaska  99687                                                                                                          
Telephone:  (907) 373-0623                                                                                                      
POSITION STATEMENT:  Testified on SSHB 5.                                                                                       
                                                                                                                                
TOM DAHL, Assistant Attorney General                                                                                            
Human Services Section                                                                                                          
Civil Division (Juneau)                                                                                                         
P.O. Box 110300                                                                                                                 
Juneau, Alaska  99811-0300                                                                                                      
Telephone:  (907) 465-3600                                                                                                      
POSITION STATEMENT:  Answered questions on SSHB 5.                                                                              
                                                                                                                                
BETH LAPE, Special Assistant                                                                                                    
Office of the Commissioner                                                                                                      
Department of Education                                                                                                         
801 West 10th Street, Suite 200                                                                                                 
Juneau, Alaska  99801-1894                                                                                                      
Telephone:  (907) 465-2803                                                                                                      
POSITION STATEMENT:  Commented on SSHB 5.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-8, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIRMAN DYSON called the House Health, Education and Social                                                                 
Services Standing Committee meeting to order at 3:03 p.m.  Members                                                              
present at the call to order were Representatives Dyson, Coghill,                                                               
Whitaker, Morgan, Brice and Kemplen.  Representative Green joined                                                               
the meeting at 3:10 p.m.                                                                                                        
                                                                                                                                
SSHB   5-VOUCHER SYSTEM FOR EDUCATION                                                                                           
                                                                                                                                
CO-CHAIRMAN DYSON announced the first order of business as Sponsor                                                              
Substitute for House Bill No. 5 "An Act relating to vouchers for                                                                
education; and providing for an effective date."  Co-Chairman Dyson                                                             
asked the presenters and testifiers to declare whether they were                                                                
testifying simply as citizens presenting their perspective or if                                                                
they indeed have a professional or vested interest in the issue.                                                                
                                                                                                                                
Number 0250                                                                                                                     
                                                                                                                                
REPRESENTATIVE VIC KOHRING, Alaska State Legislature, sponsor of                                                                
SSHB 5, introduced his aide, Randy Lorenz, who has done substantial                                                             
research on SSHB 5.  He said the sponsor statement was actually                                                                 
written by Lauro Cavazos, former U.S. Secretary of Education in the                                                             
Bush Administration, and Representative Kohring noted a few of the                                                              
points in the sponsor statement:  standardized test scores have                                                                 
declined over the years; choice in education is the cornerstone for                                                             
restructuring America's education system; and when choice programs                                                              
have been implemented throughout the country, there have been                                                                   
dramatic educational improvements.  The bottom line is that when                                                                
parents have choice for alternative means in education, it gives                                                                
youngsters a chance for a better education, which will give them a                                                              
better chance for college opportunities, employment and success in                                                              
life.                                                                                                                           
                                                                                                                                
REPRESENTATIVE KOHRING continued, saying that the basic intent of                                                               
this legislation is to instill competition in education to provide                                                              
better quality service, and to provide choice.  He feels it is a                                                                
good idea for parents to have the opportunity to choose among                                                                   
public, private or home education.  He is not against the public                                                                
school system, but SSHB 5 provides the financial means for parents                                                              
to afford either private or home school education if they so                                                                    
choose.  The primary point of SSHB 5 is that vouchers are provided                                                              
to the parents, not directly to any educational institution.  He                                                                
noted that the vouchers are paid out on a quarterly basis                                                                       
                                                                                                                                
Number 498                                                                                                                      
                                                                                                                                
REPRESENTATIVE KOHRING said this is a pilot program to see how the                                                              
concept actually works, and there is a provision that effectively                                                               
sunsets this after five years, in 2004.  It is geared toward                                                                    
low-income families.  The amount of money administered would be the                                                             
lowest cost to educate a child, determined by comparing the dollars                                                             
that a particular school district would get through the foundation                                                              
formula to the cost of educating that child in a private school.                                                                
For example, if the tuition at a private school were $3,000 per                                                                 
year and the amount going to that school district were $4,600, the                                                              
lower amount would be the amount of the voucher.  The effort is to                                                              
provide choice for parents, not simply to help private schools.                                                                 
                                                                                                                                
REPRESENTATIVE BRICE asked how it will be ensured that parents who                                                              
receive these vouchers will spend those monies on their children's                                                              
education, and that these children's educations are worth the money                                                             
that will be spent on them.                                                                                                     
                                                                                                                                
Number 680                                                                                                                      
                                                                                                                                
RANDY LORENZ, Researcher for Representative Vic Kohring, Alaska                                                                 
State Legislature, referred to page 2 of SSHB 5, line 13,                                                                       
subsection (d), which says,  "The department may adopt regulations                                                              
necessary to administer the education voucher program under this                                                                
section."  He explained that the reason for that is to give the                                                                 
Department of Education (DOE) the opportunity to develop                                                                        
regulations to ensure that the vouchers were used properly by the                                                               
individuals;  it also allows them to establish proof of the child's                                                             
enrollment and the actual tuition cost.  Mr. Lorenz believes there                                                              
are enough safeguards in SSHB 5 to ensure the public's confidence                                                               
that the money is used appropriately for the child's education.                                                                 
                                                                                                                                
