Legislature(2005 - 2006)SENATE FINANCE 532

01/11/2006 09:00 AM Senate FINANCE


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09:01:35 AM Start
09:04:05 AM Education Financing
10:07:07 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation: Education Financing by TELECONFERENCED
DEED Commissioner Roger Sampson
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                         January 11, 2006                                                                                     
                             9:01 a.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Lyda  Green convened the  meeting at approximately  9:01:42                                                            
AM.                                                                                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Con Bunde, Vice Chair                                                                                                   
Senator Bert Stedman                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Fred Dyson                                                                                                              
Senator Donny Olson                                                                                                             
                                                                                                                                
Also  Attending:     ROGER  SAMPSON,  Commissioner,   Department  of                                                          
Education and  Early Development;  LES MORSE, Director, Division  of                                                            
Assessment  and Accountability,  Department  of Education and  Early                                                            
Development                                                                                                                     
                                                                                                                                
Attending  via  Teleconference:     There  were  no  teleconference                                                           
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
[Note:  Due  to  computer  malfunctions  only  the  first  and  last                                                            
timestamps  are  connected   to  the  For  The  Record  (FTR)  audio                                                            
recording. The  other timestamps are for indication  purposes only.]                                                            
                                                                                                                                
^Education Financing                                                                                                            
                                                                                                                                
9:01:35 AM                                                                                                                    
                                                                                                                                
Presentation on Education Financing                                                                                             
By Commissioner Roger Sampson                                                                                                   
Department of Education and Early Development                                                                                   
                                                                                                                                
9:02:12 AM                                                                                                                      
                                                                                                                                
ROGER  SAMPSON,  Commissioner,  Department  of Education  and  Early                                                            
Development,  utilized  a  PowerPoint  presentation  titled  "Alaska                                                            
School Performance Incentive Program" [copy on file.]                                                                           
                                                                                                                                
          Slide 1                                                                                                               
          Alaska School Performance Incentive Program                                                                           
          Measuring Individual Achievement                                                                                      
                                                                                                                                
Mr. Sampson began as follows.                                                                                                   
                                                                                                                                
     I hope  to share  with you today  a concept  and a program  I'm                                                            
     very excited about  the potential and the impact it can have on                                                            
     students in Alaska.                                                                                                        
                                                                                                                                
     It's titled, "Alaska  School Performance Incentive Program" and                                                            
     clearly this program  is about "incentifying" for educators and                                                            
     paying  when  we can  accelerate  student  learning  much  more                                                            
     rapidly  than  currently  exists.  We're  talking  about  as  a                                                            
     program   that  provides  an  environment  for   great  student                                                            
     achievement.   We're  talking  about  targets  being  based  on                                                            
     growth,  which is much  different than  many other models.  I'm                                                            
     going to  talk extensively about "wide growth"  and why this is                                                            
     the real leveling factor and balancing factor.                                                                             
                                                                                                                                
     It's  about  providing an  opportunity  to use  the  tremendous                                                            
     expertise  that exists in our schools today in  Alaska. We have                                                            
     some fantastic  educators with great skills,  innovative ideas,                                                            
     but  fostering  the  environment  to have  them  work  together                                                            
     towards a common goal.                                                                                                     
                                                                                                                                
9:04:05 AM                                                                                                                    
                                                                                                                                
          Slide 2                                                                                                               
          What is the Program?                                                                                                  
             · Performance incentive pay for improved student                                                                   
                achievement                                                                                                     
             · Entire staff in a school receive incentive (all or                                                               
                none)                                                                                                           
             · Target based on growth, or sustained advanced                                                                    
                performance of student achievement                                                                              
             · All schools qualify if they meet growth target                                                                   
             · Based on a reliable tool aligned to the Grade Level                                                              
                Expectations                                                                                                    
             · Program is unlike merit pay programs which cause                                                                 
                conflict rather than cooperation                                                                                
                                                                                                                                
Mr. Sampson:                                                                                                                    
     It's about  impacting an entire staff of a building.  This is a                                                            
     very different component  that I'll speak in detail about. It's                                                            
     not  about one  teacher versus  another; it's  about an  entire                                                            
     school, an  entire staff working together to  where they either                                                            
      succeed as a team or they don't hit the mark as a team.                                                                   
                                                                                                                                
     It would be available  for every school. Not just some schools;                                                            
     not just large, not  small, not just rural, not urban. It would                                                            
     be available  for any school that hits the target.  So it's not                                                            
     like grading on a curve. It's grading on a standard.                                                                       
                                                                                                                                
     It's based on a reliable  tool that's aligned to Alaska's grade                                                            
     level expectations.  And it's about building  partnerships with                                                            
     both people  within the building,  outside of the building  and                                                            
     doing things  differently than we have done day  in and day out                                                            
     over the past decades.                                                                                                     
                                                                                                                                
     This is a program about increasing accountability.                                                                         
                                                                                                                                
9:04:12 AM                                                                                                                    
                                                                                                                                
          Slide 3                                                                                                               
          Why have the Program?                                                                                                 
             · Accelerate growth in student achievement                                                                         
             · Stimulate the educational system by using a proven                                                               
                private sector concept                                                                                          
             · Utilize and empower expertise within the schools to                                                              
                work together for the benefit of Alaska students                                                                
             · Increase return on Alaska's investment in public                                                                 
                schools                                                                                                         
                                                                                                                                
Mr. Sampson:                                                                                                                    
     The  first  question  that comes  to  mind  is "Why  have  this                                                            
     program?"  I  think there's  some  real  critical  needs for  a                                                            
     program  like this. One,  we have to  find a way to  accelerate                                                            
     student growth  and student achievement in this  state as we do                                                            
     across the nation.                                                                                                         
                                                                                                                                
     Yes, we've  had some great increases in the number  of students                                                            
     showing  proficiency in reading,  writing and mathematics.  But                                                            
     we also  know that the  bar and the need  for students  to know                                                            
     more  and be able  to apply  those skills  is increasing  every                                                            
     single  year. So we  need a methodology  that accelerates  this                                                            
     achievement level.                                                                                                         
                                                                                                                                
     We  need a way  to stimulate  the educational  system to  use a                                                            
     proven, private  sector practice. Now not every  private sector                                                            
     practice  is going to be effective in the public  sector, but I                                                            
     absolutely believe  that this one does apply, can apply, and of                                                            
     all  the  private  sector practices  to  induce  and  stimulate                                                            
     increases  in hitting the targets, this is one  that's probably                                                            
     been  used  more in  this  country than  any  other  particular                                                            
     strategy. It's time  that we give this an attempt in the public                                                            
     sector.                                                                                                                    
                                                                                                                                
     It  will  empower  schools  and  give  them a  reason  to  work                                                            
     together.  We need to  capture that stability  that we  have in                                                            
     many of  our schools that are  not certificated teachers.  What                                                            
     I'm talking  about there is any  many of our schools  the great                                                            
     connection  between kids and adults might be  between a student                                                            
     and  an instructional  aide, might be  between a custodian,  it                                                            
     might be between secretary,  and clearly those individuals have                                                            
     a different connection  to parents in the community often times                                                            
     than  do teachers and  principals. So  we need to capture  that                                                            
     stability  and that great connectivity there  and use it in how                                                            
     we accelerate student learning.                                                                                            
                                                                                                                                
