03/06/2023 03:30 PM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB29 | |
| SB24 | |
| Presentation Alaska Public School Funding Formula | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 29 | TELECONFERENCED | |
| += | SB 24 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
March 6, 2023
3:33 p.m.
MEMBERS PRESENT
Senator Löki Tobin, Chair
Senator Gary Stevens, Vice Chair
Senator Jesse Bjorkman
Senator Jesse Kiehl
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 29
"An Act relating to civics education, civics assessments, and
secondary school graduation requirements; establishing the
Alaska Civics Education Commission; and providing for an
effective date."
- MOVED CSSB 29(EDC) OUT OF COMMITTEE
SENATE BILL NO. 24
"An Act relating to mental health education; and providing for
an effective date."
- MOVED SB 24 OUT OF COMMITTEE
PRESENTATION ALASKA PUBLIC SCHOOL FUNDING FORMULA
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 29
SHORT TITLE: CIVICS EDUCATION; EST AK CVCS ED COMM
SPONSOR(s): SENATOR(s) STEVENS
01/18/23 (S) PREFILE RELEASED 1/9/23
01/18/23 (S) READ THE FIRST TIME - REFERRALS
01/18/23 (S) EDC, FIN
02/22/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
02/22/23 (S) Heard & Held
02/22/23 (S) MINUTE(EDC)
03/06/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 24
SHORT TITLE: PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION
SPONSOR(s): SENATOR(s) GRAY-JACKSON
01/18/23 (S) PREFILE RELEASED 1/9/23
01/18/23 (S) READ THE FIRST TIME - REFERRALS
01/18/23 (S) EDC, HSS, FIN
02/22/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
02/22/23 (S) Heard & Held
02/22/23 (S) MINUTE(EDC)
03/06/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
TIM LAMKIN, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a summary of changes from version A
to version S SB 29.
KELLY MANNING, Deputy Director
Innovation and Education Excellence
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Reviewed the fiscal note OMB component
number 2796 for SB 29.
JOHN APPLEBEE, Chief of Staff
Lieutenant Governor Nancy Dahlstrom
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Reviewed the fiscal note OMB component
number 3389 for SB 29.
ELLEN WEISER, President
Kids Voting North Alaska
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 29.
TIM DORAN, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 29.
AMY GALLAWAY, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 29.
KELLY MANNING, Deputy Director
Innovation and Excellence in Education
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Reviewed the fiscal note OMB component
number 2796 for SB 24.
STEVEN PEARCE, Director
Citizens Commission on Human Rights
Seattle, Washington
POSITION STATEMENT: Testified in opposition to SB 24.
MADISON TRUITT, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to SB 24.
HEIDI TESHNER, Acting Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Co-presented the Alaska Public School
Funding Formula presentation.
ELWIN BLACKWELL, School Finance Manager
School Finance and Facilities
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Co-presented the Alaska Public School
Funding Formula presentation.
ACTION NARRATIVE
3:33:04 PM
CHAIR LÖKI TOBIN called the Senate Education Standing Committee
meeting to order at 3:33 p.m. Present at the call to order were
Senators Bjorkman, Gray-Jackson, Kiehl, Stevens, and Chair
Tobin.
SB 29-CIVICS EDUCATION; EST AK CVCS ED COMM
3:34:17 PM
CHAIR TOBIN announced the consideration of SENATE BILL NO. 29
"An Act relating to civics education, civics assessments, and
secondary school graduation requirements; establishing the
Alaska Civics Education Commission; and providing for an
effective date."
3:35:06 PM
CHAIR TOBIN solicited a motion to adopt a committee substitute
for SB 29.
3:35:11 PM
SENATOR STEVENS moved to adopt the committee substitute (CS) for
SB 29, work order 33LS0246\S, as the working document.
3:35:19 PM
CHAIR TOBIN objected for purposes of discussion.
3:35:26 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, provided a summary of changes for
SB 29 as follows:
[Original punctuation provided.]
SUMMARY of CHANGES
(from version A to S)
1. Deleted reporting requirements from version A
a. (version A) Page 2, lines 11-14, relating to
School District civics curriculum and
assessment data reporting requirements to
DEED; and
b. (version A) Page 3, lines 2-7 and lines 23-28,
relating to annual reporting of this data from
the state board of education and early
development to the Legislature.
2. Staffing the Commission from Lt Gov to DEED
a. (version A) Page 4, line 3, struck "lieutenant
governor" and replaced with
b. (version S) Page 3, line 18, "Department" (of
Education and Early Development), as staffing
the Commission.
3. Redesigned representation of the Judiciary on the
Commission:
a. (version A) Page 4, lines 8-9: from a justice
of the Supreme Court to
b. (version S) Page 3, lines 23-26: a retired
Alaska judicial officer or administrative
person with judicial experience in the state.
4. Commission meetings, sharing Legislative resources
a. (version S) Page 4, lines 27-29 to page 5, line
2: allowing for legislative council to assist
the Commission in the conducting its business,
including use of legislative meeting space and
related resources.
3:37:48 PM
CHAIR TOBIN removed her objection; she found no further
objection and SB 29, work order 33-LS 0246\S, was adopted.
3:38:33 PM
KELLY MANNING, Deputy Director, Innovation and Education
Excellence, Department of Education and Early Development
(DEED), Juneau, Alaska, explained the fiscal note OMB component
number 2796 for SB 29. She said DEED's fiscal note consisted of
two parts. One section addresses one-time expenses. The other
section addresses annual expenses.
[Original punctuation provided.]
