Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/03/2023 03:30 PM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB113 | |
| Confirmation Hearing(s) | |
| SB97 | |
| SB110 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 113 | TELECONFERENCED | |
| += | SB 97 | TELECONFERENCED | |
| *+ | SB 110 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
April 3, 2023
3:31 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. 113
"An Act relating to the regional educational attendance area and
small municipal school district fund; relating to Mt. Edgecumbe
High School; and relating to teacher housing."
- MOVED SB 113 OUT OF COMMITTEE
CONFIRMATION HEARING(S)
University of Alaska Board of Regents
Joey Crum - Wasilla
- CONFIRMATION ADVANCED
SENATE BILL NO. 97
"An Act authorizing lump sum payments for certain teachers as
retention and recruitment incentives; and providing for an
effective date."
- HEARD & HELD
SENATE BILL NO. 110
"An Act relating to group insurance coverage and self-insurance
coverage for school district employees, employees of the
University of Alaska, and employees of other governmental units
in the state; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 113
SHORT TITLE: REAA FUND: MT. EDGECUMBE, TEACHER HOUSING
SPONSOR(s): FINANCE
03/22/23 (S) READ THE FIRST TIME - REFERRALS
03/22/23 (S) EDC, FIN
04/03/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 97
SHORT TITLE: TEACHER RECRUITMENT; LUMP SUM PAYMENT
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/08/23 (S) READ THE FIRST TIME - REFERRALS
03/08/23 (S) EDC, FIN
03/24/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
03/24/23 (S) Scheduled but Not Heard
04/03/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 110
SHORT TITLE: SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
SPONSOR(s): HUGHES
03/22/23 (S) READ THE FIRST TIME - REFERRALS
03/22/23 (S) EDC, L&C, FIN
04/03/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
TIM GRUSSENDORF, Staff
Senator Lyman Hoffman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the sponsor statement and sectional
analysis for SB 113 on behalf of the sponsor.
LACEY SANDERS, Deputy Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Provided a fiscal note overview of SB 113.
HEIDI TESHNER, Acting Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 113.
JOEY CRUM, Governor's Appointee
University of Alaska Board of Regents
Wasilla, Alaska
POSITION STATEMENT: Testified as the governor's appointee to the
University of Alaska Board of Regents.
HEIDI TESHNER, Acting Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Provided the sponsor statement for SB 97 on
behalf of the governor.
LACEY SANDERS, Deputy Commissioner
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Provided the sectional analysis and an
overview of the fiscal note for SB 97.
MAE PITKA, Teacher
Lower Yukon School District
Russian Mission, Alaska
POSITION STATEMENT: Testified by invitation on SB 97.
DAWN BOCKELMAN, Teacher
Anchorage School District
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 97.
SENATOR SHELLEY HUGHES, District M
Alaska State Legislature
Juneau Alaska
POSITION STATEMENT: Testified as the sponsor of SB 110.
GABY GONZALEZ, Staff
Senator Shelley Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a presentation and the sectional
analysis for SB 110.
LISA PARADY, Executive Director
Alaska Council of School Administrators
Juneau, Alaska
POSITION STATEMENT: Testified by invitation on SB 110.
RANDY TRANI, Superintendent
Mat-Su Borough School District
Palmer, Alaska
POSITION STATEMENT: Testified by invitation on SB 110.
ACTION NARRATIVE
3:31:41 PM
CHAIR LÖKI TOBIN called the Senate Education Standing Committee
meeting to order at 3:31 p.m. Present at the call to order were
Senators Bjorkman, Kiehl, Stevens, Gray-Jackson, and Chair
Tobin.
SB 113-REAA FUND: MT. EDGECUMBE, TEACHER HOUSING
3:33:53 PM
CHAIR TOBIN announced the consideration of SENATE BILL NO. 113
"An Act relating to the regional educational attendance area and
small municipal school district fund; relating to Mt. Edgecumbe
High School; and relating to teacher housing."
3:34:12 PM
TIM GRUSSENDORF, Staff, Senator Lyman Hoffman, Alaska State
Legislature, Juneau, Alaska, said SB 113 proposes equalizing
construction and maintenance funding opportunities for Mt.
Edgecumbe High School and making changes to all maintenance
grants for rural teacher housing. He said the discussion on
these changes arose during a Senate Finance Committee meeting
where the Department of Education discussed major maintenance,
deferred maintenance, and construction projects. He said the
issue of who brings forward projects to be funded by the
legislature was raised during the discussion because, currently,
Mt. Edgecumbe must rely on the executive branch to request
funding directly from the legislature. Mt. Edgecumbe cannot
submit requests for projects to be put on the major maintenance
list as other school districts can. He compared this to the
legislature's responsibility to advocate for the unorganized
borough. He noted that the legislature does not often
collectively prioritize unorganized areas due to the many other
issues they have to address. Similarly, Mt. Edgecumbe is a place
that sometimes falls through the cracks despite people looking
out for it. SB 113 would address these issues and provide more
equitable funding opportunities.
3:36:40 PM
MR. GRUSSENDORF read the following sectional analysis for SB
113:
[Original punctuation provided.]
SB 113: related to REAA fund, Mt. Edgecumbe High
School, and Teacher Housing
Section 1: amends language to AS 14.11.025(A) that
provides the Department of Education and Early
Development the authority to make disbursements from
the REAA fund to provide grants.
Adds Mt. Edgecumbe to the eligibility list for school
construction and major maintenance grants.
Adds projects for housing that is located and owned by
the state, or a regional education attendance area, or
a small municipal school district, and that is
provided to teachers working in the educational
attendance area or the small municipal school
district.
Section 2: amends language to AS 14.11.030(a) that
adds Mt. Edgecumbe High School to the eligibility list
for school construction and major maintenance
projects; and adds teacher housing to the eligibility
list for major maintenance for funding from the REAA
fund.
Section 3: deletes language that the unobligated and
unexpended cash balance of the fund may not exceed
$70,000,000.
3:37:53 PM
SENATOR STEVENS said he knows there is a tremendous need for
rural housing in Alaska. He asked about the use of funding.
