Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/12/2023 03:30 PM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| SB110 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 110 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE EDUCATION STANDING COMMITTEE
April 12, 2023
3:34 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
CONFIRMATION HEARING(S)
State Board of Education and Early Development
James Fields - Glenallen
- CONFIRMATION ADVANCED
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 AND HELD
PRESENTATION: PARENTS AS TEACHERS PROGRAM
- ITEM REMOVED FROM AGENDA
PREVIOUS COMMITTEE ACTION
BILL: SB 110
SHORT TITLE: SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
SPONSOR(s): SENATOR(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)
04/03/23 (S) Heard & Held
04/03/23 (S) MINUTE(EDC)
04/12/23 (S) EDC AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JAMES FIELDS, Governor's Appointee
State Board of Education and Early Development
Glenallen, Alaska
POSITION STATEMENT: Testified as the governor's appointee to the
Education and Early Development Board.
SENATOR SHELLEY HUGHES, District M
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 110.
ELWIN BLACKWELL, School Finance Manager
School Finance and Facilities
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Provided an overview of the fiscal note OMB
2804 for SB 110.
SARA PERMAN, State Government Relations Manager
University of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Provided an overview of the fiscal note OMB
730 for SB 110.
BETSY WOOD, Chief Health Administrator
Division of Retirement & Benefits
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Provided an overview of the fiscal note OMB
2152 for SB 110.
KATHY LEARY, City Administrator
Gustavus, Alaska
POSITION STATEMENT: Testified by invitation on SB 110.
CLAYTON HOLLAND, Superintendent
Kenai Peninsula Borough School District
Soldotna, Alaska
POSITION STATEMENT: Testified by invitation on SB 110.
DAN POLTA, Superintendent
Denali School District
Healy, Alaska
POSITION STATEMENT: Testified by invitation on SB 110.
ACTION NARRATIVE
3:34:36 PM
CHAIR LÖKI TOBIN called the Senate Education Standing Committee
meeting to order at 3:34 p.m. Present at the call to order were
Senators Gray-Jackson, Kiehl, Bjorkman, Stevens, and Chair
Tobin.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
STATE BOARD OF EDUCATION AND EARLY DEVELOPMENT
3:36:25 PM
CHAIR TOBIN announced the consideration of the governor's
appointee James Fields to the State Board of Education and Early
Development.
3:36:57 PM
JAMES FIELDS, Governor's Appointee, State Board of Education and
Early Development, Glenallen, Alaska, stated his previous
experience includes serving on the Copper River School
District's board of education for 12 year and the State Board of
Education and Early Development for 10 years, having been
appointed by Governors Parnell, Walker, and Dunleavy. He said he
has six children all of whom had either gone through or were
going through the public school system in the Copper River
Valley.
3:37:50 PM
SENATOR GRAY-JACKSON expressed gratitude to Mr. Fields for his
willingness to be reappointed to the board. She noted that he
had served as a member of the State Board of Education and Early
Development for 10 years, with seven of those years as chair.
She asked whether, during his leadership, the State Board had
been successful in achieving its mission of providing an
excellent education for every student every day.
3:38:18 PM
MR. FIELDS stated that achieving the mission of providing an
excellent education for every student every day is challenging.
He indicated that the goal has not been reached but affirmed his
commitment to working towards it. He highlighted the progress
made through the READS Act and reading initiatives within the
department. He also emphasized the significance of tribal
compacting, citing legislation from the previous year as
potential pathways to reach the goal. He mentioned that creating
culturally relevant education was a complex endeavor but
believed that tribal compacting could lead the state in the
right direction.
3:39:05 PM
SENATOR GRAY-JACKSON asked Mr. Fields to describe two or three
barriers hindering the achievement of the board's mission and
his plans to address or remove the barriers if confirmed for
another term.
MR. FIELDS stated his belief that the lack of reading and
culturally relevant education are two key barriers to achieving
an excellent education every day. He expressed optimism that the
state is making progress, and addressing these challenges is a
matter of putting necessary measures in place and then
implementing them.
3:39:47 PM
SENATOR GRAY-JACKSON asked Mr. Fields to share a few of his
greatest achievements while serving on the board over the past
ten years.