This fiscal note contains the following one-time
expenses: 1) $49.5 for department staff and 20
educators to travel to civics curriculum and
assessment development convenings; 2) $229.1 to
contract a facilitator to convene department staff,
educators, and stakeholders for participation in the
development of a civics assessment and corresponding
secondary semester long civics curriculum, as well as
associated data collection elements, and legal fees;
3) $5.0 for the initial supplies and equipment set up
of a new employee; and 4) $40.0 for stipends ($2.0 per
participant).
In addition, this fiscal note includes out-year annual
expenses: 1) $118.8 for one Educational Specialist 2
position to serve as a Social Studies Content
Specialist and Alaska Civics Education Commission
Coordinator; 2) $4.0 for staff travel to the annual
in-person Commission convening; and 3) $33.1 for annual
in-person Commission convening and department
chargeback expenses.
3:41:53 PM
SENATOR STEVENS stated he was shocked by DEED's fiscal note. The
cost is unnecessary and would kill SB 29. He opined that SB 29
does not require a full-time employee. He is having new fiscal
notes drafted to reduce the cost substantially.
3:42:42 PM
CHAIR TOBIN stated the committee would look forward to receiving
updated fiscal notes as SB 29 moves through the process.
3:42:58 PM
JOHN APPLEBEE, Chief of Staff, Lieutenant Governor Nancy
Dahlstrom, Office of the Governor, Juneau, Alaska, stated the CS
for SB 29 the committee adopted makes the fiscal note the Office
of the Governor submitted irrelevant and zeros it out in its
entirety.
3:43:39 PM
CHAIR TOBIN opened public testimony on SB 29.
3:44:31 PM
ELLEN WEISER, President, Kids Voting North Alaska, Fairbanks,
Alaska, testified in opposition to SB 29. Kids Voting North
Alaska is a non-partisan program committed to helping children
become lifelong learners. The organization has worked in the
North Star Borough for over 30 years. Kids Voting North Alaska
is a supporter of civics education in schools. Its board agreed
that a semester-long civics course would benefit students. The
founding fathers considered public education a key element to
maintaining the American Republic. She opined that schools
should integrate history and civics. Civics should not take the
form of a one-semester-and-done requirement. States should
reconceive educational goals using open-ended questions to
stimulate analytical thinking.
3:47:10 PM
MS. WEISER said the organization is concerned about the civics
test educational requirement. Civics is more than memorizing
facts about government. It is about applying civic knowledge
within towns, boroughs, the state, and the nation. She opined
that a civic service-learning component should be a culminating
activity. SB 29 should be flexible and emphasize local control.
Additionally, the legislation should increase the number of
highly qualified civics teachers employed within a district to
support any mandated assessment for graduation. Kids Voting
North Alaska disagrees with having a civics commission. SB 29
should designate Alaskan educators as the experts that create
the curriculum and assessment. Local education agencies should
choose the curriculum.
3:50:38 PM
TIM DORAN, representing self, Fairbanks, Alaska, testified in
opposition to SB 29, saying he has been an educator for over
forty years. Every teacher in a school teaches civics. When a
child enters school they acquire the skills to get along, work
together, share, and respect one another. They learn to live
within a community while discovering how broader outside
communities operate. He opined that this is the essence of
civics. He said Fairbanks' schools offer civics education at
every grade level and named curriculum titles. He opined that SB
29 was based on a weak premise. SB 29 would have a third party
establish a civics curriculum that endangers local control and
implements a high-stakes graduation test. He suggested the
civics panel promote a less broad and more inclusive curriculum
guided by state standards. He opined that students should not be
refused graduation based on a single test score. Alaska removed
a high school qualifying exam because of inequity. He said he
strives for his professional vision that students become
competent, confident, curious, caring, and contributing
citizens. His vision is reinforced daily by watching students
and educators implement the learning and teaching process. He
urged support, encouragement, and recognition of educators'
civics lessons.
3:54:37 PM
AMY GALLAWAY, representing self, Fairbanks, Alaska, testified in
opposition to SB 29, saying she is a civics teacher who was the
Alaska Teacher of the Year in 2020. She opined that SB 29 is not
evidence-based. It addresses the right issue but provides the
wrong solution. The sponsor should change SB 29 to direct DEED,
the State Board of Education, and practicing educators to
develop relevant, engaging, and evidence-based K-12 civic
standards. Standards should adhere to the 2020 Educating for
American Democracy Roadmap. A portfolio of authentic assessment
options could accompany the standards. This combination would
make for a rigorous curriculum supported by research to prepare
Alaska's students to save our republic. She said that for 24
years, she has told students that representative democracy is a
living organism. It requires civic knowledge, skills, and
dispositions to be systematically taught and assessed in grades
K-12. She thanked the legislature for elevating the need for
engaged and informed citizens because apathy is rampant. Civics
education is about knowing how the world works. She opined that
people are not disengaged because their civic knowledge is low.
They are disengaged because their political efficacy is low.
They do not have the skills to be effective citizens nor the
experience of successful participation. She suggested
decluttering social studies to make room for problem-solving,
critical thinking, and skills application by having students do
projects. The citizenship test is a valuable learning tool, but
when used as a high-stakes test, students memorize to pass
rather than learn. Students remember authentic assessments based
on community engagement. Alaska must provide training and
support to educators for SB 29 to elevate civics education. She
stated that although the idea of a commission is interesting, it
is not necessary because DEED already has a process for creating
and writing curriculums that work. Teachers and experts in the
field should develop the curriculum.