3:38:11 PM
MR. GRUSSENDORF replied that the funding would primarily address
the major maintenance issues of existing teacher housing, not
the construction of new housing. The foremost purpose of the
fund is school construction. Maintenance would be secondary if
there were money remaining. School construction is the fund's
purpose, but the department would place maintenance and teacher
housing on equal footing if sufficient money remained.
3:38:52 PM
SENATOR KIEHL said the concept is excellent, and he appreciates
the optimism in Section 3. He asked whether the department would
rank Mt. Edgecumbe projects alongside REAA projects on the
priority list.
MR. GRUSSENDORF replied that was his understanding.
SENATOR KIEHL asked whether the department would need
instruction on when to apply. He opined that it is a bit weird
because different sections of the department run Mt. Edgecumbe
and the list.
MR. GRUSSENDORF replied that he did not know the answer to the
question.
3:39:55 PM
CHAIR TOBIN suggested asking department staff the question when
they testify on the fiscal notes.
3:40:03 PM
SENATOR KIEHL said AHFC retains the ability to assist with
teacher housing. He echoed the Senate Steven's recognition of
Alaska's substantial unmet rural housing needs, emphasizing the
importance of construction and maintenance. He stated that the
language on page 2, line 12, remained unchanged. He asked about
the sponsor's preferences for prioritizing major maintenance and
teacher housing alongside school maintenance projects.
MR. GRUSSENDORF stated that in past discussions, members of the
Senate Finance Committee expressed their preference to rank
teacher housing maintenance projects alongside major maintenance
needs. If warranted, a project could rise to first on the
maintenance list.
3:41:38 PM
SENATOR STEVENS said he would like to hear from the Department
of Education and Early Development (DEED) about the two
positions listed in the fiscal notes.
3:41:53 PM
CHAIR TOBIN invited the DEED representatives to review the
fiscal notes for SB 113.
3:42:17 PM
LACEY SANDERS, Deputy Commissioner, Department of Education and
Early Development (DEED), Juneau, Alaska, said the fiscal note
for SB 113, OMB 2737, addressed School Finance and Facilities.
DEED would need two new permanent full-time positions: School
Finance Specialist II and Building Management Specialist. She
said DEED lacks expertise in teacher housing and dwelling, and
the Capital Improvement Project process would expand to include
Mt. Edgecumbe High School, necessitating hiring knowledgeable
individuals. These individuals would travel twice a year, either
to rural locations throughout the state or Mt. Edgecumbe High
School. The fiscal note encompasses one-time setup and annual
rate costs for the new positions. Additionally, it allocates
$6,000 as a placeholder for legal expenses associated with
revising and establishing regulations. SB 113 would entail
extensive regulatory modification to encompass teacher housing
and the addition of Mt. Edgecumbe High School.
3:44:23 PM
SENATOR STEVENS said he finds the positions to be excessive. He
questioned the purpose and cost of the positions by asking
exactly what the individuals in these roles are overseeing, how
much money is involved, and why it costs nearly $300,000 for two
people to perform the work.
3:44:57 PM
HEIDI TESHNER, Acting Commissioner, Department of Education and
Early Development (DEED), Juneau, Alaska, replied that Mt.
Edgecumbe High School lacks staff members capable of handling
their applications in the Capital Improvement Program (CIP)
process. While Mt. Edgecumbe has some facilities maintenance
personnel, they focus on day-to-day tasks. This new position
would oversee all ongoing and future projects. She said she did
not recall the exact number of current projects. She emphasized
that this role would be full-time, managing all projects at Mt.
Edgecumbe High School, and the additional person would provide
expertise related to teacher housing and dwellings, particularly
in terms of necessary specifications.
3:45:56 PM
SENATOR KIEHL asked if both positions would advocate for Mt.
Edgecumbe projects and evaluate ranking compared to projects
from other locations.
ACTING COMMISSIONER TESHNER responded by explaining that the
proposed position would not have the responsibility of ranking
projects; instead, the individual would focus on submitting
applications for Mount Edgecumbe. She said an existing three-
person team handles the ranking of all projects that are
submitted. She clarified that the new position could not be
involved in the ranking process due to the department's
inability to apply for a district. Therefore, a neutral
individual would be needed to help Mt. Edgecumbe apply.
3:46:55 PM
CHAIR TOBIN opened public testimony on SB 113; finding none, she
closed public testimony.
3:47:15 PM
At ease.
3:47:27 PM
CHAIR TOBIN reconvened the meeting.
3:47:34 PM
SENATOR STEVENS moved to report SB 113, work order 33-LS0449\A,
from committee with individual recommendations and attached
fiscal note(s).
3:47:46 PM
CHAIR TOBIN found no objection and SB 113 was reported from the
Senate Education Standing Committee.
3:48:04 PM
At ease.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
UNIVERSITY OF ALASKA BOARD OF REGENTS
3:49:52 PM
CHAIR TOBIN reconvened the meeting and announced the
consideration of governor appointee Joey Crum to the University
of Alaska Board of Regents.
3:50:25 PM
JOEY CRUM, Governor's Appointee, University of Alaska Board of
Regents, Wasilla, Alaska, said he owns Northern Industrial
Training (NIT). He emphasized his 20-year dedication to
education and the importance of a well-educated citizenry for
Alaska. He highlighted his qualifications, board experience, and
commitment to being an asset. He addressed potential conflicts
of interest due to NIT's offerings and assured the committee of
his commitment to ethics declarations. He said he looks forward
to serving Alaska and the university system.
3:54:56 PM
SENATOR STEVENS thanked Mr. Crum for his application and
acknowledged the significance of the university. He pointed out
the recent loss of accreditation for the School of Education in
Anchorage. He then asked Mr. Crum how he intended to address the
challenge of the university's lost accreditation for its School
of Education while recognizing the urgent need for locally
trained teachers in Alaska.
