02/15/2022 11:30 AM House WAYS & MEANS
| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Cost of Health Care to State Operations | |
| Presentation(s): the Cost of Child Abuse and Neglect in Alaska | |
| HB259 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | HB 259 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
February 15, 2022
11:35 a.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Andy Josephson
Representative Calvin Schrage
Representative Andi Story
Representative Mike Prax
MEMBERS ABSENT
Representative Adam Wool, Vice Chair
Representative David Eastman
COMMITTEE CALENDAR
PRESENTATION(S): COST OF HEALTH CARE TO STATE OPERATIONS
- HEARD
PRESENTATION(S): COST OF CHILD ABUSE AND NEGLECT IN ALASKA
- HEARD
HOUSE BILL NO. 259
"An Act relating to use of income of the Alaska permanent fund;
relating to the amount of the permanent fund dividend; relating
to the duties of the commissioner of revenue; relating to
funding for state aid for school districts, the state boarding
school, centralized correspondence study, and transportation of
pupils; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 259
SHORT TITLE: PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ
01/18/22 (H) PREFILE RELEASED 1/7/22
01/18/22 (H) READ THE FIRST TIME - REFERRALS
01/18/22 (H) EDC, W&M, FIN
02/04/22 (H) EDC AT 8:00 AM DAVIS 106
02/04/22 (H) Heard & Held
02/04/22 (H) MINUTE(EDC)
02/14/22 (H) EDC RPT 3DP 3DNP 1NR
02/14/22 (H) DP: HOPKINS, STORY, DRUMMOND
02/14/22 (H) DNP: PRAX, GILLHAM, CRONK
02/14/22 (H) NR: ZULKOSKY
02/14/22 (H) EDC AT 8:00 AM DAVIS 106
02/14/22 (H) Moved HB 259 Out of Committee
02/14/22 (H) MINUTE(EDC)
02/15/22 (H) W&M AT 11:30 AM DAVIS 106
WITNESS REGISTER
CAROLINE SCHULTZ, Chief Policy Analyst
Office of Management & Budget
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation, titled
"Health Care in the State Budget," dated 2/15/22.
TREVOR STORRS, President and CEO
Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation on the
Cost of Child Abuse and Neglect in Alaska.
MEGAN HOLLAND, Staff
Representative Ivy Spohnholz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a sectional analysis of HB 259 on
behalf of Representative Spohnholz, prime sponsor.
TOM KLAAMEYER, President
National Education Association of Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 259.
LISA SKILES PARADY, PhD, Executive Director
Alaska Council of School Administrators
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 259.
LON GARRISON, Executive Director
Association of Alaska School Boards
Juneau, Alaska
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 259.
ACTION NARRATIVE
11:35:31 AM
CHAIR IVY SPOHNHOLZ called the House Special Committee on Ways
and Means meeting to order at 11:35 a.m. Representatives
Josephson, Story, Schrage, Spohnholz were present at the call to
order. Representative Prax arrived as the meeting was in
progress.
^PRESENTATION(S): Cost of Health Care to State Operations
PRESENTATION(S): Cost of Health Care to State Operations
11:36:35 AM
CHAIR SPOHNHOLZ announced that the first order of business would
be a presentation on the Cost of Health Care to State
Operations.
11:36:48 AM
CAROLINE SCHULTZ, Chief Policy Analyst, Office of Management &
Budget, provided a PowerPoint presentation, titled "Health Care
in the State Budget" [hard copy included in the committee
packet]. Ms. Schultz presented about how much is spent on
health care in the state budget in Alaska. The state budget
finances the largest single share of health care costs in
Alaska. Much of this is federally funded through the Medicaid
program, but because it is funneled through the state budget, it
is worth mentioning. The largest portion of health care costs
are through the Medicaid program, followed by state employee
health care, public employee retiree health care, school
district employee health care, Alaska reinsurance program,
pioneer homes, Alaska Psychiatric Institute, public health
nursing, among many others. In reference to a bar graph on
slide 4 she mentioned that health care costs dwarf all other
budgets throughout the state including Department of Education
and even Department of Health when the Medicaid program is
removed from the equation. A pie chart in slide 5 shows that
the Department of Health makes up 20 percent of direct health
care agency spending, state employee healthcare makes up 4
percent, and Department of Family and Community Services
combined with Department of Corrections make up another 4
percent.
