Legislature(1999 - 2000)

03/27/2000 01:34 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 27, 2000                                                                                        
                            1:34 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Mike Miller, Chairman                                                                                                   
Senator Pete Kelly, Vice-Chairman                                                                                               
Senator Gary Wilken                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Drue Pearce                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CS FOR HOUSE BILL NO. 191(FIN)                                                                                                  
"An Act relating to charter schools."                                                                                           
     -HEARD AND HELD                                                                                                            
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
HB 191 - No previous Senate action.                                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Representative Fred Dyson                                                                                                       
Alaska State Capitol                                                                                                            
Juneau, Alaska 99801-1182                                                                                                       
POSITION STATEMENT:  Sponsor of HB 191                                                                                          
                                                                                                                                
Wes Kelly                                                                                                                       
Chief of Staff to Representative Dyson                                                                                          
Alaska State Capitol                                                                                                            
Juneau, Alaska  99081-1182                                                                                                      
POSITION STATEMENT:  Answered questions about HB 191                                                                            
                                                                                                                                
Bruce Johnson                                                                                                                   
Deputy Commissioner                                                                                                             
Department of Education and Early Development                                                                                   
801 W 10th St., Ste. 200                                                                                                        
Juneau, Alaska  99801-1894                                                                                                      
POSITION STATEMENT:  Commented on HB 191                                                                                        
                                                                                                                                
Carol Comeau                                                                                                                    
Anchorage School District                                                                                                       
PO Box 196614                                                                                                                   
Anchorage, Alaska  99519                                                                                                        
POSITION STATEMENT:  Commented on HB 191                                                                                        
                                                                                                                                
Annie Keep-Barnes                                                                                                               
5933 Old Valdez Trail                                                                                                           
Salcha, Alaska  99714                                                                                                           
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Kitty Mathers                                                                                                                   
173 Snowy Owl Lane                                                                                                              
Fairbanks, Alaska  99712                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Mika Mack                                                                                                                       
322 Ketchikan Ave.                                                                                                              
Fairbanks, Alaska  99701                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Gail McCann                                                                                                                     
532 Lee Drive                                                                                                                   
Fairbanks, Alaska  99709                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Jody Vanderbilt                                                                                                                 
2690 Talkeetna                                                                                                                  
Fairbanks, Alaska  99701                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Rachel Stinson                                                                                                                  
PO Box 74958                                                                                                                    
Fairbanks, Alaska  99707                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Alison Seymour                                                                                                                  
PO Box 82155                                                                                                                    
Fairbanks, Alaska  99708                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Susan Faulkner                                                                                                                  
PO Box 83855                                                                                                                    
Fairbanks, Alaska  99708                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
Terri Austin                                                                                                                    
1318 Polar Drive                                                                                                                
Fairbanks, Alaska  99712                                                                                                        
POSITION STATEMENT:  Supports HB 191                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-13, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER called the Senate Health, Education and Social                                                                  
Services (HESS) Committee to order at 1:34 p.m.  Present were                                                                   
Senators Pete Kelly, Wilken, Elton and Chairman Miller.  The first                                                              
order of business to come before the committee was HB 191.                                                                      
                                                                                                                                
                     HB 191-CHARTER SCHOOLS                                                                                     
                                                                                                                                
REPRESENTATIVE FRED DYSON, sponsor of HB 191, gave the following                                                                
explanation of the proposed committee substitute.  The Alaska                                                                   
charter school bill passed prior to his election to the                                                                         
Legislature.  Former Representative Bettye Davis believed the                                                                   
original law would not work and would need to be revisited.  People                                                             
who have spent a lot of time working with charter schools say that                                                              
Alaska's law is one of the weakest in the nation.                                                                               
                                                                                                                                
The proposed committee substitute does four things.  It doubles the                                                             
allowable number of schools and removes the geographical                                                                        
distribution.  It extends the contract period and the sunset date.                                                              
Charter schools that want to buy commercial real estate, or those                                                               
schools that rent and need significant improvements to meet school                                                              
standards, will benefit from longer term contracts.                                                                             
                                                                                                                                
