Legislature(2009 - 2010)SENATE FINANCE 532

02/27/2009 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 24 LOUIS MILLER BRIDGE TELECONFERENCED
Heard & Held
+ SB 25 RICHARD DEWEY DUVALL FERRY TERMINAL TELECONFERENCED
Heard & Held
+ SB 57 CHARTER SCHOOL FUNDING TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 27, 2009                                                                                          
                         9:05 a.m.                                                                                              
                                                                                                                                
9:05:16 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:05 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Weston  Eiler, Staff,  Senator  Bert  Stedman; Mary  Siroky,                                                                    
Special Assistant,  Department of Transportation  and Public                                                                    
Facilities;  Eddy   Jeans,  Director,  School   Finance  and                                                                    
Facilities  Section,  Department   of  Education  and  Early                                                                    
Development;   Brenda   Taylor,    Parent   and   President,                                                                    
Accreditation  Policy  Council,   Juneau  Community  Charter                                                                    
School, Juneau.                                                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Al Dwyer,  Mayor, City of Petersburg;  Samuel Shields, Board                                                                    
Member,  Ayaprun Elitnaurvik  School Board,  and Vice-Chair,                                                                    
Bethel School  Board, Bethel;  Mike Fisher,  Chief Financial                                                                    
Officer,  Fairbanks   North  Star  School   District;  Janet                                                                    
Stokesbury,  Chief   Financial  Officer,   Anchorage  School                                                                    
District;  Shanna   Mall,  Principal,   Winterberry  Charter                                                                    
School,  Anchorage;   Kiki  Abrahamson,   Teacher,  Fireweed                                                                    
Academy, and  President, Alaska Charter  School Association,                                                                    
Homer;  Todd  Hindman,  Lead  Teacher,  Anvil  City  Science                                                                    
Academy, Nome.                                                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 24     "An Act  naming the  bridge over Hammer  Slough on                                                                    
          Nordic Drive in Petersburg the Louis Miller                                                                           
          Bridge."                                                                                                              
                                                                                                                                
          SB 24 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 25     "An  Act  naming  the South  Mitkof  Island  ferry                                                                    
          terminal the Richard 'Dewey' Duvall Ferry                                                                             
          Terminal."                                                                                                            
                                                                                                                                
          SB 25 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 57     "An Act relating to charter school funding."                                                                          
                                                                                                                                
          SB 57 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 24                                                                                                            
                                                                                                                                
     "An Act naming the bridge over Hammer Slough on Nordic                                                                     
     Drive in Petersburg the Louis Miller Bridge."                                                                              
                                                                                                                                
9:05:24 AM                                                                                                                    
                                                                                                                                
WESTON   EILER,  STAFF,   SENATOR  BERT   STEDMAN,  SPONSOR,                                                                    
explained that  SB 24 would  honor Louis Miller,  an Alaskan                                                                    
pioneer who  contributed a  great deal  to the  community of                                                                    
Petersburg.  He  pointed  out that  under  current  law  (AS                                                                    
35.40.015) the  state may name  public works through  an act                                                                    
of the legislature. Since enactment,  the authority has been                                                                    
exercised over  forty times, including for  the Terry Miller                                                                    
Legislative  Office  Building  and   the  Robert  B.  Atwood                                                                    
Building.                                                                                                                       
                                                                                                                                
Mr. Eiler  informed the  committee that SB  24 would  name a                                                                    
bridge over  Hammer Slough in  Petersburg after  Mr. Miller,                                                                    
who came  to Alaska during  the Klondike Gold Rush  in 1901.                                                                    
He worked  as a  carpenter and  oversaw the  construction of                                                                    
the  Sons  of  Norway  Hall.   He  operated  a  moorage  and                                                                    
warehouse on  the site of  the present day bridge  until his                                                                    
death in 1955. The City of Petersburg supports the bill.                                                                        
                                                                                                                                
Co-Chair Stedman referred to the fiscal note of $4,000.                                                                         
                                                                                                                                
Senator Olson asked  if anyone was opposed to  the bill. Mr.                                                                    
Eiler was not aware of anyone who was.                                                                                          
                                                                                                                                
Co-Chair Stedman added that the  legislation was a result of                                                                    
a request from the Petersburg City Council.                                                                                     
                                                                                                                                