4:00:02 PM
CHAIR TOBIN closed public testimony on SB 29.
4:00:21 PM
SENATOR STEVENS said it is hard to create a perfect bill and
difficult to obtain funding. He said he appreciates Fairbanks
testifiers. However, if Alaska were doing such a good job, young
people would understand what it means to be a citizen. Yet
statewide, Alaska is doing a poor job of helping its children be
good citizens. Experts testified on the many positive attributes
of SB 29. He hoped SB 29 would improve as it moves through the
process. It is critical to encourage young people to be good
citizens. He said one of the foundational reasons the US became
a country was to create citizens who could participate and vote.
He opined that SB 29 is a good bill.
4:01:33 PM
SENATOR KIEHL said he appreciates the sponsor's work. It is a
better bill than last year. The test is not a high stakes test;
it's one way students can demonstrate their mastery of the
material.
4:02:17 PM
SENATOR GRAY-JACKSON said she supports SB 29 and the changes.
4:02:50 PM
CHAIR TOBIN solicited a motion.
4:02:53 PM
SENATOR KIEHL moved to report the CS for SB 29, work order 33-
LS0246\S, from committee with individual recommendations and
attached fiscal note(s).
4:03:10 PM
CHAIR TOBIN found no objection and CSSB 29(EDC) was reported
from the Senate Education Standing Committee.
4:03:26 PM
At ease.
SB 24-PUBLIC SCHOOLS: MENTAL HEALTH EDUCATION
4:04:59 PM
CHAIR TOBIN reconvened the meeting and announced the
consideration of SENATE BILL NO. 24 "An Act relating to mental
health education; and providing for an effective date."
4:05:15 PM
SENATOR GRAY-JACKSON said she appreciated the committee hearing
SB 24 again. SB 24 encourages adding mental health education to
the list of subjects already in statute. It also provides the
agency names to develop the mental health education curriculum.
4:05:59 PM
KELLY MANNING, Deputy Director, Innovation and Excellence in
Education, Department of Education and Early Development (DEED),
Juneau, Alaska, reviewed the fiscal note OMB component number
2796 as follows:
[Original punctuation provided.]
The fiscal note includes the following one-time
expenses: 1) $120.0 for 30 committee members to travel
twice a year for in-person convenings($2.0 per
participant); 2) $36.0 for services including $30.0 to
hire a facilitator to oversee implementation and
professional development for educators and $6.0 for
legal fees to implement the necessary regulation
changes; and, 3) $60.0 for committee member stipends
($2.0 per participant).
4:07:45 PM
CHAIR TOBIN opened public testimony on SB 24.
4:08:33 PM
STEVEN PEARCE, Director, Citizens Commission on Human Rights,
Seattle, Washington, testified in opposition to SB 24. He said
he does not support SB 24 as written because it creates a wish
list for the psychiatric lobby. Instead, it should create
meaningful, effective education that leads the next generation
of Alaskans to health and wellness. For decades chemical
imbalances in the brain were thought to drive mental illness.
Last July, this notion was called into question by a study that
found no convincing evidence that serotonin abnormalities cause
depression. People take antidepressants because they believe
depression has a biochemical cause. The field of psychiatry does
not admit there is a problem and therefore receives criticism.
Patients quit taking their medication because of its inefficacy
and intolerable side effects. Medications do not achieve the
desired goal. He said he is seeking to correct the mistaken view
of psychiatric drugs. There are no tests that analyze the body
and definitively indicate depression. He opined that students
should learn a holistic approach to wellness. He stated he was
against devaluing people's ability to control themselves by
encouraging drugs to avoid stigmatizing labels. Some doctors
make a living dealing with psychiatry's failures. Psychiatry
does not look for physical causes of mental illness, so
psychiatrists do not screen to identify physical ailments,
nutritional deficiencies, allergies, and toxic levels of metals.
He questioned trusting a system that puts labels on patients
without verification.
4:14:29 PM
MADISON TRUITT, representing self, Juneau, Alaska, testified in
opposition to SB 24. She said she works as a Behavioral Health
Aide. She provided a metaphor of people repeatedly falling into
a river and being rescued to describe the current state of the
mental healthcare system in Alaska and nationwide. She opined
that teaching mental health awareness early in a child's life is
the first step to prevention. It teaches children about their
emotions, feelings and how to express themselves. Mental health
education is key to long-term and holistic well-being. Coping
and attachment styles are learned based on what a person
witnesses in childhood. What they witness often leads to
struggles such as alcoholism, addiction, depression, anxiety,
domestic violence, and suicide. Mental healthcare should not be
only for the wealthy. Normalizing mental health through
conversation reduces stigma. She stated that SB 24 made her feel
hopeful because it allows indigenous people to care for each
other. She said mental health education as a child would have
helped her navigate the loss of her partner when she was 20.
Every child deserves an opportunity to understand their feelings
and learn healthy coping methods. Knowledge empowers children
astronomically.
4:19:34 PM
CHAIR TOBIN closed public testimony on SB 24.
4:19:45 PM
SENATOR STEVENS moved to report SB 24, work order 33-LS0232\A,
from committee with individual recommendations and attached
fiscal note(s).
4:19:57 PM
CHAIR TOBIN found no objection and SB 24 was reported from the
Senate Education Standing Committee.
4:20:11 PM
At ease.
^PRESENTATION ALASKA PUBLIC SCHOOL FUNDING FORMULA
PRESENTATION
ALASKA PUBLIC SCHOOL FUNDING FORMULA
4:22:19 PM
CHAIR TOBIN announced the consideration of a presentation on the
Alaska Public School Funding Formula.