MS. SCHULTZ related that after breaking down health spending
fund sources over time, shown on slide 6, the state's
contribution including unrestricted general funds and designated
general funds, has remained largely unchanged since 2015, while
federal contributions have increased, largely due to Medicaid
expansion. Slide 7 shows that the percent of unrestricted Gross
Fund agency operations spent on health care has remained
relatively unchanged between fiscal year 2015 (FY 15) and FY 23.
In response to a question from Representative Schrage, she said
that the increase in designated general funds in FY 21 was due
to the Alaska Reinsurance program.
^PRESENTATION(S): The Cost of Child Abuse and Neglect in Alaska
PRESENTATION(S): The Cost of Child Abuse and Neglect in Alaska
11:42:39 AM
CHAIR SPOHNHOLZ announced that the next order of business would
be a presentation on the Cost of Child Abuse and Neglect in
Alaska.
11:43:26 AM
TREVOR STORRS, President and CEO, Alaska Children's Trust,
provided a PowerPoint presentation on behalf of the Alaska
Children's Trust on the Cost of Child Abuse and Neglect in
Alaska [hard copy included in the committee packet]. He stated
that children are our most valuable resource and Alaska's
prosperity depends on our ability to improve the well-being of
families of the next generation. Alaska has one of the highest
rates of child abuse and neglect per capita in the nation. When
parents don't have the knowledge, skills, support or resources
it puts strain on them that can lead to child abuse and neglect.
In 2021, Alaska was ranked 43rd out of 50 states for overall
child well-being. Alaska ranked 49th in education, 22nd in
family & community, 47th in economic well-being, and 44th in
health. The rate of planned suicide attempts by high school
students in Alaska has increased in the past year by over 30
percent for males and nearly 70 percent for females.
11:48:08 AM
MR. STORRS emphasized that there are significant economic
impacts of child abuse and neglect. The following estimated
costs are based on the Office of Children's Services numbers
from 2019 with 3100 cases of child abuse. Usually, costs are
just calculated by looking at the investigative or judicial
costs. Doing so leaves out the damaging effects that victims
deal with throughout their lifetimes which hurt the health and
quality of life of individuals and imposes costs on society.
Victims of child abuse and neglect experience more health care
complications than the general population. It costs $86,044 per
victim which equates to over $200 million for the victims of
2019. Abuse or neglect in childhood is correlated with
decreased earnings over the course of a lifetime. Victims of
maltreatment earn nearly $7,000 less than their peers each year
which totals nearly 165,000 over each individual's lifetime.
Children who experience abuse or neglect are more likely to be
arrested and charged with crimes which cost Alaska over $12,000
per victim and nearly $30 million in total. Victims often
experience delays in their educational progress which requires
more frequent special education services. This costs Alaska
nearly $22,000 per victim and over $50 million in total. It
costs Alaska nearly $15,000 per victim for child welfare costs
resulting in about $35 million in total.
MR. STORRS mentioned that another way to look at the cost of
child abuse and neglect is through the cost of trauma. Adverse
childhood experiences can lead to poor mental health, physical
health, and socio-economic status in adulthood. Adverse
childhood experiences can impact the neurodevelopment of a child
which can lead to social, emotional and cognitive impairment.
These impairments can lead to an adoption of high-risk behaviors
like drugs use which can later cause disease, disability and
social problems like homelessness and incarceration. The Alaska
Mental Health Board did a study showing the cost of trauma to
our state. They found that 41 percent of Medicaid enrollment in
Alaska can be linked back to adverse childhood experiences
(ACEs) linked to trauma, which cost $360 million. 32 percent of
Alaskan smokers, likely smoke due to ACEs at an estimated cost
of $190 million. 24 percent of non-gestational diabetes cases
are linked with ACEs which costs $110 million. 14 percent of
people with obesity in Alaska are linked with ACEs with a total
cost of $31 million. Binge drinking linked with ACE's costs
Alaskans $70 million.
