04/29/2003 03:10 PM House HES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled

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ALASKA STATE LEGISLATURE HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE April 29, 2003 3:10 p.m. MEMBERS PRESENT Representative Carl Gatto, Vice Chair Representative John Coghill Representative Paul Seaton Representative Kelly Wolf Representative Sharon Cissna MEMBERS ABSENT Representative Peggy Wilson, Chair Representative Mary Kapsner COMMITTEE CALENDAR HOUSE BILL NO. 233 "An Act relating to the base student allocation used in the formula for state funding of public education; and providing for an effective date." - MOVED CSHB 233(EDU) OUT OF COMMITTEE HOUSE BILL NO. 10 "An Act amending the definition of group health insurance, and allowing the Department of Administration to obtain a policy or policies of group health care insurance for employers that are small businesses, nonprofit organizations, special services organizations, or small associations for insurance purposes; and providing for an effective date." - Moved CSHB 10(HES) Out of Committee REPORT ON STATE HEALTH POLICY MEETING IN CHICAGO BY REPRESENTATIVE CISSNA - HEARD HOUSE BILL NO. 231 "An Act relating to termination of the parental rights of a person who owes substantial child support arrearages." - REMOVED FROM AGENDA PREVIOUS ACTION BILL: HB 233 SHORT TITLE:INCREASE EDUCATION FUNDING SPONSOR(S): REPRESENTATIVE(S)WILSON Jrn-Date Jrn-Page Action 04/02/03 0738 (H) READ THE FIRST TIME - REFERRALS 04/02/03 0738 (H) EDU, HES, FIN 04/16/03 (H) EDU AT 7:00 AM CAPITOL 124 04/16/03 (H) <Subcommittee assigned> 04/17/03 (H) EDU AT 1:00 PM CAPITOL 106 04/17/03 (H) <Subcommittee meeting> 04/22/03 (H) EDU AT 11:00 AM CAPITOL 124 04/22/03 (H) Moved CSHB 233(EDU) Out of Committee 04/22/03 (H) MINUTE(EDU) 04/23/03 1069 (H) EDU RPT CS(EDU) 6DP 04/23/03 1069 (H) DP: WILSON, OGG, SEATON, WOLF, 04/23/03 1069 (H) KAPSNER, GATTO 04/23/03 1069 (H) FN1: (EED) 04/24/03 1111 (H) COSPONSOR(S): ANDERSON, MCGUIRE 04/28/03 1172 (H) COSPONSOR(S): WOLF, DAHLSTROM 04/29/03 (H) HES AT 3:00 PM CAPITOL 106 BILL: HB 10 SHORT TITLE:GROUP HEALTH INSURANCE FOR PRIVATE GROUPS SPONSOR(S): REPRESENTATIVE(S)HEINZE, ROKEBERG Jrn-Date Jrn-Page Action 01/21/03 0033 (H) PREFILE RELEASED (1/10/03)

01/21/03 0033 (H) READ THE FIRST TIME - REFERRALS

01/21/03 0033 (H) L&C, HES

01/29/03 0088 (H) Committee ROKEBERG, GUTTENBERG MINUTE(HES) WITNESS REGISTER DEBBIE OSSIANDER, President Association of Alaska School Boards Chugiak, Alaska POSITION STATEMENT: Testified in favor of HB Number 0096 VICE CHAIR GATTO announced that the first order of business would be HOUSE BILL NO. 233, "An Act relating to the base student allocation used in the formula for state funding of public education; and providing for an effective date." REPRESENTATIVE SEATON presented CSHB of the House Special Committee on Education to generate an increase in the foundation formula. He said there is consensus that education needs more funding. Implementation of the No Child Left Behind Act (NCLB) will be costly for districts. The House Special Committee on Education and the subcommittee only looked at the budget for the Department of Education and Early Development (EED) for funds to increase the funding formula. He said the committee rolled the $23.3 million that was used for Learning Opportunity Grants (LOGs) last year into the foundation formula. This was the subject of HB hold all the districts harmless so that districts which would have lost money as the system goes from a per student basis to a formula basis will not. The other $1.7 million that will be saved by eliminating the two-year kindergarten program was rolled into the formula as well. This resulted in an additional $8 per student. REPRESENTATIVE SEATON summarized his comments by saying that by rolling in the $3.9 million, plus the $6 million in supplemental funding from last year and the $23.3 million in LOGs, the committee came up with a new base student allocation of $4,168. He said the committee was able to do this without going outside EED's budget, which has already been approved in the operating budget that went over to the other body. Representative Seaton told the committee the figures are the same on the fiscal note. He referred the committee to a calculation from Eddie Jeans, EED, on how the committee came up with the $4,168 per student, which adds an additional $158 per student. VICE CHAIR GATTO commented that this bill is complicated and asked if anyone needs Representative Seaton to clarify any portion of his presentation. Number 0454 DEBBIE OSSIANDER, President, Association of Alaska School Boards (AASB), testified in favor of CSHB 233(EDU). than those