     Any  finally, we need  a program like  this because we  need to                                                            
     increase   the  return   on  Alaska's   investment  in   public                                                            
     education.                                                                                                                 
                                                                                                                                
          Slide 4                                                                                                               
          Benefits                                                                                                              
             · No risk program: no performance = no cost                                                                        
             · Create a strong workforce for Alaska                                                                             
             · Enhance teacher recruitment efforts                                                                              
             · Accountability: directly linked to high levels of                                                                
                achievement                                                                                                     
             · Promote collaboration, effective instruction and                                                                 
                spread responsibility across grade levels and                                                                   
                content areas                                                                                                   
             · Involve all staff: currently in large high schools                                                               
                only 15% of staff are responsible for reading,                                                                  
                writing and mathematics                                                                                         
                                                                                                                                
Mr. Sampson:                                                                                                                    
     Benefits  to the program; this is my favorite  part because the                                                            
     benefits  are great. Most importantly  this is a program  that,                                                            
     if  it's not successful,  for  a variety of  reasons that  I'll                                                            
     talk about,  if we're unable  to move our students to  advanced                                                            
     levels of achievement  than there is no liability or no cost to                                                            
     the State.  So it's a no-risk  program to the State  of Alaska.                                                            
                                                                                                                                
     We  need to  have  the benefits  of  increasing  the number  of                                                            
     students  that graduate  from  Alaska schools  with the  skills                                                            
     that prepares  them to transition  into the workforce,  whether                                                            
     that's  vocational   training,  whether  that's  postsecondary                                                             
     education,  that's  a benefit that  I think  this program  will                                                            
     provide.                                                                                                                   
                                                                                                                                
     It creates a strong  workforce for Alaska. As we know we've got                                                            
     many  jobs that are  not able  to be filled  by Alaskans  right                                                            
     now.                                                                                                                       
                                                                                                                                
     Another  benefit to  this program  is it needs  to enhance  our                                                            
     teacher recruitment  effort. We have a national  shortage we're                                                            
     looking at.  Alaska is not exclusive to that  shortage. We have                                                            
     two  things that this  would provide.  One, I think this  would                                                            
     help  Alaska attract  the  best and  the brightest,  while  the                                                            
     mentoring  program  will  help  us  retain  the  best  and  the                                                            
     brightest  once  we acquire  them.  So I  think  that's a  huge                                                            
     benefit for Alaska.                                                                                                        
                                                                                                                                
     This  is  a  program  that  links  accountability  directly  to                                                            
     student  achievement.   Something  we've  not  had  before.  It                                                            
     promotes collaboration,  effective instruction and it spreads -                                                            
     most importantly  - it spreads the responsibility  for the core                                                            
     foundation  contents: reading  writing and mathematics,  across                                                            
     the entire staff.                                                                                                          
                                                                                                                                
     If we look at a typical  comprehensive large high school today,                                                            
     we've  agreed  in  this  state and  across  this  nation,  that                                                            
     there's  three content areas  that are core. Some states  agree                                                            
     there's  more, but everyone  agrees that  reading, writing  and                                                            
     mathematics,  or  the  ability  to  compute,  are foundational                                                             
     content areas.  All of our students must have  those. Right now                                                            
     we are measuring  those on an annual basis. If  you look at the                                                            
     comprehensive  high school,  there's only  about 15 percent  of                                                            
     the staff that have  direct responsibility for reading, writing                                                            
     and  mathematics. If  these are core  and foundational,  and in                                                            
     fact  the student's ability  to be proficient  at those,  has a                                                            
     great  impact  on  their  ability  to be  successful  in  other                                                            
     content areas:  history, sciences, home economics,  vocational,                                                            
     a  number of those  courses,  then everybody  has to take  some                                                            
     responsibility for reading, writing and mathematics.                                                                       
                                                                                                                                
     This program  will help create  the environment to spread  that                                                            
     responsibility  across  the entire staff.  Every content  area,                                                            
     every grade level.                                                                                                         
                                                                                                                                
9:09:14 AM                                                                                                                    
                                                                                                                                
          Slide 5                                                                                                               
          Why Measure Growth?                                                                                                   
              · Focus on individual student learning                                                                            
              · Expect high performing and low performing students                                                              
                 to grow in achievement                                                                                         
              · Provide visible and objective targets to meet                                                                   
              · Incentive for all school staff to team together,                                                                
                 think creatively, and design systems to improve                                                                
                 student performance                                                                                            
              · Evaluate school performance                                                                                     
              · Focus is on improving each student from where he                                                                
                 or she is to proficiency and beyond                                                                            
                                                                                                                                
Mr. Sampson:                                                                                                                    
     This  is a critical  component of this  project. This  is about                                                            
     "why  measure growth"  and "what  growth to  measure". This  is                                                            
     very  different  from what  we put  out every  year under  [the                                                            
     federal]  No Child Left  Behind [Act]  (NCLB) and schools  that                                                            
     meet adequate  yearly progress. That particular  model measures                                                            
     groups  of students  and  not the  same group  of students.  It                                                            
     compares  a group  of fourth graders  from last  year to  a new                                                            
     group of fourth graders this year.                                                                                         
                                                                                                                                
     This proposal  is about measuring  individual student  growth -                                                            
     every student  in the school, every student in  the state - and                                                            
     comparing  that growth  of that  student from  current year  to                                                            
     previous year.                                                                                                             
                                                                                                                                
     As  Alaskans,  we expect  every student  to  grow and  achieve.                                                            
     Whether  they're the lowest performing  student or the  highest                                                            
     performing  student, we expect  growth from our kids.  We don't                                                            
     want them  to become stagnant.  That's one thing that  NCLB has                                                            
     missed:  that kids  go off the  radar screen  once they  become                                                            
     proficient.  That's  not  acceptable  to  Alaskans.  We  expect                                                            
     growth from all of them.                                                                                                   
                                                                                                                                
     When  you  look at  individual  growth  this begins  to  foster                                                            
     meeting  individual  needs  of kids.  When  you begin  to  meet                                                            
     individual  needs  of kids, you  have a  whole different  level                                                            
     engaging  from that student. When you meet individual  needs of                                                            
     students,  you see changes in dropout rate for  the better. You                                                            
     see  increases  in  graduation  rates  because  kids  begin  to                                                            
     understand  how they fit  into the system  and their needs  are                                                            
     met.                                                                                                                       
                                                                                                                                
     If  we don't  focus on  individual  needs of  students in  this                                                            
     program, based on  data we get from assessment, then there's no                                                            
     way  that the  school  will be  able  to meet  the performance                                                             
     incentive. So it forces focuses instruction.                                                                               
                                                                                                                                