4:23:08 PM
HEIDI TESHNER, Acting Commissioner, Department of Education and
Early Development (DEED), Juneau, Alaska, said she would skip
some of the slides in the presentation. She presented slide 3 as
follows:
[Original punctuation provided.]
Public School Funding Formula
The current state public school funding formula was
adopted under SB 36 in 1998; implemented in 1999.
The public school funding formula is defined in Alaska
Statute 14.17.
4:24:07 PM
MS. TESHNER turned to slide 4:
[Original punctuation provided.]
Providing an Overview
1. October count and Average Daily Membership (ADM)
2. Calculations of Adjusted Average Daily Membership
(AADM)
3. Calculation of Basic Need
4. Funding Components of Basic Need (Who Pays)
5. Additional Funds above Basic Need
4:24:28 PM
ELWIN BLACKWELL, School Finance Manager, School Finance and
Facilities, Department of Education and Early Development
(DEED), Juneau, Alaska, moved to slide 5, Average Daily
Membership, which is the starting point for the foundation
formula:
[Original punctuation provided.]
Average Daily Membership
ADM Reporting Requirements
• Average Daily Membership is the number of enrolled
students during the 20 school-day count period ending
on the fourth Friday of October (AS 14.17.600)
• Reports are due within two weeks after the end of the
20 school-day count period (AS 14.17.600)
• Projected student count reports are due November 5 (AS
14.17.500)
4:25:27 PM
CHAIR TOBIN asked for the rationale behind a 20-day count.
4:25:39 PM
MR. BLACKWELL replied that the 20-day count allows time for the
department to process the numbers and the districts to verify
them. It ensures DEED that students are counted just once for
funding purposes. The process takes several months. If DEED
based the count on an entire year, funding would be based on the
prior year. Twenty days provides a snapshot for the school year.
4:26:47 PM
MR. BLACKWELL moved to slide 6:
Who Qualifies as a Student?
Eligibility for State Foundation Funding:
• A child who is 6 years of age on or before September
1, and under the age of 20, and has not completed the
12th grade (AS 14.03.070)
• A child who is 5 years of age on or before September
1, may enter kindergarten (AS 14.03.080 (d))
• A child with a disability and an active Individualized
Education Program (IEP) may attend school if at the
age of 3 or if under the age of 22 by July 1 (AS
14.30.180 (1))
4:27:33 PM
MR. BLACKWELL moved to slide 7 and said he would discuss the six
steps for calculating a district's entitlement:
[Original punctuation provided.]
6 Steps to
DISTRICT ADJUSTED ADM
Step 1. Adjust: ADM for School Size
Step 2. Apply: District Cost Factor
Step 3. Apply: Special Needs Factor
Step 4. Apply: Vocational & Technical Factor (CTE)
Step 5. Add: Intensive Services Count
Step 6. Add: Correspondence Student Count
= District Adjusted ADM
Used to calculate ENTITLEMENT
4:27:55 PM
MR. BLACKWELL turned to slide 8 and said the first step is to
adjust the school count for school size. DEED also breaks down
school sizes by community. For example, suppose a community has
an average daily membership (ADM) under ten. In that case, the
department will take the students in that school and add them to
the next smallest school in the district with an ADM greater
than 10 for calculation purposes. A chart for adjusting the
formula for ADM school size appears on slide 8, along with a
table of community size parameters. He noted that if there is
only one school in a community and there are over 425 students,
there would still be two adjustments, one for grades K-6 and the
other for 7-12.
4:29:47 PM
SENATOR STEVENS said several village schools in his district
average about 10 students. A school is closed when it has under
10 students because it loses funding. He asked if the department
adds those 10 students to the count of another school with 10 or
more students.
4:30:09 PM
MR. BLACKWELL replied that DEED does not close a school with
fewer than 10 students. Closing a school is a district decision.
The logical reason to close a school with less than 10 students
is that the district does not receive the school size adjustment
to help administer the school. The department derived the number
10 in 1998 as a starting point. The school size table is a
cumulative process. Each step moves the accumulated school size
adjustment to the next reference line. A slightly smaller factor
is applied for each additional student that a school has over
the parameter. Communities with over 750 students receive a
factor of .84.
4:31:37 PM
MR. BLACKWELL turned to slide 9 and stated the following are
exceptions when adjusting the ADM for school size:
[Original punctuation provided.]
* Alternative school with an ADM of 175 or greater and
administered as a separate facility the ADM will be
adjusted separately, unless:
1. It is in the 1st year of service with ADM
between 120 to 175 receives an adjustment of
1.33; OR
2. It had an ADM of 175 or greater in the prior
year but drops below 175 in the current fiscal
year it will receive an adjustment of 1.33; OR
3. It has an ADM of less than 175 it shall be
counted as a part of the school in the
district with the highest ADM
* Charter school with an ADM of 150 or greater is
adjusted as a separate facility unless:
1. It is in the 1st year of service with ADM
between 75 to 150 it receives an adjustment of
1.45; OR
2. It had an ADM of 75 or greater in the prior
year but drops below this in the current
fiscal year it will receive an adjustment of
1.45; OR
3. It continues to stay below 75 ADM then it
receives an adjustment of 1.18
AS 14.17.450
4:33:23 PM
MR. BLACKWELL moved to slide 10:
[Original punctuation provided.]
Step 1.