MR. CRUM responded by emphasizing the importance of rebuilding
public trust in the university system, especially in the wake of
the loss of accreditation. He expressed his intention to play a
significant role in promoting professional integrity within the
University. He shared his connection as the son and husband of
public-school teachers, underscoring the crucial support needed
for educators. Mr. Crum said he could not provide specific
examples of how he would address the dilemma. Still, he assured
the committee, the Board of Regents, and teachers throughout
Alaska that they would have his full support as he is committed
to addressing the challenges facing teacher education and the
university system.
3:56:35 PM
SENATOR GRAY-JACKSON thanked Mr. Crum for his willingness to
serve. She inquired about his thoughts on diversity in general
and its role at the university, especially in honoring Alaska's
indigenous and diverse peoples. She asked how, as a regent, he
would uphold the university's mission in this regard.
3:57:21 PM
MR. CRUM replied that he strongly supports diversity and its
importance in promoting innovation and civil discourse. He
stated that he will continue forming relationships based on
compassion and grace. He noted that experiences rather than bias
shape his thoughts.
3:58:05 PM
SENATOR GRAY-JACKSON inquired about Mr. Crum's experiences as a
two-time chair of the Alaska Commission on Post-Secondary
Education (ACPE). She asked him to share what he had learned
during his tenure regarding the Alaska Performance Scholarships
and the Washington, Wyoming, Alaska, Montana, and Idaho (WWAMI)
Medical program. Additionally, she sought his insights on how he
might enhance each program if appointed as a regent.
3:58:36 PM
MR. CRUM replied that his experience at the Alaska Commission on
Post-Secondary Education (ACPE) was a career highlight. He
mentioned learning about the organization and its focus on
consumer protection for students. Regarding the Washington,
Wyoming, Alaska, Montana, and Idaho (WWAMI) medical program, he
acknowledged hearing presentations but said he had limited in-
depth knowledge, particularly about universities holding seats
for Alaskans. He said he learned a lot about the Alaska
Performance Scholarship and supports investing in post-secondary
education for students. He suggested considering standardized
test scores as part of the application process but not as strict
requirements. He also emphasized the importance of ensuring that
vocational and technical education in Alaska receives equitable
access to scholarship opportunities.
4:00:06 PM
SENATOR GRAY-JACKSON stated that Mr. Crum's resume impressed
her, particularly his roles as an executive vice president and
craft instructor at NIT from 2003 to 2013 while pursuing a law
degree at Gonzaga during the same period. She asked if he had
completed Gonzaga's two-year Juris Doctorate (JD) program. She
inquired whether he had taken the Alaska bar exam and if he was
currently practicing as an attorney.
4:00:49 PM
MR. CRUM explained that he pursued the regular three-year JD
program at Gonzaga, taking a leave of absence for one year to
work with NIT. He detailed his involvement in curriculum
development, policy writing, and serving as a craft instructor.
Although he graduated with a Juris Doctor degree, he clarified
that he never took the bar exam.
4:01:29 PM
SENATOR KIEHL stated that the University of Alaska has three
major campuses, each with separate accreditation. He mentioned
that Fairbanks is a research university, and Anchorage is an
open-access campus. He opined that the state lacks vision for
the University of Alaska Southeast. He asked about his vision
for the University of Alaska Southeast.
4:02:17 PM
MR. CRUM said he is aware there are three separate universities
within the system. He emphasized the importance of supporting
the University of Alaska Fairbanks (UAF) to keep it from
becoming a Tier II research university. He stated his belief
that this would bring economic benefits across the entire
university system.
Regarding the University of Alaska Southeast (UAS), he expressed
excitement about the incoming chancellor. He said there is a
statewide need for a vision that aligns with local needs. He
outlined a strategy based on three key questions and noted that
prioritizing the answers to the first two questions would be
crucial:
1. What do local economies require?
2. What are the desires of the local population?
3. Are there resources available for implementation?
He concluded that he would like to deeply understanding the role
of UAS within the Southeast community and how it fits into the
broader university system before outlining a specific vision.
SENATOR KIEHL responded that he appreciates the framework and
would like to discuss factors to fill it in later.
4:04:16 PM
CHAIR TOBIN inquired about Mr. Crum's perspective on the
differences between operating a for-profit business, where he
has mentioned his success in designing courses and hiring top-
quality instructional staff, and his potential role in governing
a public university system. She drew attention to the absence of
a sociology program in the University of Alaska System. She
expressed disappointment and noted the value of diverse
perspectives and knowledge that programs like it bring. Chair
Tobin asked Mr. Crum for his insights on managing a for-profit
educational institution versus governing a public university
system.
4:05:22 PM
MR. CRUM responded that her question was very nuanced and
highlighted the commonality between operating a for-profit
business and governing a public university system as having a
core mission dedicated to student development. He emphasized
that this commitment should underlie all actions and behaviors.
However, he also recognized differences, such as dealing with
accreditation and the vast scope of Alaska's university system.
Despite these distinctions, he stressed commonalities like
upholding standards, offering programs aligned with student
interests, and creating a respectful and attractive environment.
MR. CRUM pointed out the importance of financing and mentioned
that the university's potential land grant would generate
revenue, allowing for more focus on future development as
financial concerns diminish.
4:07:28 PM
CHAIR TOBIN opened public testimony on the consideration of Mr.
Crum to the University of Alaska Board of Regents; finding none,
she closed public testimony.
4:07:51 PM
CHAIR TOBIN solicited a motion.
4:07:52 PM
SENATOR STEVENS stated that in accordance with AS 39.05.080, the
Senate Education Standing Committee reviewed the following and
recommends the appointment be forwarded to a joint session for
consideration:
University of Alaska Board of Regents
Joey Crum - Wasilla
Signing the reports regarding appointments to boards and
commissions in no way reflects individual members' approval or
disapproval of the appointees; the nominations are merely
forwarded to the full legislature for confirmation or rejection.
4:08:20 PM
At ease.
SB 97-TEACHER RECRUITMENT; LUMP SUM PAYMENT
4:10:00 PM
CHAIR TOBIN reconvened the meeting and announced the
consideration of SENATE BILL NO. 97 "An Act authorizing lump sum
payments for certain teachers as retention and recruitment
incentives; and providing for an effective date."