9:11:21 AM                                                                                                                    
                                                                                                                                
          Slide 6                                                                                                               
          How Growth is Measured                                                                                                
             · How did "Student A" do in the current year compared                                                              
                to the previous year                                                                                            
             · How did all of the students perform within the                                                                   
                school                                                                                                          
             · Did the school demonstrate growth based on a                                                                     
                comparison of the same individual students from                                                                 
                current year to the previous year                                                                               
                                                                                                                                
Mr. Sampson:                                                                                                                    
     How we're  going to measure this  growth. Again it's  different                                                            
     from NCLB  because we're looking  at every student.  What we're                                                            
     going  to do is  compare a  "student A" for  example, how  that                                                            
     student  did this  year compared  to the  previous year.  We're                                                            
     also  going to look  at how students  perform within an  entire                                                            
     school.                                                                                                                    
                                                                                                                                
     We'll  be able to break those  groups of students down  any way                                                            
     we want with  any factors. We could take just  a certain grade,                                                            
     we  could  take  a certain  ethnicity,  we  could  take  socio-                                                            
     economic  status because  we have the  ability with our  unique                                                            
     identifier  to  track  those  kids  anywhere  in the  state  by                                                            
     groups.                                                                                                                    
                                                                                                                                
     We can also  look, as we're proposing here, how  that school as                                                            
     a whole  did from one  year to the next  working with  the same                                                            
     students not different students.                                                                                           
                                                                                                                                
     When  we measure  the same students  from one  year to  another                                                            
     this  is especially important  in Alaska  because of our  small                                                            
     schools.   If  you  don't  measure   individual  students   but                                                            
     different  groups, you get very  distorted results in  that the                                                            
     smaller the school  or the more mobile the population. So while                                                            
     the group  comparison seems to make sense on  a national level,                                                            
     it doesn't  make sense many times  for Alaska's small  schools.                                                            
                                                                                                                                
     And  finally,   [the]  most  important  part  about   measuring                                                            
     individual  growth, is when you measure individual  growth, you                                                            
     create an environment  for the parent of those children to have                                                            
     a  meaningful dialog  with school  and school  staff about  how                                                            
     their child's doing and how to enhance that.                                                                               
                                                                                                                                
9:13:04 AM                                                                                                                    
                                                                                                                                
          Slide 7                                                                                                               
          Value  Table                                                                                                          
          [Table allotting points for the Current Year Level based                                                              
          on the Previous Year Level as follows:                                                                                
                                                                                                                                
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points: 0                                                                                                             
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous  Year Level: Far  Below Proficient Plus                                                                      
          Points:  140                                                                                                          
                                                                                                                                
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous Year Level: Below Proficient Minus                                                                           
          Points:  170                                                                                                          
                                                                                                                                
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous Year Level: Below Proficient Plus                                                                            
          Points:  200                                                                                                          
                                                                                                                                
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous Year Level: Proficient                                                                                       
          Points:  220                                                                                                          
                                                                                                                                
          Current  Year Level: Far  Below Proficient Minus                                                                      
          Previous Year Level: Advanced                                                                                         
          Points:  220                                                                                                          
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points:  140                                                                                                          
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous  Year Level: Far  Below Proficient Plus                                                                      
          Points: 80                                                                                                            
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous Year Level: Below Proficient Minus                                                                           
          Points: 40                                                                                                            
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous Year Level: Below Proficient Plus                                                                            
          Points: 10                                                                                                            
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous Year Level: Proficient                                                                                       
          Points: 0                                                                                                             
                                                                                                                                
           Current Year Level: Far Below Proficient Plus                                                                        
          Previous Year Level: Advanced                                                                                         
          Points: 0                                                                                                             
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points: 170                                                                                                           
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous Year Level: Far Below Proficient Plus                                                                        
          Points: 140                                                                                                           
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous Year Level: Below Proficient Minus                                                                           
          Points: 90                                                                                                            
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous  Year Level: Below  Proficient Plus                                                                          
          Points: 50                                                                                                            
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous Year Level: Proficient                                                                                       
          Points: 20                                                                                                            
                                                                                                                                
          Current  Year Level: Below  Proficient Minus                                                                          
          Previous Year Level: Advanced                                                                                         
          Points: 20                                                                                                            
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points: 200                                                                                                           
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous Year Level: Far Below Proficient Plus                                                                        
          Points: 170                                                                                                           
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous Year Level: Below Proficient Minus                                                                           
          Points: 140                                                                                                           
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous  Year Level: Below  Proficient Plus                                                                          
          Points: 90                                                                                                            
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous Year Level: Proficient                                                                                       
          Points: 50                                                                                                            
                                                                                                                                
          Current Year Level: Below Proficient Plus                                                                             
          Previous Year Level: Advanced                                                                                         
          Points: 50                                                                                                            
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points:  220                                                                                                          
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Far Below Proficient Plus                                                                        
          Points:  200                                                                                                          
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Below Proficient Minus                                                                           
          Points:  180                                                                                                          
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Below Proficient Plus                                                                            
          Points:  140                                                                                                          
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Proficient                                                                                       
          Points:  100                                                                                                          
                                                                                                                                
          Current Year Level: Proficient                                                                                        
          Previous Year Level: Advanced                                                                                         
          Points:  100                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Far Below Proficient Minus                                                                       
          Points:  220                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Far Below Proficient Plus                                                                        
          Points:  200                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Below Proficient Minus                                                                           
          Points:  180                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Below Proficient Plus                                                                            
          Points:  150                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Proficient                                                                                       
          Points:  130                                                                                                          
                                                                                                                                
          Current Year Level: Advanced                                                                                          
          Previous Year Level: Advanced                                                                                         
          Points: 110                                                                                                           
                                                                                                                                
          A notation reads:                                                                                                     
          Values may change as a result of 2006 data analysis,                                                                  
          public input, and State Board regulations.                                                                            
                                                                                                                                
Mr. Sampson:                                                                                                                    
     This  [value table]  is  the core  of this  whole proposal  and                                                            
     model. This is the  equalizer, the balancer. This is what makes                                                            
     it fair whether  you're in a large school, small  school, rural                                                            
     school,  urban school,  school with high  performing kids,  low                                                            
     performing kids, poor children, wealthy children.                                                                          
                                                                                                                                
     There  are six performance levels  that are identified  on this                                                            
     value chart:  Far Below Proficient Minus, Far  Below Proficient                                                            
     Plus,   Below   Proficient  Minus,   Below   Proficient   Plus,                                                            
     Proficient, and Advanced.                                                                                                  
                                                                                                                                
Mr. Sampson outlined the point system awarded for those individual                                                              
students who achieved an increase in their proficiency, regardless                                                              
of the level. He stated:                                                                                                        
                                                                                                                                
     This grid  is designed so you can compare the  previous year to                                                            
     the  current year.  Obviously the  goal is  to take a  student,                                                            
     wherever they performed  the previous year, and moving them one                                                            
     or more performance categories up.                                                                                         
                                                                                                                                
     For a student who  was advanced the previous year, it's quite a                                                            
     feat to keep them  advanced. So they would be awarded or valued                                                            
     by staying advanced. That would be our expectation.                                                                        
                                                                                                                                
