Legislature(1993 - 1994)

02/03/1994 09:05 AM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE COMMUNITY & REGIONAL AFFAIRS                              
                        February 3, 1994                                       
                           9:05 a.m.                                           
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Randy Phillips, Chairman                                              
 Senator Loren Leman                                                           
 Senator Al Adams                                                              
 Senator Fred Zharoff                                                          
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Robin Taylor, Vice Chairman                                           
                                                                               
  OTHERS PRESENT                                                               
                                                                               
 Senator Steve Rieger                                                          
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 SENATE BILL NO. 203                                                           
 "An Act requiring unified municipalities to provide police                    
 protection and law enforcement services; and providing for an                 
 effective date."                                                              
                                                                               
 SENATE BILL NO. 255                                                           
 "An Act establishing a comprehensive policy relating to human                 
 resource development in the state."                                           
                                                                               
 SENATE BILL NO. 2                                                             
 "An Act requiring pay equity for certain public employees and                 
 requiring the compensation of certain public employees based on the           
 value of work performed."                                                     
                                                                               
 SENATE BILL NO. 39                                                            
 "An Act relating to credited service and retirement benefits."                
                                                                               
 SENATE BILL NO. 232                                                           
 "An Act relating to reimbursement of bonds issued for school                  
 construction; and providing for an effective date."                           
                                                                               
 SENATE BILL NO. 233                                                           
 "An Act relating to state aid for education."                                 
                                                                               
 SENATE BILL NO. 62                                                            
 "An Act relating to the public school foundation program; and                 
 providing for an effective date."                                             
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 SB 203 - See Community & Regional Affairs minutes dated                       
          11/3/93, 1/13/94, 1/20/94, 1/25/94, 2/1/94.                          
                                                                               
 SB 255 - See Community & Regional Affairs minutes dated                       
          1/25/94, 2/1/94.                                                     
                                                                               
 SB   2 - See Community & Regional Affairs minutes dated                       
          11/3/93, 1/11/94, 1/18/94, 1/20/94, 1/27/94,                         
          2/1/94.                                                              
                                                                               
 SB  39 - See Community & Regional Affairs minutes dated                       
          1/27/94, 2/1/94.                                                     
                                                                               
 SB  62 - See Community & Regional Affairs minutes                             
          dated 2/18/93, 4/1/93, 4/6/93 (a.m. & p.m.                           
          minutes), 4/16/93.                                                   
                                                                               
 SB 232 - No previous action to record.                                        
                                                                               
 SB 233 - No previous action to record.                                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
 C.E. Swackhammer, Deputy Commissioner                                         
 Department of Public Safety                                                   
 P.O. Box 111200                                                               
 Juneau, AK 99811-1200                                                         
  POSITION STATEMENT:   Offered information on SB 203                          
                                                                               
 Richard Weinig                                                                
 800 E. Dimond, Suite 3-620                                                    
 Anchorage, AK 99515                                                           
  POSITION STATEMENT:   Opposes SB 203                                         
                                                                               
 Duane Udland, Deputy Chief                                                    
 Anchorage Police Dept.                                                        
 4501 S. Bragaw                                                                
 Anchorage, AK 99501                                                           
  POSITION STATEMENT:   Testified on SB 203                                    
                                                                               
 Barbara Weinig                                                                
 P.O. Box 113849                                                               
 Anchorage, AK 99511                                                           
  POSITION STATEMENT:   Supports Senator Rieger's                              
                      version of SB 203                                        
                                                                               
 Maribeth Brown                                                                
 14960 Sierra Way                                                              
 Anchorage, AK 99516                                                           
  POSITION STATEMENT:   Opposes SB 203                                         
                                                                               
 Josh Fink, Staff to Senator Tim Kelly                                         
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Offered information on SB 203                          
                                                                               
 Tom Evans                                                                     
 Alaska State AFL/CIO                                                          
 1689 C St., Suite 204                                                         
 Anchorage, AK 99501                                                           
  POSITION STATEMENT:   Suggested changes to SB 255                            
                                                                               
