Legislature(1997 - 1998)
03/14/1997 09:05 AM 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 & SOCIAL SERVICES COMMITTEE
March 14, 1997
9:05 a.m.
MEMBERS PRESENT
Senator Gary Wilken, Chairman
Senator Loren Leman, Vice Chairman
Senator Lyda Green
Senator Jerry Ward
Senator Johnny Ellis
MEMBERS ABSENT
All members present.
COMMITTEE CALENDAR
SENATE BILL NO. 36
"An Act relating to transportation of public school students;
relating to school construction grants; relating to the public
school foundation program and to local aid for education; and
providing for an effective date."
- HEARD AND HELD
SENATE BILL NO. 85
"An Act relating to the public school funding program; repealing
the public school foundation program; relating to the definition of
school district, to the transportation of students, to school
district layoff plans, to the special education service agency, to
the child care grant program, and to compulsory attendance in
public schools; and providing for an effective date."
- HEARD AND HELD
PREVIOUS SENATE COMMITTEE ACTION
SB 36 - See Senate Health, Education & Social Services Committee
minutes dated 2/12/97.
SB 85 - See Senate Health, Education & Social Services Committee
minutes dated 2/19/97.
WITNESS REGISTER
Ben Nageak, Mayor
North Slope Borough
PO Box 69
Barrow, Alaska 99723
POSITION STATEMENT: Stated that proposals to cut or eliminate
state school aid for the North Slope Borough
School District are unacceptable.
Marie Adams-Carroll, Chief Administrator
North Slope Borough
PO Box 69
Barrow, Alaska 99723
POSITION STATEMENT: Discussed the situation of the North Slope
Borough.
Rex Rock, Sr., President
Timber Corporation
Local School Advisory Council in Tikiqaq
Point Hope, Alaska
POSITION STATEMENT: Urged the committee not to do this.
Marieh Sahageak, Junior
Barrow High School
Point Hope, Alaska
POSITION STATEMENT: Urged the committee to maintain the current
foundation formula.
Rex Rock, Jr.
Point Hope, Alaska
POSITION STATEMENT: Urged the committee to maintain the current
foundation formula.
Rebecca Miller, Parent
4870 Southampton Drive
Anchorage, Alaska
POSITION STATEMENT: Expressed concerns with the program cuts
facing Gifted & Talented.
Richard Hebhardt, Superintendent
City of Skagway School District
PO Box 497
Skagway, Alaska
POSITION STATEMENT: Discussed the situation in Skagway.
Greg Middag, Teacher
Ketchikan Gateway Borough School District
643 Sunset Drive
Ketchikan, Alaska
POSITION STATEMENT: Urged the committee to review the consequences
to education and the children.
Dennis McCarty
Ketchikan Gateway Borough School District
670 Dock Street
Ketchikan, Alaska 99901
POSITION STATEMENT: Urged the committee to review the area cost
differential and the hold harmless for
Ketchikan.
Ron Drathman, Member
Kenai Peninsula Borough Assembly
PO Box 12
Homer, Alaska 99603
POSITION STATEMENT: Discussed how Kenai has fallen through the
gap under the current formula.
Gordon Castanza, Superintendent
Chatham School District
PO Box 109
Angoon, Alaska
POSITION STATEMENT: Discussed the need to address the area cost
differential, impact aid, and the REAA tax.
Bob Doyle
1900 Porcupine Trail
Wasilla, Alaska 99654
POSITION STATEMENT: Discussed the needs of the Mat-Su School
District.
Marysia Ochej, Business Manager
Southeast Island School District
PO Box 8340
Ketchikan, Alaska 99901
POSITION STATEMENT: Discussed the disparity in rural districts.
ACTION NARRATIVE
TAPE 97-24, SIDE A
SB 36 PUBLIC SCHOOL FUNDING
SB 85 PUBLIC SCHOOL FUNDING/CHILD CARE GRANTS
Number 001
CHAIRMAN WILKEN called the Senate Health, Education & Social
Services Committee (HES) to order at 9:05 a.m. and informed the
committee that the purpose of the meeting was to discuss the
foundation plan proposed last Monday in the subcommittee. Chairman
Wilken said that he would entertain a motion to place the CS before
the committee.