Third, the bill answers the question of where the money goes that                                                               
the charter schools do not get.  Most school districts receive                                                                  
about $7,000 to $8,000 per student while charter schools receive                                                                
about $3500 per student or less.  HB 191 requires schools to                                                                    
perform accounting procedures to let the charter schools know where                                                             
the money they do not get goes and to give them some idea of the                                                                
cost of services that they may choose. The Anchorage and Fairbanks                                                              
school districts have maintained they cannot produce those figures.                                                             
He is convinced they cannot and it would be an undue burden on them                                                             
to show that kind of accounting detail.  The Anchorage and                                                                      
Fairbanks school districts can account for how much special                                                                     
education costs district wide, but they cannot break that number                                                                
down by school.  The same applies to all kinds of other special                                                                 
services.                                                                                                                       
                                                                                                                                
Fourth, HB 191 also allows charter schools to locate into                                                                       
commercial space that may not meet school fire safety standards                                                                 
with the approval of the fire marshall.  Because a charter school                                                               
may have a much smaller number of students, the rigid school                                                                    
building safety standards may not be necessary in order to operate                                                              
safely.                                                                                                                         
                                                                                                                                
REPRESENTATIVE DYSON summarized by saying there is an immense                                                                   
amount of enthusiasm for charter schools in Alaska.  There is quite                                                             
a bit of interest in Native language schools and a school in                                                                    
Anchorage wants to teach Mandarin.                                                                                              
                                                                                                                                
Number 475                                                                                                                      
                                                                                                                                
SENATOR WILKEN moved to adopt Version W as the working draft of the                                                             
committee. There being no objection, the motion carried.                                                                        
                                                                                                                                
SENATOR WILKEN asked Representative Dyson to explain the new                                                                    
language on page 2, line 11, which reads, "including the itemized                                                               
costs of administrative or other services to be provided."                                                                      
                                                                                                                                
REPRESENTATIVE DYSON said he worked with the Anchorage School                                                                   
District for 1+ years on that provision.  The disctrict was                                                                     
concerned that itemizing costs would require every employee to keep                                                             
tabs on everything they do. Representative Dyson said it is not his                                                             
intention to require school districts to keep the kind of detail an                                                             
attorney would, for example, to track billable hours.  When school                                                              
districts sit down with a charter school to negotiate a contract,                                                               
he wants the district to be able to tell the charter school group                                                               
that if it takes special education students, funds will flow to the                                                             
school for those students.  During the negotiations, the charter                                                                
schools want to know what the cost of accepting or foregoing                                                                    
certain responsibilities is.                                                                                                    
                                                                                                                                
WES KELLER, Chief of Staff to Representative Dyson, added that the                                                              
Juneau School District includes an itemization that is not too                                                                  
detailed but gives a brief outline of where the money comes from                                                                
and where it goes.                                                                                                              
                                                                                                                                
SENATOR WILKEN stated that the expectation today might not be for                                                               
a detailed itemization, but over the years it will increase and add                                                             
to the burden of school districts to set up a different "profit                                                                 
center."  He also expressed concern about language beginning on                                                                 
line 29 which reads, "in this paragraph, operating cost savings                                                                 
means the estimated value of educational or related services                                                                    
provided by the district to all schools in the district that are                                                                
not provided to the charter school."  He asked how that value is to                                                             
be quantified and how that can ever be structured at any level                                                                  
other than the local school board level.  He pointed out if the                                                                 
Anchorage School District wants to offer Mandarin, it can do so but                                                             
it needs to put up its money so as to not detract from other                                                                    
efforts across the state to provide general education.  He                                                                      
expressed concern that in these days of tight K-12 money, this bill                                                             
seems to broaden the requirements and includes a new part which is                                                              
very expensive per student.  He emphasized that his concern is with                                                             
the limited dollars that need to be spread around.                                                                              
                                                                                                                                
Number 772                                                                                                                      
                                                                                                                                
REPRESENTATIVE DYSON responded that if Senator Wilken's concern is                                                              
that charter schools themselves are expensive, they actually cost                                                               
less per student than other schools.                                                                                            
                                                                                                                                
SENATOR WILKEN said as he understands the history of the issue, the                                                             
deal struck in 1996 was that the State monies are to be directed to                                                             
charter schools.  Anything over and above that - the Mandarin                                                                   
school example - is a local option.  He said he interprets this                                                                 
bill as saying the local option is not being funded therefore the                                                               
legislature needs to tell the school boards what to fund in regard                                                              
to charter schools.                                                                                                             
                                                                                                                                
