Legislature(1999 - 2000)

03/22/1999 01:45 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE                                                                    
                          March 22, 1999                                                                                        
                            1:45 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Pete Kelly, Vice-Chairman                                                                                               
Senator Gary Wilken                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Mike Miller, Chairman                                                                                                   
Senator Drue Pearce                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
SENATE BILL NO. 73                                                                                                              
"An Act relating to assisted living homes; and providing for an                                                                 
effective date."                                                                                                                
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
CS FOR HOUSE BILL NO. 27(HES)                                                                                                   
"An Act relating to financial aid received for medical education                                                                
and financial aid received by students participating in the Western                                                             
Interstate Commission on Higher Education Professional Student                                                                  
Exchange Program; relating to the Western Regional Higher Education                                                             
Compact; and providing for an effective date."                                                                                  
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
SENATE BILL NO. 95                                                                                                              
"An Act relating to the combination of grades that constitute                                                                   
junior high, middle, or secondary school."                                                                                      
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
SENATE BILL NO. 98                                                                                                              
"An Act relating to teacher tenure."                                                                                            
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
SENATE BILL NO. 9                                                                                                               
"An Act relating to the calculation of employee contributions and                                                               
credited service in the public employees' retirement system for                                                                 
noncertificated employees of school districts, regional educational                                                             
attendance areas, the Alaska Vocational Technical Center, and the                                                               
state boarding schools; and providing for an effective date."                                                                   
                                                                                                                                
     -MOVED CSSB 9(HES) OUT OF COMMITTEE                                                                                        
                                                                                                                                
SENATE BILL NO. 105                                                                                                             
"An Act determining the facilities constituting a school for                                                                    
purposes of public school funding; and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     -SCHEDULED BUT NOT HEARD                                                                                                   
                                                                                                                                
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
SB 73 - See HESS minutes dated 3/17/99                                                                                          
HB 27 - No previous action to report                                                                                            
SB 95 - No previous action to report                                                                                            
SB 98 - No previous action to report                                                                                            
SB 9  - See Labor & Commerce minutes dated 3/9/99                                                                               
SB 105 - No previous action to report                                                                                           
WITNESS REGISTER                                                                                                                
                                                                                                                                
Ms. Alison Elgee, Deputy Commissioner                                                                                           
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Gina Macdonald, Special Projects Coordinator                                                                                
Department of Health & Social Services                                                                                          
Division of Mental Health & Developmental                                                                                       
  Disabilities                                                                                                                  
PO Box 110620                                                                                                                   
Juneau, AK  99811-0620                                                                                                          
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Montafaye Lane                                                                                                              
Alaska Care givers                                                                                                              
109 E. 5th Avenue                                                                                                               
North Pole, AK  99705                                                                                                           
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Representative Eldon Mulder                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK  99811-1182                                                                                                          
POSITION STATEMENT:  Presented HB 27                                                                                            
                                                                                                                                
Ms. Diane Barrans, Executive Director                                                                                           
Alaska Commission on Postsecondary Education                                                                                    
3030 Vintage Blvd.                                                                                                              
Juneau, AK  99899801-7109                                                                                                       
POSITION STATEMENT:  Commented on HB 27                                                                                         
                                                                                                                                
Ms. Debbie Ossiander                                                                                                            
Anchorage School Board                                                                                                          
PO Box 670772                                                                                                                   
Chugiak, AK  99567                                                                                                              
POSITION STATEMENT:  Commented on SB 95 and SB 98                                                                               
                                                                                                                                
Ms. Kathi Gillespie                                                                                                             
Anchorage School Board                                                                                                          
2741 Seafarer Loop                                                                                                              
Anchorage, AK  99516                                                                                                            
POSITION STATEMENT:  Commented on SB 95 and SB 98                                                                               
                                                                                                                                
Mr. Carl Rose, Executive Director                                                                                               
Alaska Association of School Boards                                                                                             
316 W. 11th St.                                                                                                                 
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Commented on SB 95, SB 98 and SB 9                                                                         
                                                                                                                                
Senator Randy Phillips                                                                                                          
Alaska State Capitol                                                                                                            
Juneau, AK  99811-1182                                                                                                          
POSITION STATEMENT:  Presented SB 95                                                                                            
                                                                                                                                
Mr. Michael Morgan, Facilities Manager                                                                                          
Department of Education                                                                                                         
801 W. 10th St., Ste. 200                                                                                                       
Juneau, AK  99801-1894                                                                                                          
POSITION STATEMENT:  Commented on SB 95                                                                                         
                                                                                                                                
Senator Lyda Green                                                                                                              
Alaska State Capitol                                                                                                            
Juneau, AK  99811-1182                                                                                                          
POSITION STATEMENT:  Presented SB 98                                                                                            
                                                                                                                                
Mr. Richard Blair                                                                                                               
Northwest Arctic Borough School District                                                                                        
PO Box 51                                                                                                                       
Kotzebue, AK  99752                                                                                                             
POSITION STATEMENT:  Commented on SB 98                                                                                         
                                                                                                                                
Mr. John Cyr, President                                                                                                         
NEA Alaska                                                                                                                      
114 2nd St.                                                                                                                     
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Commented on SB 98 and SB 9                                                                                
                                                                                                                                