     This value table is  designed so it is not likely that a school                                                            
     could focus on a single  group of kids, such as, "Let's put our                                                            
     attention   on  the  group  of  students  that  are   currently                                                            
     proficient  and let's try to  move all of those students,  or a                                                            
     large  percentage of  those students,  to advanced and  not pay                                                            
     attention  to the other students." The value  table is designed                                                            
     to where  if that approach was taken they would  not be able to                                                            
     reach a performance compensation level.                                                                                    
                                                                                                                                
9:15:30 AM                                                                                                                    
                                                                                                                                
          Slide 8                                                                                                               
          Computing Index                                                                                                       
          [Spreadsheet listing ten hypothetical students and                                                                    
           corresponding Previous Year Level as follows:                                                                        
                                                                                                                                
          Student A       Proficient                                                                                            
          Student B       Below Proficient Minus                                                                                
          Student C       Advanced                                                                                              
          Student D       Below Proficient Plus                                                                                 
          Student E       Far Below Proficient Plus                                                                             
          Student F       Proficient                                                                                            
          Student G       Far Below Proficient Plus                                                                             
          Student H       Below Proficient Minus                                                                                
          Student I       Below Proficient Plus                                                                                 
          Student J       Advanced]                                                                                             
                                                                                                                                
Mr. Sampson noted  this and the following two slides  are related in                                                            
that they  demonstrate a  progression in  the calculation of  scores                                                            
for individual students and the school.                                                                                         
                                                                                                                                
Mr. Sampson:                                                                                                                    
     We are able right  now to take every student in Alaska who took                                                            
     the  State assessment  last April.  We would  be able to  place                                                            
     them in  one of six performance  categories as we speak  today.                                                            
                                                                                                                                
9:16:33 AM                                                                                                                    
                                                                                                                                
          Slide 9                                                                                                               
          Computing Index                                                                                                       
          [Spreadsheet listing the same ten hypothetical students                                                               
          as indicated in Slide 8 and corresponding Current Year                                                                
          Level as follows:                                                                                                     
                                                                                                                                
          Student A       Advanced                                                                                              
          Student B       Below Proficient Minus                                                                                
          Student C       Proficient                                                                                            
          Student D       Far Below Proficient Plus                                                                             
          Student E       Below Proficient Minus                                                                                
          Student F       Below Proficient Plus                                                                                 
          Student G       Below Proficient Plus                                                                                 
          Student H       Below Proficient Plus                                                                                 
          Student I       Below Proficient Plus                                                                                 
          Student J       Advanced]                                                                                             
                                                                                                                                
Mr. Sampson  compared the  current year level  of the same  students                                                            
from the same  school to the previous  year level shown on  Slide 8.                                                            
For example, Student A  was deemed to be at the Proficient level the                                                            
previous year and improved  to the Advanced performance level in the                                                            
current year. The progression  of Student D was negative, from Below                                                            
Proficient Plus the previous  year, to Far Below Proficient Plus the                                                            
current year.                                                                                                                   
                                                                                                                                
9:17:32 AM                                                                                                                    
                                                                                                                                
          Slide 10                                                                                                              
          Computing Index                                                                                                       
          [Spreadsheet  listing the  same ten hypothetical  students                                                            
          as  indicated  in Slides 8  and 9  with the corresponding                                                             
          number  of  points  awarded  based  on the  comparison  of                                                            
          current  year proficiency level to the previous year level                                                            
          as follows:                                                                                                           
                                                                                                                                
          Student A       130                                                                                                   
          Student B       90                                                                                                    
          Student C       100                                                                                                   
          Student D       10                                                                                                    
          Student E       140                                                                                                   
          Student F       50                                                                                                    
          Student G       170                                                                                                   
          Student H       140                                                                                                   
          Student I       90                                                                                                    
          Student J       110                                                                                                   
                                                                                                                                
          The  spreadsheet also computes the "School Index Score" by                                                            
          totaling  the points for all the students and dividing the                                                            
          amount by the number of students:                                                                                     
                                                                                                                                
          1030 / 10 = 103]                                                                                                      
                                                                                                                                
Mr. Sampson explained how the points are derived utilizing the                                                                  
Value Table as shown on Slide 7.                                                                                                
                                                                                                                                
Mr. Sampson  pointed out  that in instances  in which a student  was                                                            
scored less than 100, that  student did not "get a full year's worth                                                            
of growth".  A score exceeding  100 indicates  that growth  exceeded                                                            
the worth  of a full year.  The higher the  number, the more  growth                                                            
was achieved.                                                                                                                   
                                                                                                                                
9:19:22 AM                                                                                                                    
                                                                                                                                
          Slide 11                                                                                                              
          Performance  Levels                                                                                                   
          [Table  listing the Growth Index Level  based on the Index                                                            
          Point Value as follows:                                                                                               
                                                                                                                                
          Growth  Index Level: Strong= Index Point Value: 102-104.99                                                            
          High = 105 - 107.99                                                                                                   
          Excellent = 108 - 109.99                                                                                              
          Outstanding = 110 and Greater                                                                                         
                                                                                                                                
          A notation reads: Model is built on 100 as one year of                                                                
          growth.]                                                                                                              
                                                                                                                                
Mr. Sampson spoke to the four performance levels as follows.                                                                    
     We looked  at over 20 years of performance models,  both in the                                                            
     private sector and  in the public sector. Quite frankly most of                                                            
     them  were in  the private  sector  because  that's where  this                                                            
     model's  been used  the most.  And one of  the theories  there,                                                            
     that  they  said  were  very important  in  making  this  model                                                            
     successful is "you  have to have more than one cut-off point or                                                            
     one  point  of  recognition  and  incentive".  Multiple  levels                                                            
     generated  different levels  in more  interest in employees  to                                                            
     change  and shoot  for  those targets.  So this  reflects  four                                                            
     different compensation levels and performance levels.                                                                      
                                                                                                                                
     The  second  column  that  says  "Index  Point  Value"  -  that                                                            
     represents  the school  score. In our  example on the  previous                                                            
     page,  a  score  for  that  school  of 103  would  have  met  a                                                            
     compensation  level; it would  have met the first compensation                                                             
     level called "Strong".                                                                                                     
                                                                                                                                
9:20:33 AM                                                                                                                    
                                                                                                                                
          Slide 12                                                                                                              
          Performance Level Incentive                                                                                           
          [Table  indicating the amount  of compensation  that would                                                            
          be  awarded  to Certificated  and  Non-Certificated  staff                                                            
          based  on the Growth Index  Level outlined on Slide  11 as                                                            
          follows:                                                                                                              
                                                                                                                                
          Strong                                                                                                                
                Certificated: $2,500                                                                                            
                Non-Certificated: $1,000                                                                                        
          High                                                                                                                  
                Certificated: $3,500                                                                                            
                Non-Certificated: $1,500                                                                                        
          Excellent                                                                                                             
                Certificated: $4,500                                                                                            
                Non-Certificated: $2,000                                                                                        
          Outstanding                                                                                                           
                Certificated: $5,500                                                                                            
                Non-Certificated: $2,500                                                                                        
                                                                                                                                