9:09:06 AM                                                                                                                    
                                                                                                                                
Senator Huggins asked  if the name had  been vetted locally.                                                                    
Co-Chair Stedman  responded that the city  council had taken                                                                    
care of the process.                                                                                                            
                                                                                                                                
Senator Thomas confirmed  that the same statute  was used to                                                                    
name the Robert B. Atwood Building.                                                                                             
                                                                                                                                
Co-Chair Stedman opened public testimony.                                                                                       
                                                                                                                                
AL  DWYER,   MAYOR,  CITY   OF  PETERSBURG   (testified  via                                                                    
teleconference),  told  the  committee that  the  Petersburg                                                                    
City  Council unanimously  passed the  resolution. He  spoke                                                                    
about Louis Miller and the  site of the bridge. Mr. Miller's                                                                    
family was the second family to live south of the Slough.                                                                       
                                                                                                                                
9:11:09 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman noted  the  complex interrelationships  on                                                                    
the islands. He  related that his father had  worked for Mr.                                                                    
Miller. The Sons of Norway Hall was built by Mr. Miller.                                                                        
                                                                                                                                
Co-Chair Stedman closed public testimony.                                                                                       
                                                                                                                                
SB  24  was   HEARD  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 25                                                                                                            
                                                                                                                                
     "An Act naming the South Mitkof Island ferry terminal                                                                      
     the Richard 'Dewey' Duvall Ferry Terminal."                                                                                
                                                                                                                                
9:12:52 AM                                                                                                                    
                                                                                                                                
WESTON  EILER, STAFF,  SENATOR BERT  STEDMAN, SPONSOR,  told                                                                    
the  committee  that  SB  25  would  honor  Richard  "Dewey"                                                                    
Duvall,  a proponent  of marine  transportation and  a long-                                                                    
time  active resident  of Petersburg,  by  naming the  South                                                                    
Mitkof Island  ferry terminal after  him. Mr.  Duvall served                                                                    
on the city  council and was a founding board  member of the                                                                    
Inter-Island Ferry  Authority (IFA). He was  instrumental in                                                                    
the construction of the ferry  terminal at South Mitkof. The                                                                    
bill would recognize his dedication  and contribution to the                                                                    
community. The  City of Petersburg  and the IFA  support the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  noted that  Mr.  Duvall  had passed  away                                                                    
recently.                                                                                                                       
                                                                                                                                
Co-Chair Stedman opened public testimony.                                                                                       
                                                                                                                                
AL  DWYER,   MAYOR,  CITY   OF  PETERSBURG   (testified  via                                                                    
teleconference),  confirmed  the Petersburg  City  Council's                                                                    
wishes that the ferry terminal be named after Mr. Duvall.                                                                       
                                                                                                                                
Co-Chair Stedman  referred to the  fiscal note of  #1,200 by                                                                    
the  Department  of  Transportation  and  Public  Facilities                                                                    
(DOT/PF).                                                                                                                       
                                                                                                                                
MARY    SIROKY,    SPECIAL    ASSISTANT,    DEPARTMENT    OF                                                                    
TRANSPORTATION  AND PUBLIC  FACILITIES,  explained that  the                                                                    
money  would  be for  a  temporary  sign for  the  temporary                                                                    
facility. The  new sign would be  part of the cost  of a new                                                                    
facility.                                                                                                                       
                                                                                                                                
Co-Chair  Stedman  asked for  a  clearer  idea of  what  the                                                                    
permanent sign would include.                                                                                                   
                                                                                                                                
9:16:38 AM                                                                                                                    
                                                                                                                                
Senator  Huggins  asked  for  an  explanation  of  different                                                                    
requirements  for historical  versus  regular DOT/PF  signs.                                                                    
Ms. Siroky said she would get the information.                                                                                  
                                                                                                                                
Co-Chair Stedman closed public testimony.                                                                                       
                                                                                                                                
SB  25  was   HEARD  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 57                                                                                                            
                                                                                                                                
     "An Act relating to charter school funding."                                                                               
                                                                                                                                
9:17:10 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  indicated that there has  been interest in                                                                    
a potential amendment for the legislation.                                                                                      
                                                                                                                                
SENATOR JOE THOMAS, SPONSOR,  explained that the legislation                                                                    
would support  school choice  and do  away with  the charter                                                                    
school  penalty.  Under  the existing  school  funding  law,                                                                    
charter schools that enroll fewer  than 150 students receive                                                                    
30  to 45  percent  less state  funding  than similar  sized                                                                    
neighborhood schools.                                                                                                           
                                                                                                                                