11:53:15 AM
MR. STORRS emphasized many solutions including the creation of a
sustainable budget that reduces costs. A sustainable budget is
not achievable in one or two years. It requires up front
investments and a change in current methodologies in how we
ensure children, families and communities, gain knowledge,
skills, support, and resources to thrive. When they thrive, the
risk of child abuse and neglect is greatly reduced and many of
the issues plaguing our state can be reduced which results in
major savings. Alaska dedicates 30 percent of its spending to
children and families. The total, the Children's Budget is
nearly 13 percent ($400 million) smaller compared to average
spending earlier in the decade. The departmental operating
budget is down by 13 percent ($90 million) compared to FY 11-14
average. The non-departmental operating budget, capitalization
not through the departments, is 36 percent ($140 million)
smaller than FY 11-14. The capital budget is down more than 95
percent compared to FY 11-14. Capital is related to hard
materials including school buildings, equipment, computers, et
cetera.
11:56:19 AM
MR. STORRS emphasized the importance of investing early. A
child's early years lay a foundation for their success. For
every $1 invested in early childhood education, there is a $7-
$13 return on investment. The Heckman curve, shown on slide 30,
demonstrates that the highest rate of economic returns comes
from the earliest investment in children. It illustrates the
reality that society tends to invest too much in later
development when it is too late to provide great value. Alaska
spends less than 1 percent of its general fund on early
childhood investment.
11:59:48 AM
MR. STORRS highlighted the necessity to invest in primary
prevention. By creating a single point of entry to social
programs, families can be screened for eligibility for a myriad
of programs which will help to save on administrative costs and
reduce barriers to families and give them access to the support
and resources they need to beat poverty. Strengthening the
safety net increases economic mobility and stability. 14
percent of children in Alaska live in poverty. Families begin
having children when they are likely earning the lowest income
in their adult life. Nearly 50 percent of Alaska's child abuse
and neglect cases occur when the child is under the age of 5.
The most common form of abuse is neglect, which is strongly
associated with poverty. Therefore, financial strain on young
families can lead to neglect.
MR. STORRS said primary prevention also includes ensuring that
all Alaskan children have primary health coverage. Alaska has
the third highest rate of uninsured children at 9.4 percent.
When they are uninsured, they are more likely to have unmet
health needs that can lead to greater costs in the future.
Children with insurance experience higher educational attainment
and other positive long-term outcomes. Through Denali Kid Care
and Medicaid, the federal government covers most, if not all, of
medical expenses for children, especially Native children
although, Native children are often not enrolled in these
programs. The benefits of enrolling as many children as
possible in health insurance programs for preventative
healthcare outweighs the cost of potential future costs for
tertiary coverage for adults. Using technology, the state could
create a central single point of entry that assesses what
families are eligible for, with the effort of helping people out
of poverty in a more streamlined manner to remove barriers to
access. Mr. Storrs relayed that 75 percent of child abuse and
neglect in Alaska is neglect which is largely associated with
poverty.
12:11:15 PM
MR. STORRS stressed that some parents don't have the knowledge,
skills, support, or resources needed to converse with teens
about reproductive health. From 2009 to 2019 there has been a
58 percent decline in teen births. However, even with this
progress, Alaska teen birth rates are consistently higher than
the national average. This is important to the prevention of
child abuse and neglect. Researchers have found that unintended
pregnancy is an important risk factor in predicting an
addressing child maltreatment. Births that result from
unintentional or closely spaced pregnancies are associated with
adverse maternal and child health outcomes including mental
health, risk of physical violence during pregnancy and increased
risk of child abuse and neglect. Implementation of
comprehensive human development classes in school can help
children understand their bodies and learn skills to manage the
changes they will experience as they grow. He further
emphasized the benefits of increased voluntary access to long-
acting reversable contraception.