4:10:26 PM
HEIDI TESHNER, Acting Commissioner, Department of Education and
Early Development (DEED), Juneau, Alaska, thanked the committee
for the opportunity to present SB 97, sponsored by the governor.
She stated the following:
We know that recruitment and retention of teachers has
long been an issue here in Alaska and across the
nation. Teachers have a tremendous impact on student
achievement, and teachers' stability and effectiveness
are essential components of a student's achievement.
Priority number four of Alaska's Education Challenge
is to prepare, attract, and retain effective education
professionals. This bill supports our teachers and
this priority of Alaska's education challenge.
A few reminders for this committee and the listening
public: I want to provide a few facts regarding
teacher retention and recruitment in Alaska.
We have approximately 7,300 teachers working in our
Alaska Public Schools.
We have fewer applicants for vacant positions, as
demonstrated through our first-day vacancies.
We have an increased number of first-day-of-school
vacancies. There were 394 in 2023 compared to 115 in
2019.
In Alaska, most of our teachers are recruited from the
lower 48.
We have seen an increasing number of teachers filling
positions from out of state. There were 461 in 2018 to
1,043 in 2023.
We have issued an increasing number of emergency
licenses.
About 22% of Alaska's teachers are turning over
annually.
Turnover is higher in our rural, remote, and lower-
income schools.
As you may recall, the governor ordered a task force
to examine teacher recruitment and retention in 2020.
In a report by a 30-member Alaskan working group, the
Teacher Retention and Recruitment Action Plan, dated
April 2021, was completed, and it identified root
causes using a teacher retention and recruitment
survey and qualitative supplemental study of written
comments from teachers that held active certifications
in Alaska at that time. There were six essential areas
that were identified:
1. Strengthening working conditions
2. Developing leadership
3. Restructuring retirement options
4. Enhancing retirement efforts and
opportunities
5. Creating paraprofessional pathways
6. Streamlining certification and
recertification
From the survey, salary ranks number one. In an effort
to attract teachers to Alaska and address the highest-
ranked findings in that report, Senate Bill 97
proposes the following:
It provides three years of incentive payments for
eligible teachers at approximately $58 million each
year.
It will be paid in fiscal years 2025, 2026, and 2027
for work completed in fiscal years 2024, 2025, and
2026.
It provides three tiers of incentive payments based on
the type of district:
Tier I - urban districts at $5,000 per year for
three years. This is approximately $24.8 million
a year for our five largest districts with
approximately 5,000 teachers.
Tier II - rural districts at $10,000 per year for
three years. This is approximately $9.52 million
a year for 24 districts with approximately 1,100
teachers.
Tier III - most remote and rural districts at
$15,000 per year for three years. This is
approximately $17.2 million a year for 25
districts with approximately 1,300 teachers.
This bill is targeting the largest incentives to
remote and rural districts who have struggled the most
to recruit and retain their teachers. The incentive
payments are for full-time teachers.
Doing the same isn't working. So, this incentive pay
will be just one solution and will be considered a
pilot or a study. We want to see if the incentives
help with the retention recruitment issues we are
having in Alaska. We would survey teachers to see if
they stay in their district or if they go to another
district or even if they go out of state. We want to
track who came from the lower 48 and find out why they
went to a particular district. By the end of the three
years of this pilot, we would have the data to better
answer the question on whether or not incentive
payments help with the recruitment and retention
issues that we were experiencing.
I also want to add that in November 2015, there was a
report issued by the University of Alaska Anchorage's
Center for Alaska Education Policy Research titled
"Salary and Benefits Schedule and Teacher Tenure
Study." This was another study commissioned by the
state. While it was not recommended, teacher
differentials for districts was encouraged. SB 97's
tiered incentive approach for the governor is
evidenced in that research.
In summary, there are years of data and discussion
about investing in our teachers. Through the
introduction of SB 97, the governor is showing that
he's listening to the stakeholders and directly
incentivizing the people to do the work in our
classrooms. This bill supports our teachers and shows
that they matter.
4:16:12 PM
LACEY SANDERS, Deputy Commissioner, Department of Education and
Early Development (DEED), Juneau, Alaska, provided the sectional
analysis and fiscal note overview, OMB 2796, for SB 97. She
stated the following:
[Original punctuation provided.]
SB 97 Teacher Recruitment; Lump Sum Payment
Sectional Analysis
"An Act authorizing lump sum payments for certain
teachers as retention and recruitment incentives; and
providing for an effective date."
Section 1: Amends uncodified law by adding a new
section that establishes a program that would pay
certificated full-time teachers with a lump sum
payment on, or around, July 1, 2024, July 1, 2025, and
July 1, 2026. The incentive payments would be
contingent upon appropriations made for this purpose
in the relevant fiscal years (FY2025, FY2026, and
FY2027). The bill limits the payments to full-time
teachers assigned to a classroom teaching assignments
and specifically excludes temporary, substitutes, or
assistant teachers.
In addition, to be eligible for the payment, teachers
would be required to submit an application and the
school districts would be responsible for certifying
the applications. The Department of Education and
Early Development (DEED) would develop the application
and it would be due no later than the last day of
school for each eligible school year. Once the
application and certification requirements are met,
DEED would grant school districts funding to pay the
incentive payments to eligible teachers.
The bill also considers all incentive payments
compensation for the purposes of the Teachers'
Retirement System (TRS).
The bill provides DEED authority to adopt regulations
necessary to carry out the purposes of the bill.
Section 2: This bill is effective on July 1, 2023.
4:17:57 PM
CHAIR TOBIN asked whether the effective date would allow enough
time to develop regulations and hold public commentary.
4:18:12 PM
MS. SANDER explained that the effective date of the bill aligns
with the upcoming school year, allowing teachers to become
eligible during that year. She opined that the timeline provides
adequate time because while the teacher is earning eligibility,
the department would develop regulations and the application.