REPRESENTATIVE DYSON disagreed and said that people in the charter                                                              
school community look at the amount of money that they get per                                                                  
student and notice that all they get is the State share.  He does                                                               
not believe that is true as the districts get money from the State,                                                             
the federal government and a local contribution.  The district                                                                  
takes its administrative costs and special program costs out of                                                                 
that pot and then the remainder is distributed to all of the                                                                    
schools in the district, including charter schools.                                                                             
                                                                                                                                
SENATOR WILKEN asked if, by law, that number has to be at least                                                                 
equal to the State's contribution to that district per student.                                                                 
                                                                                                                                
REPRESENTATIVE DYSON said he did not know.                                                                                      
                                                                                                                                
SENATOR WILKEN repeated that he believes the law says the school                                                                
districts must spend x amount on charter schools and that amount                                                                
should not be less than the State's share for that district.  He                                                                
said he would check to see if he is correct.                                                                                    
                                                                                                                                
Number 932                                                                                                                      
                                                                                                                                
SENATOR PETE KELLY noted that is the amount allocated for the                                                                   
charter school in Fairbanks.                                                                                                    
                                                                                                                                
SENATOR ELTON referred to page 2, line 11, and asked what other                                                                 
services should be provided.  He noted that phrase could include                                                                
pupil transportation costs and computer training.                                                                               
                                                                                                                                
REPRESENTATIVE DYSON noted libraries and interscholastic sports                                                                 
would also be included.                                                                                                         
                                                                                                                                
SENATOR ELTON indicated the problem he has with that language is                                                                
that when a charter school signs a contract, especially one with a                                                              
certain life span, it is difficult to anticipate what some of the                                                               
other services might be.  He always assumed that contracts between                                                              
charter schools and districts will always say the contract can be                                                               
reopened for unanticipated events or expenses.  He asked how long                                                               
a typical contract is for.                                                                                                      
                                                                                                                                
MR. KELLER said contracts are typically for five years.                                                                         
                                                                                                                                
SENATOR ELTON maintained that it is difficult enough for a school                                                               
to figure out what is going to happen next year with student                                                                    
enrollment, so to require that costs of administrative and other                                                                
services be itemized for five years will not work.                                                                              
                                                                                                                                
REPRESENTATIVE DYSON pointed out contracts are reviewed and renewed                                                             
each year.  He stated when a charter school committee approaches a                                                              
district to figure out if it can operate a school, it needs a clear                                                             
idea of the numbers.                                                                                                            
                                                                                                                                
SENATOR ELTON said he understands the need for firm numbers but he                                                              
is not sure why the standard should be higher for charter schools                                                               
than for public schools which also deal with uncertainties on a                                                                 
year by year basis.                                                                                                             
                                                                                                                                
REPRESENTATIVE DYSON replied that most public schools are in public                                                             
school buildings.  They do not have to maintain a building and pay                                                              
for utilities.  Some charter schools have purchased buildings, many                                                             
have leased buildings and some are renting them.  If the cost of                                                                
fuel increases for a public school, the district will pay the                                                                   
heating bill but that is not the case for a charter school.                                                                     
                                                                                                                                
MR. KELLER explained that those things were included in the bill                                                                
because the sponsor thought it would be valuable for school boards                                                              
to answer questions related to what the value of the charter school                                                             
is.                                                                                                                             
                                                                                                                                
Number 1164                                                                                                                     
                                                                                                                                
SENATOR ELTON noted there is as much danger in locking the charter                                                              
school into agreed upon costs for other services as locking the                                                                 
district in.  He said he understands the special problems of a                                                                  
charter school when it is not located in a district building but it                                                             
is asking a lot to request a charter school and school district to                                                              
sit down and anticipate what some of the other administrative costs                                                             
are going to be over the course of the contract.  He does not                                                                   
believe it is good for either the district or the charter school.                                                               
                                                                                                                                
REPRESENTATIVE DYSON replied that he removed two paragraphs from                                                                
the bill that addressed itemizing costs.  He noted one charter                                                                  
school that operates in a shopping mall in Anchorage uses the                                                                   
public library and does not need snow plowing services from the                                                                 
school district.  That charter school is looking at ways to get                                                                 
more money back because it needs to determine whether it can afford                                                             
its lease.                                                                                                                      
                                                                                                                                
SENATOR ELTON said that is his point.  If a landlord adds a service                                                             
down the road that the charter school has already charged the                                                                   
district for, the charter school is locked in.                                                                                  
                                                                                                                                
REPRESENTATIVE DYSON maintained that the charter school groups he                                                               
knows are sophisticated enough to spell those things out when they                                                              
enter into lease contracts so that there will be no surprises in                                                                
terms of their property leases.                                                                                                 
                                                                                                                                