Mr. Don Etheridge                                                                                                               
Public Employees Local 71                                                                                                       
710 W. 9th                                                                                                                      
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Supported SB 9                                                                                             
                                                                                                                                
Mr. Larry Wiget                                                                                                                 
Anchorage School District                                                                                                       
4600 DeBarr Road                                                                                                                
Anchorage, AK  99519                                                                                                            
POSITION STATEMENT:  Supported SB 9                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-13, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY called the Senate Health, Education and Social                                                              
Services (HESS) Committee to order at 1:45 p.m. announced that the                                                              
committee would move SB 9 out today and hear public testimony on SB
73, HB 27, SB 95 and SB 98.  Senator Miller had asked him to                                                                    
address the two pay structures in the geographic differential                                                                   
fiscal notes on SB 73.                                                                                                          
                                                                                                                                
               SB  73-ASSISTED LIVING FACILITIES                                                                                
                                                                                                                                
Number 026                                                                                                                      
                                                                                                                                
MS. ALISON ELGEE, Deputy Commissioner for the Department of                                                                     
Administration  stated the department was asked to prepare draft                                                                
fiscal notes representing one scenario that would include paying a                                                              
geographic differential, and one scenario that would exclude paying                                                             
a geographic differential.                                                                                                      
                                                                                                                                
The four different fiscal notes in the committee packets include                                                                
two from the Division of Senior Services (DSS) and two from the                                                                 
Department of Health and Social Services, Division of Mental Health                                                             
& Developmental Disabilities.  She would speak to the DSS fiscal                                                                
notes, but stated the methodology is similar in both the                                                                        
departments' fiscal notes.                                                                                                      
                                                                                                                                
At the present time the assisted living rate structure has a base                                                               
rate of $30, with the department providing a geographic                                                                         
differential to recognize the difference in the cost of doing                                                                   
business throughout the state. This is done on a regional basis,                                                                
with the geo-differential ranging from a zero base rate in                                                                      
Anchorage and Southeast Alaska to a high of 38% in the rural parts                                                              
of the state. The Interior region is at 15%, Western Alaska is at                                                               
33%, with Northwestern the highest at 38%.  The department                                                                      
presently pays a .4% differential in the Palmer-Wasilla area.                                                                   
                                                                                                                                
The difference between the two notes marked "Draft" is the cost if                                                              
the geographic differential approach is continued with the new rate                                                             
structure, as proposed for a potential CS, and the cost if the                                                                  
geographic differential were eliminated.                                                                                        
                                                                                                                                
MS. ELGEE stated the committee needs to be aware of one anomaly                                                                 
that at the proposed $50 rate for the first year, the department                                                                
would actually be paying less to the Northwest Alaska region than                                                               
it presently pays under a $30 base rate with a differential.                                                                    
                                                                                                                                
Number 075                                                                                                                      
                                                                                                                                
MS. GINA MACDONALD, Division of Mental Health & Developmental                                                                   
Disabilities, agreed that the fiscal note methodology was similar.                                                              
The only difference was that DHSS uses a personal allowance of $100                                                             
per person, while DOA uses a $75 personal allowance, which impacts                                                              
the amount of money that DHSS needs for the assisted living home                                                                
provider. She stated this needs to be clarified for a final fiscal                                                              
note.                                                                                                                           
                                                                                                                                
Number 094                                                                                                                      
                                                                                                                                
SENATOR ELTON asked the history of the rate differentials.                                                                      
                                                                                                                                
MS. ELGEE replied she was not sure but she thought the                                                                          
differentials have been in place at least since the last rate                                                                   
adjustment in 1984. DOA uses the geo differentials for the                                                                      
statutory pay structure, except the pay structure includes many                                                                 
more differentials than these fiscal notes.  The department uses a                                                              
regional approach and the differential most appropriate for the                                                                 
region. MS. MACDONALD said she did not know the history.                                                                        
                                                                                                                                
SENATOR ELTON commented there have been a lot of changes during the                                                             
last ten years.                                                                                                                 
                                                                                                                                
Number 118                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY repeated that SB 73 would not be passing out                                                                
today.  Senator Miller has not seen the fiscal notes yet, and he                                                                
wanted the committee to look at them today.  SB 73 will be                                                                      
rescheduled and the committee will go through the rest of the bill                                                              
at the next meeting.  He said that Montafaye Lane is on-line in                                                                 
Fairbanks to testify on SB 73.                                                                                                  
                                                                                                                                
Number 123                                                                                                                      
                                                                                                                                
MS. MONTAFAYE LANE asked the committee where the state would get                                                                
the money to put a general relief client she doesn't want in her                                                                
assisted living home in a nursing home like Denali Center that                                                                  
ranges in cost from $5600 to $9000 a month, depending on the level                                                              
of care. It's impossible for the small bed assisted living homes to                                                             
make a living and care for these people at the Fairbanks rate of                                                                
$34.50 a day.  Even with the increase to $70, Alaska would still be                                                             
below the national average for cost of care.  "I say we need the                                                                
$70 a day and we also need the differential added on because there                                                              
are parts of this state where it's very high for electricity and                                                                
fuel.  I know, I paid $600 a month for fuel in Fairbanks."                                                                      
                                                                                                                                