 Daniel Middaugh                                                               
 1822 W. Northern Lights, #305                                                 
 Anchorage, AK 99517                                                           
  POSITION STATEMENT:   Testified in support of SB 255                         
                                                                               
 Roxanne Stewart, Staff to Senator Jim Duncan                                  
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Offered information on SB 39                           
                                                                               
 Gary Todd                                                                     
 44690 Wooden Lane                                                             
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Supports SB 39                                         
                                                                               
 Janet Parker                                                                  
 Bob Church                                                                    
 Division of Retirement & Benefits                                             
 Department of Administration                                                  
 P.O. Box 110203                                                               
 Juneau, AK 99811-0203                                                         
  POSITION STATEMENT:   Offered information on SB 39                           
                                                                               
 Joan Wilkerson                                                                
 Alaska Pubic Employees Association                                            
 Juneau, AK                                                                    
  POSITION STATEMENT:   Testified in support of SB 39                          
                                                                               
 Dr. Clark Damon                                                               
 1101 First St.                                                                
 Douglas, AK 99824                                                             
  POSITION STATEMENT:   Supports SB 39                                         
                                                                               
 Carol Carrol, Staff to Senator Jay Kerttula                                   
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Offered information on SB 232 and                      
                      SB 233                                                   
                                                                               
 Duane Guiley, Director                                                        
 School Finance                                                                
 Department of Education                                                       
 801 W. 10th St., Suite 200                                                    
 Juneau, AK 99801-1894                                                         
  POSITION STATEMENT:   Opposes SB 232 and SB 233                              
                                                                               
 Ell Sorenson, Superintendent                                                  
 Mat-Su School District                                                        
 125 W. Evergreen                                                              
 Palmer, AK  99645                                                             
  POSITION STATEMENT:   Testified on SB 62 & SB 233                            
                                                                               
 Marilyn Leahy                                                                 
 P.O. Box 689                                                                  
 Valdez, AK 99686                                                              
  POSITION STATEMENT:   Opposes SB 62                                          
                                                                               
 Becky Chapek                                                                  
 P.O. Box 1564                                                                 
 Cordova, AK 99574                                                             
  POSITION STATEMENT:   Opposes SB 62                                          
                                                                               
 Larry Wiget, Director of Government Relations                                 
 Anchorage School District                                                     
 4600 Debarr Road                                                              
 Anchorage, AK 99519                                                           
  POSITION STATEMENT:   Questions on SB 233                                    
                                                                               
 Donna Emerson                                                                 
 Funter Bay, AK                                                                
  POSITION STATEMENT:   Testified on SB 62                                     
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
 TAPE 94-9, SIDE A                                                             
                                                                               
 Number 001                                                                    
 The Senate Community & Regional Affairs Committee was called to               
 order by Chairman Randy Phillips at 9:05 a.m.  He brought  SB 203             
 (MUNICIPAL POLICE SERVICES) before the committee as the first order           
 of business, but stated that after taking testimony on the bill, it           
 was his intent to hold the bill to see what action the House of               
 Representatives takes on the floor on a similar piece of                      
 legislation, HB 18.                                                           
                                                                               
 C.E. SWACKHAMMER, Deputy Commissioner, Department of Public Safety,           
 stated that of the three different draft committee substitutes on             
 SB 203 before the committee, the Department of Public Safety                  
 supports the version that takes the approach recommended by the               
 Task Force on Governmental Roles (Work draft 8-LS0626\D), which the           
 department believes is the best public policy.  It would allow                
 assemblies in a unified municipality, notwithstanding provisions in           
 the home rule charter, to establish, operate, alter, or abolish a             
 service area to furnish police protection and law enforcement                 
 services.                                                                     
                                                                               
 Speaking to Senator Rieger's proposed committee substitute (Work              
 draft 8-LS0626/M), which would continue trooper police protection             
 to the Hillside and Girdwood areas, Deputy Commissioner Swackhammer           
 said presently, the Anchorage Post spends slightly more than 60               
 percent of their time in response directly to the Hillside/Girdwood           
 area at a current cost of $1,940,663.64.  It has been the position            
 of the Commissioner of Public Safety to withdraw troopers from                
 urban areas which are authorized to provide police protection on              
 their own, and to concentrate the department's resources in rural             
 and unorganized areas of the State.                                           
                                                                               