in the past. When the legislature started the year there were a number of bills introduced that increased the formula; the board was happy about that. Furthermore, most everyone that ran for re-election, including the governor, is supportive of education and that was appreciated. However, when the board received the governor's budget, it was a bit of a setback. Instead of the board's normal [pitch] to legislators to obtain some additional funding to keep pace with inflation, make some growth in terms of funding, and move towards adequacy, the board focused on trying to get a little back of what was proposed to be eliminated. MR. STEELE said the conditions have changed somewhat even from when this body passed its [operating budget] and the Senate has been able to put a number of things back. The climate again is changing and it appears that there is an effort to increase the size of the pie and to hold education to last year's numbers. However, the district is still down in terms of the hit that will be taken in student transportation, but tuition has been added back as well as the debt reimbursement. Although the districts are making some progress, it is difficult to say thank you when the legislature is giving the districts just a little bit less than what was received last year because what is needed is some growth. He told the committee that the Anchorage School Board supports rolling the LOGs into the foundation formula and the board appreciates the added funds to try to hold districts harmless. Those items are very important, he said. As the state faces the times ahead it is important to have the LOGs in the formula. Mr. Steele said he knows the formula is not protected, but it is better than a grant. MR. STEELE commented that the Anchorage School Board wishes it had the extra funds that the early bills were going to put into the formula and the LOGs. That would have provided some progress. Mr. Steele specified that the Anchorage School Board does want the LOGs rolled into the foundation formula and wants to be held harmless, and would like to see some movement towards adequacy. Therefore, some additional funding is necessary. If the $4,128 [base student allocation] was available and the LOGs were rolled in, that would have been great. That would have been some progress at least above the consumer price index. However, as it is, this is the 12th of the last 15 years in which the district has not even had a cost of living allowance. He said progress is needed. The cuts to the district, as small as they are, compared to the governor's budget are still going to hurt. MR. STEELE offered that the cuts are going to hurt the classroom, he highlighted. The last two years the district has had a little reprieve from that through the LOGs. However, now the district is back to the position of not even making the maintenance budget. If the legislature can find its way to put some more money in the budget, the Anchorage School Board would greatly appreciate it. The Anchorage School Board does appreciate the LOGs, he reiterated. He noted that Anchorage stands to gain the least by rolling the LOGs because the district is at the base number in terms of the distribution. However, the district appreciates what it has and will take whatever it can get. In summary, Mr. Steele said he appreciates the efforts to increase the size of the pie, and hopes that at sometime the state will get to the point where the district can plan and grow. Number 1589 STEVE CATHERS, Superintendent, Valdez School District, testified in support of CSHB work that has gone into this legislation and told the committee that he is aware of the difficult time this is for the members. He proposed that this is not the time to let school funding and quality education suffer. The reason he feels this way is due to the NCLB Act's challenge to every school in the nation to address individual children's needs in ways that have never been done before. That is a tremendous vision and his district has embraced it, although the district is frustrated because the cost of doing this as well as all the other reporting and data collecting provisions of the NCLB Act are staggering. MR. CATHERS offered that the costs are more than his district can bear right now. Even districts that currently meet the adequate yearly progress measure found in the NCLB Act, are going to have a very difficult time passing the bar as it is progressively raised under the bill. If the state is serious about the NCLB Act and every child succeeding, then now is the time to protect the services to those kids. He said Alaska is anticipating a lot of economic growth and development in the next 10 years. Furthermore, it is very clear that there