SENATOR PETE KELLY asked if there are two provisions in which                                                                   
increased dollars will be going to the charter schools: one in the                                                              
amount of savings to the district and the second in the local                                                                   
contribution.                                                                                                                   
                                                                                                                                
MR. KELLER's response was inaudible.                                                                                            
                                                                                                                                
SENATOR PETE KELLY asked whether the committee substitute contains                                                              
a provision allowing the district to take administrative costs.  He                                                             
explained he was informed by some charter school people that one of                                                             
the versions allows the district to keep a portion of the                                                                       
administrative costs.                                                                                                           
                                                                                                                                
REPRESENTATIVE DYSON said it has always been his intent to allow a                                                              
district to charge for its cost of administration.  Most of the                                                                 
districts spend quite a bit of time trying to help charter schools                                                              
and they should be paid for that.                                                                                               
                                                                                                                                
SENATOR PETE KELLY asked if the provision is in the committee                                                                   
substitute or in statute.                                                                                                       
                                                                                                                                
MR. KELLER said he was under the impression it was a district by                                                                
district decision.  He stated that Anchorage has a set percentage                                                               
for administrative costs.                                                                                                       
                                                                                                                                
REPRESENTATIVE DYSON noted this bill makes no changes to that.                                                                  
                                                                                                                                
Number 1414                                                                                                                     
                                                                                                                                
SENATOR WILKEN clarified that he was mistaken and the statute does                                                              
not say the school board must give the state allocation per student                                                             
to the charter school.  He asked how the estimated value of                                                                     
educational related services will be determined without burdening                                                               
school districts.                                                                                                               
                                                                                                                                
REPRESENTATIVE DYSON said, according to Deputy Commissioner Rick                                                                
Cross, every enterprise, particularly schools, ought to have this                                                               
kind of information at their fingertips.  It is very difficult to                                                               
manage any enterprise without knowing what it costs to provide a                                                                
service.                                                                                                                        
                                                                                                                                
SENATOR WILKEN maintained that the phrase "estimated value or                                                                   
related services" will set up a war during every budget cycle to                                                                
decide who is estimating what.  He thought section 14 will create                                                               
big problems for both school districts and charter schools.                                                                     
                                                                                                                                
Number 1544                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON said when he started down this road three                                                                  
years ago, he would have told school districts to keep track of                                                                 
what it costs to do business and he would have called a school a                                                                
"cost center."  The districts do not capture costs that way.  When                                                              
charter schools come to the table, they cannot audit the districts'                                                             
books.  If a charter school wants a library, the district sets the                                                              
amount.                                                                                                                         
                                                                                                                                
SENATOR WILKEN said, "I am trying to reconcile, on page 3, line 9,                                                              
section (e) - the new section, with the existing section (a). Let's                                                             
see if I can read this right.  Section (a) says to me 'the school                                                               
boards shall provide an annual program budget for the charter                                                                   
schools and that budget will be no less than the amount generated                                                               
by the students' - and we talked a little bit about that - 'minus                                                               
indirect administrative costs' and so that seems to be a shall -                                                                
student equals some money, determined by generation minus the                                                                   
amount of money to take to administer that student.  But then if we                                                             
go to - and that could go up and down, of course.  But then if we                                                               
go to (e) - (e) says to me what we're going to do - it says 'must                                                               
include' - so line 10, it says, 'charter school budget must                                                                     
include' - and the next three lines say to me, you can be no lower                                                              
than - take all your students in the district divided by the number                                                             
of students - or divide it into the number of dollars and the                                                                   
charter school can be no less than that amount.  So while we've                                                                 
allowed in (a) for it to go up, (e) says you can't go below the                                                                 
average across the whole school district.  So, are those two in                                                                 
conflict? Maybe the first question is, am I reading (e) right?"                                                                 
                                                                                                                                
MR. KELLER said, "...I'm going to start with the intent of that                                                                 
section and the intent of that section is to make sure that some of                                                             
the contribution in excess of the 4 mills gets distributed to the                                                               
charter schools.  And again, this is a matter of assurance to the                                                               
charter schools that they are getting their fair share.  We looked                                                              
for the best wording that we could come up with and we got the                                                                  
advice, some advice here from Eddie Jeans and he suggested this                                                                 
wording.  As to the conflict, I don't see it.  I mean it is no less                                                             
than in one place and then they add to that.  I don't see the                                                                   
conflict, you know, it may be that."                                                                                            
                                                                                                                                