 Number 150                                                                    
                                                                               
 SENATOR RIEGER pointed out that the department has some suggested             
 amendments to his version of the bill:  a time period longer than             
 three years to allow for personnel planning; a gear-up process for            
 recruiting additional troopers; and a ceiling of one trooper for              
 each 1,000 people in the municipality.                                        
                                                                               
 DEPUTY COMMISSIONER SWACKHAMMER added that the department would               
 like to see Section 3 deleted because it would not provide the                
 commissioner any flexibility in determining the appropriate number            
 of troopers for an area.  The department also suggests some wording           
 changes to better define what the costs are.                                  
                                                                               
 Number 196                                                                    
                                                                               
 SENATOR LEMAN asked what the effect would be on Section 2 if                  
 Section 3 is deleted.  SENATOR RIEGER answered that Section 3 was             
 intended as a fall-back position in case an agreement couldn't be             
 reached, and deleting it would not have an effect on Section 2.  He           
 stated that he is confident that there is a reasonable full-cost              
 proposal that can be put forward.  DEPUTY COMMISSIONER SWACKHAMMER            
 added that Section  2 also allows the department some flexibility             
 because the residents get charged for what services are provided.             
                                                                               
 Number 250                                                                    
                                                                               
 SENATOR RANDY PHILLIPS opened the public hearing on SB 203 to                 
 witnesses waiting to testify at the Anchorage Legislative                     
 Information Office.                                                           
                                                                               
 Number 260                                                                    
                                                                               
 RICHARD WEINIG, an Anchorage attorney, a member of the Rabbit Creek           
 Community Council and a Hillside resident, said under the Rieger              
 bill and taking the figures drawn from the department's position              
 paper on it, 60 percent of that cost for the actual trooper                   
 services and 30 percent of dispatch would be paid by the service              
 area.  He said that is a revenue generator for the state that he              
 thinks would be particularly attractive to the Legislature.                   
                                                                               
 Mr. Weinig said Commissioner's Burton concern that there would be             
 a loss of local control over police protection is a very small                
 concern with the citizens of Anchorage because a majority of the              
 ordinances are "flatland ordinances" that have no concern                     
 whatsoever for the Hillside.                                                  
                                                                               
 Mr. Weinig voiced his concern with Senator Kelly's proposed                   
 committee substitute.  He said for the Legislature to legislatively           
 dictate that a portion of the Bill of Rights of a charter is null             
 and void is very poor public policy, and such an abrogation of the            
 Bill of Rights, after the fact, is dishonorable.                              
                                                                               
 Concluding, Mr. Weinig said it is much better public policy to let            
 those who seek services pay for their services and those who do not           
 want services to be let alone by government.                                  
                                                                               
 Number 369                                                                    
                                                                               
 DUANE UDLAND, Deputy Chief, Anchorage Police Department, said in              
 previous hearings on this issue, it has been suggested that the               
 department was not professional or was not up to the task of                  
 providing police service to the Hillside.  He said he has the                 
 highest regard for the Alaska State Troopers, and there are more              
 similarities than there are dissimilarities between the troopers              
 and the police department.  The Anchorage Police Department has a             
 lot in common with the troopers in the areas of training and                  
 advanced schooling.                                                           
                                                                               
 Deputy Chief Udland stated the quality of the officers at the                 
 Anchorage Police Department is very high, and the issue that the              
 Anchorage Police Department is not professional "does not hold                
 water."  Also, policing in a rural area is no different than                  
 policing in a city area - it is the same value system and it is the           
 same laws.                                                                    
                                                                               
 Concluding his comments, Deputy Chief Udland said Commissioner                
 Burton and Deputy Commissioner Swackhammer are making decisions               
 based on public policy and what is best for their organization.               
 Although Anchorage is a good place to be working and living in, he            
 doesn't think the committee should place any weight on the fact               
 that maybe some of the troopers don't agree with the decisions of             
 the trooper administration.                                                   
                                                                               