SENATOR LEMAN moved to adopt CSSB 36(HES) for discussion purposes.
Without objection, it was adopted.
CHAIRMAN WILKEN stated that he has a plan that can be held up to
the light for as long as people want to review the plan in order to
progress towards a better plan. Chairman Wilken welcomed the
teleconference sites. Chairman Wilken then began a sectional
analysis. He noted that on page 14, line 8 after "$4,165" the
language "for fiscal year beginning 2001" should be added.
Chairman Wilken said that a written sectional analysis would be
provided before the end of the meeting. Chairman Wilken began to
take testimony from those present only for the day.
Number 195
BEN NAGEAK , Mayor of the North Slope Borough, informed the
committee that he was also a parent of three of which his youngest,
10 years old, wanted to come testify before the committee. That
shows the interest in this issue. He noted that Marie Adams-
Carroll, the Borough's Chief Administrative Officer, was present as
well. The people of the North Slope have lived with the impacts of
oil development which have been offset by the mutual benefits to
the State of Alaska, the oil industry, and the people living on the
North Slope. Mayor Nageak discussed the history of ANCSA and the
establishment of the North Slope Borough which he believed
recognized that the Inupiat Eskimo people and other North Slope
residents deserved to derive some benefit from oil development.
That benefit has been through jobs, contracts for oil field
services and access to a tax base. Mayor Nageak emphasized that
the North Slope oil projects generate the royalty and tax revenue
to fund needed state programs which benefit all Alaskans.
Mayor Nageak stated that prior to Prudhoe Bay, North Slope
residents lived in very primitive conditions. Over the past 25
years, many improvements have been made and education is one of the
most important improvements. The residents of the North Slope are
committed to quality schools and quality education. Mayor Nageak
stressed that "The proposals before the Legislature and this
committee to cut, eliminate and zero out any state school aid for
the North Slope Borough School District are unacceptable." The
Governor and the Legislature should be working towards the common
good for all Alaskans. Alaska has the resources to treat all
regions fairly and equitably.
Number 291
The residents of the North Slope feel that they are under attack on
many fronts, one of which is the change to the foundation formula
that would take away state education aid for the North Slope. The
proposals before the committee threaten the relationship between
the North Slope Borough, the state government and oil development.
Mayor Nageak believed that Alaska's best economic interests should
be reviewed. Alaska's long-term economic interests would not be
served if the North Slope School District is denied a fair share of
the state education benefits. In conclusion, Mayor Nageak stated
that the North Slope Borough and School District wanted to provide
quality public services and education not conflict or litigation.
Mayor Nageak noted that he would submit additional information to
the committee next week. Mayor Nageak then introduced those
present at the meeting from the North Slope.
SENATOR LEMAN appreciated Mayor Nageak's statements and agreed with
much of his testimony. With regard to Mayor Nageak's statement
that Alaska has the resources to treat all regions equitably and
fairly, Senator Leman believed that the definition of equitable
seems to be in the eye of the beholder. Senator Leman said that
the committee is trying to determine what is equitable and how to
accomplish that equity. One of the underlying themes of this is
the need for every region to participate in the cost of education.
Senator Leman acknowledged that the North Slope Borough has
participated in the cost of education. Senator Leman offered to
work with the North Slope Borough on this issue.
Number 378
MAYOR NAGEAK said that he was present in order to work on this
issue. He noted that cuts have been made over the past years.
Mayor Nageak stressed that the North Slope should not be penalized
for having the resources to provide for its people.
SENATOR WARD referred to the guarantee of equal education, when
recognizing a problem would exist if a region was zeroed out of the
formula without a fair mechanism. This bill says that it is fair
for the North Slope to pay additional money due to certain
circumstances. Senator Ward said that he wanted everyone to
receive an equal education whether funded by the state or local
coffers.
MAYOR NAGEAK reiterated that the borough is trying to do the best
for its people. Mayor Nageak believed Oliver Leavitt or Marie
Adams-Carroll could provide a better response.
