Legislature(2007 - 2008)CAPITOL 106

03/15/2008 09:00 AM House HEALTH, EDUCATION & SOCIAL SERVICES


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Audio Topic
09:02:47 AM Start
09:03:13 AM Presentation: Moore V. State of Alaska
10:21:16 AM SB119
10:34:41 AM HB386
10:55:49 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Moore v. State of Alaska TELECONFERENCED
+ SB 285 STATE INTERVENTION IN SCHOOL DISTRICT TELECONFERENCED
<Bill Hearing Canceled>
*+ HB 386 ENERGY SUBSIDY FOR SCHOOLS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 119 SCHOOL LIBRARY GRANTS TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                         March 15, 2008                                                                                         
                           9:02 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Wes Keller                                                                                                       
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Paul Seaton                                                                                                      
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Senator Donald Olson                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION - MOORE v. State of Alaska                                                                                         
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 119(RLS)                                                                                                 
"An Act relating to grant programs to support libraries."                                                                       
                                                                                                                                
     - MOVED SB 119 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 386                                                                                                              
"An Act relating to an energy subsidy for public schools."                                                                      
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
CS FOR SENATE BILL NO. 285(FIN)                                                                                                 
"An Act  relating to the  power and  duties of the  Department of                                                               
Education  and  Early  Development  for  improving  instructional                                                               
practices  in school  districts; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 119                                                                                                                  
SHORT TITLE: SCHOOL LIBRARY GRANTS                                                                                              
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
03/14/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/14/07       (S)       HES, FIN                                                                                               
04/25/07       (S)       HES AT 1:30 PM BUTROVICH 205                                                                           
04/25/07       (S)       Moved SB 119 Out of Committee                                                                          
04/25/07       (S)       MINUTE(HES)                                                                                            
04/27/07       (S)       HES RPT  4DP                                                                                           
04/27/07       (S)       DP: DAVIS, ELTON, THOMAS, COWDERY                                                                      
01/30/08       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      

01/30/08 (S) Heard & Held

01/30/08 (S) MINUTE(FIN) 02/08/08 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/08/08 (S) Moved CSSB 119(FIN) Out of Committee 02/08/08 (S) MINUTE(FIN) 02/11/08 (S) FIN RPT CS 6DP NEW TITLE 02/11/08 (S) DP: HOFFMAN, STEDMAN, ELTON, THOMAS, DYSON, OLSON 02/18/08 (S) RLS AT 11:00 AM BELTZ 211 02/18/08 (S) Moved CSSB 119(RLS) Out of Committee 02/18/08 (S) MINUTE(RLS) 02/19/08 (S) RLS RPT CS 2DP 2AM NEW TITLE 02/19/08 (S) DP: STEVENS, ELLIS 02/19/08 (S) AM: THERRIAULT, GREEN 03/03/08 (S) TRANSMITTED TO (H) 03/03/08 (S) VERSION: CSSB 119(RLS) 03/04/08 (H) READ THE FIRST TIME - REFERRALS 03/04/08 (H) HES, FIN 03/11/08 (H) HES AT 3:00 PM CAPITOL 106 03/11/08 (H) Heard & Held 03/11/08 (H) MINUTE(HES) 03/15/08 (H) HES AT 9:00 AM CAPITOL 106 BILL: HB 386 SHORT TITLE: ENERGY SUBSIDY FOR SCHOOLS SPONSOR(s): REPRESENTATIVE(s) LEDOUX 02/19/08 (H) READ THE FIRST TIME - REFERRALS 02/19/08 (H) HES, FIN 03/15/08 (H) HES AT 9:00 AM CAPITOL 106 WITNESS REGISTER EDDY JEANS, Director School Finance and Facilities Section Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Participated in the presentation on Moore v. State of Alaska. NEIL SLOTNICK, Assistant Attorney General Labor and State Affairs Section Civil Division Department of Law Juneau, Alaska POSITION STATEMENT: Participated in the presentation of Moore v. State