Legislature(1993 - 1994)

04/16/1993 10:05 AM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                        
                         April 16, 1993                                        
                           10:05 a.m.                                          
  MEMBERS PRESENT                                                              
  Senator Randy Phillips, Chairman                                             
  Senator Loren Leman                                                          
  Senator Al Adams                                                             
  Senator Fred Zharoff                                                         
  MEMBERS ABSENT                                                               
  Senator Robin Taylor, Vice Chairman                                          
  COMMITTEE CALENDAR                                                           
  SENATE BILL NO. 62                                                           
  "An Act relating  to the  public school foundation  program;                 
  and providing for an effective date."                                        
  SENATE BILL NO. 65                                                           
  "An Act  relating to  centralized correspondence  study; and                 
  providing for an effective date."                                            
  SENATE BILL NO. 176                                                          
  "An  Act  relating  to  the   municipal  tax  exemption  for                 
  inventories intended for export."                                            
  PREVIOUS SENATE COMMITTEE ACTION                                             
  SB  62 - See Community & Regional Affairs minutes                            
           dated 2/18/93, 4/1/93, 4/6/93 (a.m. & p.m.                          
  SB  65 - See HESS minutes dated 4/2/93.                                      
  SB 176 - See Community & Regional Affairs minutes                            
           dated 4/13/93.                                                      
  WITNESS REGISTER                                                             
  Senator Jim Duncan                                                           
  State Capitol                                                                
  Juneau, AK 99801-1182                                                        
  POSITION STATEMENT:  Prime Sponsor of SB 65                                  
  Bill Elkinton                                                                
  Juneau, AK                                                                   
  POSITION STATEMENT:  Supports SB 65                                          
  Jack Cadigan                                                                 
  Juneau, AK                                                                   
  POSITION STATEMENT:  Supports SB 65                                          
  Darby Anderson, Superintendent                                               
  Centralized Correspondence School                                            
  Department of Education                                                      
  3141 Channel Drive, #100                                                     
  Juneau, AK 99801                                                             
  POSITION STATEMENT:  Supports SB 65                                          
  Scott Hawkins, President                                                     
  Anchorage Economic Development Corporationn                                  
  550 West 7th, #1130                                                          
  Anchorage, AK 99501                                                          
  POSITION STATEMENT:  Offered information in support                          
                       of SB 176                                               
  Duane Guiiley, Director                                                      
  School Finance                                                               
  Department of Education                                                      
  801 W. 10th St., Suite 200                                                   
  Juneau, AK 99801                                                             
  POSITION STATEMENT:  Offered information on SB 176                           
  ACTION NARRATIVE                                                             
  TAPE 93-22, SIDE A                                                           
  Number 001                                                                   
  The Senate Community & Regional Affairs Committee was called                 
  to order by Chairman Randy Phillips at  10:05 a.m.                           
  SENATOR  RANDY   PHILLIPS  introduced  SB   65  (CENTRALIZED                 
  CORRESPONDENCE STUDY) as the first order of business.                        
  Number 025                                                                   
  SENATOR JIM DUNCAN,  prime sponsor of SB  65, explained that                 
  the  Centralized  Correspondence  Study   program  currently                 
  receives  its  funding  under  AS  14.17.022,  which  allows                 
  accounting only  of elementary  students  and not  secondary                 
  students.  It is  prorated at 65 percent of  the unit value.                 
  Over  the  years,  it has  been  obvious  that that  funding                 
  scenario  has  created  an  inequity  since the  centralized                 
  correspondence   unit  provides   services  to   over  1,000                 
  students, half of those students being  in high school.  The                 
  result is that  the correspondence study program  is grossly                 
  underfunded  to continue  the valuable service  its provides                 
  throughout the state.                                                        
  Section   1  of  SB   65  formally   recognizes  centralized                 
  correspondence study as a  public school with a  minimum 180                 
  day  term for students.  Section 2 would allow the school to                 
  count the roll of both elementary and secondary students for                 
  funding purposes.                                                            
  Concluding,    Senator    Duncan   said    the   Centralized                 
  Correspondence Study program  makes a valuable  contribution                 
  to  education, and  it needs  to be properly  recognized and                 
  have the adequate funding for the program to continue.                       