MR. LORENZ answered Representative Brice's question regarding                                                                   
whether the children's educations are worth the money spent, saying                                                             
he thought it would take a little time to find out how it actually                                                              
works.  That is why this is a pilot program.  He read an excerpt                                                                
from "Privatization '98, 12th Annual Report on Privatization," page                                                             
31:                                                                                                                             
                                                                                                                                
     Academic results, as measured by tests scores at the beginning                                                             
     of the year and the end of the year, showed that voucher                                                                   
     students gained 15 percentile points in math and 5 percentile                                                              
     points in reading, relative to national norms.                                                                             
                                                                                                                                
MR. LORENZ pointed out there were two groups of children going                                                                  
through this study:  one was a control group in the public                                                                      
education system and the other group adopted the voucher system.                                                                
The article said during the first two years of the program, there                                                               
wasn't much seen in the way of results, but during the third year                                                               
there were dramatic improvements in the group that was under the                                                                
voucher system, as compared to the control group.  He said he                                                                   
believes the program needs to be given three or four years before                                                               
benefits will be seen, and he thinks the results will be                                                                        
substantial.                                                                                                                    
                                                                                                                                
REPRESENTATIVE BRICE said he wanted to be sure that a parent would                                                              
not be able to take the voucher and spend it as they want.                                                                      
                                                                                                                                
Number 889                                                                                                                      
                                                                                                                                
MR. LORENZ responded that parents would have to prove that the                                                                  
child was enrolled in an educational system and show receipts.                                                                  
This would be set up through the DOE, which will develop the                                                                    
necessary regulations.                                                                                                          
                                                                                                                                
REPRESENTATIVE BRICE wondered if it would be an option to start                                                                 
testing home-schooled children so the increase in the standardized                                                              
test scores statewide could be recognized.                                                                                      
                                                                                                                                
MR. LORENZ answered that the private schools he is familiar with                                                                
already are required to take the national exams yearly.  He is not                                                              
familiar with home schools, but he believes that is already                                                                     
available.                                                                                                                      
                                                                                                                                
Number 977                                                                                                                      
                                                                                                                                
REPRESENTATIVE KEMPLEN said he believes a significant incentive is                                                              
being created for people of low income to pull their children out                                                               
of public school in order to get the money.  He said the                                                                        
legislation doesn't address the issue of accountability.  He is                                                                 
concerned that in subsection (d) the department may adopt                                                                       
regulations; giving the permissive "may" rather than a mandatory                                                                
"shall" also raises a red flag.  He said if the department doesn't                                                              
have the money because of budget shortfalls and is unable to adopt                                                              
or implement the regulations, a situation is created where low-                                                                 
income Alaskans do have an economic incentive to pull children out                                                              
of public school in order to get that money.  He wanted to know how                                                             
this concern is addressed.                                                                                                      
                                                                                                                                
REPRESENTATIVE KOHRING responded that he didn't mean any disrespect                                                             
but he has more faith and trust in low-income parents to do what is                                                             
right, to spend those monies appropriately and not seek dollars                                                                 
through this program for the wrong reasons.  The department's                                                                   
authority would have to be invoked for those situations where the                                                               
money is used for the wrong reasons.                                                                                            
                                                                                                                                
REPRESENTATIVE KEMPLEN said he'd like to share Representative                                                                   
Kohring's opinion that parents would be more responsible for their                                                              
children; however, some parents have taken their children's PFDs                                                                
and spent the money on themselves.  He would like to see stronger                                                               
evidence before this committee that the money actually goes where                                                               
it should.  He wants to know how accountability will be achieved                                                                
specifically and how results and performance of Alaskan children                                                                
will be guaranteed with this legislation.                                                                                       
                                                                                                                                
Number 1240                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING responded that the DOE will have to make                                                                 
that determination.  The DOE is involved in administering the                                                                   
Alyeska Central School and the Interior Distance Education of                                                                   
Alaska, (IDEA) in Galena which are programs much akin to home                                                                   
schooling.  Those seem to be working just fine.  Standardized tests                                                             
can be used to gauge whether the results expected are being                                                                     
achieved.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GREEN voiced his concern that perhaps a                                                                          
constitutional change should be made before this legislation goes                                                               
into effect.                                                                                                                    
                                                                                                                                
Number 1334                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING answered that it comes down to the                                                                       
interpretation of the constitution.  He doesn't believe it would                                                                
preclude monies from being legally issued to parents.  He believes                                                              
the constitution would preclude dollars going directly to a private                                                             
institution.  His staff has done some research on recent court                                                                  
decisions rendered on this issue that do suggest that similar                                                                   
programs to SSHB 5, which were administered in other states, are in                                                             
fact constitutional.  He said there are some court cases referenced                                                             
in the packets.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GREEN asked whether the research was inside or                                                                   
outside of Alaska.                                                                                                              
                                                                                                                                