Example: NOME PUBLIC SCHOOLS
Projected FY2024 ADM by School
• Nome Elementary School????????330.00
• Nome-Beltz Jr/Sr High School??300.00
• Anvil City Science Academy?????60.00
• Extension Correspondence ??????25.00
4:33:40 PM
MR. BLACKWELL turned to slide 11 and provided an example of how
Nome schools' ADMs are adjusted based on school size.
4:34:06 PM
MR. BLACKWELL turned to slide 12:
[Original punctuation provided.]
HOLD HARMLESS PROVISION
Enacted in 2008, House Bill 273 established a Hold
Harmless provision for those school districts
experiencing a reduction in their brick and mortar
school(s) ADM after it has been adjusted for school
size. The sum total adjusted for school size ADM is
compared to the prior fiscal year's to determine if a
decrease of 5% or greater has occurred. If the answer
is "yes", then the prior fiscal year is locked in as
the "base year" for the next three years.
Available up to 3 years if district stays below the
base year.
1st year 75 percent of difference to the base
year is retained
2nd year 50 percent of difference to the base
year is retained
3rd year 25 percent of difference to the base
year is retained
AS 14.17.410 (b)(1)(E)
https://education.alaska.gov/publications/Foundation-
CountPeriodHoldHarmlessPymts%208.7.2020.pdf
4:35:11 PM
MR. BLACKWELL turned to slide 13 and said Nome Public Schools do
not qualify for the hold harmless provision:
[Original punctuation provided.]
Nome Public Schools:
HOLD HARMLESS PROVISION
Nome just completed the hold harmless three-year step-
down provision in FY2023 and is now transitioned to
the lower ADM.
Has the district decreased by 5% or greater when
compared to FY2023 school size adjusted total and
eligible to restart the hold harmless provision? No.
FY2024 Total School Size Adj. ADM 849.10
FY2023 Total School Size Adj. ADM 824.85 (base year)
DIFFERENCE: 24.25
RESULT: District proceeds through formula without hold
harmless provision; total school size adjusted ADM
remains 849.10.
4:35:29 PM
MR. BLACKWELL moved to slide 14 and addressed district cost
factors as follows:
Step 2.
DISTRICT COST FACTORS
Cost Factors were modified based on a 2005 ISER study
and implemented over five years, FY2009 FY2013. They
are specific to each school district and range from
1.000 (Anchorage) to 2.116 (Yukon Flats).
Multiply the School Size Adjusted ADM by the District
Cost Factor for Nome:
849.10 x 1.450 = 1,231.20
AS 14.17.460
4:36:10 PM
CHAIR TOBIN said that when the foundation funding formula was
last evaluated in 2015, there was conjecture about the need to
reevaluate the district cost factor. She asked if there was a
provision in statute regarding evaluation requirements.
4:36:26 PM
ACTING COMMISSIONER TESHNER replied that the statute directs the
review of district cost factors every two years. DEED reviewed
the cost factors, and the legislature rejected them, leaving the
statute unfunded. The outdated numbers are from the early 2000s.
CHAIR TOBIN asked for confirmation that if the legislature
directed DEED to do another evaluation, the legislature would
need to accept DEED's proposal.
4:37:09 PM
ACTING COMMISSIONER TESHNER replied that the legislature could
direct DEED to do an evaluation, but the legislature would also
need to fund the evaluation.
4:37:18 PM
SENATOR STEVENS asked who is harmed when the district cost
factor is not reevaluated.
4:37:32 PM
MR. BLACKWELL asked him to repeat the question.
SENATOR STEVENS said he is concerned about the legislature's
lack of attention to evaluating district cost factors because
the change could be substantial. He asked what communities are
most harmed by the lack of adjustment to district cost factors.
4:38:05 PM
ACTING COMMISSIONER TESHNER replied that every district is
affected. The department questions whether Anchorage or Mat-Su
would be the base if a reevaluation were performed. She opined
that a reevaluation would be a shift for all communities.
SENATOR STEVENS said Mat-Su as the base is an interesting
thought.
4:38:49 PM
MR. BLACKWELL turned to slide 15 and said the formula provides
20 percent block funding for special (except intensive),
vocational, gifted/talented, and bilingual/bicultural education.
4:39:31 PM
SENATOR KIEHL asked how the 20 percent relates to districts'
spending on special needs services.
4:39:48 PM
ACTING COMMISSIONER TESHNER replied that the department does not
know how districts spend the 20 percent because it becomes
discretionary money once factored into the formula. School
districts are aware of the special needs factor, and many try to
put the money into special needs programs.
4:40:32 PM
SENATOR KIEHL asked if it is possible to understand the spending
of the 20 percent special education funding through the annual
district budget audits.
4:40:46 PM
ACTING COMMISSIONER TESHNER answered that there are two special
education functions. DEED knows how much districts put towards
special education. Still, it does not necessarily relate to the
20 percent because it could include special education
intensives, which is an additional amount.
4:41:10 PM
SENATOR KIEHL said he questions the adequacy of the 20 percent
block funding to cover special, vocational, gifted, and
bilingual education needs.
4:41:41 PM
CHAIR TOBIN asked if the department included English as a Second
Language (ESL) in special needs funding.
4:42:02 PM
ACTING COMMISSIONER TESHNER said she did not know the answer.
4:42:15 PM
SENATOR STEVENS asked if schools do Individualized Educational
Plans (IEPs) for special education, gifted, and bilingual
students.
4:42:52 PM
ACTING COMMISSIONER TESHNER stated her belief that only special
education students receive IEPs.
4:43:03 PM
MR. BLACKWELL turned to slide 16 and stated that the example
shows what happens to the Nome school district funding formula
once the special education factor is applied:
[Original punctuation provided.]