SENATOR WILKEN noted under the organization and operation of a                                                                  
charter school it says, "a local school board may exempt a charter                                                              
school from other local school district requirements if an                                                                      
exemption is set out in the contract."  He stated a charter school                                                              
could tell a school district it wants one thing and not another                                                                 
during the negotiation process to define the charter school.  He                                                                
said in order for the school to be approved by the local elected                                                                
officials, it becomes a lean and mean charter school.  Therefore a                                                              
lean and mean charter school is put in place but section (e)                                                                    
requires the district to fund it at the average of that school                                                                  
district's dollars per student.  He said the charter school's                                                                   
funding would never go below the average of the district.                                                                       
                                                                                                                                
MR. KELLER asked if Senator Wilken was referring to the existing                                                                
section (3) to AS 14.03.260.                                                                                                    
                                                                                                                                
SENATOR WILKEN noted AS 14.03.260 has sections (a) through (d) and                                                              
HB 191 will add section (e).  He explained that section (a) under                                                               
funding for charter schools speaks to the amount generated by                                                                   
students enrolled in a charter school, less administrative costs -                                                              
the revenue side.  Section (e) speaks to the expense side.  If                                                                  
section (e) is enacted, a district can never spend less than the                                                                
average per student in the charter school than the average spent                                                                
across the total district.  He said if it says something about 4                                                                
mills, he does not read that.                                                                                                   
                                                                                                                                
REPRESENTATIVE DYSON said he was speaking to local revenues on line                                                             
11.                                                                                                                             
                                                                                                                                
SENATOR WILKEN suggested that area be worked on further.  He noted                                                              
he does not have any problem with the intent of the legislation but                                                             
he does not want to detract from general K-12 at a time of short                                                                
dollars and he does not want to burden school boards with a lot of                                                              
administrative things that are difficult for them to do.  He said                                                               
he certainly does not want to mandate the amount that districts                                                                 
must spend on charter schools.                                                                                                  
                                                                                                                                
CHAIRMAN MILLER asked Bruce Johnson to testify.                                                                                 
                                                                                                                                
BRUCE JOHNSON, Deputy Commissioner of the Department of Education                                                               
and Early Development (DOEE), stated DOEE and the State Board of                                                                
Education are on record in support of school choice, specifically                                                               
as it relates to the charter school law that is in place and the                                                                
proposed changes.  At the State Board meeting in the Spring of                                                                  
1998, the Board indicated an interest in lifting the cap on the                                                                 
current number of charter schools allowed as well as the geographic                                                             
distribution.  The Board wanted to ensure that educational programs                                                             
are based on State standards and agrees the sunset provision of                                                                 
2005 should be removed.  They wanted to clarify that charter                                                                    
schools receive local revenues in excess of required local                                                                      
contribution as well as the State determined basic need.  In doing                                                              
that, they recognized that we are moving beyond a pilot and a field                                                             
test with charter schools and that charter schools have become                                                                  
institutionalized in our state, therefore DOEE needs to be                                                                      
involved.  DOEE prepared a fiscal note which is absolutely                                                                      
essential to ensure that charter schools get off to a good start                                                                
and that DOEE is able to provide technical assistance to the                                                                    
founders and staff of the charter schools.                                                                                      
                                                                                                                                
Number 1949                                                                                                                     
                                                                                                                                
SENATOR WILKEN asked Mr. Johnson to comment on section (e) on page                                                              
3.                                                                                                                              
                                                                                                                                
DEPUTY COMMISSIONER JOHNSON said he was not privy to the                                                                        
conversations that occurred with Eddy Jeans.                                                                                    
                                                                                                                                
SENATOR ELTON asked how the allocation of costs in the 70-30                                                                    
formula is applied to charter schools.  He asked if that                                                                        
requirement applies to the district only or whether it gets to the                                                              
contract level.                                                                                                                 
                                                                                                                                
DEPUTY COMMISSIONER JOHNSON said it is his understanding that the                                                               
formula applies at the district level, not the individual school                                                                
level.                                                                                                                          
                                                                                                                                
CHAIRMAN MILLER took teleconference testimony.                                                                                  
                                                                                                                                