 Number 465                                                                    
                                                                               
 BARBARA WEINIG, President, Rabbit Creek Community Council, spoke to           
 a recent survey she sent out to 5,000 property owners.  The survey            
 showed that the respondents are willing to pay more taxes, but they           
 want trooper coverage.  Senator Rieger's bill allows the residents            
 of the upper Hillside to get used to paying for police protection,            
 and it contains a sunset provision at which time the residents                
 could make a change if they decided they wanted something                     
 different.                                                                    
                                                                               
 Number 490                                                                    
                                                                               
 SENATOR RIEGER commented that there is a citizenry that is willing            
 to organize themselves and pay for a service and, in contrast,                
 there is a management problem where there are attempts by                     
 management or by the governing body itself and not the populace to            
 say "No, we don't want to let you choose the service you want and             
 pay for the service you want.  We want you to do something else               
 which we think is best for you."  He said this is a very classic              
 confrontation between a good government solution to an issue in the           
 area he represents and a bad government solution.  He added this              
 has nothing to do with willingness to pay for a service; it has to            
 do with paying for the service that they want.                                
                                                                               
 Number 506                                                                    
                                                                               
 SENATOR ADAMS requested that a copy of the survey sent out by Ms.             
 Weinig be provided to the committee.                                          
                                                                               
 Number 515                                                                    
                                                                               
 MARIBETH BROWN, a Hillside resident and Chair of the Southeast                
 Anchorage Police Protection Task Force, said that elected officials           
 should be extremely cautious about taking a position that they know           
 what is best for the people.  The people in Southeast Anchorage,              
 the Hillside, Turnigan Arm and Girdwood have expressed very                   
 strongly what their preferences are, and that needs to be taken               
 into account on this issue.                                                   
                                                                               
 Number 538                                                                    
                                                                               
 SENATOR ZHAROFF said he would like to have seen more of a response            
 to these types of surveys so that some decisions could be made                
 based on the surveys.  He said if this is a major problem,  he                
 would have expected at least a 50 percent response from this area,            
 particularly if we are going to continue with state funded                    
 protection.   SENATOR RIEGER responded that there is a high level             
 of concern and that with this type of survey a 20 percent response            
 was really good.                                                              
                                                                               
 Number 570                                                                    
                                                                               
 JOSH FINK, staff to Senator Kelly, quoted figures from the April              
 1993 election which showed that the 46.2 percent of the lower                 
 Hillside wanted to join a police service area, 53.8 percent did               
 not.  He said as you go up the hill, 33.7 percent wanted to join a            
 police service area, 66 percent did not.  In the Turnigan Arm area,           
 27 percent want to join a police service area, 72 percent did not.            
 Number 575                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the public hearing on SB 203 and                
 stated it would be back before the committee the following week.              
                                                                               
 Number 578                                                                    
 SENATOR RANDY PHILLIPS brought  SB 255  (STATE POLICY ON HUMAN                
 RESOURCE DEVELOPMT) before the committee as the next order of                 
 business.                                                                     
                                                                               
 TAPE 94-9, SIDE B                                                             
 Number 001                                                                    
                                                                               
 TOM EVANS, Anchorage, representing the Alaska State AFL/CIO, made             
 some suggested changes to the legislation.  SENATOR RANDY PHILLIPS            
 requested that Mr. Evans' suggested amendments be faxed to his                
 office.                                                                       
                                                                               
 Number 020                                                                    
                                                                               
 DANIEL MIDDAUGH, Anchorage, stated he is working with the statewide           
 apprentiship and training coordinators association and they want to           
 add their support to the passage of SB 255.  They feel this is very           
 important for the State of Alaska, that there is a major resource             
 of young people, mainly in the Bush areas, that are not getting the           
 help that they deserve.                                                       
                                                                               
 Number 042                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the public hearing on SB 255 and                
 stated that the bill, along with proposed amendments, would be back           
 before the committee the following week.                                      
 Number 046                                                                    
 SENATOR RANDY PHILLIPS brought  SB 2  (PAY EQUITY BASED ON VALUE OF           
 WORK) before the committee, and stated that he would entertain a              
 motion to adopt the committee substitute.                                     
                                                                               