Step 3. Example:
NOME PUBLIC SCHOOLS
Multiply the Adjusted ADM (from Step 2) by
the Special Needs Factor
1,231.20 x 1.20 = 1,477.44
4:43:14 PM
MR. BLACKWELL moved to slides 17 - 18 to address career and
technical education and the funding formula:
Step 4.
VOCATIONAL & TECHNICAL FUNDING
Career & Technical Education (CTE), is funded at a
factor of 1.015.
It is intended to assist districts in providing career
and technical education services in grades seven
through 12.
This excludes costs associated with administrative
expenses and instruction in general literacy,
mathematics, and job readiness skills.
AS 14.17.420 (a)(3) 18
Step 4. Example:
NOME PUBLIC SCHOOLS
Multiply the Adjusted ADM (from Step 3) by the Career
& Technical Education Factor
1,477.44 x 1.015 = 1,499.60
4:43:48 PM
CHAIR TOBIN asked why the presentation included vocational
education in special education funding and in vocational and
technical funding.
MR. BLACKWELL said the slides make vocational education appear
to be double dipping a bit due to changing from the old
foundation formula to the new one.
4:44:47 PM
CHAIR TOBIN asked if delineation occurs in district vocational
and technical funding audits.
4:45:02 PM
MR. BLACKWELL replied that there are no specific function codes
for CTE.
4:45:24 PM
MR. BLACKWELL moved to slide 19 and said DEED added a
consolidation of schools provision a few years ago when the
department discovered that larger schools could lose numerous
students and not qualify for the hold harmless provision. He
provided the provision as follows:
[Original punctuation provided.]
CONSOLIDATION OF SCHOOLS
This provision is for districts choosing to
consolidate one or more schools within a community.
Each of the affected schools' ADM in the base year
(the year prior to consolidation) and the current year
are adjusted through the vocational and technical
factor, the result of each calculation is divided by
its respective fiscal year's ADM total to arrive at
the quotients. The difference between these two
quotients is added back to the district's ADM being
adjusted in the current fiscal year.
Available up to 4 years if district stays below the
base year.
• First two fiscal years following consolidation is 100%
offset of the reduction in basic need for the affected
schools
• Third fiscal year is 66 percent offset of those funds
in basic need of the affected schools
• Fourth fiscal year is 33 percent offset of those funds
in basic need of the affected schools
A district may not use this provision to offset the
decrease of a new facility is constructed; reopen the
school being consolidated until seven or more years
have passed and provided evidence schools are over
capacity; or reopen and reconsolidate more than once
every seven years.
AS 14.17.410 (b)(1)(H)-(M)
4:47:44 PM
SENATOR STEVENS asked whether Alaska has consolidated any
schools.
MR. BLACKWELL answered yes. Consolidation has occurred in
Anchorage and Kenai. Due to Covid upending the theory behind the
consolidation formula, DEED has not run through the complete
process. The department used to say a large district was
unlikely to trigger the hold harmless provision. However, in
2021 with the onset of Covid, many students entered homeschool,
significantly decreasing the student population in brick-and-
mortar schools and triggering the hold harmless provision. DEED
asked the schools to elect either the hold harmless provision or
the consolidation of schools provision. The schools selected
hold-harmless as it was fiscally more advantageous.
4:49:18 PM
MR. BLACKWELL turned to slide 20 and said some special education
students have intensive needs. Additional funding is provided to
school districts as follows:
[Original punctuation provided.]
Step 5.
INTENSIVE SERVICES FUNDING
A school district will receive funding for intensive
services students that:
1. Are receiving intensive services and
2. Enrolled on the last day of the 20-school-day count
period and
3. Meet intensive qualifications for each intensive
services student
(Intensive Student Count) x 13 = Intensive Student
Funding
An Intensive Services student generates $77,480
AS 14.17.420(a)(2) 21
4:50:36 PM
CHAIR TOBIN asked if there are additional reporting requirements
for intensive services funding besides IEPs.
4:50:50 PM
ACTING COMMISSIONER TESHNER replied yes and said she would
provide the committee with the school districts' checklist.
4:51:16 PM
MR. BLACKWELL turned to slide 21 and provided an example of how
intensive services funding impacts the funding formula:
[Original punctuation provided.]
Step 5. Example:
NOME PUBLIC SCHOOLS
Multiply the Intensive Student Count by 13 & add to
the adjusted ADM (from Step 4)
Nome Public Schools has 15 Intensive Students
15 x 13 = 195
1,499.60 + 195 = 1,694.60
4:51:36 PM
MR. BLACKWELL moved to slides 22 - 23 and stated that Nome had
projected to have a few correspondence students. It is at this
point in the funding formula that they are considered in the
calculation as follows:
[Original punctuation provided.]
Step 6.
CORRESPONDENCE PROGRAMS
Districts offering correspondence programs receive
funding based on 90% of the Correspondence ADM.
(Correspondence ADM) x .90 = Level of
Each Correspondence ADM generates $5,364.
AS 14.17.430
Step 6. EXAMPLE:
NOME PUBLIC SCHOOLS
Multiply the Correspondence Student ADM by 90 percent
and add to the Adjusted ADM (from Step 5) to get Final
District Adjusted ADM (AADM).
Nome Public Schools
has 25 Correspondence ADM
25 x .90 = 22.50
1,694.60 + 22.50 = 1,717.10
4:52:06 PM
MR. BLACKWELL moved to slide 24 and stated that the formula
multiplies a school district's adjusted average daily membership
(AADM) and base student allocation (BSA) to determine basic
need:
[Original punctuation provided.]
