Legislature(1995 - 1996)
02/03/1995 09:10 AM Senate HES
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE
February 3, 1995
9:10 a.m.
MEMBERS PRESENT
Senator Lyda Green, Chairman
Senator Loren Leman, Vice-Chairman
Senator Mike Miller
MEMBERS ABSENT
Senator Johnny Ellis
Senator Judy Salo
COMMITTEE CALENDAR
SENATE CONCURRENT RESOLUTION NO. 1
Establishing the Foundation Formula Task Force and relating to
revising the formula for providing state aid for education.
SENATE BILL NO. 22
"An Act making appropriations to the Department of Education for
support of kindergarten, primary, and secondary education and
community schools programs and for school construction debt
retirement; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
No previous action to record.
WITNESS REGISTER
Senator Randy Phillips
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Prime Sponsor of SCR 1.
Senator Rick Halford
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 22.
Debra Gerrish
Concerned Parent
9202 Emily Way
Juneau, Alaska 99801
POSITION STATEMENT: Suggested instituting a school tax and an
income tax.
Wanda Cooksey
Single Site School District
Box 240052
Douglas, Alaska 99824
POSITION STATEMENT: Suggested including single site schools in
SB 22.
Vernon Marshall, Executive Director
National Education Association of Alaska
114 2nd Street
Juneau, Alaska 99801
POSITION STATEMENT: Expressed concerns with SB 22.
Steve McPhetres, Executive Director
Alaska Council of School Administration
326 4th Street, #404
Juneau, Alaska 99801
POSITION STATEMENT: Expressed parental concerns.
ACTION NARRATIVE
TAPE 95-1, SIDE A
SHES - 2/3/95
SCR 1 FOUNDATION FORMULA TASK FORCE
Number 001
CHAIRMAN GREEN called the Senate Health, Education and Social
Services (HESS) Committee to order at 9:10 a.m. and introduced
SCR 1 as the first order of business before the committee.
SENATOR RANDY PHILLIPS, Prime Sponsor of SCR 1, gave a brief
history of the bill and the foundation formula. He explained that
SCR 1 appoints seven members charged with developing a
recommendation for the rewrite of the school foundation formula for
the next year.
SENATOR LEMAN stated that the number in the bill seems to be
incorrect regarding total cost of K-12 education. After some
research, he arrived at a more inclusive total cost of $857
million. He suggested upgrading the number to this more inclusive
and accurate amount. SENATOR RANDY PHILLIPS pointed out that the
numbers in SCR 1 are from August of 1994.
SENATOR LEMAN clarified that the cost amount in the bill did not
include some of the costs of education which are included in the
suggested amount of $857 million. SENATOR RANDY PHILLIPS deferred
to the committee.
Number 080
SENATOR LEMAN expressed reluctance in forming another task force.
He stated that one can often predict what conclusions a task force
will report due to its composition. He suggested starting from
where the bill was last year and allow it to move through the
committee process.
SENATOR RANDY PHILLIPS suggested that both the task force and the
committee process be pursued in order to end up with something to
handle the school foundation formula. He stated that he would be
willing to introduce a bill on Monday, however, the issue should be
addressed by the legislature.
CHAIRMAN GREEN inquired as to the possibility of starting where the
bill left off last year. SENATOR RANDY PHILLIPS expressed concern
that there would be delay due to teleconferences, public hearings
and such. He reiterated his offer to introduce legislation on
Monday, but emphasized that the task force created in SCR 1 would
at least cause the Senate, the House, and the Governor to come
together and have a dialogue.
Number 178
SENATOR LEMAN pointed out that of the three parties needed for
dialogue, only the House did not have representation at this
meeting. He did not feel that anyone was being left out of the
process. SENATOR RANDY PHILLIPS stated that in order to even
pursue the modification of the school foundation formula, the
Senate, House and Governor must agree. Senator Randy Phillips
continued to note that timing could be a concern due to other bills
that could get in the way of this bill. He indicated that gaining
commitment from the Governor could be a concern.
SENATOR RANDY PHILLIPS did not feel that many individuals or
legislators know and understand this issue completely. He inquired
as to the committee's thoughts on pursuing the task force and
introducing legislation. SENATOR LEMAN stated that SCR 1 was
merely an exercise and would not accomplish anything.
SENATOR RANDY PHILLIPS indicated that a commitment from the Senate,
the House, and the Governor to rewrite the school foundation
formula would be satisfactory.
CHAIRMAN GREEN held SCR 1.
SHES - 2/3/95
SB 22 APPROP: K-12 SUPPORT; DEBT RETIREMENT
Number 254
CHAIRMAN GREEN introduced SB 22 as the next order of business
before the committee.
SENATOR HALFORD, Prime Sponsor, expressed the need for a decision
on the funding of education by March, before the budget rush. He
pointed out that SB 22 lists Mental Health Trust Income as one of
the funding sources. He offered an amendment which would change
the amount of funding in regards to the student load increase.
This change would bring the funding level per unit to that of last
year while increasing the cost.
Number 292
SENATOR LEMAN asked how education funding, which is the largest
portion of the budget, could be increased while other areas absorb
budget cuts. All areas of the budget should face the same
constraints. The state faces a $300 million to $500 million budget
deficit; it would not be fiscally responsible to consider total
cost increases even if the cost per unit remains the same.
SENATOR HALFORD stated that he wanted to put the question of the
foundation formula before the legislature. He expressed
frustration in that SB 22 would be adding to the least equitable
and understandable formula. The formula should be rewritten. He
emphasized the need to deal with the formula soon in order that the
municipalities can set their tax rates.