 SENATOR LEMAN moved that CSSB 2(CRA) be adopted.  SENATORS ADAMS              
 and ZHAROFF objected.  The roll was taken with the following                  
 result:  Senators Leman and Phillips voted "Yea" and Senators                 
 Zharoff and Adams voted "Nay."  The Chair stated the motion to                
 adopt the committee substitute failed and that the bill would be              
 back before the committee the following week.                                 
 Number 063                                                                    
 SENATOR RANDY PHILLIPS introduced  SB 39  (RETIREMENT CREDITED                
 SERVICE & BENEFITS) as the next order of business.                            
 ROXANNE STEWART, staff to Senator Jim Duncan, informed the                    
 committee that they were unable to get a fiscal note on the                   
 amendment to SB 39 they had proposed the previous week because the            
 Governor's office does not provide fiscal notes on amendments that            
 have not been adopted.  She noted that the Division of Retirement             
 & Benefits has provided a letter relating to the effect of the                
 amendment.                                                                    
                                                                               
 Number 080                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated the committee would take testimony              
 over the teleconference network.                                              
                                                                               
 GARY TODD, Soldotna, a permanent seasonal employee of the Alaska              
 Department of Fish & Game, said there are a lot of people that work           
 during the summer on a number of different jobs, and some of these            
 people have been working for 14 to 16 years.  Many of these people            
 are not vested in the retirement system even though they have spent           
 a lot of time working seasonally along side permanent people who              
 have all the benefits.  He would like to see these people credited            
 with this time and at a reasonable cost.                                      
                                                                               
 Number 120                                                                    
                                                                               
 JANET PARKER, Division of Retirement & Benefits, Department of                
 Administration, explained that the actuarial cost would be                    
 different for each individual because it is based upon their salary           
 and how much time the individual is buying.   SENATOR LEMAN added             
 that while it might seem like a large amount to be paid by an                 
 individual, the potential for recovery is excellent.                          
                                                                               
 Number 145                                                                    
                                                                               
 JOAN WILKERSON, Juneau, Alaska Public Employees Association, voiced           
 support for SB 39.  She said in 1980 the definition of "seasonal"             
 or "temporary" was changed to "nonpermanent."  This dealt with an             
 inequity where previously, seasonal employees could not buy into or           
 get credit for the years they had put in.  SB 39 would cover people           
 who put in seasonal work in the sixties and seventies.  She added             
 that if the same rights were afforded to people from 1980 on, it              
 would seem appropriate to apply them to people who have been loyal            
 and faithful workers to the State of Alaska in the previous two               
 decades.                                                                      
                                                                               
 Ms. Wilkerson noted that when the same legislation was before the             
 Legislature two years ago the Division of Retirement & Benefits               
 didn't see it as a cost, and she questioned why there is fiscal               
 note on the current bill that shows a cost.                                   
                                                                               
 Number 215                                                                    
                                                                               
 SENATOR PHILLIPS asked what conditions changed in two years so that           
 they are now showing a cost to the system.  JANET PARKER answered             
 that this Administration decided that they would not present a bill           
 to the Legislature with a zero fiscal note if they truly believe              
 that there wasn't one there.  At one point they said that there is            
 no cost because it's all within the retirement system, and they               
 presented the bills that way.  This Administration has decided that           
 if there is going to be a cost, no matter how big or small, the               
 bill has to have a fiscal note.                                               
                                                                               
 Number 250                                                                    
                                                                               
 DR. CLARK DAMON, Juneau, said he would be affected under the public           
 service provision by combining the two retirement programs.  He               
 said if he paid the $50,000 which he would be required to pay to be           
 eligible for the program, he would receive $237 a month, plus a               
 $306 health benefit allowance.  Projecting his costs out, it would            
 take him 19.5 years to recoup his money.                                      
                                                                               