Number 1388                                                                                                                     
                                                                                                                                
MR. LORENZ answered that these particular decisions were rendered                                                               
through the U.S. Supreme Court.  The two major law firms involved                                                               
in the majority of these are The Institute for Justice in                                                                       
Washington, D.C., and The Pacific Legal Foundation in California.                                                               
He has contacted both organizations and has tailored SSHB 5 along                                                               
the same lines as what is defendable in the U.S. Supreme Court.  If                                                             
SSHB 5 is taken as it is now, and if they are careful with the so-                                                              
called Lemon Test, the bill will meet U.S. Supreme Court                                                                        
guidelines.  Sheldon Jackson will be overturned; Mr. Lorenz                                                                     
suggested it needs the opportunity to be heard in the U.S. Supreme                                                              
Court.                                                                                                                          
                                                                                                                                
MR. LORENZ feels that our present constitution does allow for the                                                               
payment to private and religious institutions for education.  He                                                                
referred to information in the "School Law Reporter," which is in                                                               
the packet.  He said any changes made in SSHB 5 will need to be                                                                 
looked at in light of Lemon v. Kurtzman (1971).  Mr. Lorenz                                                                     
referred to a paper put out by The Institute for Justice, "School                                                               
Choices, Answers to the Most Frequently Asked Legal Questions," by                                                              
Clint Bolick and Richard Komer.  Mr. Lorenz stated:                                                                             
                                                                                                                                
     The recent court decision by the U.S. Supreme Court made it                                                                
     clear, unlike direct subsidies to a religious school,                                                                      
     educational benefits that include religious schools among the                                                              
     range of options do not violate the first amendment.  The U.S.                                                             
     Supreme Court applies a three-part test to determine whether                                                               
     a state's actions violate the First Amendment prohibition                                                                  
     against the establishment of religion.  It is called The                                                                   
     Establishment Clause.  It is also known as the Lemon Law.                                                                  
     There are three different cites under that:  whether the                                                                   
     action has a secular purpose; whether the primary effect is to                                                             
     advance a religion, and whether it creates excessive                                                                       
     entanglement.  So far all the cases that have gone to the                                                                  
     Supreme Court include the very last one, whether the school                                                                
     choice causes excessive entanglement between the state and the                                                             
     private sector.                                                                                                            
                                                                                                                                
MR. LORENZ said as long as those items are kept in mind, there                                                                  
won't be a problem.  Presently, the U.S. Constitution looks at the                                                              
state constitution as paralleling that of the federal constitution;                                                             
therefore, there would be no violation.                                                                                         
                                                                                                                                
Number 1505                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN said the state of Alaska has restrictions that                                                             
other states don't have.  His concern is that SSHB 5 violates the                                                               
state constitution, and he thinks if the U.S. Supreme Court touched                                                             
that, they would rule against it.                                                                                               
                                                                                                                                
MR. LORENZ responded that he understands from discussions with                                                                  
various groups that the state's constitution only prohibits direct                                                              
support to a private institution or a religious group, and SSHB 5                                                               
would not provide direct aid to either of those.  It provides an                                                                
educational benefit to a child, like the present student loan                                                                   
program which is state aid available now.  Students can go to any                                                               
private or religious school with it, and it is not in violation of                                                              
the state statutes.  He believes if SSHB 5 were challenged in                                                                   
court, it would be found constitutional under Alaska's                                                                          
constitution.                                                                                                                   
                                                                                                                                
REPRESENTATIVE WHITAKER asked if the cost of administration and                                                                 
regulation of this pilot program had been taken into consideration.                                                             
                                                                                                                                
Number 1625                                                                                                                     
                                                                                                                                
MR. LORENZ answered that just prior to this meeting they received                                                               
a zero fiscal note from the DOE.  He thought the cost savings can                                                               
be substantial.  The way the bill is written, the state is only                                                                 
paying for the direct tuition costs.  For instance, if the                                                                      
Matanuska-Susitna School District has a per-child cost of $4,600,                                                               
and the student is attending a private school where tuition is                                                                  
$2,000, the parent does not get the extra money.  They only get the                                                             
$2,000 that it costs their child to attend that school, at a                                                                    
savings of $2,600 to that particular borough.                                                                                   
                                                                                                                                
REPRESENTATIVE WHITAKER said he is concerned that this may cause                                                                
private schools to raise their tuition.                                                                                         
                                                                                                                                
Number 1705                                                                                                                     
                                                                                                                                
MR. LORENZ said that would not be the case because the individuals                                                              
targeted are only a small group at this time.  The rest of the                                                                  
students making up the private sector in that particular private                                                                
school would still have to pay their expenses.  If indeed the                                                                   
private school increased its costs, it would be cutting its own                                                                 
throat because the paying people wouldn't be able to keep their                                                                 
kids in a private school.  He believes it would be self-regulating.                                                             
                                                                                                                                