  Number 070                                                                   
  BILL ELKINTON, a  Centralized Correspondence Study  teacher,                 
  said the Centralized Correspondence Study program is a full-                 
  fledged  school  which  provides its  students  top  quality                 
  Mr. Elkinton  presented a history  of the CCS  program which                 
  had its beginnings in territorial days,  primarily providing                 
  a service to rural children of  elementary age.  The program                 
  has expanded throughout  the years and now  includes courses                 
  in Alaska studies and Alaska science.                                        
  He shared postcards,  letters and  pictures provided by  CCS                 
  counselor Gail Haynes  attesting to  the level of  education                 
  received  by  students served  at  CCS and  expressing their                 
  appreciation for that education.                                             
  Mr. Elkinton  noted that  approximately five  years ago  CCS                 
  added a summer  program which necessitated  added materials,                 
  wharehouse  space, personnel, etc.    However, a large block                 
  of the funding for summer school was cut  out of the budget,                 
  and  it made very  apparent the need  for equitable funding.                 
  SB 65 seeks to move the CCS program towards equity in school                 
  and teacher status.                                                          
  Mr. Elkinton said the  membership of CCSEA supports  the HES                 
  committee substitute, and he urged  its favorable and prompt                 
  passage out of committee.                                                    
  Number 225                                                                   
  SENATOR LEMAN noted that  there was a state spelling  bee in                 
  progress,   and   he  asked   if   any  CCS   students  were                 
  participating.  BILL  ELKINTON acknowledged that there  were                 
  CCS students taking part in the spelling bee.  He added that                 
  they seek to  involve their  students in math  competitions,                 
  spelling bees, Battle of the Books,  etc., but some of these                 
  activities have had to                                                       
  be curtailed because of funding cuts.                                        
  number 263                                                                   
  JACK  CADIGAN,  a CCS  teacher,  stated he  was representing                 
  CCSEA,   the   teachers'    association   for    centralized                 
  correspondence  schools.  He said the  CCS program can offer                 
  programs  in  such  courses   where  the  smaller  districts                 
  individually  cannot, and  some  of  the  smaller  districts                 
  purchase their services in this regard.                                      
  Mr. Cadigan said this is a real need as far as the equity in                 
  secondary funding goes, it  is a real need for  total equity                 
  towards being a school, and SB 65 will meet those needs.                     
  Number 290                                                                   
  SENATOR LEMAN asked if  it was possible for students  to use                 
  centralized   correspondence   to  supplement   their  other                 
  schooling, and JACK CADIGAN responded  that students do that                 
  in some cases.                                                               
  Number 316                                                                   
  DARBY ANDERSON,  Superintendent, Centralized  Correspondence                 
  School,  Department of  Education,  stated the  department's                 
  support for the legislation.                                                 
  Ms. Anderson clarified  that when  CCS provides services  to                 
  students  currently  enrolled  in   other  districts,  those                 
  districts contract with and pay CCS for those services.                      
  Ms.  Anderson  said  the CCS  is  extremely  cost effective.                 
  Their  cost per  pupil is $2,600.   She noted  that it would                 
  cost  the  state  an additional  $1.2  million  if secondary                 
  students  that  are  currently  enrolled  in  correspondence                 
  school were enrolled in a local school district.                             
  The primary change  the legislation would  make is to  allow                 
  them to  use a  secondary formula  and continue  to offer  a                 
  qualify secondary program.                                                   
  Ms. Anderson informed the committee that the fiscal  note is                 
  based on FY  93 actual; secondary funding would  generate an                 
  additional $351,400;  the  remaining figures  project  a  10                 
  percent increase in enrollment each year.                                    