          A notation reads: Multiple levels provide greater                                                                     
          incentive and achievable graduations, but recognize real                                                              
          growth in achievement.]                                                                                               
                                                                                                                                
Mr. Sampson explained this table reflects the value of compensation                                                             
for  certificated  and  non-certificated.   Non-certificated   staff                                                            
includes   secretaries,   custodians,   and  teachers   aides.   The                                                            
compensation  is based on the level  of performance for the  school.                                                            
                                                                                                                                
Mr. Sampson:                                                                                                                    
     This  is always  about a  balancing act  and this  is what  the                                                            
     research said on these  models. I know that there are people on                                                            
     this Committee that  have much more expertise on how it applies                                                            
     to the private sector  and models. The balancing act is always:                                                            
     setting that  first threshold, that first target,  must be high                                                            
     enough to where it's  credible and meaningful and valued either                                                            
     by the  employer or by the citizens  of Alaska. Yet  it must be                                                            
     realistic   enough  to  where   the  people  we're   trying  to                                                            
     incentify,  in  this  case, our  school  employees,  that  they                                                            
     believe it's realistic and obtainable.                                                                                     
                                                                                                                                
     The  other piece of  the research that  was very clear  is this                                                            
     model can fail if  in fact the compensation is not great enough                                                            
     to  induce  a desire  to  change.  There's  probably  a lot  of                                                            
     thought   right  now   thinking   "my  gosh,   this  could   be                                                            
     considerable  dollars on  a statewide  level." When we  address                                                            
     the  fiscal note  on this I'll  share what  that looks  like at                                                            
     different  levels.  But  I think  importantly,  the  way  we've                                                            
     looked at  this, remember, it's a no risk benefit  to the State                                                            
     - no performance  no cost. If  in fact, we have a large  number                                                            
     of our  schools and  our school employees  who met the  highest                                                            
     level  of compensation. I can't  of a getting a greater  return                                                            
     on our investment in education than that.                                                                                  
                                                                                                                                
9:22:58 AM                                                                                                                    
                                                                                                                                
          Slide 13                                                                                                              
          Expected Outcomes                                                                                                     
             · All staff have ownership of instruction and share                                                                
                responsibility for results                                                                                      
             · Incentive to work differently, embrace innovation                                                                
                and create partnerships to improve student                                                                      
                achievement                                                                                                     
             · Accountability and incentive to cause all students                                                               
                to reach proficiency and higher levels of advanced                                                              
                achievement                                                                                                     
                                                                                                                                
Mr. Sampson:                                                                                                                    
     What  are the  expected  outcomes of  this program?  We  expect                                                            
     increases  in proficiency in reading, writing,  and mathematics                                                            
     - those fundamental  skills. We expect that we're  going to see                                                            
     those  fundamental  skills addressed  across  grade levels  and                                                            
     across content areas.                                                                                                      
                                                                                                                                
     We believe that there  will be actively seeking ways to enhance                                                            
     those  fundamental skills so  that the content, while  they may                                                            
     not  teach reading,  writing  or  mathematics,  they know  it's                                                            
     critical  to share the information  they have in their  content                                                            
     area and  they know it's a target that they're  teaming on as a                                                            
     school as a whole.                                                                                                         
                                                                                                                                
     We  think  it will  create  school-wide  ownership  of  student                                                            
     learning.  Instead of  being shared by  not every staff  member                                                            
     right now.                                                                                                                 
                                                                                                                                
     I think  that this is  an incentive  that encourages people  to                                                            
     work   differently  than  they   have  worked:  to   work  with                                                            
     innovation, to do  some real self-judgment on effective ways to                                                            
     deliver  in their own  schools. This is  not about one  process                                                            
     that will work in  every school in the state. But this is about                                                            
     creating  the environment  so that each  school - their  entire                                                            
     staff - has  a framework to develop a system  that will work in                                                            
     their school in their community.                                                                                           
                                                                                                                                
     It's about accountability.  It clearly is about accountability.                                                            
     And  there's an  incentive  there to  help each  child to  move                                                            
     [from]  wherever  they're  performing  to  a  higher  level  of                                                            
     performance.  And those that are performing high,  to keep them                                                            
     performing high.                                                                                                           
                                                                                                                                
     When students  understand how reading, writing,  mathematics or                                                            
     whatever the skills  and content are - when they understand how                                                            
     it  fits  into  life outside  of  the  school  and out  of  the                                                            
     classroom, they soon  value it and they become very good at it.                                                            
                                                                                                                                
     This  model  would  produce  those  kinds  of  outcomes  in  my                                                            
     opinion.                                                                                                                   
                                                                                                                                
9:25:08 AM                                                                                                                    
                                                                                                                                
          Slide 14                                                                                                              
          Why Other Models Fail                                                                                                 
             · Not based on student growth                                                                                      
             · Unrealistic targets                                                                                              
             · Conflict among staff: Some must lose for others to                                                               
                win                                                                                                             
             · Exclude building administrators                                                                                  
             · Instrument used to measure is not reliable and                                                                   
                consistent                                                                                                      
             · Compensation not large enough to provide incentive                                                               
                for change                                                                                                      
             · Weak commitment to the program                                                                                   
                                                                                                                                
Mr. Sampson:                                                                                                                    
     Why  did  other models  fail?  Whenever  you  say "performance                                                             
     compensation"  or "performance  incentive"  and you're  talking                                                            
     about  public  schools,  everybody  instantly  goes  to the  "M                                                            
     word":  "merit pay". Merit  pay has got  more than 20  years of                                                            
     history to it. It's at best had mixed results.                                                                             
                                                                                                                                
     We looked at why models  work in education and out of education                                                            
     and we  built this model trying  to address every one  of those                                                            
     reasons that those models failed. So it's very important.                                                                  
                                                                                                                                
     The first  thing is that the  models were not built  on student                                                            
     growth.  They  failed because  they  weren't built  on  growth,                                                            
     which meant if you  were a school or a teacher that happened to                                                            
     have  high performing  kids,  you  automatically  began with  a                                                            
     great  advantage.  This one's  built  on growth.  [It]  doesn't                                                            
     matter   where   your  kids   perform.  [It   provides]   equal                                                            
     opportunity  to raise them. It's  the whole growth levels  that                                                            
     level  the playing  field  from school  to school,  student  to                                                            
     student.                                                                                                                   
                                                                                                                                
     Another  reason that these fail:  they're unrealistic  targets.                                                            
     They were  either too easy and not valued by  the public or the                                                            
     lawmakers   of  that  state,   or  they  were  too   difficult,                                                            
     unobtainable, and people quit trying.                                                                                      
                                                                                                                                
     Other models created  conflict from one staff member to another                                                            
     staff member because  they pitted one against one another. What                                                            
     we're  inducing here is collaboration,  shared responsibility,                                                             
     teamwork.  This model is about  bringing people together  using                                                            
     expertise  across  the  curriculum,  across  content  area  and                                                            
     across grade level for a common target result.                                                                             
                                                                                                                                