REPRESENTATIVE WHITAKER said, speaking in broad categories, that                                                                
often there is a corollary between income and difficulty in school;                                                             
if SSHB 5 provided an opportunity for low-income parents to put                                                                 
their children in private schools, he wondered if the burden of                                                                 
difficult students would be shifted from the public to the private                                                              
sector.                                                                                                                         
                                                                                                                                
Number 1791                                                                                                                     
                                                                                                                                
MR. LORENZ answered that he didn't believe that would be a major                                                                
problem.  He has known many low-income individuals in the                                                                       
Matanuska-Susitna valley who attempt to provide their children with                                                             
the necessary education.  He cited a situation where a child in                                                                 
public school was claimed to be a special education child who                                                                   
couldn't be helped.  She was able to get aid through a Christian                                                                
school that funded her education because of the severe need.                                                                    
Within one year the child went from just doing adequately to                                                                    
straight As; she graduated last year from the naval academy and is                                                              
now serving on board an aircraft carrier.  That is the same child                                                               
that the public school system said was a special ed child.                                                                      
Presently the public schools do not adequately address the                                                                      
individual needs of each child.                                                                                                 
                                                                                                                                
CO-CHAIRMAN DYSON asked if the private school tuition exceeded the                                                              
state share of the per student allocation, would the voucher to the                                                             
parents include the local share.                                                                                                
                                                                                                                                
MR. LORENZ responded that this bill only addresses the state's                                                                  
share.                                                                                                                          
                                                                                                                                
Number 1876                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked if there is any intention of private                                                                 
schools' reimbursing public schools for use of their facilities for                                                             
the private school students.                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING answered that it is not an issue addressed                                                               
here.                                                                                                                           
                                                                                                                                
REPRESENTATIVE BRICE said that quite often there are agreements                                                                 
between school districts and private institutions that allow for                                                                
cooperative use of the public school facilities.  He assumes if                                                                 
those children in the private school receive a voucher, it is to be                                                             
expected that the public schools are going to ask for reimbursement                                                             
for those facilities.  If money is going to be pulled away from                                                                 
public schools, then private schools are going to need to pay for                                                               
use of public schools.                                                                                                          
                                                                                                                                
Number 1957                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING respectfully disagreed, saying most parents                                                              
are paying substantial dollars through property taxes, at least in                                                              
the Matanuska-Susitna Borough, and a lot of monies already paid                                                                 
through taxes go into that system; so he feels that there should                                                                
not be any provision in this legislation to preclude the use of                                                                 
public facilities by home-schooled or privately educated children.                                                              
                                                                                                                                
REPRESENTATIVE BRICE asked if that should be written into the                                                                   
legislation so that the regulations written by DOE won't stipulate                                                              
that.                                                                                                                           
                                                                                                                                
REPRESENTATIVE KOHRING said no, because parents already pay into                                                                
the school systems through their taxes.                                                                                         
                                                                                                                                
Number 1997                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN pointed out that although Mr. Lorenz had                                                                 
called the fiscal note a zero fiscal note, he believes that it is                                                               
an indeterminate fiscal note.  He also disagreed with Mr. Lorenz's                                                              
statement that public schools do not provide individualized                                                                     
attention.  One of Representative Kemplen's children required                                                                   
individualized attention, and an Individual Educational Plan was                                                                
prepared for the child, which provided him great deal of extra                                                                  
attention.  He said the main point is the constitutionality of this                                                             
proposed piece of legislation.  He asked Mr. Lorenz whether he is                                                               
a lawyer.                                                                                                                       
                                                                                                                                
MR. LORENZ replied that he is not, which is why he didn't say                                                                   
whether it is constitutional.  However, he feels it is, based on                                                                
talking to the legal staff here as well as in other states.  The                                                                
only way to find that out is through a court challenge.                                                                         
                                                                                                                                
Number 2078                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN presented a memorandum from Michael F. Ford,                                                             
Legislative Counsel, dated January 22, 1999, on vouchers for                                                                    
education:                                                                                                                      
                                                                                                                                
     Sheldon Jackson is directly relevant to the proposed voucher                                                               
     system.  In that case, the Court established a three-part test                                                             
     for determining the validity of public programs that provide                                                               
     economic benefit to private schools.  First, the Court looks                                                               
     at the breadth of the class to which the economic benefits are                                                             
     directed.  Second, the Court looks at how the public money is                                                              
     to be used; i.e., whether the benefit to the private school is                                                             
     incidental to education (as with fire and police protection)                                                               
     or whether it amounts to direct aid to education (as with                                                                  
     tuition and books).  Third, the Court looks at the magnitude                                                               
     of the benefit to private education.  Significantly, the Court                                                             
     noted that channeling funds to a private school through an                                                                 
     intermediary (such as the student or parent) will not save an                                                              
     otherwise unconstitutional program providing aid to private                                                                
     schools.                                                                                                                   
                                                                                                                                