MARIE ADAMS-CARROLL , Chief Administrative Officer of the North
Slope Borough, stated that the students say that any further cuts
will severely jeopardize preparation for higher education or
vocational training. Not enough of the residents in the North
Slope are trained to work in jobs requiring technical training or
certification such as teaching. Ms. Adams-Carroll stressed that
the schools are the centers of the communities in the North Slope
and provide more than just education. The entire family will be
impacted by this. Ms. Adams-Carroll informed the committee that
the North Slope Borough provides $3 for every $1 provided by the
state. The North Slope Borough is contributing to education.
MAYOR NAGEAK interjected that the cost of living in the North Slope
Borough is high. For example, a $100,000 house in Anchorage would
be twice that in the North Slope. Such differences need to be
considered.
Number 445
CHAIRMAN WILKEN noted that in May of 1996, Fairbanks was faced with
the third attempt at a school bond issue for $64 million to build
schools. Those who objected to the bond issue pointed out the
inequity that exists; the North Slope Borough's assessed value is
worth $14 billion with 2,000 students versus Anchorage with an
assessed value of $14 billion with 46,000 students or Fairbanks
assessed at $3 billion with 16,000 students. Chairman Wilken asked
how he could respond to the question that the North Slope Borough
does not pay as much as Fairbanks for education.
MAYOR NAGEAK said that the North Slope Borough does pay a lot.
Everything in the North Slope is expensive and most items that are
needed are available in Fairbanks and Anchorage which also require
shipping costs. The money spent in the North Slope Borough on
education provides a basic education.
MARIE ADAMS-CARROLL informed the committee that when the borough
was established a cap on the assessed value of the property on the
North Slope was also established. Furthermore, there is a cap on
the amount that can be used of that property tax for operating
costs.
CHAIRMAN WILKEN said that he did not want to face the same argument
when another bond issue for schools comes before Fairbanks.
Chairman Wilken expressed the need to dismiss the question of
equity during future bond issues for schools.
Number 491
REX ROCK, SR. informed the committee that he was the President of
the Timber Corporation, President of the Local School Advisory
Council in Tikiqaq, high school basketball coach and parent of
four. Mr. Rock, Sr. has been with the Local School Advisory
Council for 10 years and this organization provides the most
satisfaction for him. Mr. Rock, Sr. stated that the North Slope
Borough does not misspend its money and programs have been cut due
to declining revenues. Despite the increase in students, the
budget has been decreased. Athletics in the villages are not
feasible due to the cost of air fare. The bill before the
committee will be devastating to the community. Mr. Rock, Sr.
pointed out that 40 percent of the revenues generated from the
school district employees go to the local village store which is
owned by the corporation. This bill will force the district to cut
almost all of the classified positions. In a community of 1,000
with high utility costs, Mr. Rock, Sr. foresaw many becoming
dependent upon the government for support. Mr. Rock, Sr. believed
this bill to be a quick fix for the urban areas and he urged the
committee not to do this.
MARIEH SAHAGEAK , a Junior at Barrow High School, said that any of
the proposed bills will have a devastating effect on the North
Slope Borough School District and the quality of education for the
students. There will be impacts on community gatherings because
the schools are open to the villages. Ms. Sahageak noted that
budget reductions cut programs that would make students a better
candidate for a college education. There are already difficulties
in the North Slope Borough due to travel and medical expenses. Ms.
Sahageak urged the committee to support her education and maintain
the existing foundation formula funding.
Number 546
SENATOR LEMAN commented that most people recognize that the
existing formula is not equitable, the disagreement is regarding
where to fix the formula. How equity is defined poses a problem.
Senator Leman said that his objective was not to devastate the
North Slope Borough schools.
REX ROCK, JR . , student from Tikiqaq High School, explained that he
and Ms. Sahageak were chosen to represent students in the North
Slope on this potentially devastating issue. Mr. Rock, Jr. assured
the committee that the North Slope Borough does not misspend money;
simple things that urban students do on a regular basis cost a lot
in the North Slope. For example, a basketball game would require
flying several hundred miles. Extra-curricular activities are so
costly, that such events are limited. Mr. Rock, Jr. reiterated the
high cost of food on the North Slope, sometimes 100-300 percent
higher than in urban areas. He also noted that a student's social
life is entirely dependent on the school. Mr. Rock, Jr. pointed
out that school supplies must be flown into the North Slope and
often the transportation costs exceed the cost of the item. The
utility costs for some schools exceed the amount of state dollars
that would be sent to those schools under the proposals. Further,
water costs are high and most students shower at the school. Most
villages do not have public water and sewage systems. He asked if
the committee would feel any responsibility for forcing the North
Slope Borough to cut programs.