of Alaska. LES MORSE, Director Assessment and Accountability Department of Education and Early Development Juneau, Alaska POSITION STATEMENT: Participated in the presentation of Moore v. State of Alaska. DARWIN PETERSON, Staff to Senator Bert Stedman Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions on SB 119 on behalf of the Senate Finance Committee. CLARK GRUENING, Lobbyist Alaska Library Association Juneau, Alaska POSITION STATEMENT: Answered questions during the hearing on SB 119. CATHY BOUTIN, Librarian Juneau, Alaska POSITION STATEMENT: Testified as an individual, in support of SB 119. GINNY AUSTERMAN, Staff to Senator Donald Olson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered a question during the hearing on SB 119. THOMAS BROWN, Intern to Representative Gabrielle LeDoux Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented HB 386 on behalf of Representative LeDoux, sponsor. JIM NYGAARD, Superintendent Cordova School District Cordova, Alaska POSITION STATEMENT: Testified in support of HB 386. ACTION NARRATIVE CHAIR PEGGY WILSON called the House Health, Education and Social Services Standing Committee meeting to order at 9:02:47 AM. Representatives Fairclough, Keller, Gardner, Roses, and Wilson were present at the call to order. Representative Cissna arrived as the meeting was in progress. Senator Donald Olson was also in attendance. ^Presentation: Moore v. State of Alaska 9:03:13 AM CHAIR WILSON announced that the first order of business would be a presentation on Moore v. State of Alaska. 9:03:54 AM EDDY JEANS, Director, School Finance and Facilities Section, Department of Education and Early Development (EED), informed the committee that the presentation was on the ruling by Superior Court Judge Sharon Gleason in the Moore v. State of Alaska lawsuit. 9:05:07 AM NEIL SLOTNICK, Assistant Attorney General, Labor and State Affairs Section, Civil Division, Department of Law, stated that the Moore v. State of Alaska case is one of the most important education cases in the state since statehood. The Alaska Constitution contains an education clause that requires that the state legislature provide a public education system. The public education system is delegated by authority through local school districts that establish the schools and provide an education to children. The lawsuit claimed that the public education system was inadequate, due to insufficient funding, and that the legislature was responsible for an increase in funding to the local school districts. The judge looked at all aspects of the adequacy of education in Alaska, and found that there are four elements in an adequate education system: sufficient funding, standards, an assessment system, and state oversight. The judge found the elements were satisfied except for insufficient state oversight in some rural school districts. 9:12:28 AM MR. SLOTNICK continued to explain that the state was given one year to investigate the lack of oversight in some outlying districts. For example, the judge ruled that there was not enough state oversight of the Yupiit School District. The state was given one year to investigate all of the school districts where there was evidence that students were not successful, to exercise more oversight, and to report on its actions. In addition, under the requirement of the due process clause, the judge found that there must be a meaningful opportunity to learn in order to require the passage of a high school exit exam to obtain a diploma. Mr. Slotnick opined that the cure for both requirements is the same. The former Commissioner of Education decided to immediately provide to the court more information on the oversight and intervention procedures that the state already had in effect; however, the judge maintained that the legislature must determine whether the EED is in compliance. Therefore, the EED will present evidence on its intervention and oversight actions to the committee. 9:18:59 AM REPRESENTATIVE GARDNER requested a copy of the legal transcript. She then asked how the role of a student's attendance is measured into their opportunity to learn. 9:19:53 AM MR. SLOTNICK observed that attendance and other personal problems outside the control of the school district affect student outcomes, even though the opportunity to learn is guaranteed. However, the judge found that, in the Yupiit School District, there was a long standing history of a lack of success and there were deficiencies that the EED had previously identified. There can be an improvement in the opportunity to learn, although the known improvement may not bring about change. 9:22:11 AM REPRESENTATIVE GARDNER further asked whether poor attendance is a defense that the court would take in account. 9:22:21 AM MR. SLOTNICK said yes. The court made findings about poor attendance and other factors. 9:22:28 AM REPRESENTATIVE CISSNA observed that in Alaska, due to the very different backgrounds and "worlds", schools with equal teaching offerings will still have different outcomes. She asked whether making the same offering of education in all regions is a factor to the court. 