Legislature(1993 - 1994)
04/16/1993 10:05 AM Senate CRA
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* first hearing in first committee of referral
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+ 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.
minutes).
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
education.
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
committee.
SENATOR LEMAN moved that CSSB 65(HES) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
Number 358
SENATOR RANDY PHILLIPS brought SB 176 (MUNICIPAL INVENTORY
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
committee.
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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