SENATOR HALFORD explained that his amendment would correct the
Mental Health question. The amendment would be necessary if the
committee desired to proceed with the total amount in SB 22. The
amendment does not change the total amount; there is only a change
in the fund source.
Number 340
SENATOR MILLER moved Amendment 1. Without objection, it was so
ordered.
SENATOR HALFORD clarified that the amendment would change the
funding source from the Mental Health Trust to the General Fund.
DEBRA GERRISH, a concerned parent, pointed out that there was a
paper available which explained the foundation formula. She gave
examples of the decline in education in her district: students
without books for six weeks, lack of desks, and elementary classes
with 28 and 30 students. She urged the committee to increase the
foundation formula because inflation decreases the formula when the
units of the children are considered. She suggested instituting a
school tax and an income tax.
SENATOR LEMAN understood Ms. Gerrish's request to increase the
amount of the foundation formula. He asked what the fund source
should be. DEBRA GERRISH reiterated two possible funding sources:
a school tax and an income tax. She informed the committee that
the high school parent group would be writing a letter suggesting
that the local Board of Education freeze the step in column in the
district.
SENATOR LEMAN asked Ms. Gerrish if she were willing to pay a
portion of the cost of the education of her children. DEBRA
GERRISH stated that she would be willing to contribute directly
only if there was a sliding scale fee instituted so that parents
would contribute only as much as they could afford.
WANDA COOKSEY, Small Single Site School District, asked the
committee to include the small single site school district in SB 22
in the amount of $3.2 million, as it did last year.
SENATOR LEMAN inquired as to the correctness of the amount for the
single site schools. SENATOR HALFORD explained that the amount was
$3.2 million last year, but the single site amount and list has
changed throughout the years.
Number 438
WANDA COOKSEY offered the committee a proposed legislative
correction which would put single sites into statutes so they would
not have to be added every year. She informed the committee that
in the previous three years the amount for single sites and the
list of single site schools has stabilized.
VERNON MARSHALL, Executive Director of the National Education
Association of Alaska, thanked Senator Halford for bringing this
funding issue before the committee so early. He expressed concern
with the contents of the bill. The growth of the student
population, school violence, and student respect all need to be
addressed. He pointed out that the instructional unit has been
increased only once since 1987; there is a need for inflation-
proofing in education. He stated that omitting the single site
school district does not solve the problem and those children need
to be addressed. He urged the committee to address all the
problems he cited and increase the area of technology. In
conclusion, he said that he was committed to rewriting the formula.
Number 504
SENATOR HALFORD clarified that single site schools were not present
in SB 22 because the formula does not call for single site schools,
they are essentially an addition to the formula. VERNON MARSHALL
felt that this issue could be addressed in the rewrite of the
formula.
SENATOR LEMAN informed the committee that SB 22 is a $800 million
General Fund investment plus the $120 million of the other
resolution which is a considerable investment. In Alaska, $10,000
to $11,000 is spent per student per year on average which includes
local matches for K-12. He suggested that the total cost of
education be decreased without hurting the services provided. He
related his own good experience in the Alaska school system before
there was even oil money. How can the best services be provided in
an atmosphere of decreasing revenues?
VERNON MARSHALL explained that he felt education should be
structured so that student competition can occur in the new
century. The world has changed and so should the schools and the
instruction of the children. He suggested creating incentives for
local school districts to contribute their share to educate their
own children. He pointed out that many states have fifty percent
or more of their General Fund going towards education, while Alaska
contributes thirty-two percent of the General Fund. He explained
that Alaska has a unique position; the bush has an increased
delivery expense per child which should be addressed in the
formula.
Mr. Marshall discussed the need to set a goal and then review the
approaches and the money needed to achieve the objectives. He
stated that educational money should be spent in a manner to allow
students the best possibility of becoming viable citizens.
TAPE 95-1, SIDE B
Number 583
SENATOR LEMAN asked if competition were applied could educational
services be better with decreased cost. VERNON MARSHALL felt that
the educational system could do better, but it is trying to do its
best now. Mr. Marshall felt that public education already faces
competition with correspondence courses, private schools, and home
schooling. Mr. Marshall explained that parents want development of
their children, but increased class sizes creates difficulty in
achieving this development for all children.
STEVE McPHETRES, Executive Director of the Alaska Council of School
Administrators, pointed out that the committee had the Council's
paper which expresses their desire to increase the foundation
portion of SB 22. He appreciated the sponsor's prompt timing with
this legislation. He informed the committee that after attending
a parent meeting, the parents' desire to have a safe, healthy
environment with acceptable class sizes was apparent. These
objectives cannot be achieved with continual cuts in state funding.
For example, Fairbanks, Juneau, Kenai, and Kodiak all face $2
million reductions in order to maintain current levels of programs.
The reserves have been used, these areas cannot contribute any
more. He urged the committee to realize that the cost of
maintaining the status quo has increased while cuts continue.
SENATOR MILLER moved that SB 22 as amended be moved out of
committee with individual recommendations. Without objection, it
was so ordered.
CHAIRMAN GREEN announced that there would be a briefing on
Saturday, February 4, regarding what the foundation formula is.
SENATOR HALFORD commented that the foundation formula is not
impossible to understand, but a formula using per student aid or
per average classroom size would be more appropriate and
understandable.
There being no further business before the committee, the meeting
adjourned at 10:10 a.m.
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