9:23:58 AM MR. SLOTNICK acknowledged the difficulty of finding a balance. He noted that a culturally appropriate method of delivering education is a strategy that is being followed throughout Alaska, although certain approaches to learning are successful in all cultures. He opined that the legal line is difficult to draw. 9:25:48 AM CHAIR WILSON asked whether the assessment system is based on federal No Child Left Behind (NCLB) legislation. 9:26:17 AM MR. JEANS stated that Alaska enacted a state standards and assessment system in 1998 for grades three, six, and eight. This system was expanded when NCLB became law. 9:26:50 AM CHAIR WILSON observed that Alaska schools teach the Alaska standards, but any assessment system is connected with NCLB testing. 9:27:34 AM MR. JEANS re-stated that the state's accountability system in reading, writing, and math was established in 1998. 9:27:53 AM CHAIR WILSON asked whether the testing in use can identity one or two children in a small group. She opined that there could be more schools with problems similar to the schools in the Yupiit School District that are not indentified because the small categories are not counted. 9:28:52 AM MR. JEANS explained that the EED was not looking at individual schools at that time. The judge indicated that all schools are included in the state's data on assessment and the obligation of the legislature is to operate and maintain all public schools. The state focuses on proficiency in reading, writing and math, NCLB data also includes data on special education and limited language proficiency students. He warned that the EED is reluctant to specify the percentage, above 50 percent, of proficient learners that is required to meet the standards. Mr. Jeans listed the school districts in which the EED has intervened, and those that are being watched closely. 9:31:46 AM CHAIR WILSON re-stated her request to compare Alaska state assessments with those of NCLB. 9:31:50 AM LES MORSE, Director, Assessment and Accountability, Department of Education and Early Development, informed the committee that the NCLB evaluation is on the school as a whole, regardless of size. For all of the subgroups such as; race, special education, limited English proficiency, and economic disadvantage, there is a numerical limit of 26 or more students. However, judging a school for state accountability is based on every student. 9:33:47 AM CHAIR WILSON opined that, with NCLB assessments, subgroups do not get counted. 9:34:20 AM MR. MORSE expressed the state's interest in looking at every student, regardless of their subgroup. In addition, schools should determine whether subgroups have deficiencies NCLB does require the reporting of student performance in subgroups that number five or more students. 9:35:46 AM CHAIR WILSON remarked: I think that it's important to have on the record, because of the fact that, a, a, what the state is doing versus what they could be doing, that wasn't quite as deep. 9:35:54 AM MR. JEANS added that the NCLB targets go up; in fact, 100 percent proficiency is required by 2014. The EED has to deal with the federal law and the state assessments, using the same data for different intervention strategies. 9:37:19 AM REPRESENTATIVE ROSES compared the state assessment system and that of NCLB. He stressed that the Moore v. State of Alaska case was brought under the state assessment and report card. 9:39:01 AM MR. MORSE assured the committee that the federal and state growth models are being aligned. 9:39:16 AM REPRESENTATIVE FAIRCLOUGH asked whether the committee is "setting the case for Judge Gleason to review." 9:39:55 AM MR. SLOTNICK asked for the question to be repeated. 9:40:02 AM REPRESENTATIVE FAIRCLOUGH asked whether the judge will review the records of the hearing to determine if the legislature has fulfilled its role. Representative Fairclough said that, as a legislator, she sees her role to defend the state. The EED has two issues, one of which is whether the legislature has met its constitutional responsibility. She cautioned committee members that if the committee's discussion becomes part of the judicial question, members must speak to Alaska's constitutionality and not the requirements of NCLB. Representative Fairclough advised that if members' questions address whether the legislature has fulfilled its commitment to providing education, and there is agreement that it has not, these statements may need to be defended in a lawsuit at a later time. 9:42:43 AM CHAIR WILSON expressed her belief that the committee should not temper its questions under any circumstances. 9:43:44 AM The committee took an at-ease from 9:43 to 9:51 a.m. 9:51:44 AM CHAIR WILSON clarified that the committee was hearing the presentation in preparation for consideration of the accompanying bill. The accompanying bill will determine the authority for intervention in the school districts. 9:52:29 AM REPRESENTATIVE CISSNA asked whether a lawsuit that is filed against the state is actually against the legislature or the administration, and which is responsible. 9:53:20 AM MR. SLOTNICK advised that, ultimately, the legislature is responsible; however, the court can not make the legislature respond. The executive branch responds to, and defends, a lawsuit that is filed against the state. 