The Pioneer Homes are subsidized by the state, with employees                                                                   
getting insurance, retirement and vacation pay.  MS. LANE said she                                                              
has none of that, and also no way to recover on damages and repair                                                              
bills to her home.                                                                                                              
                                                                                                                                
MS. LANE emphasized that if the rate increase is not voted in,                                                                  
there's no way she can continue after July 1 on her budget to                                                                   
provide this service to general relief clients. The division has                                                                
done a good job getting the providers more education and training.                                                              
But she's been in the business and licensed in Alaska since 1991,                                                               
and she griped about the rate then.  They got a $3.50 increase,                                                                 
bringing it to $34.50 a day.  There's been nothing since then.                                                                  
"Have you gone out lately and bought milk and butter? We feed these                                                             
people.  You guys have got to understand why we need the rate                                                                   
increase, and we need it now."                                                                                                  
                                                                                                                                
Number 205                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY told Ms. Lane that Senator Miller had not seen                                                              
the new fiscal note, and the three-year phase-in is just one                                                                    
scenario being considered.  He asked her to track the bill and said                                                             
that Sharon Clark would work with her.  He felt the phase-in is a                                                               
legitimate discussion, as well as the disparity between what it                                                                 
costs the state to care for these people and what the assisted                                                                  
living homes get paid to do it.  He understood her difficulties and                                                             
thanked her for her testimony.                                                                                                  
                                                                                                                                
MS. LANE added she appreciates the three-year phase-in but she                                                                  
doesn't see that it's even a possibility.  In caring for the                                                                    
general relief clients, the homes are saving the state thousands                                                                
and even millions of dollars.  If the bill passes, she could take                                                               
in a client for $2,000 a month, compared to $9,000 a month-- a                                                                  
$7,000 a month savings for each person. She demanded, "What is the                                                              
problem here?"                                                                                                                  
                                                                                                                                
Number 234                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY replied that all ideas have to work through the                                                             
process, and there is progress but whether it will come out exactly                                                             
as she wants it, no one can say.   Everything she said is                                                                       
legitimate and he agrees with a lot of it, yet sixty people down                                                                
here plus the Governor have to come to agreement on this bill.                                                                  
                                                                                                                                
                                                                                                                                
VICE-CHAIRMAN KELLY invited Representative Mulder to present HB 27                                                              
and said the committee would hear testimony but would not move it                                                               
out today.                                                                                                                      
                                                                                                                                
Number 255                                                                                                                      
                                                                                                                                
REPRESENTATIVE ELDON MULDER, sponsor of HB 27, explained the bill                                                               
amends statute to allow student loan program monies to be loaned                                                                
through the Western Interstate Commission on Higher Education, or                                                               
WICHE Program, and repaid to the state of Alaska.                                                                               
                                                                                                                                
The intent of HB 27 is to allow for Alaska residents seeking to                                                                 
further their education in postsecondary education through WICHE-                                                               
participating schools to secure those positions within the                                                                      
professional student exchange program.  Previously, Alaska secured                                                              
positions in the health and veterinary sciences fields through                                                                  
participation and exchange, and the Alaskan student paid the in-                                                                
state tuition fee as a resident of the other western state.  The                                                                
difference between that fee and the actual cost was carried by the                                                              
General Fund.  With recent budget constraints, Alaska suspended its                                                             
participation in the WICHE Program. HB 27 would utilize the student                                                             
loan program to secure those positions and make them available at                                                               
a lower cost to the student, with the student paying back the                                                                   
portion as a loan.                                                                                                              
                                                                                                                                
REPRESENTATIVE MULDER said the western states are interested in                                                                 
Alaska resuming its participation in WICHE and this would reopen                                                                
the door for Alaskan students at a lower rate.                                                                                  
                                                                                                                                
Number 307                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY asked if the portion of the General Fund that                                                               
previously supplemented the program would now be replaced with a                                                                
loan fund.  REPRESENTATIVE MULDER replied yes, and clarified there                                                              
is no loan forgiveness.                                                                                                         
                                                                                                                                
VICE-CHAIRMAN KELLY repeated that Senator Miller would reschedule                                                               
HB 27 for action by the committee.                                                                                              
                                                                                                                                
Number 317                                                                                                                      
                                                                                                                                
MS. DIANE BARRANS, Executive Director of the Alaska Commission on                                                               
Postsecondary Education, said HB 27 would reactivate a program that                                                             
Alaska participated in for about 20 years, prior to the elimination                                                             
of General Fund support in 1994. Previously, Alaska participated in                                                             
up to 14 fields in the WICHE professional student exchange program.                                                             
After 1987, due to budget reductions the fields were limited to                                                                 
just those where access was a critical issue.  The support fees the                                                             
state paid on behalf of each participant were paid directly to the                                                              
receiving postsecondary institutions through the WICHE                                                                          
administrative office.  MS. BARRANS said it was grant aid, and                                                                  
there was no legal obligation on the part of a participant to                                                                   
either return and practice in the state, or to repay a portion of                                                               
the support.                                                                                                                    
                                                                                                                                