TAPE 97-24, SIDE B
Research clearly shows that it is cheaper to educate an individual
rather than to incarcerate the individual. Mr. Rock, Jr. believed
that any legislation that reduced the North Slope Borough School
District funding by large amounts would not allow those students
the opportunity to obtain an education providing for the ability to
make a decent living. Those students would then look to the
government for support. Mr. Rock, Jr. said that he had high
aspirations for himself and his fellow students, whom he believed
could have a positive impact on the world if afforded the
opportunity to obtain a quality education in the North Slope. Mr.
Rock, Jr. echoed Ms. Sahageak's comments regarding maintaining the
current school foundation funding formula which has stood the test
of time. If the urban schools need more money, Mr. Rock, Jr. urged
the committee to provide additional money; do not attempt to fund
the success of some students by destroying the futures of others.
Number 567
SENATOR LEMAN noted that of the eight communities in the North
Slope Borough, all have some measure of a public water supply
system. Perhaps, Mr. Rock, Jr. was referring to a fully pipe water
system. Senator Leman also noted that there is a substantial
improvement project underway currently.
MARIE ADAMS-CARROLL clarified that the North Slope Borough does not
have piped water systems, except in the community of Barrow. She
noted the environmental difficulties for the development of piped
water systems. Currently, the villages have water treatment
facilities and the water is trucked to homes. Outside of Barrow,
the honey buckets are still in use.
MAYOR NAGEAK reiterated that in many villages, students clean
themselves at the school because that is the only place with
available water.
REX ROCK, SR. explained that the water sewer project utilized a
vacuum system that probably saved the North Slope Borough $30
million. Mr. Rock, Sr. hoped the same time would be taken on this
issue rather than shoving it down the borough's throat.
CHAIRMAN WILKEN hoped that Mr. Rock, Sr. would not leave Juneau
feeling as if anything was being shoved down anyone's throat, that
is not the purpose.
SENATOR GREEN acknowledged the North Slope Borough's fear of losing
programs and services. Senator Green emphasized that those losses
have already happened in other districts; personnel, classified
employees, programs, and classrooms have already been lost. This
is everyone's problem, not just the North Slope Borough. The key
is to move towards a solution, using the legislation as a vehicle
to assure that education provides an equal opportunity for
everyone.
REX ROCK, SR. pointed out that the school in his community was
built in 1979 and now discussions are being held about cutting
opportunities to children in the North Slope, whereas those
opportunities have been had in the urban areas for years.
SENATOR GREEN assured Mr. Rock, Sr. that this is still a discussion
and problem solving should begin rather than rejection.
CHAIRMAN WILKEN emphasized that this is not an attempt to diminish
Mr. Rock, Jr. nor Ms. Sahageak's educational opportunities,
experience, or results of their education. There is a problem that
needs resolution. Chairman Wilken thanked the students for being
present and involved.
Number 498
REBECCA MILLER , parent, appreciated the complexity of the problem
before the committee. Ms. Miller expressed concern with the
possibility that Gifted & Talented programs may be cut under this
legislation. These programs are very beneficial to the students,
Ms. Miller's daughter in particular. These students are the future
leaders. Ms. Miller suggested that if these programs must be cut,
the language could be specific so as to follow the students through
their education. Ms. Miller was concerned that these programs
would become so narrow that only a few children could take
advantage of them. Ms. Miller stressed that if the funding is not
present from the Legislature, then the programs will not exist.
In response to Senator Ward, Ms. Miller informed the committee that
she was from Anchorage and discussed the programs with which her
daughter was involved. If the teachers are not present, all the
children suffer and furthermore, without the programs for the
children to reach towards a mediocre education system will result.