MR. FIELDS explained that when he first joined the board, the
department was primarily seen as an organization focused on
compliance, ensuring that teachers had their certifications and
that districts complied with state regulations. He opined that
during his tenure on the board, this perception changed
significantly. The department transitioned from being primarily
compliance-focused to becoming an organization that provided
resources and services. While compliance remained a core
function, there was now a greater emphasis on outreach and
building partnerships with organizations like the Alaska
Superintendents Association and the Association of Alaska School
Boards. He said the goal was to transform the Department of
Education into a valuable resource for districts, moving away
from solely being viewed as a compliance department.
3:41:12 PM
SENATOR STEVENS expressed gratitude towards Mr. Fields and
acknowledged the crucial role he played in the development of
the Alaska Education Challenge and tribal schools. He
highlighted that while the legislatureinitiated programs, the
real effort came from the school board in implementing and
achieving them.
3:41:46 PM
SENATOR KIEHL pointed out that Mr. Fields chairs a board that is
responsible for hiring the commissioner, and it had been almost
10 months since Commissioner Johnson had informed the board of
his departure. Senator Kiehl inquired about the unusually long
period without a commissioner and asked Mr. Fields to provide
insight on the matter.
3:42:28 PM
MR. FIELDS responded by explaining that, as chair, he had
discussed the matter with the board members. He highlighted the
board's focus on important initiatives such as the READS Act and
tribal compacting, which had tight timelines for implementation.
Mr. Fields mentioned that neither he nor the other board members
were in a rush to appoint a commissioner, and they had consulted
with stakeholders who supported taking time to find the right
candidate. As initiatives like the READS Act and tribal
compacting progressed, the board's priority shifted. They
initially had a candidate, but that person withdrew, leading
them to rely on Acting Commissioner Teshner, who was well-versed
in the department and legislative matters. He noted that while
the commissioner appointment was on the board's radar, it had
not been a top priority compared to the other initiatives they
were focused on.
3:44:00 PM
SENATOR BJORKMAN wondered about the various boards operating
within the state government and their roles in aiding
departments and ensuring oversight. He emphasized the
significance of constructive discussions within effective
boards, highlighting their responsibility to represent the
diverse needs and experiences of all Alaskans. He inquired about
the state school board's approach to handling dissenting voices
and whether individuals felt comfortable expressing dissenting
opinions when the board took a particular position.
MR. FIELDS responded by seeking clarification on the question,
suggesting that he was attempting to understand it better before
providing an answer.
3:45:10 PM
SENATOR BJORKMAN asked whether the state school board was a
conducive environment for individuals to express their opinions
freely, especially when they held differing views on the issues
presented to the board.
MR. FIELDS stated he hoped individuals would feel comfortable
sharing their thoughts and opinions with the state school board.
He mentioned that, in the past, there has been openness to
public comments, and he expressed a desire for the board to
continue being receptive and attentive to such input.
3:45:50 PM
SENATOR BJORKMAN inquired if there were previous instances where
individuals who had spoken out on issues had faced scrutiny or
criticism for questioning the direction the majority of the
board favored.
MR. FIELDS replied yes, it could have happened.
3:46:31 PM
CHAIR TOBIN emphasized the significance of trust in the public
process and expressed concern about recent events at the state
board, particularly regarding Resolution 02-2023. She stressed
the importance of an open and inclusive public process for good
decision-making and the building of trust. She raised questions
about the public notice process for State Board of Education and
Early Development meetings and agendas, and how well the board
adheres to the Open Meetings Act.
3:47:25 PM
MR. FIELDS replied that while the usual notice period under the
Open Meetings Act was two weeks, in the case of Resolution 02-
2023, a board member had made a request to move the item forward
for consideration. The board reached out to the legal
department, seeking guidance on adding the item to the agenda.
Discussions with legal counsel confirmed that the entire process
was conducted in accordance with the law. He defended his
leadership, emphasizing that the final decision to honor the
board members request was determined by a vote from the board
members. He pointed out that altering agendas at short notice
was not a common occurrence within the board, and historical
records demonstrate that the public has consistently been able
to provide comments.
3:48:52 PM
CHAIR TOBIN said she examined the 2018 bylaws the board adopted.