This bill would enable the commission to utilize Alaska student                                                                 
loan corporation receipts to provide residents with access.                                                                     
However, from the corporation's perspective, as a result of this                                                                
funding change the corporation would require participants to bear                                                               
the entire cost of the program as a debt obligation.  Under HB 27,                                                              
the commission as the administrator of the funds would set the                                                                  
terms and conditions of the loan by regulation.  Management would                                                               
recommend to the commission that they consider three aspects:                                                                   
Alaska workforce needs, student access to graduate education, and                                                               
minimizing the risk to the student loan fund.  The Commission will                                                              
take a position on the bill later this month at its quarterly                                                                   
meeting.                                                                                                                        
                                                                                                                                
Number 348                                                                                                                      
                                                                                                                                
SENATOR WILKEN asked if line 16 on page 2 speaks to forgiveness and                                                             
its connection with the medical program, and how it differs from                                                                
WAMI.                                                                                                                           
                                                                                                                                
MS. BARRANS replied that it is WAMI. The commission identified a                                                                
placement error of the current WAMI statutes that make it a loan                                                                
program, in the Western Compact section of statute.  It does not                                                                
belong there because it's not a WICHE program.  This relocates it                                                               
to a more appropriate area of loan statute, and allows the                                                                      
professional student exchange program to be placed in 14.44.                                                                    
                                                                                                                                
SENATOR WILKEN asked how it would differ from a regular student                                                                 
loan.                                                                                                                           
                                                                                                                                
MS. BARRANS responded the terms of the loan would have different                                                                
features than the student loan program.  There is no loan maximum                                                               
and it would tie directly to the support fee the state will be                                                                  
paying on that student's behalf, ranging from $6000 to more than                                                                
$20,000 per year.  The commission will recommend that the                                                                       
corporation adopt regulations providing that interest accrue from                                                               
the date the money is paid on behalf of the participant.                                                                        
                                                                                                                                
SENATOR WILKEN asked if a student could get a $20,000 loan to buy                                                               
his placement and another student loan to go to school.                                                                         
                                                                                                                                
MS. BARRANS answered yes, the levels of debt that participants will                                                             
incur will be a factor for the commission in determining which                                                                  
fields to lend money under this bill.                                                                                           
                                                                                                                                
She gave examples of a physician's assistant only needing to borrow                                                             
$4,200 per year, as opposed to a medical student who would be                                                                   
borrowing nearly $23,000  a year. MS. BARRANS said, "It really is                                                               
not feasible for the corporation to provide a loan of that                                                                      
magnitude to someone knowing that they're probably borrowing, in                                                                
addition to that, $50,000 to $80,000 on average.  They just could                                                               
not incur that debt and repay it."                                                                                              
                                                                                                                                
She repeated that the commission would target the fields of mid-                                                                
level care where there's a need in Alaska, such as Physician                                                                    
Assistant, Occupational Therapist, Physical Therapist, or                                                                       
Optometrist.  These are positions allowing repayment within a                                                                   
reasonable amount of time.  If not limited, participants would be                                                               
incurring mortgage-size loans.                                                                                                  
                                                                                                                                
SENATOR WILKEN questioned what the WICHE parameters would add to                                                                
the student loan program monies the commission is loaning out,                                                                  
asking if it would be $50,000 or $250,000.                                                                                      
                                                                                                                                
MS. BARRANS answered that the loan volume at peak would be $500,000                                                             
per year, out of about $69 million this year.                                                                                   
                                                                                                                                
Number 405                                                                                                                      
                                                                                                                                
SENATOR ELTON asked if the cost would be spread out to the                                                                      
borrowers.                                                                                                                      
                                                                                                                                
MS. BARRANS that the state pays dues to benefit in a variety of                                                                 
programs, but those would not be prorated across these participants                                                             
in any way.  There is a per-student fee charged under this specific                                                             
program, and that fee is what the participant would incur as a                                                                  
debt.                                                                                                                           
                                                                                                                                
The commission currently pays $83,000 per year in Compact Member                                                                
dues, but the state is not participating in this program right now.                                                             
The benefit Alaska is receiving for these dues is through the                                                                   
undergraduate exchange, a WICHE program, that has 1,100 Alaskans                                                                
participating and no requirement of a per-participant fee.  She                                                                 
concluded, "If you break down that $83,000 per student, it's a very                                                             
effective way of increasing educational choice for Alaskans."                                                                   
                                                                                                                                
Number 423                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY announced the committee would hold HB 27 until                                                              
Senator Miller's return.                                                                                                        
                   SB  95-SCHOOL GRADE LEVELS                                                                                   
                                                                                                                                
VICE-CHAIRMAN KELLY brought up SB 95.                                                                                           
                                                                                                                                
SENATOR RANDY PHILLIPS, sponsor of SB 95, asked if Larry Wiget was                                                              
on line.  Mr. Wiget responded that he was, as well as school board                                                              
members Debbie Ossiander and Kathi Gillespie who wish to testify.                                                               
                                                                                                                                
Number 437                                                                                                                      
                                                                                                                                
SENATOR PHILLIPS discussed the school overcrowding problem facing                                                               
Anchorage.  Currently Chugiak High School is badly overcrowded,                                                                 
with space for 1750 students and attendance at 2100 students. The                                                               
dilemma is whether to add more rooms or build a new high school.                                                                
The wish of the community is to have a second high school, but                                                                  
DOE's regulations don't allow for that.  There are two middle                                                                   
schools, Gruening at capacity, and Mirror Lake under capacity.                                                                  
                                                                                                                                