4:18:41 PM
MS. SANDER said the fiscal note, OMB 2796, for SB 97, is divided
into two components. The first part involves the cost of
establishing a non-permanent position, specifically an Education
Associate III, who is responsible for program implementation,
regulation and application development, application review, and
payment distribution to school districts. The second part
comprises incentive grant payments, estimated at around $51.5
million for approximately 7,000 full-time teachers in Alaska.
Additionally, there is a $6.5 million value associated with the
employer contribution to the Teacher Retirement System (TRS).
This funding provides support to school districts in making the
additional TRS contribution.
4:20:08 PM
SENATOR KIEHL raised a mechanical question regarding processing
incentive payments to teachers. He noted that the application
deadline falls at the end of May or early June, with payments
scheduled for July 1 or a reasonable time thereafter. He
expressed concern about the workload, suggesting that many
teachers might submit applications close to the deadline.
Senator Kiehl questioned whether one person could handle
processing these applications during the brief period between
late May and July 1, and if so, what would the person's
responsibilities be for the rest of the year.
4:20:55 PM
MS. SANDER clarified that while there will be a heavy workload
concentrated during a specific time frame, the department is
aiming to establish an electronic application process to
streamline the procedure and avoid the complications of paper
applications. She noted that the non-permanent position created
for this task may not be required for the entire year, as the
workload could vary, being heavier during one part of the year
and lighter during another. This aligns with the intended
flexibility of the non-permanent position.
SENATOR KIEHL observed that the budget allocated $110,000 for
personnel services in all three years of the program. He
remarked that this indicates the position is not intended to be
permanent. Senator Kiehl expressed a desire to calculate how
many months the $110,000 budget would cover at a Range 17, B, or
C.
MS. SANDER replied that the $110,000 budget for personnel
services was an initial estimate for setting up one position.
She stated that the department could return to the legislature
with more specific details once the program is established and
operational.
SENATOR KIEHL inquired about the location of the employer
contribution to the Teacher Retirement System within SB 97.
4:22:52 PM
MS. SANDER replied that employer contribution is located on page
4, line 14, "Payment made under this section will be considered
compensation for the purposes of AS 14.25."
SENATOR KIEHL said that makes sense in terms of requiring a
contribution and counting it towards eligibility, especially for
Tier II teachers. However, he suggested clarifying language may
be needed regarding who is responsible for paying the employer
contribution.
4:23:37 PM
CHAIR TOBIN noted that the legislation outlined different
incentive amounts based on school size. She asked whether a
teacher transferring from the Anchorage School District to the
Bering Strait District would be eligible for the larger, $15,000
bonus.
ACTING COMMISSIONER TESHNER replied yes if the teacher worked
the entire school year.
CHAIR TOBIN expressed concern about what appeared to be a
potential imbalance in school funding. She questioned whether
the varying size of the incentive could lead to some schools
losing resources in favor of others and if there was a legal
opinion or specific rationale behind the selection of $5,000,
$10,000, and $15,000 as the incentives for different districts.
ACTING COMMISSIONER TESHNER stated her understanding that the
size of incentive aligns with the recommendations of studies and
might be slightly higher than what other regions are
implementing.
4:25:09 PM
CHAIR TOBIN commented that if SB 97 passes, it might be
lucrative for teachers to move from the Anchorage School
District to her home community.
4:25:13 PM
SENATOR KIEHL asked what happens after the three-year incentive
program ends. He pointed out that there is no proposal to triple
the teacher education programs at the university and no proposal
from the administration to address other recommendations. He
questioned how this program fits into the broader plan to
address the ongoing teacher shortage in the state.
4:26:10 PM
ACTING COMMISSIONER TESHNER replied that the three-year
incentive program is just one part of a broader effort to
address teacher recruitment and retention issues. A final report
with all the recommendations would be available in August, and
DEED would consider additional measures based on the
recommendations. The program is a pilot, and DEED would evaluate
its effectiveness in improving retention over the three years.
It's an attempt that the governor is introducing to tackle
Alaska's teacher retention and recruitment challenges.
4:26:52 PM
SENATOR STEVENS commented that the annual turnover rate for
teachers is 23 percent. He asked what the turnover rate is for
principals.
4:27:11 PM
ACTING COMMISSIONER TESHNER responded that she did not know but
would provide the committee with an answer.
CHAIR TOBIN noted that reporting measures or mechanisms were
mentioned several times, but she could not locate any mention of
them in SB 97 or the fiscal note. She inquired about the
specific location and details of the reporting requirements.
ACTING COMMISSIONER TESHNER stated that the bill did not contain
a provision mandating the Department of Education and Early
Development (DEED) report back to the legislature. However, DEED
would collect and furnish the legislature with the information,
CHAIR TOBIN stated that she found it slightly concerning that SB
97 did not contain a reporting requirement. She pointed out that
there are other bills with reporting requirements, and it did
not seem like a significant burden for the department to handle
such reporting. She suggested amending SB 97 to include
reporting measures and allocating a portion of the $110
personnel line item for this purpose.
ACTING COMMISSIONER TESHNER replied that the suggestion would be
a friendly amendment.
4:28:20 PM
CHAIR TOBIN opened invited testimony on SB 97.
4:28:42 PM
MAE PITKA, Teacher, Lower Yukon School District, Russian
Mission, Alaska, stated that she is a teacher born and raised in
Russian Mission. She stated that she had witnessed high teacher
turnover rates both as a student and a teacher. This year marks
her 29th year in teaching, and it is challenging to recall
everyone who has come and gone. She emphasized the importance of
quality teachers in her life and expressed gratitude for being
able to live and teach in her hometown community. She also
expressed hope that some of her students would choose teaching
careers.
MS. PITKA stated that she supports SB 97 to ensure students have
access to quality teachers. She stated her belief that longevity
incentives with lump sum payments were a positive step to
support and attract teachers. She acknowledged that teacher
retention would remain an ongoing issue and suggested that
financial incentives were necessary to attract and retain high-
quality educators. She thanked the committee members for their
support of education in Alaska.
