Legislature(1993 - 1994)
04/25/1994 01:40 PM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
April 25, 1994
1:40 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Bert Sharp, Vice-Chairman
Senator Loren Leman
Senator Mike Miller
Senator Johnny Ellis
Senator Judy Salo
MEMBERS ABSENT
Senator Jim Duncan
COMMITTEE CALENDAR
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 301
"An Act relating to the calculation of instructional units used in
determining state aid for education and increasing elementary and
secondary instructional units for certain school districts with 800
or fewer students in average daily membership; and providing for an
effective date." WAS HEARD, BUT NOT SCHEDULED.
SENATE BILL NO. 304
"An Act authorizing the issuance of bonds by the Alaska Housing
Finance Corporation to pay for the costs of repair and
rehabilitation of student housing facilities of the University of
Alaska; authorizing the issuance of bonds by the University of
Alaska to pay for the costs of repair and rehabilitation of
facilities of the University of Alaska; amending powers of the
Alaska Housing Finance Corporation; amending the definition of
`public building'; relating to the Alaska debt retirement fund; and
providing for an effective date."
HB 506 (STUDENT LOAN PROGRAM) WAS SCHEDULED, BUT NOT HEARD.
SB 346 (REPORT CHARITABLE GAMING WINNERS) WAS SCHEDULED, BUT NOT
HEARD.
HB 472 (REFERRALS INVOLVING DENTAL SERVICES) WAS SCHEDULED, BUT NOT OT
HEARD.
HB 478 (AUTHORITY TO PRONOUNCE DEATH) WAS SCHEDULED, BUT NOT HEARD. D.
HB 507 (LICENSING OF OPTOMETRISTS AND PHYSICIANS) WAS SCHEDULED,
BUT NOT HEARD.
HJR 54 (SUPPORT MEDICAL SAVINGS ACCT LEGIS) WAS SCHEDULED, BUT NOT T
HEARD.
PREVIOUS SENATE COMMITTEE ACTION
SB 301 - See Health, Education & Social Services minutes dated
3/30/94 and 4/18/94.
SB 304 - See Health, Education & Social Services minutes dated
4/18/94.
HB 506 - No previous action to record.
SB 346 - See Labor & Commerce minutes dated 3/31/94 and Health,
Education & Social Services minutes dated 4/15/94 and
4/18/94.
HB 472 - See Health, Education & Social Services minutes dated
4/15/94 and 4/18/94.
HB 478 - No previous action to record.
HB 507 - No previous action to record.
HJR 54 - See Health, Education & Social Services minutes dated
4/15/94 and 4/18/94.
WITNESS REGISTER
John Hotzfield, Confirmation Nominee
Board of Education
Fairbanks, Alaska
POSITION STATEMENT: Answered questions.
Allison Elgee, Budget Director
University of Alaska
POSITION STATEMENT: Reviewed SB 304.
Chip Wagoner, Vice-President
University of Alaska-Fairbanks Alumni Association
3294 Pioneer Avenue
Juneau, Alaska
POSITION STATEMENT: Supported SB 304.
ACTION NARRATIVE
TAPE 94-34, SIDE A
Number 001
CHAIRMAN RIEGER called the Senate Health, Education and Social
Services (HESS) Committee to order at 1:40 p.m. He noted that they
were trying to get John Hotzfield, the Board of Education
confirmation nominee, on-line for questions. He introduced SB 301
(REVISE FOUNDATION FORMULA, SMALL SCHOOLS) as the first order of
business before the committee. The CS for SB 301 amends the "hold
harmless" provisions of the education formula by lowering the
triggering point of "hold harmless" from 10 percent to 5 percent.
He also noted that the CS changes the threshold of extreme ADM
student enrollment decreases from year to year.
SENATOR MILLER moved to adopt the CS, the 8-LS1716\J version, for
SB 301 in lieu of the original bill. SENATOR ELLIS objected.
SENATOR ELLIS opposed the elimination of the rewrite of the formula
for the single sites.
SENATOR SALO inquired as to the difference between a drop in
students versus a tremendous drop in students. She supported
funding going where the students are, not where they are not.
CHAIRMAN RIEGER explained that under existing law there is a single
"hold harmless" which drops 25 percent a year to the new level.
The CS would decrease the trigger points to 5 percent which is a
smaller drop; extreme drops in enrollment have an accelerated rate
of adjustment, the "hold harmless" is less.
SENATOR SALO used Adak as an example. If Adak has 130 students
next year from the approximately 400 or 500 students currently
enrolled, then the CS would decrease their unit funding by one-
third. CHAIRMAN RIEGER said that the entitlement for instructional
units is not directly proportional to the number of students. If
Adak lost more than 50 percent of their entitlement, it would
decrease by half way between what they were entitled to and what
they started with. By the second year, they would be at their
entitlement.