This bill was recommended by the Anchorage School District in order                                                             
to adjust the overcrowding situation with the middle/junior high                                                                
school, but more importantly, with the high school. SENATOR                                                                     
PHILLIPS pointed out that the three committee members present are                                                               
experiencing expanding high school populations.  He stated this                                                                 
legislation is one option to maintain student levels and still                                                                  
deliver a quality high school.                                                                                                  
                                                                                                                                
MS. DEBBIE OSSIANDER, Anchorage School Board member, testified in                                                               
support of SB 95. It would allow school districts necessary                                                                     
flexibility in order to maximize student achievement.  National                                                                 
research shows that grouping the middle school configuration of                                                                 
6th, 7th and 8th grades has academic and social benefits by                                                                     
promoting achievement and dealing more effectively with student                                                                 
discipline matters. This configuration of grades is a trend in                                                                  
urban districts in Alaska.                                                                                                      
                                                                                                                                
Right now regulations penalize school districts if they decide to                                                               
house 6th-7th and 8th grades in middle schools, by considering 6th                                                              
graders as elementary students who qualify for a smaller square                                                                 
footage. MS. OSSIANDER said the logic of housing these grades in                                                                
one building and saying one group of kids needs less room than                                                                  
another totally escapes her.                                                                                                    
                                                                                                                                
The DOE fiscal note appears to assume that all 6th graders will be                                                              
moved into the middle school model, but that's not the Anchorage                                                                
school board's expectation.  The fiscal note also appears to assume                                                             
the state will reimburse all school construction.  The regulations                                                              
penalize districts if they have housed 6th-7th and 8th grades                                                                   
together in the past by not qualifying for the  additional school                                                               
construction they will need in the future.  The school district                                                                 
believes SB 95 would be very helpful.                                                                                           
                                                                                                                                
Number 489                                                                                                                      
                                                                                                                                
MS. KATHI GILLESPIE, Anchorage School Board member, repeated that                                                               
instructionally school districts in Kenai, Juneau, Anchorage and                                                                
Mat-Su are moving toward the 6th-7th-8th middle school model. Last                                                              
year in the Foundation Formula re-write, the per-pupil allocation                                                               
did away with the designation between elementary and secondary                                                                  
students.  Operating cost is not the problem; it is the amount of                                                               
square footage these kids have when they are still designated as                                                                
elementary or secondary students. The school board wants                                                                        
flexibility to decide if 6th graders are more appropriately put in                                                              
an elementary or a secondary school, and to be allowed by the state                                                             
to deliver a secondary program with more square footage, several                                                                
teachers, and more music and P.E.   MS. GILLESPIE concluded that                                                                
the issue is statewide in scope and there are schools out of                                                                    
compliance with DOE regulations.                                                                                                
                                                                                                                                
Number 510                                                                                                                      
                                                                                                                                
MR. CARL ROSE, Executive Director, Alaska Association of School                                                                 
Boards, stated the association supports SB 95 and feels the                                                                     
flexibility and provision of local control in determining if a                                                                  
school district wants to use a 6-7-8 model is appropriate.                                                                      
                                                                                                                                
SENATOR ELTON asked Mr. Rose if the schools now having the 6-7-8                                                                
model are illegal, and if they aren't, why the bill is needed. Is                                                               
it just an issue of square footage for students?                                                                                
                                                                                                                                
MR. ROSE replied that clarification may give school districts the                                                               
opportunity to exercise a choice that may be restricted right now.                                                              
School districts may be hindered in moving in this direction, and                                                               
those already employing these strategies may be in noncompliance.                                                               
The association would like assurance that the square foot advantage                                                             
for the 6-7-8 model would be recognized. Currently if a new school                                                              
is being built including a 6-7-8 model, the district does not                                                                   
receive credit for those 6th grade students because they're not                                                                 
included in the secondary classification.                                                                                       
                                                                                                                                
Number 531                                                                                                                      
                                                                                                                                
MR. MICHAEL MORGAN, Facilities Manager for the Department of                                                                    
Education, responded to a couple earlier comments. Currently the                                                                
school districts have the choice to combine grades almost any way                                                               
they choose.  From the department's perspective it's strictly a                                                                 
square footage issue.  If they do a combination of 6th-7th and 8th                                                              
graders, they get credit for the 6th graders, but not at the same                                                               
rate as the 7th and 8th graders.  There is a differential on the                                                                
amount of square footage between the two.                                                                                       
                                                                                                                                
The fiscal note is the most conservative estimate and does not                                                                  
assume that all square footage will immediately become eligible for                                                             
replacement for 6th graders; if that were the case, the fiscal note                                                             
would double.                                                                                                                   
                                                                                                                                
VICE-CHAIRMAN KELLY asked if the fiscal note is $126 million                                                                    
dollars.                                                                                                                        
                                                                                                                                