     Other  models failed because  they didn't include the  building                                                            
     administrator.  This model includes  the administrator  and all                                                            
     staff.                                                                                                                     
                                                                                                                                
     Other  models   failed  because  the  instrument   used  wasn't                                                            
     reliable and wasn't applied consistently.                                                                                  
                                                                                                                                
     Other  models  failed  because the  compensation  wasn't  large                                                            
     enough to bring about  change; a desire to change, an incentive                                                            
     to do things differently.                                                                                                  
                                                                                                                                
     And  finally,  other models  failed because  there  was a  weak                                                            
     commitment  on behalf  of the program.  They started,  they may                                                            
     have worked great,  there wasn't the commitment from either the                                                            
     employer,  or  whoever [was]  moving  the program  forward,  to                                                            
     continue that model.                                                                                                       
                                                                                                                                
     This model  that we're proposing addresses every  single one of                                                            
     the bullets of why other models failed.                                                                                    
                                                                                                                                
9:27:59 AM                                                                                                                    
                                                                                                                                
          Slide 15                                                                                                              
          What Lies Ahead                                                                                                       
             · The final target or value table will be established                                                              
                by examination of 2005 to 2006 assessment results                                                               
                to create a baseline                                                                                            
             · Once the incentive program is in place, then                                                                     
                motivation    exists    to    accelerate    academic                                                            
                achievement beyond a year's growth                                                                              
             · The cost of the program will vary from year to year                                                              
                                                                                                                                
Mr. Sampson:                                                                                                                    
     We'll  set final  targets on the  value chart  when we  get the                                                            
     results in 2006. This  April, we'll do the comparison. We'll go                                                            
     through a  cut scoring process to fine tune the  numbers on the                                                            
     value  chart to make sure that  the baseline that's  created is                                                            
     fair, consistent and level.                                                                                                
                                                                                                                                
     Once the program is  adopted, and if adopted, then we can apply                                                            
     that whole  incentive piece. It will be there.  We have no past                                                            
     history of  the impact of incentive on this program.  So that's                                                            
     a bit  of an unknown.  If we've set  the targets correctly,  we                                                            
     think incentive will be great.                                                                                             
                                                                                                                                
     The cost of the program  will vary from year to year because we                                                            
     don't know  the impact of that incentive. I hope  that the cost                                                            
     of the program escalates.  But I hope that it escalates because                                                            
     it's  hitting  substantial   targets  that  are  reflective  of                                                            
      students achieving more than a year's worth of growth.                                                                    
                                                                                                                                
9:29:06 AM                                                                                                                    
                                                                                                                                
          Slide 16                                                                                                              
          School Performance Incentive Program                                                                                  
             · Based on growth in student achievement                                                                           
             · Empowers expertise of educators and school                                                                       
                personnel                                                                                                       
             · Includes all staff: all make it or no one makes it                                                               
             · Based on an understandable system                                                                                
                                                                                                                                
Mr. Sampson  concluded the presentation.  It is time that  the State                                                            
apply  to  the public  sector,  some  of  the  effective  strategies                                                            
employed by the private sector.                                                                                                 
                                                                                                                                
9:29:44 AM                                                                                                                    
                                                                                                                                
Senator  Bunde applauded  the commissioner  for  the development  of                                                            
this program that has significant  potential. Senator Bunde spoke of                                                            
his own  experience  in the  need to  include the  entire staff.  He                                                            
relayed  an instance  in which  a janitor  of a school  would,  on a                                                            
regular basis,  sweep the halls then sweep the dirt  out the door as                                                            
the children were  returning from recess. The message  Senator Bunde                                                            
gleaned from this  is that the students were dirtying  the janitor's                                                            
school, rather  than the janitor recognizing that  the students were                                                            
indirectly supporting his job.                                                                                                  
                                                                                                                                
Senator  Bunde also  recalled instances  where  non-teaching  staff,                                                            
including  custodians,  could connect  with students  and provide  a                                                            
"friendly adult face" at the school.                                                                                            
                                                                                                                                
9:31:06 AM                                                                                                                    
                                                                                                                                
Senator  Bunde  asked  if the  Department  of  Education  and  Early                                                            
Development would determine the measurement of progress.                                                                        
                                                                                                                                
9:31:18 AM                                                                                                                    
                                                                                                                                
Mr. Sampson affirmed.                                                                                                           
                                                                                                                                
9:31:23 AM                                                                                                                    
                                                                                                                                
Senator Bunde  asked if this program  could be undertaken  utilizing                                                            
existing staff  and resources or whether more funding  and positions                                                            
would be necessary.                                                                                                             
                                                                                                                                
9:31:32 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  replied that  the calculation  of growth could  be done                                                            
with current staff.  If the program were implemented  the Department                                                            
would be responsible  for disbursing compensation  for those schools                                                            
demonstrating  growth. Additional  personnel  would be necessary  to                                                            
issue payments.  The timing  between the  completion of testing  and                                                            
awarding of bonuses would be critical.                                                                                          
                                                                                                                                
9:32:12 AM                                                                                                                    
                                                                                                                                
Senator Bunde asked if  any research had been conducted to determine                                                            
whether the proposed compensation amounts would be sufficient.                                                                  
                                                                                                                                
9:32:47 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  had  researched  a number  of school  districts in  the                                                            
Lower 48 that  utilize monetary compensation for student  growth and                                                            
achievement. The amounts  awarded in those programs was reviewed and                                                            
compared against the successes  and weaknesses of the programs. Some                                                            
districts offer considerably  higher amounts than the highest amount                                                            
proposed in this presentation.                                                                                                  
                                                                                                                                
9:33:35 AM                                                                                                                    
                                                                                                                                
LES MORSE,  Director,  Division  of Assessment  and Accountability,                                                             
Department  of Education and Early  Development, told of  the Little                                                            
Rock school district  in the state of Arkansas that  paid as much as                                                            
$8,000. However, the average  amount was between the range of $1,500                                                            
and $4,100.                                                                                                                     
                                                                                                                                
9:33:57 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  cautioned against failure  due to inadequate  incentive                                                            
for educators  and school staff to change behavior.  Conversely, the                                                            
program should not be a "give away" with insufficient goals.                                                                    
                                                                                                                                
9:34:20 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken characterized  the proposal  as a "skeleton"  to be                                                            
further  developed.  He  appreciated   the  concept  of investment,                                                             
asserting  that if the  benefits of  the program  do not exceed  the                                                            
funds allocated  to it, the  program would  be "nothing more  than a                                                            
tar baby that we'll never get rid of."                                                                                          
                                                                                                                                
Co-Chair Wilken  was not interested  in "reinventing the  wheel". He                                                            
asked  to  what  extent  this  proposal   was  modeled  after  other                                                            
programs. He noted  that the State of Colorado has  been operating a                                                            
similar program for six years.                                                                                                  
                                                                                                                                
9:35:14 AM                                                                                                                    
                                                                                                                                
Mr.  Sampson replied  that  this model  is  similar  to the  program                                                            
implemented  in the  State of  Colorado in  that it  focuses on  the                                                            
growth of students. However,  the Colorado program includes only one                                                            
level of measured growth and does not include support staff.                                                                    
                                                                                                                                