Number 104
SENATOR ELLIS said that he would not have opposed this if he felt
that they were going to handle the comprehensive rewrite of the
school foundation formula. He felt that without that opportunity,
the issue would not be resolved for another year or two.
Upon a hand vote, Senators Leman, Miller, Rieger, and Sharp voted
"Yea" and Senators Salo and Ellis voted "Nay." The CS was adopted.
SENATOR MILLER moved the CS for SB 301 out of committee with
individual recommendations. Hearing no objections, it was so
ordered.
CHAIRMAN RIEGER informed the committee that John Hotzfield was on-
line for questions.
SENATOR SALO asked Mr. Hotzfield if he felt that he would be a good
trustee of public education when his involvement with public
education is limited. She asked if he was a Christian school
teacher. JOHN HOTZFIELD said yes, he said he was a Christian
school teacher. Mr. Hotzfield felt that he was an advocate of
children statewide in all forms of education and therefore, he felt
qualified. Mr. Hotzfield said that he does not bring a personal
agenda into his work.
SENATOR SALO asked if Mr. Hotzfield felt that part of being an
advocate for children would also mean being an advocate for public
education as well. JOHN HOTZFIELD said yes, the better public
education, the better it would be for the children.
SENATOR ELLIS inquired as to Mr. Hotzfield's position on Governor
Hickel's proposal regarding outcome based education. JOHN
HOTZFIELD pointed out that there are many forms of outcome based
education. Mr. Hotzfield viewed outcome based education as setting
goals for children and then attempting to reach them. Mr.
Hotzfield stated that they want to make the system accountable to
the parents and the children.
Number 180
SENATOR LEMAN inquired as to Mr. Hotzfield's residency. JOHN
HOTZFIELD said that he resides in Fairbanks.
SENATOR ELLIS asked Mr. Hotzfield of his opinion regarding
vouchers. JOHN HOTZFIELD explained that vouchers are not an issue
because they are not constitutional. Mr. Hotzfield expressed the
need to place the ownership of education back into the hands of the
parents which means that he would support vouchers or anything else
that would accomplish that.
SENATOR ELLIS asked Mr. Hotzfield if he meant that he supported
vouchers, but realized that they were constitutionally impaired.
JOHN HOTZFIELD explained that if vouchers were constitutionally
legal, then he would support them. Mr. Hotzfield mentioned a
parental voucher of which he did not know the constitutional
status.
CHAIRMAN RIEGER recessed to the call of the Chair.
Number 218
CHAIRMAN RIEGER brought the meeting back to order at 3:00 p.m. He
introduced SB 304 (AHFC BONDS FOR UNIV. OF ALASKA USES) as the last st
order of business before the committee.
ALLISON ELGEE, Budget Director for the University of Alaska,
explained that SB 304 would authorize $75 million in bonds in order
to deal with approximately one-half of the identified deferred
maintenance needs of the university system. $30 million would be
bonded through the Alaska Housing Finance Corporations in order to
address the deferred maintenance needs of student housing. She
said that the remaining $45 million would be bonded through the
University of Alaska to deal with a portion of the other deferred
maintenance needs.
SENATOR ELLIS moved Amendment 1. He explained that he had worked
on this language with the university and the sponsor. Amendment 1
adds language addressing the needs of the University of Alaska-
Southeast (UAS) and the University of Alaska housing needs.
Hearing no objections, Amendment 1 was adopted.
CHIP WAGONER, Vice-President of the University of Alaska-Fairbanks
Alumni Association and member of the Board of Directors, said that
SB 304 was the only legislative priority for the Alumni
Association. He explained that the university became a true
university in 1935 with a three part mission to teach, research and
serve the public. He noted that the University of Alaska-Fairbanks
is recognized internationally and ranks in the top 100 research
universities in the U.S. He described the Fairbanks campus and
pointed out that it is one of the oldest facilities in Alaska, some
of these buildings are twenty years old. He described the
disintegration found on the Fairbanks campus. He asserted that the
Fairbanks campus is a mess. He urged the committee to support SB
304 because it is important for the future of the University of
Alaska.
Number 309
SENATOR LEMAN said that he did not disagree with Mr. Wagoner's
assessments; however, he expressed frustration that money which
should have been used for maintenance was used in other programs.
Now there is a serious need to fix up the campus and the
legislature cannot turn its back. He suggested that there had been
mismanagement which created this problem and it is unfair.
CHIP WAGONER did not believe that it was due to mismanagement, it
was due to the age of the campus. He pointed out that there are
deferred maintenance problems at UAS and UAA also. He offered to
talk to the committee later about the various problems.
SENATOR MILLER moved SB 304 as amended out of committee with
individual recommendations.
CHAIRMAN RIEGER stated that he could not see borrowing more money;
where does it end. He did acknowledge that there was a pressing
need, but the state's fiscal future should be reviewed as well.
Hearing no objections, it was so ordered.
There being no further business before the committee, the meeting
was adjourned at 4:15 p.m.
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