 Number 275                                                                    
                                                                               
 SENATOR LEMAN requested that he be provided with calculations for             
 some of these typical people who may choose this, showing how much            
 it will cost and how long it takes to recoup the cost.  SENATOR               
 PHILLIPS suggested that the bill would be moving to the State                 
 Affairs Committee, which is chaired by Senator Leman, and that                
 information could be provided to his committee.                               
                                                                               
 SENATOR RANDY PHILLIPS stated his intent to move SB 39 out of                 
 committee without the amendment because it lacks a fiscal note.               
                                                                               
 Number 330                                                                    
                                                                               
 SENATOR ADAMS moved that SB 39 and the accompanying fiscal notes be           
 passed out of committee with individual recommendations.  Hearing             
 no objection, it was so ordered.                                              
 Number 345                                                                    
 SENATOR RANDY PHILLIPS introduced  SB 232  (SCHOOL CONSTRUCTION BOND     D    
 REIMBURSEMENT) and  SB 233  (STATE EDUCATION AID: FUNDING                     
 COMMUNITIES) as the next order of business.                                   
                                                                               
 CAROL CARROL, staff to Senator Jay Kerttula, the prime sponsor of             
 SB 232 and SB 233, explained that SB 232 will increase by $90                 
 million the ceiling for state participation in school construction            
 by municipalities.  There are several school districts that have              
 already been approved for bonding, but there are three districts              
 that can't go forward because there isn't any capacity left out of            
 the $50 million allocation.  It would be more fiscally positive for           
 the state if this could done now because of the current low                   
 interest rates.                                                               
                                                                               
 Number 370                                                                    
                                                                               
 SENATOR ADAMS commented that he would like to have rural Alaska               
 participate in this because they have more needs than in the urban            
 areas of the state.  CAROL CARROL responded that the $90 million              
 would be available without regard to the population of any                    
 municipality.   She also clarified that this does not apply to                
 those areas that don't have a tax base and can't go out and bond              
 for themselves.  SENATOR ADAMS said regardless of whether there is            
 a tax base or not, there has got be equity and fairness in these              
 pieces of legislation because there are needs out in rural Alaska.            
                                                                               
 Number 400                                                                    
                                                                               
 Ms. Carrol explained that SB 233 takes out of regulation the                  
 ability of the Department of Education to waive or delete or add              
 funding communities at their own discretion by putting the                    
 definition of "funding community" into statute.  Senator Kerttula             
 believes that this will enable the Legislature to review any change           
 that the Department of Education would like to make that would have           
 a fiscal impact on some of the school districts.                              
                                                                               
 Number 425                                                                    
                                                                               
 DUANE GUILEY, Director, School Finance, Department of Education,              
 speaking to SB 232, stated that at the present time the Department            
 of Education does not support increasing the debt limit on school             
 construction projects.                                                        
                                                                               
 Through compromise legislation approved by both bodies of the                 
 Legislature in the prior session, the department did support                  
 reinstating school debt with a cap of $250 million of new project             
 principal.  That $250 million was allocated to municipalities based           
 on size.  Those allocations provided $133 million of project                  
 principal to Anchorage; $67 million to Fairbanks; and $50 million             
 to the remainder of the state.  The allocations expire on July 1,             
 1996, and at the present time there are many outstanding bond                 
 project authorizations that have yet to be voted on by the local              
 voters.  There is remaining capacity within the $250 million, so              
 the department feels it is premature to increase the ceiling, and             
 there is a strong likelihood that some of the money will come                 
 available to be able to fund the remaining projects on their list             
 without increasing the capacity.                                              
                                                                               
 Number 540                                                                    
                                                                               
 Speaking to SB 233, Mr. Guiley said the position of the Department            
 of Education is that currently the commissioner has the discretion            
 in relation to funding communities and the establishment of the               
 funding communities and the deletion of the funding communities.              
 The State Board of Education has adopted a plan to phase out the              
 funding for very small schools in the state, and that plan calls              
 for the deletion or decertification of funding communities on a               
 five-year schedule out through the year 1999.  That would increase            
 the minimum school size to 10.  SB 233 sets the minimum school size           
 at eight, and the department would not be able to carry out the               
 plan as is currently approved by the State Board of Education.                
                                                                               