MR. MORGAN replied it is.  The fiscal note doesn't take into                                                                    
account the on-going future increases, only the immediate need                                                                  
based on district populations.  It doesn't consider the increase in                                                             
future maintenance costs at the larger facilities, or the increase                                                              
in maintenance and operation costs that will accrue to districts.                                                               
                                                                                                                                
Last year the department gave the Anchorage School District more                                                                
flexibility through a regulation change passed by the State Board                                                               
of Education allowing communities the choice to 100% fund                                                                       
facilities.  There is a provision to not have that square footage                                                               
counted against them as the department looks at eligibility for                                                                 
additional state-funded square footage.                                                                                         
                                                                                                                                
Number 554                                                                                                                      
                                                                                                                                
SENATOR WILKEN asked if Mr. Morgan is saying 6th graders are                                                                    
counted as one head each, but only get 106 square feet instead of                                                               
150 square feet.  MR. MORGAN answered yes.                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY asked if the fiscal note refers to $126 million                                                             
extra dollars for the new schools that would be built under the new                                                             
scenario in the next fiscal year.                                                                                               
                                                                                                                                
MR. MORGAN replied  yes, if the projects were funded.                                                                           
                                                                                                                                
MS. OSSIANDER admitted she did not clearly understand  Mr. Morgan's                                                             
comments.  In reference to the chart, she asked if he said the                                                                  
state would 100% fund all projects submitted to it.                                                                             
                                                                                                                                
MR. MORGAN responded that the chart assumes the state would fund                                                                
these projects at the 70% level.                                                                                                
                                                                                                                                
SENATOR PHILLIPS added that it assumes the local government votes                                                               
for the bonds, as well. MR. MORGAN clarified it looks at either of                                                              
two programs: funding local bonds, or grants to municipalities                                                                  
which are funded at the 70% level.                                                                                              
                                                                                                                                
Chugiak needs to put the proposed new high school on the ballot in                                                              
the Anchorage area with a 70%-30% funding split. The community                                                                  
cannot support a super large high school, because the 600 extra                                                                 
students now overcrowding the Chugiak H.S. are not enough to                                                                    
warrant another high school.  Consequently, he is looking for                                                                   
another configuration, which DOE's regulations prohibit.  The                                                                   
intent is to let the local voters vote on the bond package.                                                                     
                                                                                                                                
VICE-CHAIRMAN KELLY asked how many schools the $126 million fiscal                                                              
note assumes would be going to bond election next year.  MR. MORGAN                                                             
said they only looked at the number of students that would qualify                                                              
for the square footage.                                                                                                         
                                                                                                                                
TAPE 99-13, SIDE B                                                                                                              
Number 583                                                                                                                      
                                                                                                                                
MS. GILLESPIE repeated the school district needs flexibility in how                                                             
it applies the dollars funded by the Legislature to a local                                                                     
project.                                                                                                                        
                                                                                                                                
MR. MORGAN explained the department looks at the total area in                                                                  
evaluating square footage.  The Eagle River-Chugiak area has                                                                    
elementary school capacity for about 600 students.  The Mirror Lake                                                             
middle school has capacity for 400 students.  The high school has                                                               
an overcapacity of 100 students.  He asserted they have an                                                                      
overcrowding problem because they put the 6th graders in the middle                                                             
school.                                                                                                                         
                                                                                                                                
SENATOR PHILLIPS disagreed with Mr. Morgan, stating the high school                                                             
is way overcapacity and it's more than 100 students.                                                                            
                                                                                                                                
MS. OSSIANDER said the focus should be that the Legislature has                                                                 
control over funding, and the school district believes                                                                          
instructionally a middle school program is better for the 6th                                                                   
graders than a traditional elementary program.  In other words,                                                                 
build to meet the instructional needs of the kids.                                                                              
                                                                                                                                
SENATOR WILKEN asked why the fiscal note refers to 150 square feet                                                              
while the others list 43.75 square feet.  Mr. Morgan replied that                                                               
currently they show no eligibility for additional square footage                                                                
for 6th graders.  If 6th graders are to be secondary students, none                                                             
of the elementary space would be counted that is currently counted.                                                             
If no elementary space is counted, these 6th graders would qualify                                                              
for the full 150 square feet.                                                                                                   
                                                                                                                                
SENATOR ELTON asked if Juneau, which has the 6-7-8 configuration                                                                
was built under the existing square footage rules.  MR. MORGAN said                                                             
he didn't know.  The current regulations came into effect in early                                                              
1996.  Prior to that time, the space guidelines were not in                                                                     
regulation.  The department took the existing guidelines for                                                                    
elementary, secondary, and K-12 schools for different sized schools                                                             
with a high, medium and low range.  The medium guidelines were put                                                              
into regulation.                                                                                                                
                                                                                                                                
VICE-CHAIRMAN KELLY stated the committee would hold SB 95 until                                                                 
Senator Miller returns.                                                                                                         
                                                                                                                                
                     SB  98-TEACHER TENURE                                                                                      
                                                                                                                                
TAPE 99-13, SIDE B                                                                                                              
Number 538                                                                                                                      
                                                                                                                                
VICE-CHAIRMAN KELLY brought SB 98 before the committee.                                                                         
                                                                                                                                