She stated that Mr. Fields was directly responsible for
collaborating with the commissioner on the agenda items
concerning the resolution. Chair Tobin expressed her worries,
noting that there was no statutory authority enabling the
advancement of such a resolution or directing another
organization to compromise its values, including integrity,
respect, perseverance, leadership, teamwork, and inclusivity.
She questioned his beliefs in local control of education,
considering his extensive tenure as a board chair of a locally
elected school board. She sought to understand whether he still
believed locally elected school board members acted in the best
interest of students and why he had directed a state
organization to override local control.
3:49:50 PM
MR. FIELDS responded by emphasizing that his views were personal
since he was just one board member. He explained that the
resolution in question had been brought forth by a state board
member who believed it was essential for the safety of all
Alaska students. This was based on current scientific evidence
and information regarding what constituted safety,
competitiveness, and fairness. Mr. Fields clarified that he did
not want to speak on behalf of that board member, but stated his
belief that the members motivation was aligned with these
considerations as indicated by the members testimony. He
concluded by stating that, given the current scientific
understanding, the board felt it was necessary to pass the
resolution.
3:50:42 PM
CHAIR TOBIN inquired about the presence of medical or mental
health professionals during the discussion of Resolution 02-
2023.
MR. FIELDS replied that there were no medical or mental health
professionals present during the discussion. He pointed out that
the resolution lacked any associated regulations or policies and
merely expressed support. He explained that if there were
regulations or policies, there would be a more extensive public
comment process. Mr. Fields mentioned the Alaska School
Activities Association (ASAA) already has existing
classifications such as one, two, three, or four for competitive
sports like basketball. He argued that based on available
scientific information, the presence of a doctor in the room was
not necessary, as the board member responsible for the
resolution could access relevant scientific journals and
information independently. This research led to the creation of
the resolution.
3:51:52 PM
CHAIR TOBIN stated that she challenges the scientific basis of
the resolution, pointing out that there was significant research
in peer-reviewed literature indicating that many transgender
competitive sports policies lacked evidence-based support and
scientific grounding. She expressed concern about the
resolution's impact, noting that ASAA was currently proposing
bylaws changes that could prevent certain students from
participating in athletics, contradicting its stated values and
motto, "win for life."
CHAIR TOBIN said she found the passing of the resolution deeply
troubling, as it appeared to override the authority of local
school boards and the policymakers present in the room, while
also not allowing for prior knowledge or statutory authority.
She particularly highlighted her concerns in light of high rates
of suicide and self-harm among non-binary and transgender
students.
3:53:01 PM
CHAIR TOBIN opened public testimony on the governor's
appointment of Mr. Fields to the State Board of Education and
Early Development; finding none, she closed public testimony.
3:53:19 PM
SENATOR KIEHL stated that when he served on the State Board of
Education and Early Development his responsibilities included
handling public notices for meetings and regulations. He
expressed deep concern about the Mr. Fields response, as there
was sufficient time to consult with lawyers about adding the
resolution but not enough time to provide any public notice. He
said he found this troubling because it contradicted both the
board's bylaws and the spirit of the Open Meetings Act, which
emphasized the importance of Alaskans having the right to know
and influence government decisions. He mentioned that during his
tenure, any attempt to bring an item before the board without
public notice would have been ruled out of order by the chairs.
3:54:49 PM
CHAIR TOBIN solicited a motion.
3:55:00 PM
SENATOR STEVENS stated that in accordance with AS 39.05.080, the
Senate Education Committee reviewed the following and recommends
the appointments be forwarded to a joint session for
consideration:
State Board of Education and Early Development
James Fields - Glenallen
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.
3:55:16 PM
CHAIR TOBIN found no objection and the name was forwarded.
3:55:24 PM
At ease.
SB 110-SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR
3:57:34 PM
CHAIR TOBIN reconvened the meeting and 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."
3:57:57 PM
SENATOR HUGHES, District M, Alaska State Legislature, Juneau,
Alaska, introduced Ms. Gonzalez as an intern working in her
office. She noted that Juneau School District Superintendent Ms.
Weiss, Association of Alaska School Boards Executive Director
Mr. Garrison, and Ketchikan Gateway Borough Mayor Mr. Dial were
unavailable to testify in person and submitted written testimony
in support of SB 110. She said there is a broad spectrum of
support across the state for SB 110.