9:54:30 AM REPRESENTATIVE ROSES expressed his opinion, for the record, that the intent of the presentation is to prepare to look at the bill that will identify the mechanism by which the EED will obtain funding for school intervention programs. He suggested scheduling a work session to address questions on the lawsuit and for a deeper look at EED procedures and policies. 9:56:35 AM CHAIR WILSON indicated her decision to hear the remainder of the presentation without discussion. There will be further discussion during the hearing on SB 285 that is scheduled for March 25, 2008. 9:57:52 AM REPRESENTATIVE CISSNA expressed her concern that the committee is discussing policy decisions for areas of the state that are not represented on the committee. Each area has very different goals for its schools. 9:58:38 AM CHAIR WILSON noted that the hearing on SB 285 was delayed pending referral. 9:59:32 AM MR. JEANS presented reading scores for three school districts in which the EED has intervened: Yupiit School District, Northwest Arctic School District, and Lower Yukon School District. 10:00:41 AM REPRESENTATIVE GARDNER asked what an intervention looks like. 10:01:00 AM MR. JEANS responded that the current intervention system requires the following: weekly collaborative meetings with teachers; the use of state assessment systems; leadership training; and the use of Title 1 funds to hire a coach. In answer to a question, he added that administrative training, along with feedback from the coach, is also part of the intervention. 10:02:32 AM CHAIR WILSON related her personal experience in speaking with coaches who told her that the work is very hard. 10:02:55 AM REPRESENTATIVE GARDNER drew a parallel to the mentorship program. 10:03:21 AM MR. JEANS pointed out that the improvements in test scores after an intervention are usually seen after two to three years. He presented the scores for mathematics for the same three school districts. He then explained that school districts are aware that a desk audit and an instructional audit determine whether an intervention is required. Furthermore, a district corrective action plan for the school district is developed. Mr. Jeans then presented draft regulations regarding the school-level desk audits. 10:07:55 AM CHAIR WILSON asked how the EED will conduct audits statewide. 10:08:24 AM MR. JEANS stated that the EED is already conducting these audits. Data on adequate yearly progress (AYP) and proficiency percentages for each school is part of the collection of data that is studied each year. Lastly, Mr. Jeans noted that a draft copy of SB 285 is included in the committee packet. He stressed the importance of understanding that funding and policy comes from the state to local school districts that are expected to utilize the standards and assessments to educate children sufficiently to pass the high school exit exam. He read the following from the judge's decision: Alaska's constitution makes the legislature, not local school districts, ultimately responsible for maintaining Alaska's schools. Clearly, the legislature has authority to delegate that responsibility, and the court has found that the legislature has provided the schools with a constitutionally sufficient amount of funds to undertake that responsibility, but the state's responsibility does not end with adequate funding. If the school, despite adequate funding, is failing to accord a child with a constitutionally adequate education, such a failing to give a child a meaningful opportunity to acquire proficiency in the state's own performance standard, then the concept of local control must give way because the school is not being maintained as required by the education clause. 10:12:44 AM MR. JEANS continued to explain that the EED is in the process of gaining experience in developing standards, accountability, and intervention systems. He opined that, at this time, the legislature must consider legislation that will put schools on notice that if they do not successfully educate students, the EED has an obligation to intervene and direct instructional practices. Mr. Jeans concluded the presentation by noting that proposals in SB 285 allow the EED to hire the district coaches and provide for a deadline for the return of control to local schools. 10:14:35 AM CHAIR WILSON re-stated her experience with the coaches who reported some problems obtaining cooperation from the schools. 10:15:51 AM REPRESENTATIVE CISSNA asked about special needs students whose physical or mental conditions prevent them from meeting the educational standards. MR. JEANS explained that the constitution does not require that every student meet the standards, but that every student must have the opportunity. The EED must review each district, and for those that do not have increasing student achievement, it is obligated to impact instructional practices. 10:18:13 AM REPRESENTATIVE KELLER asked whether the EED has been involved in restructuring schools, prior to the court case. 10:18:55 AM MR. JEANS answered yes. In fact, in the Yupiik School District, the EED was involved in all three schools. The proposed regulations take out the question of the EED's authority in local schools and indicate the legislature's support of the EED's actions to improve student achievement. 