Senator Thomas  pointed to  two handouts,  "The Role  of the                                                                    
'Adjusted  Student Count'  in School  Funding" and  "Example                                                                    
Adjusted Student  Count Calculations" (Copies on  File) that                                                                    
help break  down the  complex formula.  There is  a dramatic                                                                    
decrease  in funding,  around $500,000  to $700,000,  when a                                                                    
charter  school's enrollment  drops even  one student  below                                                                    
150.  The count  period  is  the majority  of  the month  of                                                                    
October; even  if a  school surpasses the  150 limit  by the                                                                    
end  of the  count period,  the  count used  is the  average                                                                    
taken over the count period.                                                                                                    
                                                                                                                                
Senator Thomas reported that the  root of the problem is the                                                                    
way the foundation formula  calculates the "adjusted student                                                                    
count"  for  charter  schools versus  neighborhood  schools.                                                                    
Almost all  regular schools  have their  enrollment adjusted                                                                    
upward  by  a  formula;  a different  formula  that  adjusts                                                                    
downward  is  used by  charter  schools.  The multiplier  is                                                                    
explained  on the  handout "Example  Adjusted Student  Count                                                                    
Calculations."  The process  provides too  little money  for                                                                    
charter schools to survive.                                                                                                     
                                                                                                                                
Senator Thomas  explained that SB  57 funds  charter schools                                                                    
with fewer  than 150 students  at the same per  student rate                                                                    
as a neighborhood school with  400 students. Charter schools                                                                    
have to be significantly  more efficient than other schools,                                                                    
but  the funding  level  is manageable.  He  added that  the                                                                    
legislation contains a one-year  hold harmless provision for                                                                    
charter  schools that  are  either in  their  first year  of                                                                    
operation or  had more than  150 students one year  and then                                                                    
subsequently  dropped  below   that  number.  The  provision                                                                    
reduces  the  financial  harm  to   the  district  from  the                                                                    
unexpected decrease  in their student count  adjustment. The                                                                    
bill  is  supported  by the  Alaska  Association  of  School                                                                    
Boards. Many  superintendents have  testified in  support of                                                                    
the  legislation. He  listed other  sponsors and  noted wide                                                                    
support by legislators.                                                                                                         
                                                                                                                                
9:21:38 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  asked for more information  about the 1.18                                                                    
multiplier.  Senator  Thomas  replied that  there  had  been                                                                    
discussions  previously considering  a  range  from 1.08  to                                                                    
1.27. The  number selected is  a compromise between  the two                                                                    
numbers.                                                                                                                        
                                                                                                                                
Senator  Huggins asked  the number  of charter  schools that                                                                    
are  affected. He  pointed  out that  some  schools are  not                                                                    
going  to  get  bigger  than 150  students.  Senator  Thomas                                                                    
answered that  there are  four schools in  the state  at the                                                                    
borderline count;  those schools  numbers were  not expected                                                                    
to change dramatically.                                                                                                         
                                                                                                                                
Senator Elton acknowledged Senator  Huggins' role in solving                                                                    
the funding issue on an annual basis in the past.                                                                               
                                                                                                                                
9:24:20 AM                                                                                                                    
                                                                                                                                
EDDY   JEANS,  DIRECTOR,   SCHOOL  FINANCE   AND  FACILITIES                                                                    
SECTION,  DEPARTMENT  OF  EDUCATION  AND  EARLY  DEVELOPMENT                                                                    
(DEED),  reported that  the  legislation  would affect  four                                                                    
charter schools.                                                                                                                
                                                                                                                                
Mr. Jeans  said the  formula number 1.18  was arrived  at by                                                                    
running a school of 400  through the formula and dividing it                                                                    
by the adjusted  daily membership (ADM). He  referred to the                                                                    
fiscal note for  $714,300 to cover the  charter schools that                                                                    
need stable funding.                                                                                                            
                                                                                                                                
Co-Chair Stedman  asked for the  names of the  four schools.                                                                    
Mr. Jeans listed the schools:                                                                                                   
                                                                                                                                
    Effie Kokrine Charter School, Fairbanks                                                                                  
    Juneau Community Charter School                                                                                          
    Fireweed Academy, Home                                                                                                   
    Anvil City Science Academy, Nome                                                                                         
                                                                                                                                