SENATOR LYDA GREEN, sponsor of SB 98, explained that several years                                                              
ago HB 465 was amended on the Senate floor to contain a portability                                                             
of tenure clause.  The amendment relates to a teacher in one                                                                    
district who is not dismissed, but either resigns or moves to                                                                   
another district and within 12 months applies for a teaching job.                                                               
If hired, the new school district would have only one year to                                                                   
review that teacher.                                                                                                            
                                                                                                                                
Several school districts are concerned about this provision. Some                                                               
have made mistakes with hiring, and others have found they're very                                                              
reluctant to hire a transferring teacher because there is                                                                       
inadequate time for evaluation.  This has led to decisions and                                                                  
layoffs that would have been avoided with a longer evaluation time.                                                             
                                                                                                                                
SB 98 restores the situation that existed before HB 465 and the                                                                 
portability of tenure for teachers from another district.                                                                       
                                                                                                                                
Number 510                                                                                                                      
                                                                                                                                
RICHARD BLAIR, Personnel Officer for Northwest Arctic School                                                                    
District, Kotzebue, expressed the administration's support for SB
98 if it amends AS 14.20.150(d) so that tenure is not portable to                                                               
other districts.                                                                                                                
                                                                                                                                
MR. LARRY WIGET, Executive Director of Public Affairs for Anchorage                                                             
School District, explained that Ms. Ossiander had to leave and he                                                               
would present the testimony for the district.  The school board                                                                 
requests the Legislature amend AS 14.20.150(d) to repeal                                                                        
portability of tenure.  All districts need time to evaluate whether                                                             
a newly hired teacher will be a proper match for the district and                                                               
will meet specific district standards. Evaluation of past                                                                       
performance becomes difficult due to the absence of a clear,                                                                    
statewide teacher evaluation standard.  If a teacher becomes                                                                    
tenured after one year, it becomes difficult for the district to                                                                
remove poorly skilled teachers.                                                                                                 
                                                                                                                                
MS. KATHI GILLESPIE, Anchorage School Board member, described the                                                               
retirement incentive program that has caused the hiring of over a                                                               
thousand new teachers over the last two years in the Anchorage                                                                  
school district.  Less than 2% of those new teachers have come from                                                             
districts where they were tenured in Alaska.  The board feels                                                                   
portability works against applicants tenured in Alaska who wish to                                                              
move to another state district, because they should have equal                                                                  
consideration with other teachers from out of state.  The district                                                              
supports SB 98 which would give incentive to hire from within the                                                               
state as well as without.                                                                                                       
                                                                                                                                
Number 473                                                                                                                      
                                                                                                                                
MR. CARL ROSE, Executive Director of the Association of Alaska                                                                  
School Boards, spoke in favor of SB 98.  He handed out a survey                                                                 
relating to portable tenure of teachers applying and being hired in                                                             
Alaska.  Of a total of 593 applicants surveyed, excluding the                                                                   
Anchorage School District, only 70 teachers with tenure, or 11.8%,                                                              
were hired.  The issue of portability of tenure works against                                                                   
teachers, especially during times of teacher shortage.  The                                                                     
evaluation period is only about six-months, not even a full year.                                                               
MR. ROSE concluded this is a high risk proposition in hiring                                                                    
qualified people.                                                                                                               
                                                                                                                                
MR. JOHN CYR, President of NEA-Alaska, stated that the association                                                              
representing about 11,000 education employees statewide does not                                                                
support SB 98.   HB 465 came into effect in August 1996 and                                                                     
radically changed the way teachers are evaluated, and standards for                                                             
teachers.  HB 465 was the result of a series of compromises.                                                                    
Statewide evaluation systems have been set up that work.  Before HB
465, tenure was achieved at the beginning of the 3rd year; now it's                                                             
the beginning of the 4th year.  In the past there were three real                                                               
reasons for dismissal:  substantial noncompliance, immorality, or                                                               
incompetence as defined by case law.  Now, we still have                                                                        
noncompliance and immorality but the issue of incompetence is gone.                                                             
Dismissing a teacher, tenured or not, is now based on a much lower                                                              
standard, the "failure to meet conditions of a plan of                                                                          
improvement."                                                                                                                   
                                                                                                                                
NEA was not happy when these provisions came into effect, which it                                                              
views as an erosion of basic employment rights.  Districts now have                                                             
3 years to evaluate a teacher, where before it was 2 years, and it                                                              
is much easier to dismiss.  NEA is helping to set up evaluation                                                                 
procedures, or measurable plans of improvement, in many districts,                                                              
in conjunction with the Administration. The portability of tenure                                                               
evaluation procedure has only been in place since July 1, 1997; now                                                             
less than 2 years later, the Legislature is trying to fix something                                                             
NEA doesn't perceive as a problem.                                                                                              
                                                                                                                                
MR. CYR asked that teachers be evaluated fairly, and when needed,                                                               
placed on plans of improvement quickly, stating "Nobody wants those                                                             
teachers in classrooms any longer than necessary."  The hiring                                                                  
procedures are rigorous, and if districts aren't hiring tenured                                                                 
teachers, he feels it has more to do with the funding in those                                                                  
districts than with tenure.                                                                                                     
                                                                                                                                