  There being no  other witnesses present to  testify, SENATOR                 
  RANDY PHILLIPS  asked for  a  motion to  move SB  65 out  of                 
  SENATOR  LEMAN moved  that  CSSB 65(HES)  be  passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.                                                
  Number 358                                                                   
  TAX EXEMPTION:EXPORTS) before the committee.                                 
  SCOTT   HAWKINS,  President   of   the  Anchorage   Economic                 
  Development  Corporation,  said  there is  some  urgency  to                 
  getting SB  176 passed,  because without it,  municipalities                 
  are forced to  levy property  taxes even on  goods held  for                 
  shipment outside of the state.  That hasn't been an issue in                 
  the  past   because  of   the  lack   of  an   international                 
  distribution industry in Anchorage.                                          
  SB 176 will give  localities the option of  classifying that                 
  kind of an inventory and setting it outside of the inventory                 
  tax.    He  added  that  if  on the  following  Tuesday  the                 
  Municipality of Anchorage votes  in a sales tax, the  way it                 
  is  structured it  actually  eliminates the  inventory  tax.                 
  However, Mr. Hawkins still urged going forward with the bill                 
  because there  are other communities in the  state that will                 
  benefit  from the  bill,  and  the  chances  of  the  ballot                 
  proposition passing in Anchorage are not real high.                          
  Mr. Hawkins pointed out  that there is no inventory  that is                 
  currently being taxed  because they have yet to  attract the                 
  international distribution  industry, so there would  not be                 
  any fiscal impact that  they are aware of.   This will allow                 
  the municipality to  attract this  industry, and the  actual                 
  long-term fiscal impact  would be positive because  it would                 
  be necessary to build warehouses, etc.                                       
  Number 408                                                                   
  SENATOR  ZHAROFF  asked  if the  Department  of  Community &                 
  Regional Affairs  has a  position was  on SB  176.   SHIRLEY                 
  ARMSTRONG,  staff  to  the committee,  responded  that their                 
  position paper is neutral and that they have provided a zero                 
  fiscal note.                                                                 
  Number 417                                                                   
  SENATOR RANDY  PHILLIPS said  he was  concerned because  the                 
  legislation was taking  out the  language that an  ordinance                 
  like  this  may not  be  repealed  by the  voters  through a                 
  referendum,  and  he thinks  that  language should  stay in.                 
  SCOTT HAWKINS answered that it  was cleanup of the  language                 
  and  was  considered  superfluous.    Any ordinance  can  be                 
  repealed  by the  voters by  referendum.  He  also clarified                 
  that this  legislation would  have no  direct affect  on the                 
  public school  foundation formula  or the  dollars that  the                 
  district would receive from the state through the foundation                 
  program.  He  said if  anything, it will  actually help  the                 
  Municipality of Anchorage  raise tax  revenue and help  fund                 
  the school district budget.                                                  
  Number 485                                                                   
  DUANE GUILEY,  Director  of School  Finance,  Department  of                 
  Education,  also  clarified  that in  that  this  section is                 
  included under optional  exemptions for  local tax in  state                 
  statute (AS 29.45.050), it has absolutely no affect on local                 
  contribution rates in public school  districts in the state.                 
  Only mandated exemptions are excluded from the value of full                 
  and true determination for real and personal property.                       
  Number 500                                                                   
  SENATOR  RANDY  PHILLIPS  asked  for  the  pleasure  of  the                 
  SENATOR LEMAN moved  that SB 176  be moved out of  committee                 
  with individual recommendations.    Hearing no objection, it                 
  was so ordered.                                                              
  Number 517                                                                   
  SENATOR  RANDY  PHILLIPS stated  that the  hearing on  SB 62                 
  (PUBLIC SCHOOL FOUNDATION PROGRAM)  would be postponed until                 
  the full committee was present.                                              
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 10:45 a.m.                           

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