Co-Chair Stedman queried the position of      on         the                                                                    
legislation. Mr.  Jeans answered  that DEED was  neutral. He                                                                    
stated that from  his point of view as  Finance Director, it                                                                    
made good sense.                                                                                                                
                                                                                                                                
9:27:04 AM                                                                                                                    
                                                                                                                                
Senator Huggins  told the committee that  losing one student                                                                    
could  cost  a  charter  school  hundreds  of  thousands  of                                                                    
dollars.  He  called  the  previous  measure  draconian.  He                                                                    
thought the proposed legislation was a prudent approach.                                                                        
                                                                                                                                
Co-Chair Stedman opened public testimony.                                                                                       
                                                                                                                                
SAMUEL  SHIELDS, BOARD  MEMBER,  AYAPRUN ELITNAURVIK  SCHOOL                                                                    
BOARD,   AND  VICE-CHAIR,   BETHEL   SCHOOL  BOARD,   BETHEL                                                                    
(testified  via teleconference),  spoke  in  support of  the                                                                    
legislation. He reported that the  Bethel school at one time                                                                    
had  dipped  to   a  149  student  count,   resulting  in  a                                                                    
substantial decrease in funding.  He witnessed the affect of                                                                    
the decrease on the school.  The school was able to recover;                                                                    
current enrollment  is approximately 180  students. However,                                                                    
there are only 6,000 people in Bethel.                                                                                          
                                                                                                                                
9:30:20 AM                                                                                                                    
                                                                                                                                
MIKE FISHER,  CHIEF FINANCIAL OFFICER, FAIRBANKS  NORTH STAR                                                                    
SCHOOL  DISTRICT (testified  via  teleconference), spoke  in                                                                    
support of the legislation. The  district is keenly aware of                                                                    
how  the bill  will help  charter schools  provide important                                                                    
educational  choices for  families. Fairbanks  currently has                                                                    
three charter  schools, with a  new one starting  next year.                                                                    
Two of the operating schools  and the new school have target                                                                    
enrollments  of about  155 students.  This year  one of  the                                                                    
schools just  missed the average  daily membership  over the                                                                    
count  period,  even  though  over  150  students  ended  up                                                                    
enrolling, which  cost the district  around $680,000  out of                                                                    
an  expected $1.4  million budget.  He said  the bill  would                                                                    
help address the catastrophic impact  of a school failing to                                                                    
meet the count threshold.  He thought the funding compromise                                                                    
was  fair  and provided  incentive  for  schools to  get  to                                                                    
targeted enrollments.                                                                                                           
                                                                                                                                
JANET STOKESBURY, CHIEF  FINANCIAL OFFICER, ANCHORAGE SCHOOL                                                                    
DISTRICT  (testified via  teleconference), spoke  in support                                                                    
of the legislation. The district  views the bill as ensuring                                                                    
stability for charter schools. They  also supported the one-                                                                    
year held harmless provision.                                                                                                   
                                                                                                                                
9:33:13 AM                                                                                                                    
                                                                                                                                
SHANNA   MALL,   PRINCIPAL,  WINTERBERRY   CHARTER   SCHOOL,                                                                    
ANCHORAGE (testified  via teleconference), spoke  in support                                                                    
of the  bill. She  relayed the  difficult experience  of the                                                                    
school falling  below the cutoff  number. People  worked 90-                                                                    
day  weeks  without pay  and  the  community took  risks  to                                                                    
support the school. Staff was  severely cut and a deficit of                                                                    
$180,000 was carried over to  the next year. The program and                                                                    
children's safety were compromised.                                                                                             
                                                                                                                                
9:35:44 AM                                                                                                                    
                                                                                                                                
BRENDA TAYLOR,  PARENT, AND PRESIDENT,  ACCREDITATION POLICY                                                                    
COUNCIL, JUNEAU COMMUNITY  CHARTER SCHOOL, JUNEAU, testified                                                                    
in support of  the legislation. She thought  the bill solves                                                                    
many of  the concerns  of charter  schools. She  stated that                                                                    
the Juneau school district supports  the bill and the Juneau                                                                    
charter  school, but  does not  want the  charter school  to                                                                    
have  enrollment  over 150  because  of  negative impact  on                                                                    
other schools.  The Juneau charter  school will  not survive                                                                    
without  additional  funds.  They  are unable  to  make  the                                                                    
school  accessible to  more families  due to  transportation                                                                    
limitations.                                                                                                                    
                                                                                                                                