9:35:45 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken asked  if the proposed  plan is  modeled after  any                                                            
existing program.                                                                                                               
                                                                                                                                
9:35:56 AM                                                                                                                    
                                                                                                                                
Mr. Sampson answered it is not.                                                                                                 
                                                                                                                                
9:35:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken surmised it as "plowing new ground".                                                                            
                                                                                                                                
Co-Chair Wilken, referencing  the Value Table on Slide 3, noted that                                                            
points were still awarded for a student who regressed one level.                                                                
                                                                                                                                
9:36:55 AM                                                                                                                    
                                                                                                                                
Mr.  Sampson  explained that  a  score of  100  equals  one year  of                                                            
growth.  A  student  could  slip from  the  Advanced  level  to  the                                                            
Proficient  level, but still learn  more than expected in  one year.                                                            
This is known  as "regression to the mean". Maintaining  one student                                                            
at the highest level year after year is difficult.                                                                              
                                                                                                                                
9:38:06 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  asked if the "yardstick" measuring  growth would be                                                            
valid, given the testing changes implemented in recent years.                                                                   
                                                                                                                                
9:38:27 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  responded that  the Department  has no plans to  change                                                            
the   existing  measuring   methods.   Currently   two  independent                                                             
evaluations  are required by  the No Child  Left Behind (NCLB)  Act,                                                            
and are  utilized in  Alaska along  with a  third evaluation.  These                                                            
studies agree  that the methods  are a valid  and reliable  tool for                                                            
measuring student growth.                                                                                                       
                                                                                                                                
9:39:25 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken asked, based  on the measurements  of the  previous                                                            
year, how schools would  have rated if this program were implemented                                                            
a year prior and whether  any schools' staff would have received the                                                            
incentive payments.                                                                                                             
                                                                                                                                
9:39:43 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  replied that  such calculations  were made although  he                                                            
stressed that the incentive  factor could not be considered. If this                                                            
program were implemented  the previous year, without  the enticement                                                            
of the  monetary awards,  19 schools  would have  qualified for  the                                                            
highest  level. However,  flat student achievement  was experienced                                                             
statewide.  Some  schools and  some  students achieved  growth,  but                                                            
overall, the students and schools did not advance.                                                                              
                                                                                                                                
9:41:15 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken asked if  the Department had considered implementing                                                            
this proposal as a pilot  program for three schools since the method                                                            
is  unproven.  This could  prevent  excessive  expenditures  if  the                                                            
program required alterations.                                                                                                   
                                                                                                                                
9:42:03 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  asserted that he was  "so strongly committed  that this                                                            
would  help  Alaskan kids"  that  he  was willing  to  consider  all                                                            
options for implementation.                                                                                                     
                                                                                                                                
9:42:21 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken asked if  the bonuses would be subject to collective                                                            
bargaining.                                                                                                                     
                                                                                                                                
9:42:31 AM                                                                                                                    
                                                                                                                                
Mr. Sampson responded  that the proposal is specifically  structured                                                            
to exclude  the incentive  payments from bargaining  as well  as the                                                            
provisions  of  the  Public  Employees  Retirement  System  and  the                                                            
Teachers Retirement System.                                                                                                     
                                                                                                                                
9:42:51 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken relayed  his experience with commissioned employees.                                                            
He  was  amazed  that after  the  turmoil  of  implementation  of  a                                                            
commission  system,  he found  that  the incentive  extended  beyond                                                            
monetary  benefits.  Employees  took pride  and ownership  in  their                                                            
duties.  They  cooperated  with other  employees  and  took  greater                                                            
effort with customers.                                                                                                          
                                                                                                                                
Co-Chair Wilken  suggested involving the students  in this incentive                                                            
program by presenting  an award, hosting a pizza party  or providing                                                            
another  form of  recognition. He  predicted  such validation  would                                                            
"light up their eyes".                                                                                                          
                                                                                                                                
Co-Chair Wilken  looked forward to further developing  this program.                                                            
                                                                                                                                
9:44:51 AM                                                                                                                    
                                                                                                                                
Senator Hoffman  asked if the incentives would be  paid for one year                                                            
or incorporated into the base salary.                                                                                           
                                                                                                                                
9:45:12 AM                                                                                                                    
                                                                                                                                
Mr. Sampson replied  that the awards would be granted  for each year                                                            
the school  qualified.  These payments  would not  affect salary  or                                                            
terms of a negotiated contract.                                                                                                 
                                                                                                                                
9:45:23 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman,   noting  the  high   turnover  of  teachers   and                                                            
recruitment  difficulties,  speculated whether  teachers would  take                                                            
into consideration  accepting employment  at a school that  received                                                            
past.  He predicted  that teachers  would  not choose  to work  at a                                                            
school  that  never  achieved  a  rating  sufficient  for  incentive                                                            
payments.  He asked how  this program would  address the  likelihood                                                            
that over time,  certain schools would secure the  best teachers and                                                            
the remaining schools would be "left behind".                                                                                   
                                                                                                                                
9:46:39 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  agreed that some schools  would earn a higher  level of                                                            
achievement.  The  reason  a  school  is or  is  not  meeting  these                                                            
accomplishments  should  be  determined.  He  anticipated  that  the                                                            
community,  students, teachers and  support staff would collaborate                                                             
to improve the school's  score. Given the national teacher shortage,                                                            
this program would provide  an advantage to this state in attracting                                                            
and retaining  teachers. The value and process must  be demonstrated                                                            
as fair  and that  the size,  location  or student  population  of a                                                            
school does not give an advantage.                                                                                              
                                                                                                                                
9:48:24 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman  stressed  that those  teachers  motivated  by  the                                                            
financial  incentive of this  program would  opt to work at  schools                                                            
within the state  that have achieved the highest scores.  This would                                                            
disadvantage  other schools.  He asked  how this  tendency would  be                                                            
compensated.  He compared  the  situation  to that  of the  National                                                            
Football League  (NFL) and that organization's  implementation  of a                                                            
draft process  to ensure that a winning  team does not dominate  the                                                            
recruitment of the strongest players.                                                                                           
                                                                                                                                
9:49:25 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  agreed that as certain  schools "rise to the  top" they                                                            
could have  an advantage in recruitment  and retention. He  admitted                                                            
he had  not considered  the impact  of this  scenario. However,  the                                                            
factors  contributing  to  the successes  of  some schools  must  be                                                            
identified and shared with  other schools to provide opportunity for                                                            
those schools to excel as well.                                                                                                 
                                                                                                                                
9:50:22 AM                                                                                                                    
                                                                                                                                
Senator Dyson recalled  his approval of the selection of Mr. Sampson                                                            
for  the commissioner  position.  Senator  Dyson  was  aware of  Mr.                                                            
Sampson's achievements  in his previous  position at a small  school                                                            
district. Senator  Dyson requested  Mr. Sampson provide an  overview                                                            
of these earlier efforts.                                                                                                       
                                                                                                                                