10:19:54 AM REPRESENTATIVE KELLER observed that the finding in the lawsuit requires a review of the regulations. 10:20:20 AM MR. JEANS stated that the judge makes it very clear that the legislature, through the EED as its agent, must intervene when the local school district fails to increase achievement for the majority of its students. SB 119-SCHOOL LIBRARY GRANTS CHAIR WILSON announced that the next order of business would be CS FOR SENATE BILL NO. 119(RLS), "An Act relating to grant programs to support libraries." 10:21:16 AM DARWIN PETERSON, Staff to Senator Bert Stedman, Alaska State Legislature, presented opinions from Legislative Legal and Research Services to two questions asked by Representative Seaton during a previous hearing. In response to Representative Seaton's first question, regarding whether communities that are unincorporated would be considered eligible to publically own a library, he said that this issue is subject to interpretation by a court. The answer to the second question is that school districts, or Regional Education Attendance Areas, can qualify for a grant; however, eligibility requires that an applicant for a grant must supply matching funds. Mr. Peterson added that the understanding of the sponsor, and the Senate Finance Committee, is that the bill is self-policing and that small communities will not be able to raise the required 20 percent matching funds. 10:23:27 AM CHAIR WILSON noted the need of an amendment to delete "local government entity" and insert "municipality." 10:23:44 AM MR. PETERSON agreed that that amendment would clarify that only an entity with a taxing structure in place would be eligible; however, the Senate Finance Committee did not want to limit participation by any of the larger communities in unorganized areas. In answer to a question, he stated that the eligibility requirements are found on page 2, line 11, of the bill. 10:25:40 AM REPRESENTATIVE GARDNER asked whether the intent of the sponsor is that tribal organizations, or a nonprofit library group, would not be eligible. 10:25:53 AM MR. PETERSON opined that a tribal organization, on behalf of a community, would be eligible. 10:26:03 AM REPRESENTATIVE FAIRCLOUGH asked whether the sponsor wants to leave the legislation as written. 10:26:23 AM MR. PETERSON said yes. He said that, on behalf of the Senate Finance Committee, he is providing the clarification that was requested by Representative Seaton. 10:26:41 AM REPRESENTATIVE GARDNER called the committee's attention to page 3, line 20, and asked what was the purpose of the inclusion of the job description of library staff. 10:27:30 AM CLARK GRUENING, Lobbyist, Alaska Library Association, informed the committee that the purpose of the job description is to set guidelines in the regulations and to determine what level of support is currently supplied to the library. 10:28:50 AM CATHY BOUTIN, Librarian, stated that the intent of the bill is to provide for working libraries to assist children in a library fashion, as opposed to a classroom setting. 10:29:12 AM REPRESENTATIVE ROSES referred to page 3, line 23, that specifies that materials can only be purchased by school districts that operate a correspondence program. He asked whether every school library in the state operates a correspondence program. 10:29:57 AM GINNY AUSTERMAN, Staff to Senator Donald Olson, Alaska State Legislature, stated that she did not know. 10:30:09 AM REPRESENTATIVE ROSES further asked whether it was Ms. Austerman's understanding that funds would not be provided through SB 119 unless a correspondence program exists. 10:30:30 AM MS. AUSTERMAN said yes. REPRESENTATIVE ROSES stated that correspondence programs are run through the instructional divisions of schools. 10:30:43 AM MS. AUSTERMAN pointed out that the eligibility requirement is that a public school district operates a correspondence program. MR. GRUENING expressed his understanding that nearly all school districts do operate correspondence programs. He offered to provide clarification. 10:31:02 AM REPRESENTATIVE FAIRCLOUGH moved to report CSSB 119(RLS) out of committee with individual recommendations and the attached fiscal note number four that was passed out of the Senate Rules Committee. 10:31:22 AM REPRESENTATIVE GARDNER objected and asked whether eligibility requirements are generally established by statute or by regulation. 10:31:47 AM MR. GRUENING responded that the statute must give sufficient guidelines for regulations. He pointed out that the bill gives the EED guidelines about the ranking of applicants and other regulations. 10:32:38 AM REPRESENTATIVE ROSES stated that the concept of the portion of the bill regarding library development grants, originated from the Alaska Library Association; however, the bill now includes a construction grant for communities of 10,000 residents or less. He expressed his concern about the present content of the bill. 10:33:26 AM REPRESENTATIVE KELLER agreed with Representative Roses and added that the bill will be reviewed by the House Finance Committee. 