     The fact that the vouchers will be given to students or                                                                    
     parents of students would not save the voucher system.  As                                                                 
     with the tuition grant program, the vouchers may be redeemed                                                               
     only through the private schools.  Therefore, they confer a                                                                
     direct benefit on the private schools, in contravention of the                                                             
     constitutional prohibition.                                                                                                
                                                                                                                                
Number 2149                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN mentioned Article I of the state's                                                                       
constitution and the system in Wisconsin that survived a                                                                        
constitutional challenge under the First Amendment of the U.S.                                                                  
Constitution.  He continued reading from Mr. Ford's memorandum:                                                                 
                                                                                                                                
     The court in Sheldon Jackson noted that first amendment cases                                                              
     upholding forms of assistance to religious schools have no                                                                 
     relevance to the preceding analysis of Article VII, section 1                                                              
     of the state constitution.  The prohibition against state aid                                                              
     to any private schools in the Alaska Constitution is much                                                                  
     broader than the prohibition under the First Amendment which                                                               
     relates only to religious schools.  Thus, the United States                                                                
     Supreme Court case upholding a Minnesota program of tax                                                                    
     credits for public and private school expenses against a First                                                             
     Amendment challenge as well as the voucher system approved in                                                              
     Wisconsin, are not relevant to the analysis of the proposed                                                                
     voucher system in Alaska.  These cases did not consider the                                                                
     kind of prohibition against direct aid to private schools                                                                  
     found in the Alaska Constitution.  In other words, even if the                                                             
     voucher system could survive scrutiny under the First                                                                      
     Amendment, it would still violate Article VII, section 1 of                                                                
     the state constitution.                                                                                                    
                                                                                                                                
     In order the survive constitutional scrutiny under the state                                                               
     constitution, a voucher system would have to satisfy all three                                                             
     parts of the Sheldon Jackson test.  It is difficult to imagine                                                             
     a voucher system, as I understand the voucher system to work,                                                              
     which would not violate the constitution.  The system would                                                                
     have to benefit students in public as well as private schools                                                              
     without giving any substantial direct benefit to education in                                                              
     the private schools.  By its nature, the voucher system seems                                                              
     to militate against this.                                                                                                  
                                                                                                                                
     In conclusion, the proposed voucher system suffers serious                                                                 
     constitutional problems to which I see no simple solution.                                                                 
                                                                                                                                
REPRESENTATIVE KEMPLEN said there are some serious legal issues                                                                 
that need to be addressed on the proposed voucher system.  He asked                                                             
for Mr. Lorenz's response after hearing that legal opinion.                                                                     
                                                                                                                                
Number 2260                                                                                                                     
                                                                                                                                
MR. LORENZ agreed that there are some serious questions on the                                                                  
constitutionality but said he has also been working with Mike Ford                                                              
on this issue.  He feels the bottom line is that it is going to                                                                 
have to be challenged to see how the courts rule.  He said the                                                                  
Sheldon Jackson case was done in 1979.  Since then, the atmosphere                                                              
throughout the nation has changed, and Alaska's Supreme Court could                                                             
take a different view on it if they were presented with this case                                                               
again.  He believes SSHB 5 is a strong statute, with strong                                                                     
support, that will withstand the constitutional challenge.                                                                      
                                                                                                                                
Number 2294                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOHRING said if the goal is to implement a voucher                                                               
system that would be achieved through a constitutional change, this                                                             
legislation can be modified or a brand new piece of legislation                                                                 
could be drafted.                                                                                                               
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Lorenz if he is familiar with the                                                                
Hickel commission on school choice 1991.                                                                                        
                                                                                                                                
MR. LORENZ said he has seen excerpts from it.                                                                                   
                                                                                                                                
Number 2340                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN brought out that there was a concern about                                                                 
choice in grades K-12, so this commission was established.  Their                                                               
view was that while there may be a reluctance to contract, such                                                                 
things as transportation, food and janitorial services are                                                                      
contracted.  The Hickel commission reasoned that contracting for                                                                
classroom services would not be subject to the same constitutional                                                              
restrictions that would apply to vouchers.  He wondered if                                                                      
contracting could be looked at as a means of offering some                                                                      
educational choice.  He said he champions the concept but is afraid                                                             
this is headed for a train wreck.                                                                                               
                                                                                                                                
TAPE 99-8, SIDE B                                                                                                               
Number 2357                                                                                                                     
                                                                                                                                
MR. LORENZ commented that state money is being given to private                                                                 
institutions already.  Approximately three years ago the                                                                        
Matanuska-Susitna School District hired a California firm called                                                                
Linda, Mood, Bell to teach reading in their public school system.                                                               
Presently the Anchorage School District hires "ARC" to teach                                                                    
students that are disruptive and hard to handle, and they get state                                                             
money through Hope Cottages.  He felt that if the school districts                                                              
are able to do this and develop these programs, parents should have                                                             
the same right to get the education needed for their children, and                                                              
they could probably do it at a much lower cost.                                                                                 
                                                                                                                                
