Legislature(1997 - 1998)
02/26/1998 06:10 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE 26 February 1998 6:10 P.M. TAPES SFC-98, #50, Sides A and B 51, Sides A and B CALL TO ORDER Senator Bert Sharp, Co-chair, reconvened the Senate Finance Committee at approximately 6:10 p.m. PRESENT In addition to Co-chairman Sharp, Senators Pearce, Torgerson and Adams were present when the meeting was reconvened. Senators Phillips and Donley arrived respectively thereafter. Also Attending: Senator Gary Wilken; Senator Rick Halford; Richard Cross, Deputy Commissioner, Department of Education; Eddy Jeans, Manager, School Finance Section, Education Support Services, Department of Education; Carl Rose, President, Association of Alaska School Districts; John Cyr, President, NEA-Alaska; Dee Olin, Koyokuk School District, Ruby; April Monroe, student representative, Koyokuk School District, Ruby; Michelle Callahan, school board member, Unalaska; Dave Tonkovich, Fiscal Analyst, Division of Legislative Finance; and aides to committee members and other Legislative members. Via Teleconference: (see list under summary information) SUMMARY INFORMATION SENATE BILL NO. 36 "An Act relating to transportation of public school students; relating to school construction grants; relating to the public school foundation program and to local aid for education; and providing for an effective date." Co-chair Sharp reconvened the Senate Finance Committee for the third time at approximately 6:10 p.m. He outlined the schedule for taking public testimony on SB 36, noting there would be a three-minute time limit. He also announced fax number and mailing address for those whom wished to submit their comments in writing. At this point, Senator Adams noted his opposition to SB 36 as it was. He said the McDowell Study should not be used as the basis for writing the foundation formula. There were at least eleven disclaimers throughout the study. He asked what the purpose of the study was and said that it was not a model to make allocations to school districts on. Senator Adams said: "The way we're going is not simplicity." He voiced concern that under this bill funding for the North Slope School District was being cut out. He felt the teacher salary outline was incorrect and asked for a review of the salary information published in the McDowell Study. There were questions specifically page 63 and 76 of the study and Senator Adams said he would get the questions down in writing so they could be answered when the McDowell Group comes in again before the committee. He voiced further concern for capping, vocational education, etc. and said everyone should work together to solve this matter. Co-chair Sharp indicated the reason for letting Senator Adams comment on the bill at this time and said he would continue into the public testimony portion as soon as possible. Richard Cross, deputy commissioner, Department of Education was invited to join the committee. Eddy Jeans, Manager, School Finance Section, Department of Education was invited to join the committee. Mr. Jeans reviewed the department spread sheet for the committee members. Upon completion of the review he said the department was open to advice. Senator Torgerson voiced concern that the spread sheet was not showing REAA contributions and Senator Phillips responded that the picture was not yet complete. Senator Torgerson further asked if there was a transition period on the North Slope School District and Mr. Jeans responded that the transition was contingent on the school district contribution. Senator Wilken asked about the changes in CSSB 36 to the current formula. Mr. Jeans said there were no changes. In response to a question from Senator Adams, he said single site schools were not included and they had been directed to not include them. Senator Adams asked if then single sites should just be closed down. Senator Wilken said the matter was taken care of in adjusted ADM. Mr. Cross said the work draft was not clear on application of how collected tax applied or if it should be returned to REAA. Again, in response to Senator Adams, he said there would be some changes to the CS work draft. Senator Adams further questioned the constitutionality of taxation. Mr. Cross said he and Mr. Jeans were not lawyers and therefore could not respond to the constitutionality of taxation. Senator Adams went on to ask about correspondence students and out of district students and said this situation must be looked at. Co-chair Sharp thanked Senator Adams and the Department of Education for their discussion. He then proceeded to take public testimony via teleconference and then noted he would take testimony from those signed up in the committee room. The following list indicates the name of the site and individual in the sequence they testified via teleconference: Leonard Lampe, from Nuiqsut, opposed any legislation that would change school funding. Leland Dishman, from Barrow, North Slope Borough School District, opposed SB 36. Jack Sherman, from Barrow, North Slope Borough School District, opposed SB 36. Sue Moore, from Kenny Lake, stated that the students in the State were our future leaders. Ron Drathman, from Homer, referred to page seven of CSSB 36. Senator Phillips said that if he did not have the correct draft version that he would be happy to provide that tomorrow. Senator Torgerson asked Mr. Drathman to get with the school board, come up with questions and then he would get them