RICHARD HEBHARDT , Superintendent of the City of Skagway School
District, informed the committee that he would be representing the
district as well as the municipality. The Legislature's drive to
close the fiscal gap is commendable. He applauded the committee's
efforts to create a funding system that treats all school districts
equitably, but the quality of education should not be sacrificed in
an attempt to balance the budget. The debate should turn towards
the remedy for the funding inadequacies and inequities that exist.
Mr. Hebhardt recommended that any formula should account for the
erosive effects of inflation. The operational costs of Alaskan
school districts have increased nearly 30 percent since 1988, while
state support has been less than two percent. Any formula should
recognize that several municipalities already make a significant
local contribution to public education, Skagway included. Mr.
Hebhardt posed the question, how much is enough - how much more can
be given without diluting other necessary community services? The
City of Skagway currently contributes about 39 percent to the
school's operating budget. Under the current foundation formula
plan, next year the City of Skagway would contribute 52 percent to
the school's operating budget.
Mr. Hebhardt believed that a more fair and equitable state funding
strategy be developed which fully acknowledges local effort and
capacity while enabling the provision of basic and fundamental
education for all. If this is not achieved, the City of Skagway
will continue to be adversely effected and the installation of the
much needed vocational education program will face further
postponement. Mr. Hebhardt said that this proposal would only
exacerbate the financial distress currently experienced by the
Skagway School District. As this proposal or others for funding
education are discussed, Mr. Hebhardt indicated the need for
sensitivity to those communities like Skagway who are already doing
more than its fair share. The establishment of an educational
endowment is meritorious due to its potential to fully fund
education in a reasonable time. Mr. Hebhardt stated support for
the establishment of an education facilities fund and an increase
in the tobacco tax. In conclusion, Mr. Hebhardt stressed the need
to work together on this issue.
SENATOR LEMAN understood that due to the transitional funding in
CSSB 36(HES) there would not be a change in local contributions for
two years. RICHARD HEBHARDT reiterated that using the current
foundation formula, the city would contribute a total of 52 percent
to the school's operating budget if the city continues to
contribute to the 23 percent supplemental allowed. Mr. Hebhardt
said that simply illustrates that the City of Skagway is doing its
fair share. The community needs some relief, state support.
SENATOR LEMAN noted that other communities were in the same
situation as Skagway. He requested the calculations. RICHARD
HEBHARDT said that he could provide those for the committee.
Number 373
GREG MIDDAG , resident and teacher in Ketchikan, informed the
committee that he came to Juneau with a group of parents, teachers
and school board members to lobby with the Ketchikan Liaison Group.
Mr. Middag said that the Ketchikan Gateway School District stresses
that in addressing school funding the Legislature must revise the
area cost differential to bring it in line with the changes in the
cost of living in various communities throughout the state. The
current area cost of living differentials are based on a 1985
study. A 1996 economic trends publication issued by the Department
of Labor illustrates how significantly those area cost
differentials have changed. For example, a June 1996 Department of
Labor report said that the cost living in Ketchikan is
approximately the same as that in St. Mary's or Bethel while
exceeding the cost of living in Dillingham, Nome and Kodiak.
However, the area cost differential for Ketchikan is one while the
area cost differentials for Bethel, Dillingham, and others is
significantly and substantially higher. Mr. Middag gave the
committee a packet of materials with all this information.
From 1986 through the present the total revenue per pupil before
adjusting for inflation, a combined level of resources from the
Ketchikan Borough and the state, has increased by $161 per student
or about 2.8 percent. When adjusted for inflation during the 11
year period that this formula has been in place, the total per
pupil funding has decreased by $1,693 or 30 percent to $4,010 since
1986. The situation becomes even more dire when realizing that the
amount of state aid for a student before adjusting for inflation
since 1986 has decreased by 13.2 percent from 39, $159 in 1986 to
$3,433 in 1997. When adjusted for inflation, per pupil state aid
has decreased by $1,612; a loss of 40.7 percent in the amount of
money that can realistically be put towards children's educations.