SENATOR WILKEN asked how Mr. Cyr reconciles his testimony with that                                                             
of AASB which made a strong case that portability of tenure is                                                                  
hurting teacher placement, not helping.                                                                                         
                                                                                                                                
MR. CYR responded that before HB 465 was passed, you'd find nearly                                                              
the same statistics.  It begs the question to say we can no longer                                                              
hire tenured teachers because there's not enough time to evaluate                                                               
them. Teachers who get hired are newly out of college.  There's                                                                 
been a lot of hires in urban areas because of the state-sponsored                                                               
RIP, with many new untenured hires from rural Alaska.                                                                           
                                                                                                                                
Number 378                                                                                                                      
                                                                                                                                
SENATOR ELTON asked Mr. Cyr if he's heard from the NEA membership                                                               
that the net effect of HB 465 has been that they can't transfer                                                                 
from one district to another.                                                                                                   
                                                                                                                                
MR. CYR replied, not at all.  The net effect of HB 465 has been to                                                              
put in place real evaluation procedures.                                                                                        
                                                                                                                                
SENATOR ELTON asked why an evaluation can't be done in one year.                                                                
He is bothered by extending tenure from 2 to 3 years, allowing a                                                                
bad teacher to stay longer.                                                                                                     
                                                                                                                                
MR. CYR said evaluations should be done in a timely manner, or the                                                              
teacher put on a plan of improvement. That is the primary                                                                       
responsibility given to administration, and it grates on him to                                                                 
hear that it takes more time to evaluate.                                                                                       
                                                                                                                                
MR. ROSE said it's not only an issue of evaluation to get the best                                                              
teacher into the classroom, it's one of professional development.                                                               
A three year period of time is appropriate. In cases where an                                                                   
employee will not make the grade it must be determined early to                                                                 
stop the process. On one hand, time is a factor because the                                                                     
pressure on administration is tremendous.  The survey matrix shows                                                              
teachers with tenure who do not get the opportunity with only six                                                               
to nine months of evaluation to get hired in a new school district.                                                             
HB 465 was an omnibus bill that tried to address quality                                                                        
performance, accountability and fairness. SB 98 recognizes that you                                                             
can regain tenure in a school district you've already worked in for                                                             
one year, where people already know you.  If they rehire you, one                                                               
year is an appropriate time period.  For a district that doesn't                                                                
know you, six to nine months is not enough time.                                                                                
                                                                                                                                
VICE-CHAIRMAN KELLY said the committee would hold SB 98 and hear                                                                
more testimony from Senator Green and others at a later meeting.                                                                
                                                                                                                                
                                                                                                                                
        SB   9-PERS CREDIT FOR NONCERTIFICATED EMPLOYEES                                                                        
                                                                                                                                
VICE-CHAIRMAN KELLY brought up SB 9 .                                                                                           
                                                                                                                                
Number 301                                                                                                                      
                                                                                                                                
SENATOR WILKEN stated SB 9 recognizes the classified employees in                                                               
school districts who are the janitors, custodians, and support                                                                  
staff.  Teachers have 12 months retirement contributed for every                                                                
9 months they work, and after 30 years of teaching, receive a                                                                   
full 30 years retirement.  However, the classified people only                                                                  
receive 9 months each year toward retirement. Two years ago, the                                                                
classified employees approached Representative Brice and said                                                                   
they would pay for the difference.  This bill provides for that,                                                                
with a zero fiscal impact on the school districts and on the                                                                    
state, and a minimal $70.0 first year start up cost.  SB 9                                                                      
recognizes that the classified employee can choose to contribute                                                                
toward their own retirement after 30 years, with the extra 7.5                                                                  
years paid by the employee with his own money, and prorated over                                                                
their 9 months of normal employment.                                                                                            
                                                                                                                                
Number 268                                                                                                                      
                                                                                                                                
MR. JOHN CYR, NEA-AK stated appreciation of Senator Wilken's                                                                    
willingness to introduce SB 9.  His association has worked a long                                                               
time to get this legislation which they strongly support.                                                                       
                                                                                                                                
MR. DON ETHERIDGE, Public Employees Local 71, stated that the                                                                   
union wholeheartedly supports SB 9.  Their membership working in                                                                
the school districts has been urging this legislation for many                                                                  
years.                                                                                                                          
                                                                                                                                
MR. LARRY WIGET, Executive Director of Public Affairs, Anchorage                                                                
School District, expressed the district's support of SB 9.                                                                      
                                                                                                                                
MR. CARL ROSE, AASB, stated the association supports SB 9.                                                                      
                                                                                                                                
SENATOR WILKEN moved to adopt CSSB 9(HES), Version D Cramer.                                                                    
Without objection, it was adopted.  SENATOR WILKEN explained the                                                                
CS changes the title and line 11 on page 1, by adding the special                                                               
education service agencies (SESA), eleven certified people who                                                                  
work to fund and place disabled people in the school districts.                                                                 
They are classified and part of the PERS system, and SENATOR                                                                    
WILKEN agreed with their inclusion in the bill.                                                                                 
                                                                                                                                
SENATOR WILKEN moved to report CSSB 9(HES) out of committee with                                                                
individual recommendations and a fiscal note.  Without objection,                                                               
it was so ordered.  The committee adjourned at 3:00 p.m.                                                                        

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