12:13:27 PM
MR. STORRS asked the committee to imagine if we provided
knowledge, skills, support and resources to families before
child abuse reached the level requiring intervention from Office
of Childrens Services. Research shows that the likelihood of a
family being reported increases after each subsequent report.
If issues causing neglect were addressed prior to OCS
intervention, Alaska could save hundreds of thousands of dollars
annually. Reducing repeat maltreatment would better protect
children and in turn reduce OCS' case load.
12:20:02 PM
MR. STORRS said that tribal compacting could help to promote
indigenous values and customs, promote greater community
involvement and create protective factors that families and
communities need to address their traumas and build resilience.
MR. STORRS underscored the necessity of strengthening data
driven decisions. Data can help detect issues sooner and thus
result in cost savings. A recommendation offered included
conducting the Youth Risk System Survey in middle school and not
just high school. Data collection should be "opt out" instead
of "opt in" to provide for a broader and deeper assessment of
risky behaviors among Alaska's youth. Making it "opt out"
instead of "opt in" will result in a higher number of data
points and therefore more valuable data. Data management is not
just about collecting data, it's about educating people about
the data, analyzing, and sharing it.
12:23:59 PM
MR. STORRS, in response to Representative Story's question about
opioids, mentioned that the data suggests that over 80 percent
of child abuse and neglect is associated with alcohol. In
response to Representative Story's request to provide
recommendations with the highest return on investment, he
referred to the committee packet. He also emphasized investing
in early childhood, pre-kindergarten and mental health for
youth. He encouraged committee members to ask their colleagues
and fellow legislators, "What are you doing for primary
prevention?"
HB 259-PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
12:27:25 PM
CHAIR SPOHNHOLZ announced that the final order of business would
be HOUSE BILL NO. 259, "An Act relating to use of income of the
Alaska permanent fund; relating to the amount of the permanent
fund dividend; relating to the duties of the commissioner of
revenue; relating to funding for state aid for school districts,
the state boarding school, centralized correspondence study, and
transportation of pupils; and providing for an effective date."
12:27:46 PM
The committee took a brief at-ease.
[During the at-ease, Chair Spohnholz passed the gavel to
Representative Josephson.]
12:28:53 PM
REPRESENTATIVE JOSEPHSON noted those who are available to answer
questions.
12:29:32 PM
CHAIR SPOHNHOLZ, as prime sponsor of HB 259, paraphrased the
sponsor statement [included in committee packet], which read as
follows [original punctuation provided]:
For nearly a decade, Alaska has suffered structural
budget deficits that have impacted every facet of the
state. In 2018, the legislature achieved great
progress through the passage of the percent of market
value (POMV) draw on the permanent fund's earnings,
which 1) resolved two thirds of our deficit, 2)
provides stable and predictable revenues to the state,
and 3) caps the amount spent from the Permanent Fund
annually to 5% of the Permanent Fund's total value
during the first five of the last six years. As a
result, our state's revenue situation has dramatically
improved. However, the uncertainty of one its largest
annual expenditures, dividends from the Permanent Fund
(PFDs) for Alaskans, continues to hinder the fiscal
health of our state, strains the legislature's ability
to meet its constitutional obligations, stands in the
way of many other important policy efforts, and
creates fiscal uncertainty for Alaskans.
HB 259 proposes to solve this impasse by rewriting the
formula for PFDs as a percentage of the POMV draw,
which provides significant and growing PFDs, stable
and growing funding for public education, (one of a
few constitutionally mandated state funding items),
and other essential government services.
This legislation splits the annual POMV draw from the
Permanent Fund as follows:
• 25% to dividends, which would produce a $1,302
dividend in FY24 that would increase each year after
that as the fund's value grows.
• 75% available in unrestricted general funds for
essential government services split as follows:
o 50% to the public education foundation formula and
pupil transportation, and;
o 50% to general fund for funding other essential
state services like public safety, road maintenance,
the court system, state match for federal
infrastructure funds, and more.