Mr. Middag said that the Ketchikan and North Slope districts are
very nearly the same on a lot of issues. Ketchikan has lost 53
positions over the past seven years and expects to lose somewhere
between 5 and 30 teachers next year. Ketchikan cannot provide an
appropriate level of educational experience. After contacting many
legislators, Mr. Middag believed that there is a majority agenda to
deal with the state's fiscal gap and certainly the state needs to
be able to spend its money carefully and wisely. The permanent
fund has been inflation proofed and the per diem of legislators has
increased over 60 percent, a needed increase, but the children of
the State of Alaska have been lost in the equation. No matter what
is done with this funding formula, the portion is too small. The
children of Alaska and Ketchikan and Nome and Skagway are falling
further behind. Mr. Middag agreed with an increase in standards
and testing for teachers and students and a curriculum based on
high expectations, but the future of our state with continued
irresponsible cuts in education should be reviewed. Alaska
probably has more money than most countries in the world, as a
surplus. Mr. Middag urged the committee to review what is being
done to education and the children.
Number 299
SENATOR LEMAN said that he rather classify what Mr. Middag referred
to as an agenda as a plan, a long-range plan which he believed to
be good for Alaska. GREG MIDDAG informed the committee that a
Representative explained that the majority plan over the course of
the next five years will not increase the basic foundation formula
dollars to the children of Alaska. Such action would result in 16
years with an increase of $161 in Ketchikan. At the end of that
five years instead of being $1,700 short per student over time, in
terms of actual buying power that the district can put towards
education, the district will be significantly further behind.
Frankly, the needs of the children in Alaska cannot be met without
significant help which was needed yesterday.
CHAIRMAN WILKEN hoped that this was the start to the correction of
the problem.
DENNIS MCCARTY , testifying from Ketchikan, emphasized that
Ketchikan needs a bill this year that addresses the area cost
differential and the hold harmless. Ketchikan is almost at a five
percent student loss which will reach 10 percent or greater by next
Fall. Ketchikan fully funds the local contribution at 40 percent
of the budget which is one of the highest in the state. Ketchikan
is the next to the lowest in per capita contributions from the
state. Ketchikan is doing more than its fair share. Mr. McCarty
pointed out that the Department of Labor statistics report that
Ketchikan has a 19 percent higher cost of living than Anchorage,
while Ketchikan is funded at the same level. Mr. McCarty
emphasized that Ketchikan has nothing left to cut, except teaching
positions and privatization of the custodial staff.
Mr. McCarty informed the committee that Ketchikan faces cutting 30
teachers with the 10 percent loss in students due to the closure of
the mill. Ketchikan cannot handle a delayed or partial
implementation of funding reform; a solution is needed this Spring.
Mr. McCarty noted that the state helped Sitka with the hold
harmless when it experienced drastic changes in its population.
Mr. McCarty hoped the Legislature would review the hold harmless
for Ketchikan.
Number 198
RON DRATHMAN , Kenai Peninsula Borough Assembly member and parent,
emphasized that this legislation is important for Kenai and Mat-Su
Boroughs who traditionally fall through the gap. Under the current
foundation formula, the Kenai Peninsula Borough is taxing at the
maximum level permitted. Still, teachers and programs are being
lost. Mr. Drathman informed the committee that he also chaired the
Alaska Municipal League Legislative Subcommittee on Education &
Local Power which has placed this issue number one. The
legislative committees are meeting in Juneau April 1-3. Mr.
Drathman invited the committee to participate in the meeting on
April 2 when this issue will be discussed. Mr. Drathman requested
that a spreadsheet for the next five years under this proposal be
provided.
GORDON CASTANZA , Superintendent of Chatham School District, said
that he would like the committee to appoint a task force to work on
drafting new area cost differentials soon. The longer it takes the
more adversely impacted the Chatham School District will be. Mr.
Castanza encouraged the committee to increase the area cost
differential by at least 30 percent which is what has been lost
since 1985. With regard to REAA participation and the school tax,
how will the constitutional obstacle of a dedicated tax be
overcome? For the REAAs, this tax would be regressive in
particular in Chatham School District which does not have resources
for extraction. The funding equity issue and the ability of the
REAAs to raise revenues and taxation would create the need to
revisit California's landmark case. If the school tax raised $5
million that would be divided among the 21 REAAs at $238,000 per
REAA which would probably be fractionalized according to the size
of the REAA.