MS. CAROL COMEAU, Anchorage School District Assistant                                                                           
Superintendent for Instruction, stated support for lifting the cap                                                              
on the number of charter schools in the State as well as the                                                                    
geographic restrictions because they are a hindrance to a number of                                                             
districts.  She noted the Anchorage School District has questions                                                               
about the intent of Section 2, line 11, including the itemized                                                                  
costs of administrative or other services to be provided.  She                                                                  
noted that if she had to record the time she spends on charter                                                                  
schools and multiply the hours by the number of students in charter                                                             
schools, charter schools would be paying back the district more                                                                 
than the district is taking for the indirect cost rate for her                                                                  
services.  She noted the time she spends varies depending on the                                                                
charter school and the issues.  She asked for more information on                                                               
Section 2, as well as Section 4.  She questioned what the sponsor                                                               
means by "operating cost savings" because not all of the schools in                                                             
the district receive community school services or pupil                                                                         
transportation services.  She noted the Anchorage School District                                                               
has no problem with Section 3 because it already works very closely                                                             
with the fire inspectors and fire marshall.  As long as a facility                                                              
meets the occupancy code for the number of students, the district                                                               
can be flexible about housing in a non-district facility.  She                                                                  
stated the Anchorage School District has questions about comparing                                                              
the indirect cost rate (Section 4) at 2.4, which is the amount                                                                  
costed out for next year.  She believes the school board will want                                                              
to review and discuss that section further.                                                                                     
                                                                                                                                
CHAIRMAN MILLER said it is his intent to take testimony today and                                                               
then hold the bill until Wednesday so that some of the questions                                                                
raised can be answered.                                                                                                         
                                                                                                                                
SENATOR PETE KELLY asked Ms. Keep-Barnes to reiterate the concerns                                                              
she expressed to him at a constituent meeting to the committee,                                                                 
specifically her concern about administrative costs.                                                                            
                                                                                                                                
MS. ANNIE KEEP-BARNES, a founder of the Chinook Charter School,                                                                 
said Chinook was the first elementary charter school in Alaska.                                                                 
She expressed strong support for HB 191.  The bill will help                                                                    
charter schools to survive.  Chinook is doing everything it can to                                                              
make its school a place where different learning strategies and                                                                 
ideas are tested and where parents are active partners.   She noted                                                             
these changes can be made without forcing institutional changes                                                                 
throughout the school district.  Chinook has been in operation for                                                              
four years.  It is open to all public school children in the                                                                    
Fairbanks North Star Borough.  It offers an opportunity for middle                                                              
school students to continue school through the eighth grade.                                                                    
Chinook parents are still finding that no matter how hard they                                                                  
work, the school board will always see the charter school as an                                                                 
add-on to an already strained budget.  Charter schools only get an                                                              
amount equal to basic needs which only covers salaries.  She                                                                    
pointed out HB 191 will make a difference of $59,000 for Chinook                                                                
Charter School.  The school district would charge a 5+ percent                                                                  
administrative cost off of the top of Chinook's budget which will                                                               
be a sizeable amount.                                                                                                           
                                                                                                                                
Number 2295                                                                                                                     
                                                                                                                                
MS. KITTY MATHERS testified in favor of HB 191 and, in particular,                                                              
Section 4.  Teachers and parents have actively worked with the                                                                  
school board to get a "piece of the pie" which has been a                                                                       
frustrating process.                                                                                                            
                                                                                                                                
MS. MIKA MACK stated the Chinook School is large with a population                                                              
of 95 students, but the school board views those students as less                                                               
important.  Parents do a lot of the maintenance work, provide                                                                   
supplies, and provide after school activities at no expense to the                                                              
school district.  Chinook does not receive funds for special needs                                                              
students even though some attend the school.                                                                                    
                                                                                                                                
TAPE 00-13, SIDE B                                                                                                              
                                                                                                                                
MS. GAIL MCCANN, a parent of a Chinook Charter School student,                                                                  
stated support for HB 191.  She said she would particularly like to                                                             
see the itemized cost accounting put into place because it is a                                                                 
basic business practice.  She noted that Chinook Charter School has                                                             
to fight an uphill battle for every penny it gets and it only gets                                                              
the amount required by the state.  Parents are subsidizing the                                                                  
school in every way they can and they need the legislature's help.                                                              
She asked legislators to pass HB 191 and to provide full funding                                                                
for all public schools.                                                                                                         
                                                                                                                                