BASIC NEED
Entitlement
Multiply the district adjusted ADM by the
base student allocation [BSA] = BASIC NEED
1,717.10 x $5,960 = $10,233,916
AS 14.17.470
4:52:43 PM
MR. BLACKWELL said the six steps for adjusting the average daily
membership (ADM) are consolidated on slide 25 as follows:
[Original punctuation provided.]
NOME: Summarized
District Adjusted ADM & Basic Need
Projected ADM for Nome: 690.00 + 25.00 corresp. = 715.00
Step 1. Adjusted ADM for Total School Size: 49.10
No Hold Harmless Adjustment
Step 2. Apply the District Cost Factor: x 1.450
1,231.20
Step 3. Apply the Special Needs Factor: x 1.20
1,477.44
Step 4. Apply the Career & Technical Ed Factor: x 1.015
1,499.60
Step 5. Add Intensive Service Counts: +195.00
(15 x 13 = 195) 1,694.60
Step 6. Add Correspondence Student Counts: +22.50
(25 x .90 = 22.50)
= District Adjusted ADM 1,717.10
Multiply by $5,960 the FY2024 Base Student Allocation x $5,960
BASIC NEED: $10,233,916
4:53:04 PM
ACTING COMMISSIONER TESHNER pointed out that the projected ADM
started at $715. However, the ADM increased to $1,717.10 once
the department made all the district adjustments.
4:53:25 PM
MR. BLACKWELL moved to slide 26 and said required local
contribution, federal impact aid, and state aid pay for basic
need.
4:53:50 PM
CHAIR TOBIN asked for a description of the three contributions.
MR. BLACKWELL said a description would be forthcoming in the
presentation.
4:54:00 PM
MR. BLACKWELL turned to slide 27 and said that by statute,
first-class cities, first-class boroughs, and home rule cities
are municipal school districts responsible for operating the
schools within a defined geographic area. The local effort
calculation follows:
[Original punctuation provided.]
Full & True Value / Local Effort Calculation
Current year full & true value, as provided annually
by the State Assessor's Office, is multiplied by 2.65
mils for the purposes of calculating the Required
Local Effort for foundation funding.
4:55:19 PM
MR. BLACKWELL moved to slide 28 and provided an example of
calculating the required local contribution:
[Original punctuation provided.]
CALCULATING REQUIRED LOCAL CONTRIBUTION
Example: Nome Public Schools
The lesser of the equivalent of 2.65 mils of the full
& true value for 2022 calendar year, but not to exceed
45% of the school district's prior year basic need.
.00265 of full & true value Tax Base:
.00265 x $ 503,895,691 = $1,335,324
OR
45% of Prior Year Basic Need:
.45 x $9,906,955 = $4,458,130
AS 14.17.410 (b)(G)(2)
4:56:04 PM
MR. BLACKWELL moved to slide 29 and said school districts having
federal lands within them receive federal impact aid payments
since federal lands are not subject to taxation. He spoke to the
following:
[Original punctuation provided.]
Title VII
FEDERAL IMPACT AID PAYMENTS
Title VII Federal Impact Aid Payments received from
March 1 through the last day of February are used as
payment for Basic Need.
The State must first deduct out the federal funding
for special education (SPED), 1/5th Native lands, and
construction funds.
4:57:13 PM
MR. BLACKWELL turned to slide 30 that provided an example of the
impact aid Nome received:
[Original punctuation provided.]
Title VII FEDERAL IMPACT AID PAYMENTS
Example: Nome Public Schools
Payments received by the Nome Public Schools from
March 1 through the end of February. There are no
SPED, Native lands, or construction funds included in
their payments therefore the total received is
eligible.
$30,807
(amount eligible for Deduction)
AS 14.17.410(e)(2)(B)
4:57:35 PM
SENATOR STEVENS asked if the funding formula bases federal
impact aid payments on student numbers.
4:57:51 PM
MR. BLACKWELL replied yes, the number of students living on
certain lands determines the amount. The military reports the
number of students living on bases to DEED, and DEED applies for
aid. School districts identify students living on native lands
and apply for federal aid directly.
4:58:38 PM
SENATOR STEVENS asked if the count included parents.
MR. BLACKWELL stated his belief that the aid payment is based
only on students living on federal properties.
4:59:05 PM
MR. BLACKWELL moved to slide 31 and stated that since Nome is a
first-class city the state does a calculation to determine the
impact aid percentage:
[Original punctuation provided.]
IMPACT AID PERCENTAGE
Required Local Contribution
divided by
Budgeted Local Contribution
Budgeted Local Contribution, for the purposes of
calculating the Impact Aid percentage is found in the
Budgets submitted on July 15 of each year and may
consist of:
-Appropriations
-Investment Earnings
-In-Kind Services
-"Other" Local
4:59:53 PM
CHAIR TOBIN stated that Legislative Research shows that the idea
of local contribution has existed since 1966. Some people have
suggested reducing or eliminating it. She asked whether
eliminating local contributions is statutorily possible and how
eliminating it would impact funding.
MR. BLACKWELL replied that the legislature is free to change the
statute. The idea is to use impact aid to support basic need.
The state must prove that it is equalized through a disparity
test. The test ensures a less than 25 percent disparity after
dismissing the low and high five percent. A state can utilize
impact aid as a funding component only when the federal
government acknowledges equalization. If Alaska did not achieve
equalization, the legislature would need to provide
approximately $75 million in additional in-state aid to schools.