4:31:21 PM
DAWN BOCKELMAN, Teacher, Anchorage School District, Anchorage,
Alaska, stated she is a primary school teacher with six years of
experience. She said she supports paying teachers an annual
incentive for three years and stressed the importance of
education in Alaska's future. She highlighted challenges caused
by administrative support issues and the loss of university
accreditation.
MS. BOCKELMAN praised Governor Dunleavy's proposal to provide
direct financial incentives to teachers instead of channeling
funds through school districts. She stated that giving
incentives to the teachers recognizes their value. She urged the
committee to consider SB 97 to retain effective classroom
teachers.
4:34:22 PM
CHAIR TOBIN opened public testimony on SB 97; finding none, she
closed public testimony.
4:34:44 PM
SENATOR STEVENS stated he understands that Alaska's overall
percentage of teacher turnover is 23 percent. He asked for a
breakdown of teacher turnover for the three incentive
categories.
ACTING COMMISSIONER TESHNER said she would provide the committee
with a spreadsheet since the amount varies across all districts.
SENATOR STEVENS said he would like DEED to organize the
spreadsheet by category, not district.
ACTING COMMISSIONER TESHNER said she does not have a spreadsheet
organized by category but can calculate the amount by category.
She said she would provide the amounts to the committee.
SENATOR KIEHL questioned the basis for calculating the bonuses
in the proposed program. He said the department appears to have
tied the incentive amounts to the average daily membership of
districts. He expressed concern that this metric may not
accurately reflect the cost of living in the teachers'
communities. He pointed out that district cost factors, such as
1.08 in Ketchikan and 1.05 in Juneau, do not align with the
bonuses, where Ketchikan teachers would receive twice that of
Juneau teachers. Senator Stevens asked for clarification on the
rationale for these calculations and bonuses.
4:36:20 PM
ACTING COMMISSIONER TESHNER clarified that DEED did not base the
allocation of funds on average daily membership. Instead, the
decision was based on several factors, including district
performance, teacher turnover rates, remote locations of
districts, and whether an area was urban. The five largest urban
districts received $5,000 each, and the allocation for rural and
middle-tier districts was $10,000. The $15,000 allocation was
based on factors such as location, road accessibility, and
district performance. In summary, a combination of factors
determined the allocation, not average daily membership.
SENATOR KIEHL stated he did not see a matrix in the packet and
that without a solid basis, there is a local and special acts
problem. He asked for a copy of the analysis that led to the
department's categorization of the districts.
4:37:38 PM
ACTING COMMISSIONER TESHNER replied she would provide a copy to
the committee.
CHAIR TOBIN asked for the top three priorities from the teacher
retention working group.
ACTING COMMISSION TESHNER asked if Chair Tobin was referring to
the six essential areas that were identified.
CHAIR TOBIN replied she was referring to a comprehensive list
the committee received. She recalled that two top priorities
were leadership pipeline and defined benefits. The flexibility
of work was also on the list.
4:38:17 PM
ACTING COMMISSIONER TESHNER stated her belief that the three
priorities Chair Tobin is requesting are:
1. Strengthening working conditions.
2. Developing leadership.
3. Restructure and retirement options
4. Enhancing recruitment efforts and opportunities
5. Creating paraprofessional pathways
6. Streamlining certification and recertification
4:38:40 PM
CHAIR TOBIN asked under which priority would incentives belong.
ACTING COMMISSIONER TESHNER said incentives belong under the
Strengthening Working Conditions priority. Pay is part of the
findings in that category.
4:39:00 PM
CHAIR TOBIN held SB 97 in committee.
SB 110-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
4:39:28 PM
CHAIR TOBIN announced the consideration of SENATE BILL NO. 110
"An Act relating to group insurance coverage and self-insurance
coverage for school district employees, employees of the
University of Alaska, and employees of other governmental units
in the state; and providing for an effective date."
4:39:34 PM
SENATOR SHELLEY HUGHES, District M, Alaska State Legislature,
Juneau, Alaska, said a crucial, often overlooked method exists
to bolster classroom funding without requiring additional
financial allocation. The potential impact could significantly
enhance resources for student instruction. The essence of SB 110
lies in granting school districts the choice to participate in
AlaskaCare, the state's employee health care plan. The rationale
behind this choice is rooted in the substantial savings it could
offer to districts compared to their existing health plans. She
stated the Mat-Su borough roughly estimated that it could save
$7 million by opting for AlaskaCare. They are grappling with
annual premium increases of roughly $3.3 million. To put this
into perspective, $3.3 million equates to the funding required
for 33 teaching positions. Therefore, with the potential for $7
million in savings, there is the potential to preserve 65
teaching positions. These savings could be instrumental in
freeing up funds for classroom instruction, which aligns with
the shared goal of enhancing student education.
SB 110 aims to create a statutory framework that would give
schools and local governments the option to participate in the
health care pooling system. By entering the pool, districts
might benefit from economies of scale and improved healthcare
cost negotiations, a critical necessity given Alaska's status as
the state with the highest insurance premiums in the nation.
Furthermore, Alaska faces increasing healthcare spending and
bears the highest out-of-pocket costs for healthcare among its
residents.
SENATOR HUGHES requested SB 110 proceed so school districts are
empowered to decide whether participating in the pool aligns
with their interests. She opined that SB 110 could lead to
substantial cost savings, which districts could then invest in
students' educational experiences.
4:44:03 PM
GABY GONZALEZ, Staff, Senator Shelley Hughes, Alaska State
Legislature, Juneau, Alaska, provided a presentation titled "SB
110 State Health Insurance Pooling Option." She turned to slide
2:
[Original punctuation provided.]
ISER Research Summary No. 2019-4
• "Alaska has the highest per capita healthcare costs
in the US (Passini, Frazier, & Guettabi, 2018), which
negatively affects private and public sectors of our
economy. Healthcare costs are a part of teacher
compensation. Alaska unadjusted per-pupil spending on
teacher salaries is 14th in the nation - but after
adjusted to US cost-of-living, the amount is 23
percent below the national average. Similarly,
Alaska's unadjusted per-pupil spending on educator's
employee benefits is 64 percent above the US average -
but after adjusted is only 9 percent above the US
average.