SENATOR HUGHES explained that if SB 110 were to pass, it would
offer school districts the opportunity to consider joining the
state employee health insurance pool. In addition to being a
quality plan, it has the potential for significant cost savings.
As discussed in a previous hearing, the estimated cost for both
the employer and employee state health insurance plan is
approximately $20,000 per year. For Mat-Su, the combined cost
for employers and employees is $28,000 - $30,000 per year. This
is a cost differential of $8,000 - $10,000 per year.
Superintendents have expressed interest in the cost-saving
option that SB 110 could provide.
4:00:56 PM
ELWIN BLACKWELL, School Finance Manager, School Finance and
Facilities, Department of Education and Early Development
(DEED), Juneau, Alaska, provided an overview of the fiscal note
OMB 2804 for SB 110. He stated that the fiscal note for the
Department of Education indicated an indeterminate fiscal
impact. The fiscal note stated that there was uncertainty
regarding the number of districts that would choose to
participate in the program and the timeframe for their
participation. This uncertainty was because SB 110 made
participation contingent on ratification by the unions
representing teachers and other district members, and the timing
of such ratification was unknown.
4:02:06 PM
SARA PERMAN, State Government Relations Manager, University of
Alaska, Fairbanks, Alaska, provided an overview of SB 110 fiscal
note OMB 730. She said the university presented a zero fiscal
note because SB 110 made the proposed plan an option for the
university. She said the university had internally decided not
to take advantage of this option. She informed the committee
that in 2020, the university did a study in collaboration with
the Department of Retirement and Benefits and a consultant. The
study revealed that switching from the University of Alaska (UA)
Choice health plan to the AlaskaCare plan would cost the
university $9 - $16 million to implement. While it might lower
health insurance premiums, it would also eliminate the $600
wellness rebate provided to employees annually, as well as other
retirement benefits included in their current package.
4:03:43 PM
BETSY WOOD, Chief Health Administrator, Division of Retirement &
Benefits, Department of Administration, Juneau, Alaska, provided
the following overview of SB 110 fiscal note OMB 2152:
[Original punctuation provided.]
The Division also anticipates a fiscal impact to claim
and program costs for the AlaskaCare employee plan,
however that impact requires an actuarial analysis and
will be discussed in a separate fiscal note.
This bill would enable governmental units (school
districts, municipalities, the University of Alaska,
other political subdivisions, and the North Pacific
Fishery Management Council) to join in self-insured
group health insurance plans administered by the
Department of Administration for State employees. This
type of health coverage is currently provided to State
employees through the AlaskaCare health plans.
The Division will require three permanent employees,
two Retirement and Benefits Technician 2 positions and
one Retirement and Benefits Specialist 2
(personalservices) plus computer, phone, cubicle,
supplies (commodities) to provide billing and
accounts-receivable supportservices to manage
enrollment, eligibility, and employee premium and
employer contribution payments from participating
governmental units. These positions should begin in
mid FY2024.
The Division will incur costs related to required
system coding changes (both internal Division systems
and third-party contracted partners), contracted
actuarial consultants, and support from the Department
of Law for legal and regulatory review (services).
These costs are anticipated to largely accrue during
the first two fiscal years, however some consulting
services will be ongoing.
The Department would need to promulgate regulations as
a result of the passage of this bill. These
regulations should be in place by the effective date
of the bill (July 1, 2024), as they will articulate
the process and protocol for governmental units
seeking to join the AlaskaCare employee health plan.
4:05:44 PM
SENATOR KIEHL asked Ms. Wood to clarify the assumptions the
department used to formulate the fiscal note. Specifically, he
inquired about the department's estimates regarding the number
of additional covered lives that might result from the proposed
changes. He provided an example, suggesting that if every school
district and municipality were to participate, it would likely
be unmanageable with only three people. He sought information on
the working assumptions used in the fiscal note's estimation.
4:06:17 PM
MS. WOOD replied that it was unlikely that three people could
handle the workload if every eligible group joined. However,
since SB 110 made participation voluntary, the department
assumed that not every group would choose to join. She mentioned
that several groups expressed disinterest. Therefore, the
department anticipated a slower uptake, which it believed could
be managed with three staff members. She said the department was
looking at groups joining that consist of approximately 3,000 to
4,000 additional covered lives. This approach aimed to establish
systems with a single new employer or group rather than with
each individual new enrollee.