Number 2329                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN said he didn't dispute that, but his concern                                                               
is not with what it desirable but what is doable.  He suggested it                                                              
might be wise to get some other legal opinions as to whether it is                                                              
constitutional before more time is spent on this.                                                                               
                                                                                                                                
Number 2270                                                                                                                     
                                                                                                                                
CARL ROSE, Executive Director, Association of Alaska School Boards,                                                             
(AASB) said he has a vested interest.  He is an advocate for public                                                             
education and represents the 53 school districts in the state.                                                                  
Public education is the mission at AASB, to assist local school                                                                 
districts in providing a quality education and preserving local                                                                 
control.  The three issues he talked about were choice, competition                                                             
and reform.  On the issue of choice, he thought that the public in                                                              
general is not clear on how many choices they have in public                                                                    
schools today.  There are a number of alternatives provided:                                                                    
alternative schools, charter schools, cyber schools, state                                                                      
correspondence and district correspondence; there are private and                                                               
parochial schools that are available.  He also mentioned boarding                                                               
schools, home schools, district school choice, part-time students                                                               
and access to public schools.  On the issue of competition, he                                                                  
doesn't think the schools are adverse to competition if they all                                                                
have the same requirements and standards.  Often private schools                                                                
don't have to comply with all the requirements of the public                                                                    
schools.  On the issue of reform, he summarized by saying he                                                                    
associates himself with the reform issues adopted last year, and it                                                             
will take time and assistance to ensure success in those areas.                                                                 
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
REPRESENTATIVE KEMPLEN asked if Mr. Rose felt that an adequate                                                                  
amount of time has been given to the education reforms passed last                                                              
year to assess that legislation's ability to produce positive                                                                   
improvement in the performance of Alaska's kids.                                                                                
                                                                                                                                
Number 2124                                                                                                                     
                                                                                                                                
MR. ROSE answered that no, there hasn't been enough time.  He said                                                              
some work has been done in the area of standards for employees, for                                                             
teachers and principals on HB 465 and requirements for reading,                                                                 
writing and mathematics have been established and mandated.  The                                                                
curriculum has to be designed in some school districts, assessments                                                             
have to be put in place and there is now an exit exam in the state.                                                             
Legally these provisions are necessary in case a diploma is denied                                                              
to someone; there needs to be grounds upon which the denial is                                                                  
based.  Steps are being made in the right direction toward                                                                      
performance through standards.  He thinks time and patience and                                                                 
some support is needed to ensure that the system gets what it is                                                                
designed to provide.  He expressed concern that since the                                                                       
foundation is the bulk of the funding, continuing to heap on more                                                               
mandates without addressing the adequacy of funding is a real                                                                   
problem.                                                                                                                        
                                                                                                                                
MR. ROSE continued, saying that if our kids do not satisfactorily                                                               
pass some of these tests, the question is not whether the kids fail                                                             
but whether the tests fail.  He wants to know what will be done to                                                              
get Alaskan students to that level of performance, and that is                                                                  
where he wants to associate himself.                                                                                            
                                                                                                                                
Number 2041                                                                                                                     
                                                                                                                                
KATHLEEN WIGHT-MURPHY testified via teleconference from the                                                                     
Matanuska-Susitna Legislative Information Office [Mat-Su LIO].  She                                                             
is president of the Mat-Su Education Association and has taught                                                                 
since 1985.  She said she was speaking as herself and as a parent.                                                              
She is deeply concerned about the constitutional issue.   What                                                                  
disturbs her is even though our state and federal constitutions                                                                 
prohibit public money going to private or religious schools, she                                                                
can't believe the goal is to have it challenged in court.  That is                                                              
an enormous amount of time and money that this state doesn't have,                                                              
given the budget crunch, that could be going toward improving                                                                   
public education and the schools currently within our state.  She                                                               
thinks vouchers would take tax payers' monies but not give them any                                                             
say in how those monies are spent and there would be no                                                                         
accountability for monitoring the quality of education.  She is                                                                 
concerned also about:   the fact that the bill has a zero fiscal                                                                
note; how the DOE will administer this pilot program; and who will                                                              
be hired to monitor the eligibility of people applying for this.                                                                
She urged the committee to support public education as the                                                                      
cornerstone of our democracy; to look at ways to improve and                                                                    
continually support public education; and to not siphon off                                                                     
taxpayers' money.                                                                                                               
                                                                                                                                
Number 1891                                                                                                                     
                                                                                                                                
ANNE KILKENNY testified via teleconference from the Mat-Su LIO.                                                                 
She said our democracy was built on the strength of an educated                                                                 
populace and this has come about through public education.  This                                                                
country believes that education should not be the exclusive                                                                     
privilege of the rich and the elite.  She urged the committee to                                                                
say no to this bill because it is designed to dismantle public                                                                  
education.                                                                                                                      
                                                                                                                                