will be a skilled work force needed when major projects come on line. That work force will not be composed of young Alaskan adults unless the state is able to provide programs now to adequately train and prepare Alaska's kids to participate in that growth and opportunity. MR. CATHERS said he thinks it is important to recognize that the kids who are in elementary school now will be the people trying to get jobs with the gas line project in the future. Investing in education now could clearly be seen as a business investment. He indicated that such an investment is necessary. MR. CATHERS expressed appreciation for AASB's work in compiling all the antidotal information about cuts in districts all over the state. Such information gives a very clear picture of what is really happening out there. There are a lot of cuts being made that are truly cuts to essential school services, and districts throughout the state are reaching desperation points. He said he does not think there is great public awareness of the problem because so many school employees continue to fill the gaps. Number 1736 MR. CATHERS commented that it is important to note that what is being cut across the state are the core curriculum classroom teachers, materials and books for the classrooms, and support services. Many districts have lost virtually all the support services they once had. If there are any suspicions that schools are not lean and efficient, that can be addressed by looking at what is happening to school budgets right now. He said that the hold harmless provision will allow 22 districts to receive the same funding [that they did last year] and the rest of the districts will be getting significant funding increases which may not be enough to address their needs, but those 22 districts will be forced to continue to cut and it will not represent relief for them. He just wanted the committee to be aware that these districts will be in no better shape, but will be grateful not to be cut. Number 1818 MR. CATHERS told the committee that for those district, any increased dollars from other sources are reduced by 40 percent. He said he does not believe it was the intent of the legislature to do this; however, the way it works in his districts is that if they get an intensive special education student, for example, a blind student, while the district may be required to invest $60,000 to meet the needs of that child, the intensive funding for that child might only be $20,000, which is also reduced by regular formula funding but is also a reduction for such things as intensive students or any increases within the formula, so that has been very painful to deal with. He said that although rolling the LOG money into the formula would result in a 40 percent cut, he supports it because it is the best thing for education statewide. He said he represents one of the 22 districts for which there will not be any monetary increases. He suggested to the committee that no matter what is done, all decisions with finance are now painful, and he urged the committee to dig deep and make sure that the state does not let go of the quality of education at this critical time for the state. Number 1873 MARY FRANCIS, Executive Director, Alaska Council of School Administrators, testified on 233(EDU) and the committee that not only is she a member of the Anchorage School Board, but she is also a parent of four children in the district. She said she is coming to the committee as a minority to tell members that the LOGs are being used to close the achievement gap. Native students barely achieve any kinds of academic standards, she remarked, adding that that is a big concern to her. The LOGs help students become achievers through the after-school programs because the teachers work with students to help them believe in themselves and give accountability and validation to them that they can be successful, all of which is very important to communities. She told the committee that she is responsible for nearly 50,000 students. She said she took an oath and is here to speak on behalf of these students. MS. MARKS said she is fortunate enough to be in schools with her kids and doing public service. So learning how to balance out her life, culture, and survival tools is something to pass on to her students and children, though it is not an easy task. The grant monies not only help with the after school programs, but the summer school programs as well. She added that the mission is to make sure students are reading by the time they are in third grade. Without full funding plus more, the district will not be able to attain the expectations of the NCLB Act. She said that without these monies she does not know what is being said to the