This designated funding stream for public education is
critical because when adjusted for inflation, in FY22
the state spends $500 less per child to educate
Alaska's children than we did in FY2008. We are no
longer doing more with less; we are simply doing less
with less and our educational outcomes are starting to
reflect that. In addition to providing predictable
PFDs and stable funding for other essential state
operations, the statutory split of the POMV draw
proposed by this legislation ensures Alaskan schools a
stable and growing fund source so we can invest our
state's greatest natural resource our kids.
12:33:58 PM
CHAIR SPOHNHOLZ began the PowerPoint presentation, titled "HB
259; Update Permanent Fund funding for Dividends, Education, and
other Essential State Services" [hardcover included in committee
packet]. She began on slide 2 and spoke to the headlines
provided, which related to education funding. She advanced to
slide 5 and pointed out that Article 7, Section 1 of the Alaska
State Constitution outlines the state's obligation to public
schools. She offered her understanding that the permanent fund
is a stable source of income, and that oil and gas is a volatile
source. She said the graph on the slide 6 depicts a history of
the state's per-capita unrestricted general fund (UGF) revenue.
She moved to slide 7 to detail the impact of dividend formulas
to Alaska's budget past fiscal year 2023 (FY 23). She discussed
which formulas would provide the state with a budget surplus
12:38:06 PM
CHAIR SPOHNHOLZ moved to slide 8, which read as follows
[original punctuation provided]:
HB 259: Rewrites the Dividend Formula and Creates a
Stable and Growing Dividend for Alaskans
The 5% Percent of Market Draw from the Permanent Fund
will be split as follows:
25% to dividends, producing a $1,301 dividend in
FY24.
75% UGF available for essential government services
50%* to the public education fund for foundation
formula and pupil transportation
50% to general fund
CHAIR SPOHNHOLZ guided members through a diagram on slide 9 that
details how HB 259 works. She moved to slide 10 to present a
graph of what dividends would be under 259 past FY 24. She
moved to slide 11, which showed UGF spending in the
administration's proposed FY 23 budget. She explained that a
statutory dividend would be more than what the state spends in
UGF for operations.
12:42:11 PM
CHAIR SPOHNHOLZ concluded the PowerPoint on slide 12, which
featured a chart that outlined how HB 259 would create a stable,
growing fund source for Alaska's public education.
12:43:48 PM
MEGAN HOLLAND, Staff, Representative Ivy Spohnholz, Alaska State
Legislature, presented a sectional analysis of HB 259 [included
in the committee packet], on behalf of Representative Spohnholz,
prime sponsor, which read as follows [original punctuation
provided]:
Section 1: Amends AS 14.17, if the amount appropriated
under section six of the bill is not sufficient to
satisfy foundation formula funding for K-12 education,
the remaining need may be met via appropriation by the
general fund.
Section 2: Amends AS 37.13.140, to ensure the amount
available for appropriation may not exceed the balance
of the earnings reserve account. Repeals the old
formula for calculating permanent fund dividends.
Section 3: Creates a statutory split of the annual
point of market value (POMV) draw as follows: 25% to
the dividend fund for distribution for PFDs and 75% to
the general fund. Of the 75% distributed to the
general fund, no less than 50% may go to the public
education fund for state aid to school districts to
satisfy the foundation formula.
Section 4: Amends AS 37.13.145(c), clarifying that an
appropriation is required to move funds from the
earnings reserve account to the principal of the
permanent fund for purposes of inflation proofing.
Section 5: Amends AS 37.13.145(d), relating to the
Amerada Hess settlement funds, which are not included
in the calculation of the POMV, to clarify that the
POMV draw is appropriated, not transferred.
Section 6: Adds a new subsection providing that at
least half of the portion of the POMV draw distributed
to the general fund (75%), may go to the public
education fund for state aid to school districts to
satisfy the foundation formula. In the case that this
portion of the POMV for education exceeds the minimum
amount required by the formula, the excess may be
distributed directly to school districts according to
the same formula.
Section 7: Amends AS 37.13.300(c), relating to income
from the mental health trust fund. This section is a
conforming change referencing the calculation for the
POMV under AS 37.13.140(b).