• While the challenge of high healthcare costs is not
unique to education, in a fixed budget scenario these
costs put downward pressure on wages, making it more
difficult for Alaska districts to offer teachers a
nationally competitive salary.
4:44:54 PM
MS. GONZALEZ turned to slide 3 and said the graph is from ISER
2018. ISER collected the data from the Centers for Medicare and
Medicaid Services (CMS), between 1991 - 2014. CMS published data
on personal health care spending for the US and individual
states. The graph shows that costs began to skyrocket in the
early 2000s. Health insurance pooling provides the following
benefits:
[Original punctuation provided.]
Save Money
• Eases the downward pressure on districts and local
government budgets.
More Healthcare Options
• Expands healthcare options.
Reduced Staff Burden
• Schools can focus on providing a quality education.
• Local governments can focus on public services.
4:46:00 PM
MS. GONZALEZ turned to slide 4 and said the graphs show more of
the data collection that ISER assembled. It shows Alaska's
healthcare spending amounts. In 1991, spending was $1.5 billion.
In 2014, the amount increased to $8.2 billion.
MS. GONZALEZ turned to slide 5 and said the Department of
Administration provided the following information:
[Original punctuation provided.]
The AlaskaCare employee plan's current average per-
employee-per-month claims and administrative cost is
$1734 ($20,808 per year).
• The current per-employee-per-month employer
contribution is $1,685. It will increase to $1,793 in
FY24.
• The monthly employee contribution ("employee
premium") varies as follows:
2023 ACTIVE EMPLOYEE PREMIUMS
For AVTECTA - AK Vocational Teachers (TA), APEA -
Confidential (KK), APEA - Supervisory (SS), ACOA -
Correctional Officers (GC), TEAME - Mt. Edgecumbe
Teachers (TM), MEBA - Marine Engineers (BB) Employees
not covered by collective bargaining (Exempt)
Plan Employee Only Employee
& Family
Standard Medical Plan $125 $303
Economy Medical Plan $63 $167
Consumer Choice Medical Plan $25 $71
Standard Dental Plan $37 $102
Economy Dental Plan $0 $0
Managed Vision $15 $40
4:46:43 PM
SENATOR HUGHES said the amount districts currently spend is
unknown. However, based on Mat-Su, even at $1,793, it would be a
savings. She opined that Mat-Su's healthcare spending is
approximately $41 million annually. She said any reduction would
benefit classrooms.
SENATOR HUGHES stated she was unaware there would be invited
testimony and listed the names of individuals she asked to
testify publicly.
4:48:10 PM
MS. GONZALEZ read the following sectional analysis for SB 110:
[Original punctuation provided.]
SB 110 Sectional Analysis
Section 1 AS 14.08.101 Page 1, Line 5 through Page
2, Line 29
Adds to powers of regional school boards the power to
establish and maintain school district participation
in a policy of group insurance, selected by the State
of Alaska, that provides medical insurance.
Section 2 AS 14.14.090 Page 2, Line 30 through
Page 4, Line 13
Adds to the duties of a regional school board the
duty, when the board's school district participates in
a policy of group insurance elected by the State of
Alaska that provides medical insurance, to determine
and disperse to district employees and administrative
officers the amounts necessary to cover the district's
portion of the cost of that participation.
Section 3 AS 14.17.300 Page 4, Line 14 through
Line 27
Allows the Commissioner of Administration to expend
from the public education fund (AS 14.17.300) to the
group health and life benefits fund (AS 39.30.095) a
total of $100,000,000 or less as needed to pay claims
submitted by school district employees who are covered
by a policy of self-insurance provided by the state;
and, requires the Commissioner of Administration to
repay the public education fund, over a period of 10
years, the full amount of the commissioner's
expenditures from the public education fund.
Section 4 AS 14 Page 4, Line 28 through Page 5,
Line 31
4. (a) Allows school districts to participate in a
policy of insurance that provides medical insurance
coverage to state employees and to school district
employees. (b) Requires participating school districts
to contribute to the group health and life benefits
fund (AS 39.30.095) based on rates set by the
commissioner of administration. (c) Requires
participating school districts to reimburse the state
for procuring excess loss insurance if the state
provides insurance benefits to school district
employees under a policy of self-insurance. (d)
Requires participating school districts to reimburse,
over a period not to exceed 10 years, the department
of administration's cost of paying insurance claims by
school district employees for the first four months
school district employees are covered by a policy of
self-insurance provided by the state of Alaska. (e)
Allows a participating school district to require its
employees to pay some or all of the money that this
bill section would require the school district to pay
to the state. (f) Defines "school employee" and
"school employer" for purposes of the bill section.
Section 5 AS 14.40.170(b) Page 6, Line 1 through
Line 15
Allows the Board of Regents of the University of
Alaska to establish and maintain university
participation in a policy of group insurance, selected
by the State of Alaska, that provides medical
insurance for university employees.
Section 6 AS 39.30.090(a) Page 6, Line 16 through
Page 8, Line 30
Clarifies that when an employee of a participating
governmental unit is covered by a group insurance
policy obtained by the Department of Administration
the employee spouse and dependent children are also
covered.
Section 7 AS 39.30.090(b)(2) Page 8, Line 31
through Page 9, Line 3
Adds to the University of Alaska to the definition of
governmental unit applicable to section 6 of the bill.
Section 8 AS 39.30.090(b) Page 9, Line 4 through
Line 6
Add the definition of school district to AS 39.30.090,
which is amended by section 6 and 7 of the bill.
Section 9 AS 39.30.091 Page 9, Line 7 through Line
15
Authorizes the Department of Administration to provide
group medical care insurance coverage to school
district employees and employees of other governmental
unit by means of self-insurance.
Section 10 AS 39.30.091 Page 9, Line 16 through
Line 20
Requires the Department of Administration to procure
excess loss insurance in connection with providing
group medical insurance coverage to employees of
governmental units other than the state, and allows
the department to allocate the cost with the excess
loss insurance across all of those governmental units.