answered. Deborah Germano, from Homer, representing the Kenai school board said they opposed the bill. Linda Erickson, from Dillingham, representing Parent, Inc. said they opposed the bill. She said she lived in the bush with a three-year old deaf daughter with special needs. Beverly Williams, from Bethel, representing LKSD, said most of the money in her district was used for bilingual purposes. Ninety percent of the students in the district speak Yupik. William Ferguson, from Bethel, shared successes in LKSD. Robert Herron, from Bethel, also LKSD. Cheri Davis, from Ketchikan, opposed SB 36. She noted for the committee a reduced school board and the fact that they had no superintendent. Loren Stanton, from Ketchikan, representing Ketchikan PTA, said that Ketchikan School District had suffered greatly in the last ten years. Ray Griffith, from Ketchikan, representing the Southeast Island School District, had questions on several pages of the bill, and also including section 31 of the draft. He said a time line was critical. Rick Kinijoski (ph), from Unalaska, representing the Unalaska School Board, said they opposed the bill. Edwin Morris, from Nenana, President of the Nenana School District, said they were at the bottom of the bucket. Terry Bentley, from Nenana, Superintendent of the Nenana School District, said they opposed the bill. Ollie Bates, from Slana, special education teacher, opposed the bill. Frances Evanson, from Hinchinbrook Island, said her family was in an REAA district and felt her family had benefited from their education. She noted that all districts, however, should have education as their priority. Tom Church, from Cordova, member of the Cordova City Council said he had met with the Cordova School District Superintendent. They opposed the bill. Torie Baker, from Cordova, CDFU, asked how the bill would be implemented if passed. Beth Deeter from Seward was concerned about the administrative cap, and also asked if the employee tax would be temporary or not. Senator Torgerson responded briefly. Carol Sturgulewski from Seward said she opposed the bill. There had been severe cuts in teacher salary and staff over the past ten years. There was a need for foundation formula increase. Ginger Jenkinson from Anchorage said this was an unfair formula. She opposed the bill. Charles E. McKee from Anchorage testified. John Angiak from Bethel, LKSD, testified. John Thomas from Ketchikan, representing the Kethikan Greater Borough School District said they had lost at least thirty-two positions. The district worked very hard and wanted to ensure a hold harmless provision due to the economic losses the community was suffering because of the closure of the pulp mill. Robert McClory from Ketchikan, interested parent and school counselor noted the cumbersome nature of the formula and there was little justice afforded. He noted high school funding problems and wants to see schools receive this adequate funding. Charlie Branch from Cordova, representing self said new sources of revenue should be found. Dee Olin from Ruby, representing the Koyokuk School District testified in Juneau. She said this bill would have a far- reaching impact to rural Alaska. She said they were all willing to pay their taxes, but would like to see it fair. She said there was no equity in this bill and that more money was needed for education. School Districts across the State were in trouble. April Monroe, student representative to Koyokuk School Board from Ruby testified in Juneau. She said this bill complicated education in Alaska. "Students are Alaska's future", she said. She said education was priceless, however, there was blatant discrimination. Noting the many rural area problems she asked who would be accountable for the aftermath of the bill. She said there were five hundred fifty children in her school district and they were all at risk. The bill would deal an incredible blow to culture, children and their future and that was not o.k. Co-chair Sharp congratulated Miss Monroe on her outstanding speech. (applause by committee members and public) Carl Rose, president, Alaska School Districts Association was invited to join the committee. He noted that Miss Monroe would be a hard act to follow. He said children of the State come first and there would have to be some accountability. In referring to the Department of Education spread sheet (page 1) he commented on the impact to the local school districts. However, he said the Association was willing to work with the committee and Department of Education in coming to some formula acceptable to all. Michelle Callahan, school board member from Unalaska was invited to join the committee. She said they opposed the bill. There should be better funding for education available. The McDowell study was not credible. Further the issue was near and dear to all hearts and they would remain true to the mission for equal education for all Alaska's children. Al Weinberg, representing Single Site Consortium was invited to join the committee. He limited his comments to the distribution of students in Alaska, REAA tax and the unnecessary redrawing of REAA boundaries. ADJOURNMENT Co-chair Sharp continued the public testimony portion of the bill to tomorrow evening 4:30 p.m. to 6:30 p.m. He said Senate Finance Committee would reconvene again in the morning at 9:30 a.m. The meeting was recessed at approximately 8:35 p.m. SFC-98 -6- 2/26/98
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