Section 8: Amends AS 37.14.031(c) relating to the
requirement that the Alaska Permanent Fund Corporation
calculate the net income of the mental health trust
fund annually on the last day of the fiscal year,
excluding any unrealized gains or losses. This is a
technical change removing the a [sic] reference to
language that already exists under this section.
Section 9: Amends AS 43.23.025(a), clarifying that
funds must be appropriated to the dividend fund,
rather than transferred as current statute provides.
Section 10: Repeals AS 37.13.145(e) and (f). These
sections prohibited appropriations from the earnings
reserve account to the general fund that exceed funds
available for appropriation. This language was moved
to AS 37.13.140 under sections two and three of the
bill by the legal drafter.
Section 11: Effective date of July 1, 2023.
12:48:21 PM
TOM KLAAMEYER, President, National Education Association of
Alaska, began invited testimony. He said the pandemic
exacerbated existing problems in Alaska's education system;
annual risk of pink slips due to state budget fights; class
sizes, and essential student services, such as counselors. He
reported that, according to a Newsweek article, 55 percent of
educators are considering leaving the profession sooner due to
the effects of the pandemic. He said that, in Alaska, turnover
is driven by several factors: the worst retirement in the
country; annual risks of pink slips, flat funding, and rising
class sizes. He stated that he is excited about the impact HB
259 would have on schools, as it seeks to resolve the state's
fiscal crisis. He said recent analysis done by the Economic
Policy Institute showed that, since the pandemic began, the
state's public education workforce went down by 17.5 percent,
and that, since 2008, the same workforce has fallen by 20
percent.
12:54:40 PM
REPRESENTATIVE PRAX asked about teachers not in social security
system, how that happened, and whether it can be undone.
MR. KLAAMEYER answered that the decision was made in 1951 when
retirement was considered adequate, and they felt they didn't
need social security. He explained that a school board could
authorize a vote to opt back in, or it could occur via statewide
vote, which requires approval of the governor. He stated that
there is no definitive answer currently.
12:56:53 PM
LISA SKILES PARADY, PhD, Executive Director, Alaska Council of
School Administrators, began invited testimony. She emphasized
the state of crisis and the critical need to provide predictable
reliable revenue for schools, per the proposed legislation.
Early notification of funding is critical to allow districts to
plan accordingly with more certainty. She concluded by
referencing Dr. Weiss, who indicated that her district had the
greatest education staff turnover and recruitment crisis in
history. She indicated that the problem is worse in Alaska
because of its reliance on recruitment from the Lower 48, which
is also experiencing workforce shortage. Dr. Parady cited a
study on increased education spending and the implications over
20 states. She said she is encouraged by the committee's
consideration of HB 259.
1:05:24 PM
REPRESENTATIVE PRAX agreed that everyone wants to see stability.
He asked what the incentive is to consider new ideas, like
incorporating the Internet, if the focus is on guaranteed
funding.
DR. PARADY said that the Internet is also an area of
instability, as most outer reaching rural areas still lack
Internet, and encouraged considering the equity involved. She
said that no increase in the base student allocation (BSA) and
the lack of inflation proofing put the state in a difficult
position.
1:09:20 PM
REPRESENTATIVE JOSEPHSON commented that adequate funding is not
consistent with having new ideas.
1:09:57 PM
The committee took an at-ease from 1:09 p.m. to 1:11 p.m.