Section 11 The Uncodified law of the State of Alaska
Page 9, Line 21 through Line 25 Make sections 1- 8
and section 10 of the bill applicable to collective
bargaining agreements and other contracts that become
legally binding on or after the effective date of
those bill sections.
Section 12 The Uncodified law of the State of Alaska
Page 9, Line 26 through Page 10, Line 4
Require certain self-insured school districts to
transfer the closing balance of their self-funded
insurance reserve account soon after they enroll in a
health care plan administered by the state, and
requires that when transferred by a school district
these amounts will be applied to offset reimbursements
owed by that school district under AS 14.20.127(d), a
provision proposed in section 4 the bill.
Section 13 The Uncodified law of the State of Alaska
Page 10, Line 5 through Line 9
Authorizes the commissioner of administration to adopt
regulations necessary to implement the changes made by
the bill, to take effect on or after the effective
date of the changes made by the bill.
Section 14 The Uncodified law of the State of Alaska
Page 10, Line 10
Make sections 12 and 13 of the bill effective
immediately, subject to the restrictions set forth in
those bill sections.
Section 15 Page 10, Line 11
Makes the bill's provisions effective date July 1,
2024, except as provided in bill section 14.
4:53:17 PM
CHAIR TOBIN opened invited testimony on SB 110.
4:53:30 PM
SENATOR HUGHES asked to make a quick comment and said the
University of Alaska is not interested in participating. The
Department of Administration proposes needing three positions,
an investment of $300,000. However, if all the schools were to
join the pool, the savings could unofficially be $200 million.
She stated her belief that not all the districts are interested,
but the savings would be sizable and pay for the new positions.
4:54:21 PM
CHAIR TOBIN asked if the pool was open to other governmental
units, such as municipalities.
SENATOR HUGHES replied yes.
4:54:36 PM
LISA PARADY, Executive Director, Alaska Council of School
Administrators, Juneau, Alaska, said she regularly meets with
superintendents to discuss legislative matters and recently
sought their input on SB 110. She said there was substantial
interest in the proposed option.
Ms. Parady emphasized the Alaska Council of School
Administrators' position on the importance of providing health
insurance to employees for staff retention and recruitment. They
also encouraged solutions to address the state's long-term,
rising healthcare and health insurance costs, which SB 110 aims
to explore. The association supports various mechanisms to
decrease healthcare expenses, particularly for essential
workers, as controlling these costs would benefit the
recruitment and retention of effective educators and school
staff.
MS. PARADY provided context saying there was a survey conducted
in April of the previous year where 38 school districts
responded. Of these, 36 reported increases in healthcare costs
from FY 17 to FY 22 with many projecting further increases in FY
23. She cited examples of two rural districts. One experienced a
jump of 64.7 percent, while the other jumped 78.42 percent. She
also verified increases in places like Petersburg (15 percent
increase) and Haines (22 percent increase), demonstrating that
these cost challenges were not limited to remote districts.
4:58:29 PM
MS. PARDY highlighted that healthcare cost concerns were not
restricted to rural areas, pointing out a 10.8 percent increase
in Anchorage. She stressed the importance of addressing this
issue as it significantly impacts public education budgets and
diverts funds from classrooms to cover healthcare expenses. She
urged the committee to provide school districts with options to
address these rising costs so districts can direct needed
resources to classrooms.
4:59:58 PM
SENATOR KIEHL asked whether any Alaska school district maintains
a self-insurance pool.
5:00:46 PM
MS. PARDY replied some districts maintain pools and she would
provide the names of the districts to the committee.
5:00:56 PM
RANDY TRANI, Superintendent, Mat-Su Borough School District,
Palmer, Alaska, said there is a significant opportunity to
provide districts with an option or a chance to participate in a
healthcare mechanism that could result in substantial cost
savings. He pointed out that the Mat-Su Borough School
District's healthcare expenditure amounted to approximately $41
million, the largest expense after salaries. He further stated
that if the four unions hypothetically negotiate and take
advantage of the AlaskaCare option, there could be a potential
savings of about $5 million for the district and $2 million for
the employees, totaling approximately $7 million in savings. The
district's savings alone could potentially increase the base
student allocation (BSA) by $135 to $140. He stated that pooling
has been a priority for the board for the past three years and
has consistently been presented to the legislature. He
emphasized that the Mat-Su Borough School District strongly
supports this opportunity and would encourage other districts to
explore it as a viable possibility.
5:02:59 PM
SENATOR BJORKMAN asked how many lives are covered by the Mat-Su
Borough School District's plan.
MR. TRANI replied that there are approximately 2,400 employees
within all four unions. The lives covered would be more than
three times that amount.
SENATOR BJORKMAN inquired about the total cost of the plan per
employee.
MR. TRANI replied there are many bargaining units. The district
pays approximately $ 2,000 monthly for the largest bargaining
group, equating to $24,000 annually. The amount that employees
pay varies depending on which plan employees opt for. It ranges
from $ 4,000 to $ 6,000 per year for the district's largest
bargaining unit.
SENATOR BJORKMAN stated that there are often initiation costs
when a smaller pool of employees joins a larger pool. The
initiation costs cover risk reduction, stock loss, and
insurance. He asked whether the district anticipated an
initiation fee for joining AlaskaCare or whether the state would
absorb the cost.
MR. TRANI said he did not know the answer. The Mat-Su School
District supports SB 110 because it offers an option that has
not been available. Since the district does not have the option,
it has not spent resources examining the details of the option.
He stated there could be an initiation fee but he does not know
if SB 110 addresses it.
SENATOR BJORKMAN asked about the current total cost of the plan
per employee for AlaskaCare.
MR. TRANI offered his understanding that the cost for the state
is a little over $1,700 per month per employee. Employees may
add options. He added that he has heard that employee costs may
increase to $1,790 per month per employee.
5:05:35 PM
CHAIR TOBIN held SB 110 in committee.
5:06:20 PM
There being no further business to come before the committee,
Chair Tobin adjourned the Senate Education Standing Committee
meeting at 5:06 p.m.