MR. BLACKWELL moved to slide 32 and provided an example of Nome
public schools and the Title VII percentage:
[Original punctuation provided.]
Title VII PERCENTAGE
Example: Nome Public Schools
Required Local: $1,335,324
Budgeted Local: $3,535,000 = 37.77%
(This percentage is only derived for City & Boroughs)
5:02:21 PM
MR. BLACKWELL advanced to slide 33 and said only 90 percent of
what is left is used to pay for part of basic need. The
calculation is different for REAAs. For REAAs, it is the
eligible amount times the 90 percent. Even though REAAs do not
have a local contribution, DEED uses more impact aid to fund
basic need than it does for municipal schools.
5:03:10 PM
MR. BLACKWELL moved to slide 34 and spoke about State Aid and
how the formula potentially applies to Nome in FY 2024:
[Original punctuation provided.]
STATE AID
Nome Public Schools
BASIC NEED: $ 10,233,916
(less) REQUIRED LOCAL: (1,335,324)
(less) IMPACT AID: (10,472)
STATE AID $ 8,888,120
AS 14.17.410 (b)(1)
5:03:41 PM
MR. BLACKWELL turned to slide 35 and said additional funds above
basic need include an additional local contribution for
municipal school districts and quality schools grants for all
districts.
5:04:01 PM
MR. BLACKWELL moved to slide 36 and spoke about two calculations
for determining the additional local contribution amounts
municipalities can make using Nome as an example:
[Original punctuation provided.]
Calculating the
ADDITIONAL LOCAL CONTRIBUTION
Example: Nome public Schools
The greater of 2 mils of the tax base or 23% of the
district's current year Basic Need and State funds
calculated on AADM can be contributed, but not
exceeded.
.002 of Full & True Value Tax Base: .002 x
$503,895,691 = $1,007,791
OR
23% of Basic Need & funds calculated on AADM:
.23 x ($10,233,916 + $27,474) = $2,360,120
5:04:36 PM
MR. BLACKWELL turned to slide 37 showing Nome's maximum
contribution, and said the reason the department caps local
contribution is for state equalization:
[Original punctuation provided.]
MAXIMUM LOCAL CONTRIBUTION
Example: Nome City Schools
Required Local Contribution
plus
Additional Local Contribution
REQUIRED Local Contribution: $1,335,324
ADDITIONAL Local Contribution: + 2,360,120
MAXIMUM Local Contribution: $ 3,695,444
AS 14.17.410 (c)
5:05:08 PM
SENATOR STEVENS asked if Nome contributed the minimum required
amount and the maximum additional amount.
MR. BLACKWELL said slide 37 shows what Nome can contribute.
SENATOR STEVENS asked if Nome could contribute $2,360,120.
5:05:42 PM
ACTING COMMISSIONER TESHNER said the required local contribution
is the amount Nome must pay, and the additional local
contribution is the maximum amount Nome can elect to contribute
based on projected numbers for FY 2024. She offered to provide
the committee with a chart showing the amounts districts have
contributed.
SENATOR STEVENS replied that knowing what districts have
contributed would be helpful.
5:06:25 PM
MR. BLACKWELL turned to slide 38 and briefly discussed the
quality schools grant:
[Original punctuation provided.]
QUALITY SCHOOLS GRANT
AS 14.17.480 provides a Quality School Grant based on
the district's Adjusted ADM multiplied by $16.
Example: Nome Public Schools
1,717.10 x $16 = $27,474
https://education.alaska.gov/tis/qualityschools/
5:06:55 PM
MR. BLACKWELL moved to slide 39, Components of State Aid:
COMPONENTS OF STATE AID
A Permanent Funding Component of State Aid
Nome's total State Aid equals:
Calculated STATE AID $8,888,120
plus QUALITY SCHOOLS Grant 27,474
TOTAL STATE ENTITLEMENT $8,915,594
AS 14.17.410
5:07:02 PM
MR. BLACKWELL moved to slide 40 and said there is a provision in
statute that says if the legislature were to provide
insufficient funding to fund the program fully, DEED would
prorate based on basic need.
5:07:20 PM
MR. BLACKWELL turned to slide 41 and said the chart provides a
linear statewide look at how money flows through the foundation
funding formula. The amounts shown are totals and end with the
FY 2024 state aid entitlement amount of approximately $1.2
billion.
5:07:31 PM
MR. BLACKWELL moved to slide 42 and provided DEED's contact
information.
5:07:41 PM
CHAIR TOBIN found no further questions from committee members
and thanked the presenters for their time.
5:08:32 PM
There being no further business to come before the committee,
Chair Tobin adjourned the Senate Education Standing Committee
meeting at 5:08 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Legislative Finance Foundation Formula Presentation to Senate Education 03.03.2023.pdf |
SEDC 3/6/2023 3:30:00 PM |
Education Funding |
| DEED Foundation Formula Overview for Senate Education 03.03.2023.pdf |
SEDC 3/6/2023 3:30:00 PM |
Education Funding |
| DEED Handout 1 - Foundation Funding Program Overview 2024 03.06.2023.pdf |
SEDC 3/6/2023 3:30:00 PM |
Education Funding |
| SB 29 CS Version S 03.06.2023.pdf |
HEDC 4/26/2024 8:00:00 AM SEDC 3/6/2023 3:30:00 PM |
SB 29 |
| SB 29 Summary of Changes Version A to S 03.06.2023.pdf |
HEDC 4/26/2024 8:00:00 AM SEDC 3/6/2023 3:30:00 PM |
SB 29 |