4:07:14 PM
SENATOR KIEHL stated that her response provided an order of
magnitude.
4:07:21 PM
CHAIR TOBIN announced invited testimony on SB 110.
4:07:36 PM
KATHY LEARY, City Administrator, Gustavus, Alaska, expressed
support for SB 110 because it would provide smaller
municipalities with more options for healthcare benefits. She
explained that currently, the city could only afford to offer
health insurance for employees. She mentioned the desire to
attract and retain employees by expanding healthcare to
employees families, as some opt out due to more affordable
insurance options elsewhere. She cited an example of losing a
city clerk to an organization with better benefits.
Ms. Leary also mentioned concerns about potential regulations
that might exclude small cities like hers from participation,
specifically addressing minimum threshold requirements. She
believed that being part of a larger pool would result in cost
savings for both the school district and the city. Additionally,
she advocated for the state to invest in a few positions to
manage enrollment.
4:11:17 PM
SENATOR KIEHL asked how much Gustavus pays for city employee
insurance.
4:11:38 PM
MS. LEARY mentioned that the city paid approximately $800 per
month for insurance. She acknowledged that the state plan had
similar costs, but Gustavus employees were responsible for 20
percent of the benefit's cost. She expressed hope that with a
larger pool, this expense might become more feasible, and there
could be potential cost reductions. Ms. Leary stated her belief
that the city might be able to cover both employees and their
families if costs were less than the current option of $28,000
per year.
4:12:18 PM
SENATOR KIEHL asked whether the insurance policy met health care
law standards or if it was a catastrophic plan.
MS. LEARY replied that she thinks the policy meets health care
law, however the city has so few employees that it is exempt
from compliance. Gustavus purchased the plan it could afford
through Alaska Public Entity Insurance (APEI). Some employees
have expressed a preference for a stipend. The employees are
part-time, and their earnings are low enough that they would
qualify for better insurance through the Affordable Care Act
(ACA). However, they cannot purchase through ACA when they have
a plan through the city.
4:13:43 PM
CLAYTON HOLLAND, Superintendent, Kenai Peninsula Borough School
District, Soldotna, Alaska, stated that healthcare costs in
Alaska are the highest in the nation, reaching about five times
the national average. Alaskans spend the most per resident, have
the highest insurance premiums, and have seen overall spending
grow much faster than the rest of the US. Alaskan's have spent
more out-of-pocket dollars on healthcare costs than any other
state. Escalating healthcare costs affect the paychecks of
employees and strain the district's overall budget. It hinders
the recruitment of new staff and the retention of existing
school personnel in Kenai and across Alaska. For Fiscal Year
2024, the Kenai Peninsula rural school district allocated $22
million for healthcare, which constituted approximately 16
percent of its total general fund budget.
MR. HOLLAND emphasized the importance of the opportunity to join
a healthcare plan with a large pool of employees, not only for
the Kenai Peninsula Borough School District but also for other
school districts in Alaska.
4:15:41 PM
DAN POLTA, Superintendent, Denali School District, Healy,
Alaska, expressed his support and urged the legislature to pass
SB 110. He highlighted that the cost of providing adequate
healthcare coverage for teachers and support staff was a
significant financial burden for school districts. Specifically,
the Denali school district allocated approximately 12 percent of
its annual budget to cover health insurance expenses. He
emphasized the importance of taking measures to reduce these
costs to allow school districts to allocate more funding towards
the essential task of educating children.
MR. POLTA emphasized the importance of robust health insurance
in retaining and attracting high-quality educators for Alaska's
students. He also stressed the benefits of limiting healthcare
insurance costs for employees. In Denali and other districts,
teachers pay a percentage share of their health care premiums.
Lower premiums would mean that more of a teacher's salary
remained with them and their families. He advocated for the
passage of SB 110, as it would offer districts more choices for
employee coverage, enabling the Denali Borough School District
to make efficient and effective decisions regarding healthcare
coverage.
4:17:28 PM
CHAIR TOBIN opened public testimony on SB 110; finding none, she
closed public testimony.
4:18:08 PM
CHAIR TOBIN held SB 110 in committee.
4:18:39 PM
There being no further business to come before the committee,
Chair Tobin adjourned the Senate Education Standing Committee
meeting at 4:18 p.m.