Number 1816                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked Mr. Rose if the standards mentioned are                                                              
applicable to private schools or home school programs.                                                                          
                                                                                                                                
MR. ROSE answered that he doesn't believe they are applicable                                                                   
uniformly.                                                                                                                      
                                                                                                                                
CO-CHAIRMAN DYSON asked Mr. Rose if there are not private schools                                                               
or non-public schools in AASB.                                                                                                  
                                                                                                                                
MR. ROSE answered that he thinks that is correct.  There are a                                                                  
couple of charter schools that are associate members and some                                                                   
professionals who are associate members, who receive their                                                                      
information and documents.  He said he could check on that, but for                                                             
the most part it is public education.                                                                                           
                                                                                                                                
CO-CHAIRMAN DYSON asked whether AASB precludes private school                                                                   
boards and administrators from participating.                                                                                   
                                                                                                                                
MR. ROSE answered that he thinks the bylaws provide for membership                                                              
of a school board or a school board association and affiliated                                                                  
people, as well as municipalities.  Municipalities are also                                                                     
associate members of AASB.  Through that link there are some people                                                             
in municipalities, as well as some school boards who do have an                                                                 
interest in privatization, but he wouldn't characterize that as                                                                 
privatization.                                                                                                                  
                                                                                                                                
CO-CHAIRMAN DYSON responded that he thought the answer was yes.                                                                 
                                                                                                                                
Number 1708                                                                                                                     
                                                                                                                                
JOHN CYR, President, National Education Association Alaska,                                                                     
declared that as such he represents 11,000 education employees and                                                              
130,000 children in Alaska, so he definitely has a vested interest.                                                             
He said vouchers are really taxation without representation.                                                                    
Looking at the number of children in non-public schools today, the                                                              
price tag for the state on this bill could be anywhere from $46.8                                                               
million to $50 million.  Any parent who qualifies for this would be                                                             
foolish not to step up and take the state's money, so that is an                                                                
enormous hit on the budget.  If no new money is put into the budget                                                             
for those children, then that money will come directly out of those                                                             
public schools, and that is before one public school child moves to                                                             
a private school.  That will be a major hit on Fairbanks,                                                                       
Anchorage, and the Mat-Su area because that is where the biggest                                                                
proportion of those students reside.                                                                                            
                                                                                                                                
MR. CYR said when standards are talked about, private schools are                                                               
exempt.  He referred to AS 14.45.120, Standardized testing                                                                      
requirements, which says "religious or other private school that                                                                
elects to comply."  He said they don't have to comply.  They can                                                                
give whatever tests they want, whenever they want, as they want.                                                                
They don't have the same burden placed on them as public schools                                                                
have.                                                                                                                           
                                                                                                                                
MR. CYR said that vouchers give schools, but not parents, the right                                                             
to choose.  A private school looks to see if the child fits into                                                                
the curriculum.  The courts have agreed that those schools can                                                                  
exclude on the basis of gender, religion, conduct, ability or                                                                   
special needs.  He said SSHB 5 sets up an interesting problem of                                                                
giving state money to schools that can exclude some of the children                                                             
of our citizens.  He thinks the biggest problem with SSHB 5 is that                                                             
vouchers "really foster narrow self-interest and a real escapist                                                                
mentality."  He said vouchers are to schools what gated                                                                         
subdivisions with private security guards are to communities.                                                                   
People who want those types of communities certainly are welcome to                                                             
them, but they shouldn't ask the taxpayers to pay for them.  He                                                                 
referred to Thomas Jefferson and the Founding Fathers' belief that                                                              
education is a public responsibility whether one has children in                                                                
school or not.  He concluded, "I have the responsibility to your                                                                
children and to grandchildren, to the entire state, and that is                                                                 
what this bill doesn't do."                                                                                                     
                                                                                                                                
CO-CHAIRMAN DYSON said he certainly accepts that Mr. Cyr represents                                                             
11,000 teachers, but asked how he got the mantle of representing                                                                
130,000 students.                                                                                                               
                                                                                                                                
Number 1525                                                                                                                     
                                                                                                                                
MR. CYR answered, "The kids who are in our public schools are in                                                                
those teachers' classrooms, and we are responsible for every one of                                                             
them.  What happens in those teachers' classrooms, what happens                                                                 
with those school aides, custodians, is our responsibility.  Those                                                              
kids are our responsibility through the classroom day.  I believe                                                               
that gives me the perfect right to use that figure."                                                                            
                                                                                                                                
Number 1489                                                                                                                     
                                                                                                                                
KENT BARKER testified via teleconference from Anchorage.  He said                                                               
this voucher system is a wake-up call to the legislature and                                                                    
schools districts.  He has talked to many people over the past                                                                  
three years who are unhappy with the school districts, and 200-300                                                              
of them would definitely sign a petition to put the issue on the                                                                
ballot.                                                                                                                         
                                                                                                                                