1:11:12 PM
LON GARRISON, Executive Director, Association of Alaska School
Boards, read the written testimony from the Association of
Alaska School Boards [included in committee packet], which read
as follows:
The Association of Alaska School Boards is in support
of HB 259. AASB's Delegate Assembly has several long-
standing resolutions supporting the elements of this
legislation. These include:
• Belief Statement #B.7 EDUCATIONAL PROGRAMS AND
FUNDING AS TOP PRIORITY,
• Resolution #2.1 SUSTAINED, RELIABLE AND ADEQUATE
STATE FISCAL PLAN AND EDUCATIONAL FUNDING FOR ALASKA'S
STUDENTS THROUGH A NON-VOLATILE FUNDING SOURCE
• Resolution #2.2 URGING EARLY, ADEQUATE, EQUITABLE,
AND PREDICTABLE FUNDING OF PUBLIC EDUCATION
• Resolution #2.14 PUPIL TRANSPORTATION
• Resolution #2.23 FUNDING FOR SCHOOLS BY ESTABLISHING
THE BASE STUDENT ALLOCATION IN ADVANCE
• Resolution #2.50 INFLATION-PROOFED BASE STUDENT
ALLOCATION (BSA) INVESTMENTS
Each year school board members and education advocates
plead for education funding. And you routinely remind
yourselves and the public of your constitutional
responsibility contained in Alaska's constitution.
Article 7, Section 1 requires your support and funding
of a public school system. And you have never failed
to fund education, however, the Base Student
Allocation has not been increased from the current
$5,930 since FY 17. Six years with no increase seems
disingenuous to expect constant improvement in
instruction and increasing standardized test scores.
Utilities, supplies, transportation, fuel, salaries,
maintenance, freight, food, instructional materials,
communications, Internet, and a myriad of other
supplies and services necessary for operating a school
system have all increased. It seems as if the cost for
everything has increased. About the only thing that
hasn't increased is the BSA. The proposed new language
in HB 259 has provisions that address those times when
the formula draw does not meet the BSA and also when
the formula draw goes beyond the BSA need. This seems
to be a responsible solution.
The proposed language in HB 259 would remove education
from competition with all other appropriations and
fulfill the responsibility of Article 7, Section 1 of
Alaska's Constitution. The legislature could then
concentrate on the remainder of other services that
provide for Alaska's citizens and make our state such
a wonderful place to live and raise families.
HB 259 directly addresses several recommendations of
the Legislative Fiscal Work Group. Creating a workable
and reasonable solution to funding the PFD will remove
that ongoing debate and allow the legislature to focus
on public policy affecting all Alaskans. Additionally,
it would provide that stable funding source for
education and allow districts to concentrate on
educational innovation to improve student outcomes
rather than continually reducing programs due to
erosion of the buying power of a flat funded Base
Student Allocation.
AASB encourages your support of HB 259 as a way of
further support Alaska's public school system and
Alaska's future through the education of its young
people.
REPRESENTATIVE JOSEPHSON announced that HB 259 was held over.
1:19:38 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Ways and Means meeting was adjourned at
1:19 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 259 Fiscal Note, OMB.pdf |
HEDC 2/4/2022 8:00:00 AM HW&M 2/15/2022 11:30:00 AM HW&M 2/22/2022 11:30:00 AM |
HB 259 |
| HB 259 Sponsor Statement v. A.pdf |
HEDC 2/4/2022 8:00:00 AM HW&M 2/15/2022 11:30:00 AM HW&M 2/22/2022 11:30:00 AM |
HB 259 |
| HB 259 Sectional Analysis v. A, 2.14.22.pdf |
HW&M 2/15/2022 11:30:00 AM HW&M 2/22/2022 11:30:00 AM |
HB 259 |
| HB 259 Letters of Support, 2.14.22.pdf |
HW&M 2/15/2022 11:30:00 AM |
HB 259 |
| ACT Presentation, the costs of child abuse and neglect, 2.15.22.pdf |
HW&M 2/15/2022 11:30:00 AM |
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| Alaska Kids Count Policy Solutions 2020.pdf |
HW&M 2/15/2022 11:30:00 AM |
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| Economic Cost of Child Abuse 2019.pdf |
HW&M 2/15/2022 11:30:00 AM |
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| HB 259 Presentation, 2.15.22.pdf |
HW&M 2/15/2022 11:30:00 AM HW&M 2/22/2022 11:30:00 AM |
HB 259 |
| HB 259 Letters of Opposition, 2.14.22.pdf |
HW&M 2/15/2022 11:30:00 AM |
HB 259 |
| OMB Health Care Costs Presentation, Corrected, 2.15.22.pdf |
HW&M 2/15/2022 11:30:00 AM |