kids. She acknowledged that it is a hard task the committee is facing, and asked members to weigh out all the consequences and all the information brought before the committee. MS. MARKS said that if she can just reach eight more students to help them feel needed and connected to the school, it is important because not all students feel those things. She told the committee that the LOGs provided her with more tools. She said JOM (ph) and BIA (Bureau of Indian Affairs) monies are not enough to close the achievement gap. She said she needs the legislature to help do that. The district has 92 different languages, and the bilingual department and migrant education department are working together to try to close the gaps. With the NCLB Act, the district needs even more assistance. TAPE 03-38, SIDE B Number 2387 MS. MARKS said she shared with corporate leaders that the district needs their help. She said that if there is no way to increase education funding, it looks like a dysfunctional future. REPRESENTATIVE COGHILL thanked Ms. Marks for her time and oath. He said as he understands from her testimony that she believes the LOGs give higher focus to achievement gaps. He asked if she sees the funds more useful in LOGs. MS. MARKS responded that she sees it from "outside the box." If she is to go out into the communities, it is another tool that is available. REPRESENTATIVE COGHILL asked if she sees the LOGs as one of those tools. MS. MARKS replied that she does see LOGs as a tool to bring the communities into the school and to find a way for them to be involved in the education process. She said she gains more information that she can then disperse into the community. REPRESENTATIVE COGHILL said it is his understanding that the LOGs are specifically targeted at the Quality Schools Initiative. He asked, "Do you think if the LOGs are added to the foundation formula that the local school districts would not keep the same focus?" MS. MARKS said she is sure they would [keep the same focus]. Number 2247 REPRESENTATIVE SEATON explained that one of the problems the subcommittee had in developing a method to approach this - whether to keep them as separate LOGs or add them to the formula - is that local communities are capped at matching 23 percent of the money in the formula, and money that is outside the formula cannot be matched by local districts. So by rolling this money into the formula - basically $160 - it would allow the local districts to match about $40 to $50. It allows more money to flow into education on a local level, whereas if it is left outside in the LOGs, the districts cannot match the funds because it is prohibited by federal law. He asked Ms. Marks if she is saying she would rather have the $23.3 million left outside of the formula as LOGs and not available for local districts to match. MS. MARKS said she is advocating for increased funding. She said her goal is to close the achievement gap. VICE CHAIR GATTO offered that [the bill] does increase the formula somewhat; however, the state is experiencing lean years. He asked Ms. Marks if she has any suggestions on where the state would find that money. MS. MARKS said she would like to see more money funded for education, but does not have a suggestion on where to get it. Number 2137 REPRESENTATIVE SEATON moved to report HB Number 2113 VICE CHAIR GATTO announced that the next order of business would be HOUSE BILL NO. 10, "An Act amending the definition of group health insurance, and allowing the Department of Administration to obtain a policy or policies of group health care insurance for employers that are small businesses, nonprofit organizations, special services organizations, or small associations for insurance purposes; and providing for an effective date." REPRESENTATIVE SEATON moved to adopt the proposed committee substitute (CS) for HB as a work draft. There being no objection, Version X was before the committee. REPRESENTATIVE CISSNA moved to report REPORT ON STATE HEALTH POLICY MEETING IN CHICAGO BY REPRESENTATIVE CISSNA NOTE: The meeting was recorded but no log notes were taken. A copy of a separate tape for the Report on State Health Policy meeting in Chicago by Representative Cissna, labeled Tape 03- State Capitol, Room 3, Juneau, Alaska 99801 (mailing address), (907) 465-2214, and after adjournment of the second session of the Twenty-Third Alaska State Legislature this information may be obtained by contacting the Legislative Reference Library at (907) 465-3808. ADJOURNMENT There being no further business before the committee, the House Health, Education and Social Services Standing Committee meeting was adjourned at an unspecified time.

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