Co-Chair Stedman  acknowledged the  presence of  15 students                                                                    
observing online in Homer.                                                                                                      
                                                                                                                                
9:38:29 AM                                                                                                                    
                                                                                                                                
KIKI ABRAHAMSON,  TEACHER, FIREWEED ACADEMY,  AND PRESIDENT,                                                                    
ALASKA  CHARTER  SCHOOL  ASSOCIATION, HOMER  (testified  via                                                                    
teleconference),   spoke  in   support  of   the  bill   and                                                                    
introduced her  students, who gave  a cheer for  the finance                                                                    
committee.                                                                                                                      
                                                                                                                                
Ms.  Abrahamson expressed  concerns  of  the charter  school                                                                    
association about public perception of  SB 57 in the current                                                                    
economic  climate. She  stressed  that the  bill  was not  a                                                                    
request for add-on  funding, but a request to  fix a statute                                                                    
that has  handicapped the  development of  innovative public                                                                    
charter  schools in  Alaska  and  has discriminated  against                                                                    
schools of choice  in small and rural  communities. In 1992,                                                                    
the first charter  school opened in St.  Paul, Minnesota; 16                                                                    
years later there are over  4500 schools serving 1.3 million                                                                    
students in 40 states.                                                                                                          
                                                                                                                                
9:41:05 AM                                                                                                                    
                                                                                                                                
TODD  HINDMAN, LEAD  TEACHER,  ANVIL  CITY SCIENCE  ACADEMY,                                                                    
NOME  (testified via  teleconference), spoke  in support  of                                                                    
the legislation  on behalf of the  Academic Policy Committee                                                                    
of Anvil  City Science  Academy (ACSA)  and the  Nome Public                                                                    
School Board of  Education. He stated that  a larger charter                                                                    
school  could  have  an  adverse   affect  on  other  public                                                                    
schools.   He  felt the  small size  of ACSA  is one  of its                                                                    
strengths.   Students   have   a  more   flexible   learning                                                                    
experience  and   are  more   closely  connected   with  the                                                                    
community.                                                                                                                      
                                                                                                                                
Co-Chair Stedman closed public testimony.                                                                                       
                                                                                                                                
Senator  Huggins noted  that the  challenge the  legislation                                                                    
was  addressing was  not just  financial. The  ripple effect                                                                    
through  a school  district when  the count  goes below  the                                                                    
cutoff is dramatic. He pointed  out that alternative schools                                                                    
have the same challenge.                                                                                                        
                                                                                                                                
Co-Chair Stedman referred to an amendment being formed.                                                                         
                                                                                                                                
SB  57  was   HEARD  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:45:06 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:44 AM.                                                                                           

Document Name Date/Time Subjects
Dewey Duvall Graphic.pdf SFIN 2/27/2009 9:00:00 AM
SB 25
Adjusted Student Count.pdf SFIN 2/27/2009 9:00:00 AM
SB 57
per-student rate comparison.xls SFIN 2/27/2009 9:00:00 AM
SB 57
sb 57 sectional analysis.dot SFIN 2/27/2009 9:00:00 AM
SB 57
SB 57 sponsor statement.dot SFIN 2/27/2009 9:00:00 AM
SB 57
school size factor statutes.doc SFIN 2/27/2009 9:00:00 AM
SB 57
SB 24_ Petersburg Resolution.pdf SFIN 2/27/2009 9:00:00 AM
SB 24
SB 24_Fiscal Note.pdf SFIN 2/27/2009 9:00:00 AM
SB 24
SB 24_Louis Miller Bridge Photo.pdf SFIN 2/27/2009 9:00:00 AM
SB 24
SB 24_Sponsor Statement.pdf SFIN 2/27/2009 9:00:00 AM
SB 24
Res_Duvall Terminal.pdf SFIN 2/27/2009 9:00:00 AM
SB 25
Senate Bill 25_Fiscal Note.pdf SFIN 2/27/2009 9:00:00 AM
SB 25
Sponsor Statement_SB 25.pdf SFIN 2/27/2009 9:00:00 AM
SB 25
support letters.pdf SFIN 2/27/2009 9:00:00 AM
SB 57
Tongass School Support.pdf SFIN 2/27/2009 9:00:00 AM
SB 57