Number 1381                                                                                                                     
                                                                                                                                
LEY SCHLEICH testified via teleconference from the Mat-Su LIO.  She                                                             
is a parent of two school-age children.   She said many of her                                                                  
questions have been covered but she'd like to go on record as an                                                                
individual who has the same concerns and questions as all but the                                                               
very last speaker.  She will send additional written comments.                                                                  
                                                                                                                                
CO-CHAIRMAN DYSON asked Tom Dahl if the Office of the Attorney                                                                  
General has a position or will take a position on the                                                                           
constitutionality of this bill.                                                                                                 
                                                                                                                                
Number 1326                                                                                                                     
                                                                                                                                
TOM DAHL, Assistant Attorney General, Human Services Section, Civil                                                             
Division (Juneau), Department of Law, , answered that his office                                                                
has not taken a position on this bill yet but has been in some                                                                  
discussion with the DOE on it.  He offered to have his office                                                                   
prepare an opinion, to which Co-Chairman Dyson agreed.                                                                          
                                                                                                                                
CO-CHAIRMAN DYSON called a brief at-ease at 4:17 p.m.  He                                                                       
reconvened the meeting at 4:26 p.m.                                                                                             
                                                                                                                                
Number 1250                                                                                                                     
                                                                                                                                
BETH LAPE, Special Assistant, Legislative Liaison, Office of the                                                                
Commissioner, Department of Education, referred to the DOE's                                                                    
written testimony, which contains the wording of the state Board of                                                             
Education's motion in opposition to vouchers.  She noted that they                                                              
do take care to mention that they are very supportive of choice                                                                 
within the public school system.  She announced that the state                                                                  
board will be discussing choice and vouchers next Wednesday at                                                                  
their meeting in town and has invited the current committee's                                                                   
members or their staff.  She referred to the fiscal note and                                                                    
pointed out that the last column is for the year 2005.  She said,                                                               
"Although that looks like a zero fiscal note, it is only a five-                                                                
year pilot program, so it would be indeterminate for five years and                                                             
then the sixth year it wouldn't exist, so that is why it would be                                                               
zero.  There is been some confusion on that."                                                                                   
                                                                                                                                
Number 1167                                                                                                                     
                                                                                                                                
REPRESENTATIVE BRICE asked Ms. Lape what regulations the DOE                                                                    
foresees would be necessary to implement this piece of legislation                                                              
if it were passed, and what guidance the DOE would need from the                                                                
legislature to implement this Act.                                                                                              
                                                                                                                                
MS. LAPE answered that she thinks the DOE would be interested in                                                                
having as much guidance as possible from the legislature before                                                                 
implementing any regulations.                                                                                                   
                                                                                                                                
REPRESENTATIVE BRICE said he is assuming that subsection (d) is                                                                 
wholly inadequate to implement a voucher system in this state.                                                                  
                                                                                                                                
MS. LAPE said she probably can't answer that.                                                                                   
                                                                                                                                
REPRESENTATIVE BRICE asked Ms. Lape to provide him with an answer                                                               
at some point in time in the future.                                                                                            
                                                                                                                                
MS. LAPE agreed.                                                                                                                
                                                                                                                                
REPRESENTATIVE WHITAKER asked Ms. Lape if there would be any                                                                    
contributions made beyond those of the state.                                                                                   
                                                                                                                                
MS. LAPE said the sponsor earlier mentioned that the bill says the                                                              
state portion.                                                                                                                  
                                                                                                                                
Number 1051                                                                                                                     
                                                                                                                                
REPRESENTATIVE WHITAKER asked if it is correct that the cost is to                                                              
the state, and at that point the per-student funding from the                                                                   
federal government would not be forthcoming.                                                                                    
                                                                                                                                
MS. LAPE offered to get that answered.                                                                                          
                                                                                                                                
CO-CHAIRMAN DYSON said he suspects that if the student isn't in the                                                             
public school then federal funding to the school would probably not                                                             
be there.                                                                                                                       
                                                                                                                                
REPRESENTATIVE WHITAKER answered that he just wanted to be sure                                                                 
they understand the ramifications.                                                                                              
                                                                                                                                
REPRESENTATIVE KEMPLEN asked Ms. Lape what type of impact would it                                                              
have on the DOE if the legislature is unable or unwilling to                                                                    
appropriate enough money to provide a quality education to the                                                                  
individuals who are taking advantage of the education voucher                                                                   
program.                                                                                                                        
                                                                                                                                
MS. LAPE said she can get that answered.                                                                                        
                                                                                                                                
CO-CHAIRMAN DYSON announced his intention to hold this bill and                                                                 
consider it next week when the Office of the Attorney General can                                                               
have an opinion.  He said it will also give the committee a chance                                                              
to hear what the state Board of Education says next Wednesday.                                                                  
[SSHB 5 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 850                                                                                                                      
                                                                                                                                
There being no further business before the committee, the Health,                                                               
Education and Social Services Committee meeting was adjourned at                                                                
4:35 p.m.                                                                                                                       

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