MS. JODY VANDERBILT, a parent of two Chinook Charter School                                                                     
students, stated strong support for HB 191.  One of her children                                                                
who struggled in public school is now a very good student at                                                                    
Chinook.  Charter schools need more stable funding.  HB 191 is a                                                                
huge step in the right direction.                                                                                               
                                                                                                                                
MS. RACHEL STINSON stated support for charter schools and HB 191.                                                               
She has three children who have attended Chinook Charter School                                                                 
since it was founded.  To continue to function, charter schools                                                                 
need complete funding from the state or they need a mandate                                                                     
demanding local school boards to give them a specific portion of                                                                
discretionary funds.                                                                                                            
                                                                                                                                
MS. ALISON SEYMOUR, a parent of two students at Chinook Charter                                                                 
School, said the state passed the charter school law in order to                                                                
provide for alternatives and innovations in education at a time                                                                 
when it was widely determined that something different needed to be                                                             
done in the field of education.  Chinook Charter School focusses on                                                             
academics with a Montessori learning approach; any "frills" are                                                                 
provided by parents. Sending her children to a typical public                                                                   
school would cost the state considerably more.  Chinook Charter                                                                 
School can no longer employ a reading tutor which her children                                                                  
need.                                                                                                                           
                                                                                                                                
Number 2129                                                                                                                     
                                                                                                                                
MS. SUSAN FAULKNER, a parent of two students at Chinook Charter                                                                 
School, stated strong support for HB 191.  She has been repeatedly                                                              
frustrated by the funding situation - it seems that public money                                                                
does not follow her children from public school to the charter                                                                  
school.  She strongly believes that a public school should be                                                                   
supported by public money.  Charter schools need to ensure they are                                                             
entitled to the state, federal and local funding as other public                                                                
schools are.                                                                                                                    
                                                                                                                                
MS. TERRI AUSTIN, a co-founder and teacher at Chinook, strongly                                                                 
supports HB 191 and encourages the committee to pass it as is.  The                                                             
first year Chinook was founded she was astounded at the amount of                                                               
time it took to create a charter school.  This year she is again                                                                
astounded at how much time it is taking from teaching.  She would                                                               
love to see the funding issue cleared up so that the teachers at                                                                
Chinook can truly focus on teaching rather than funding sources.                                                                
                                                                                                                                
MR. CARL ROSE, Executive Director of the Association of Alaska                                                                  
School Boards (AASB), said AASB has supported charter schools since                                                             
the inception of the pilot program.  AASB has asked that start up                                                               
costs be addressed to ensure that local determination at the school                                                             
board level is maintained.  AASB supports lifting the cap on                                                                    
charter schools and the geographical requirement and the extension                                                              
from five to ten years.  AASB is concerned, however, that some of                                                               
the requirements will have a chilling effect on the approval                                                                    
process in light of the funding problems that K-12 education is                                                                 
facing.  Operating cost savings and the estimated value of                                                                      
educational services are unknown quantities and school districts                                                                
are at a point where anything that entails a risk to go forward is                                                              
less likely to be approved.  AASB has worked hard with                                                                          
Representative Dyson's staff to put together a bill to serve the                                                                
needs of present charter schools, but placing further requirements                                                              
on school boards with the current funding problems will have a                                                                  
negative effect on the approval process.                                                                                        
                                                                                                                                
Number 1966                                                                                                                     
                                                                                                                                
MR. JOHN CYR, President of the National Education Association -                                                                 
Alaska, said NEA was supportive of the first charter school bill                                                                
and it supports HB 191.  NEA finds is interesting that charter                                                                  
school advocates feel they are fighting for what they see as their                                                              
share of the educational dollar when every public school is                                                                     
fighting for more dollars for education.  The key problem is the                                                                
amount of funding provided for K-12 education.  The issue of                                                                    
itemized accounting is an interesting one - the same argument was                                                               
made during the debate on SB 36.  School districts said they were                                                               
unable to break out the amount of administrative or other costs.                                                                
NEA sees accounting of monies on the local level as a major problem                                                             
that the legislature needs to determine because it is apparent that                                                             
districts cannot or will not account for how dollars are spent for                                                              
each individual child in each school.                                                                                           
                                                                                                                                
There being no further testimony, CHAIRMAN MILLER noted his intent                                                              
to hold HB 191 until the next meeting on Wednesday so that the                                                                  
sponsor can work with the committee members who have raised                                                                     
concerns.  He then adjourned the meeting at 2:35 p.m.                                                                           
                                                                                                                                

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