Number 090
With regard to the federal impact aid, Mr. Castanza stressed to the
committee that the amount of federal impact aid continues to
dwindle. For example, in the past the Chatham District received
over $1 million in federal impact aid while the current amount is
$400,000. He noted that President Clinton's budget includes $100
million less in federal impact aid with no distributions for
Section 8,002 monies. Mr. Castanza pointed out that the Chatham
School District is surrounded by federal lands. Even with
diminishing federal impact aid, the district must provide first
class service in order that the Glacier Bay National Park
Superintendent can attract quality employees. The Glacier Bay
National Park nor the National Parks Service are helping offset the
impact of such demands.
Mr. Castanza informed the committee that the Chatham School
District has been assessed a $650,000 repayment to the federal
impact aid office for overpayment given in FY94 and FY95. If there
is a linking between the federal impact aid and the state basic
need, where will the $650,000 come from to pay the government.
In response to Chairman Wilken, Mr. Castanza said that the
California case regarding a dedicated tax was Serrano v Priest.
The $650,000 is not related to the Federal Forest Service
Allocation. The $650,000 came about because all of the REAAs were
required by the Federal Impact Aid Office a few years ago to
recalculate and identify the land from which children of Native
extraction were living.
TAPE 97-25, SIDE A
Number 003
BOB DOYLE , testifying from Mat-Su, ensured the committee that the
Mat-Su district has done much to achieve local responsibility and
accountability. Administrative overhead has been reduced in the
Mat-Su district. There have been hard freezes in the salaries of
the classified employees and the salary increases for teachers have
been restricted. Further health insurance has been frozen and
capped, new hires have been restricted, and the district has
participated in the early retirement program. Mr. Doyle said that
Mat-Su needs some help from the Legislature. Shifting money from
one district to another could be a partial solution; however there
should be an increase in money for enrollment increases, an
adjustment for inflation, and a fair and equitable area cost
differential.
Mr. Doyle stated that he liked the simplification, the minimum
school size, the change in the count date, and some form of
supplemental equalization in the proposal before the committee.
Mr. Doyle believed that there are areas in Alaska that have a more
difficult time raising money through assessed valuation. In
conclusion, Mr. Doyle informed the committee that when he graduated
from East High in Anchorage there was a good school system with
little oil revenue. Now there is a tremendous amount of oil
revenue in Alaska, while school systems have needs that are not
being met.
Number 070
MARYSIA OCHEJ , Business Manager for Southeast Island School
District and parent, informed the committee that she has worked in
Southwest Alaska in rural schools for almost five years. She has
worked for the Southeast Island School District for over six years.
The disparity between the two areas was apparent when she moved to
Southeast Alaska. Ms. Ochej said that the area cost differential
was inadequate and the area cost differential in the proposal
remains inadequate. In the Southeast Island School District some
schools do not have access to roads, scheduled air service, or
regular fuel delivery. Currently, there is difficulty in
communicating with three of the schools in the district.
Therefore, additional money is required to meet the basic need.
Ms. Ochej discussed the obstacles faced by rural schools such as
expensive in-service days and travel for centralized testing.
Ms. Ochej stated that the Legislature is charged by the
Constitution to provide an equitable education for all students in
Alaska. The proposals before the committee appear to shift money
from rural districts to urban districts. Is balancing the budget
more important than providing a quality education to the children
of Alaska? Ms. Ochej asked the committee if it was prepared to pay
for the consequences - "Would you prefer to pay for jail in the
future or education in the present?" Rural children have the same
needs as those in urban areas. Ms. Ochej said that if the budget
cannot be balanced, then education should be funded in order to
provide a basic quality education for all Alaska's children.
CHAIRMAN WILKEN apologized for not being able to get to those
remaining on the teleconference list, but those people will be on
the top of the list for Monday's meeting. Chairman Wilken informed
the committee that the Department of Labor is developing the
numbers to isolate those in REAAs outside of first class home rule
cities. There being no further business before the committee, the
meeting was adjourned at 10:55 a.m.
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