 Decertification this year will save the state $754,000. Based on              
 funding communities that are scheduled to be decertified in 1996 or           
 1997, the savings would be another $988,000.  SB 233 would                    
 grandfather in those funding communities and the state would                  
 continue to fund $6,637,000 in additional state aid to those                  
 funding communities that are exception to the current regulation              
 and proposed statute.  Mr. Guiley stated the Department of                    
 Education does not support SB 233.                                            
                                                                               
 Number 600                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated SB 232 and SB 233 would be held until           
 the following week.                                                           
                                                                               
 Number 605                                                                    
                                                                               
 SENATOR RANDY PHILLIPS brought  SB 62  (PUBLIC SCHOOL FOUNDATION              
 PROGRAM) before the committee and stated that testimony would be              
 taken over the teleconference network.                                        
                                                                               
 ELL SORENSON, Superintendent, Mat-Su School District, testifying              
 from the Mat-Su LIO on SB 232, stated their district continues to             
 have serious crowding problems so they favor a bill that will put             
 more money out there to build schools.  He added they are very                
 sympathetic with rural schools that may not be included in this               
 legislation and they would support them being added.                          
                                                                               
 Mr. Sorenson also stated support for SB 233, although he did                  
 recommend a small change to it.                                               
                                                                               
 TAPE 94-10, SIDE A                                                            
                                                                               
 Number 001                                                                    
                                                                               
 Mr. Sorenson, commenting on SB 62, said they have some serious                
 reservations with the reduction that it makes to schools with 25              
 students in average daily membership.  Doing away with some of                
 these schools and providing education through other strategies may            
 prove to be equal to a greater expense.                                       
                                                                               
 Mr. Sorenson said the Mat-Su School District would like to go on              
 record as maintaining the status quo and improving the level of               
 funding for schools as opposed to taking large dollars out.                   
                                                                               
 Number 055                                                                    
                                                                               
 SENATOR RANDY PHILLIPS requested that Mr. Sorenson fax his                    
 suggested changes to SB 233 to his office.                                    
                                                                               
 Number 060                                                                    
                                                                               
 MARILYN LEAHY, a school board member in Valdez, stated the board's            
 opposition to SB 62 and their agreement with comments made by Mr.             
 Sorenson on the bill.  The legislation could have a very negative             
 impact on the Valdez School District.                                         
                                                                               
 Number 070                                                                    
                                                                               
 BECKY CHAPEK, a member of the Cordova School Board, referred to the           
 section in the bill relating to the Alaska School Price Index, and            
 stated concern that the index may be based on historic average                
 expenditures of a district.  By using the Alaska School Price                 
 Index, it appears that districts will penalized and locked into low           
 salary positions.   She also urged that the Legislature seek a                
 permanent solution to the single dual site inequities that were put           
 in place when the foundation formula went into being.                         
                                                                               
 Number 100                                                                    
                                                                               
 LARRY WIGET, Director of Government Relations, Anchorage School               
 District, said currently, Anchorage has three funding communities:            
 Eagle River, Girdwood, and the Anchorage bowl.   He asked if under            
 SB 233 Eagle River would still be considered a separate funding               
 community.  DUANE GUILEY acknowledged that it would.                          
                                                                               
 Number 125                                                                    
                                                                               
 DONNA EMERSON, the mother of two children who are in their seventh            
 year of using the Centralized Correspondence Study program,                   
 testified from Funter Bay.  Speaking to SB 62 and the portion that            
 relates to how centralized correspondence is funded, she said there           
 is widespread concern among the families on this program that the             
 secondary portion of the program needs some strengthening in order            
 to continue to meet a student's needs.  At present, the                       
 correspondence staff is providing services to more students with              
 fewer dollars than any other public school in the state.  She urged           
 that the committee allow SB 62 to strengthen the Centralized                  
 Correspondence Study program in a conservative manner.                        
                                                                               
 SENATOR RANDY PHILLIPS announced that the teleconference testimony            
 was concluded.                                                                
 There being no further business to come before the committee, the             
 meeting was adjourned at 10:50 a.m.                                           
                                                                               
                                                                               

Document Name Date/Time Subjects