10:33:38 AM REPRESENTATIVE GARDNER opined that establishing eligibility requirements in statute, as opposed to regulation, will be cumbersome. She then removed her objection. 10:34:04 AM Hearing no further objections, CSSB 119(RLS) was reported from the House Health, Education and Social Services Standing Committee. HB 386-ENERGY SUBSIDY FOR SCHOOLS 10:34:41 AM CHAIR WILSON announced that the final order of business would be HOUSE BILL NO. 386, "An Act relating to an energy subsidy for public schools." 10:35:27 AM THOMAS BROWN, Intern to Representative Gabrielle LeDoux, Alaska State Legislature, presented HB 386 on behalf of Representative LeDoux, sponsor. Mr. Brown explained that the bill was drafted, at the request of several school boards across the state, in reaction to the 100 percent increase of gas prices. Schools are taking measures to address the increase in heating costs; however, many permanent solutions are cost prohibitive. He stated that the foundation formula funding does not cover the increase in heating costs, which remain the same even if there is a decline in enrollment. School districts are mitigating this increased cost by sealing doors and windows, closing off parts of schools, and reducing the hours of after school programs. Moreover, high technology solutions are cost prohibitive. 10:36:43 AM REPRESENTATIVE FAIRCLOUGH reminded Mr. Brown that the legislature recently passed the largest education package in a decade. 10:37:37 AM MR. BROWN expressed his understanding that the education package funded 50 percent of the recommendations of the Institute of Social and Economic Research (ISER). CHAIR WILSON stated that the increase in funding in her district is $12,000 per year, provided that there is no decrease in enrollment. 10:38:17 AM JIM NYGAARD, Superintendent, Cordova School District, informed the committee that fuel bills in Cordova have increased by 372 percent since FY 03. Furthermore, Cordova's budget increase to cover additional heating and health care costs is $150,000. He listed the measures that Cordova schools have taken to conserve heating energy. Mr. Nygaard said that, although only the high school has computer climate control, the buildings are maintained efficiently and fuel consumption has gone down. Further, the district will close its district office and move to a school building in order to conserve fuel. In addition, its elementary school, that was built in 1953, is being surveyed for energy loss. He concluded that the high cost of oil is a resource benefit that should reach Alaska's kids. 10:45:28 AM REPRESENTATIVE ROSES asked whether the Cordova School District received any funding for increased costs over the last two years. 10:45:41 AM MR. NYGAARD said no. 10:45:45 AM REPRESENTATIVE ROSES assumed, from materials provided in the committee packet, that the energy costs for Cordova during FY 07 were $398,065 and the projection for FY 08 is $523,057. He opined that, if passed, the bill will fund the increased cost and more. He then asked how the district budgeted for the higher than projected costs last year. 10:46:40 AM MR. NYGAARD responded that the money for fuel comes from the efforts of the legislature last session to fund cost differential increases. He said that the impact to his district with the current legislation will be about $250,000. 10:47:30 AM REPRESENTATIVE ROSES referred to the Department of Education and Early Development (EED) Energy Cost Analysis that projected Cordova to have an increase in energy costs of about $120,000 for FY 08. He expressed his understanding of the burden of additional costs to every school district. 10:48:37 AM MR. NYGAARD indicated that his information was different. 10:49:13 AM REPRESENTATIVE ROSES repeated his question about how the school district covered its higher fuel costs last year. 10:51:03 AM CHAIR WILSON re-stated the question and asked whether programs were cut to make up costs. 10:51:22 AM MR. NYGAARD said that the district is cutting staff, through attrition, and is looking at all areas of conservation. 10:52:03 AM REPRESENTATIVE FAIRCLOUGH asked whether the Cordova cost information reflects the additional education funding that was recently passed by the legislature. 10:52:33 AM MR. NYGAARD said yes. REPRESENTATIVE FAIRCLOUGH further asked if the supplemental appropriation now before the legislature was also included. 10:52:45 AM MR. NYGAARD said that he was not sure. 10:52:49 AM REPRESENTATIVE CISSNA asked whether any of the fuel saving measures created a safety issue. 10:53:15 AM MR. NYGAARD said no. 10:53:30 AM REPRESENTATIVE CISSNA further asked what after school educational programs have been curtailed. 10:54:04 AM MR. NYGAARD explained that after school programs have not been cut but have been moved to the high school because that building has computerized climate controls. 10:54:41 AM CHAIR WILSON announced that HB 386 would be held over with public testimony open. 10:55:49 AM ADJOURNMENT There being no further business before the committee, the House Health, Education and Social Services Standing Committee meeting was adjourned at 10:55 a. m.

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