9:51:07 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  told of his  experience in applying  this concept  to a                                                            
remote small school  district in Alaska. He assisted  in determining                                                            
that education  of reading, writing  and computation were  important                                                            
to  the community  and  he  identified  a method  to  measure  these                                                            
skills. This concept was  first applied to the entire district, then                                                            
to schools and  finally to individual teachers. The  teachers wanted                                                            
teamwork, but  also individual recommendations.  When a teacher  was                                                            
unsuccessful,  he or  she would  contact other  teachers within  the                                                            
district to learn what  practices were successful. This was possible                                                            
because the program had  no competition between teachers or schools.                                                            
This concept  was also  successfully applied  to efforts to  control                                                            
health care costs.                                                                                                              
                                                                                                                                
9:54:06 AM                                                                                                                    
                                                                                                                                
Senator  Stedman understood  that  school  district superintendents                                                             
would be excluded from  the proposed incentive program, while school                                                            
principals would be included.                                                                                                   
                                                                                                                                
9:54:23 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  affirmed,  stating that  principals  must be  included,                                                            
because they set schedules,  move students, and make other decisions                                                            
that impact  the overall  performance  of a student  body. He  spoke                                                            
informally with  superintendents and concluded that  these positions                                                            
should not be  included in the incentive program,  as doing so could                                                            
"send the wrong message".  Superintendents negotiate separately with                                                            
school boards for salary amounts and other compensation.                                                                        
                                                                                                                                
9:55:35 AM                                                                                                                    
                                                                                                                                
Senator Olson surmised  that motivated students would be included in                                                            
these  efforts.   However,   low  achieving   students  often   have                                                            
discipline problems, which are not addressed in this proposal.                                                                  
                                                                                                                                
9:56:26 AM                                                                                                                    
                                                                                                                                
Mr. Sampson  responded that discipline  is indirectly referenced  in                                                            
this proposal. To be a  viable program, the scoring must acknowledge                                                            
factors  that  school  staff  could not  control,  such  as  weather                                                            
conditions  and parental  involvement. Discipline  is a substantial                                                             
issue  regardless  of  an  incentive  program.   Some  schools  have                                                            
undisciplined  students,   yet achieve  substantial   growth;  other                                                            
schools have  little disciplinary  problems but are unsuccessful  at                                                            
achieving  measurable growth.  However,  if an  entire school  staff                                                            
consistently  enforces a  code of acceptable  student behavior,  the                                                            
likelihood for growth is greater.                                                                                               
                                                                                                                                
Mr. Sampson  also pointed  out that students  displaying  discipline                                                            
problems usually  do so for a reason. They could be  unchallenged or                                                            
overwhelmed.  This  incentive  program would  encourage  the  entire                                                            
school to address the issue.                                                                                                    
                                                                                                                                
9:59:11 AM                                                                                                                    
                                                                                                                                
Senator  Olson  clarified  his concern  related  more  to the  self-                                                            
discipline  of attending  school,  studying, and  applying  oneself,                                                            
rather than behavioral discipline.                                                                                              
                                                                                                                                
9:59:47 AM                                                                                                                    
                                                                                                                                
Mr. Sampson replied that  both types of discipline must be addressed                                                            
as a whole. One  teacher may not have a relationship  with a student                                                            
or parent, but  a secretary or custodian may, and  that relationship                                                            
should be fostered to encourage the student's growth.                                                                           
                                                                                                                                
10:00:34 AM                                                                                                                   
                                                                                                                                
Co-Chair Green asked about  allowances for those students who do not                                                            
attend a school for a full year.                                                                                                
                                                                                                                                
10:01:06 AM                                                                                                                   
                                                                                                                                
Mr. Sampson  answered that such allowances  would be made,  although                                                            
growth  would  still  be  expected  for  these students.   Transient                                                            
students would  be treated in the same manner currently  utilized to                                                            
determine appropriate grade level placement.                                                                                    
                                                                                                                                
10:01:49 AM                                                                                                                   
                                                                                                                                
Senator Bunde referenced  a conversation held the previous summer in                                                            
which the commissioner  predicted this program could  be implemented                                                            
at no additional  expense. Senator Bunde asked if  this is no longer                                                            
the expectation.                                                                                                                
                                                                                                                                
10:02:12 AM                                                                                                                   
                                                                                                                                
Mr. Sampson remarked  that the program could be implemented  with no                                                            
additional funding if no schools met the performance levels.                                                                    
                                                                                                                                
10:02:31 AM                                                                                                                   
                                                                                                                                
Senator Bunde  remarked that a program should not  be established if                                                            
no improvements are expected.                                                                                                   
                                                                                                                                
10:02:51 AM                                                                                                                   
                                                                                                                                
Mr. Sampson agreed.  He listed the projected costs.  If five percent                                                            
of certified  and classified employees  statewide qualified  for the                                                            
highest compensation  award the cost  would be $3 million.  The cost                                                            
would  increase to  $15.4 million  if 25  percent  of the  employees                                                            
qualified.                                                                                                                      
                                                                                                                                
10:03:28 AM                                                                                                                   
                                                                                                                                
Senator  Bunde referenced  Governor Murkowski's  State of the  State                                                            
address  the previous  day,  noting the  Governor's  request of  $90                                                            
million for  education. Senator Bunde  surmised that if this  amount                                                            
were appropriated,  adequate  funding  would be  available for  this                                                            
program.                                                                                                                        
                                                                                                                                
10:03:49 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken asked when  a formal proposal for this program would                                                            
be released.                                                                                                                    
                                                                                                                                
10:03:54 AM                                                                                                                   
                                                                                                                                
Mr. Sampson  replied that  he first  wanted to  present the  idea to                                                            
legislators and get feedback.  A final evaluation table would not be                                                            
completed  until May or June  of 2006 when  the results of  the 2006                                                            
assessments  are received.  The program  could  best be implemented                                                             
through Department  of Education and Early Development  regulations.                                                            
The legislature could address specific areas if necessary.                                                                      
                                                                                                                                
10:04:43 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken noted the  Governor had indicated that if a contract                                                            
was negotiated  for a natural  gas pipeline,  the legislature  could                                                            
become consumed  with consideration  of the contract and  associated                                                            
activities. Co-Chair Wilken directed the Department to submit a                                                                 
formal proposal soon in the event the legislature was diverted from                                                             
its normal duties later in the session.                                                                                         
                                                                                                                                
10:05:16 AM                                                                                                                   
                                                                                                                                
Senator Stedman suggested the incentives be calculated in some                                                                  
manner as a percentage of the base student allocation.                                                                          
                                                                                                                                
10:05:43 AM                                                                                                                   
                                                                                                                                
Senator Hoffman asked if educators would prefer that the base                                                                   
student allocation be increased or that this program be enacted.                                                                
                                                                                                                                
10:06:08 AM                                                                                                                   
                                                                                                                                
Mr. Sampson responded that both positions would be opined. Some                                                                 
educators prefer an incentive program; others would deem increased                                                              
funding to the school as the priority.                                                                                          
                                                                                                                                
^                                                                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Lyda Green adjourned the meeting at 10:07:07 AM                                                                      

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