03/01/2004 01:35 PM Senate HES
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE
March 1, 2004
1:35 p.m.
TAPE(S) 04-10
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator Lyda Green, Vice Chair
Senator Gretchen Guess
MEMBERS ABSENT
Senator Gary Wilken
Senator Bettye Davis
COMMITTEE CALENDAR
SENATE BILL NO. 301
"An Act relating to the Alaska Pioneers' Home, and the Alaska
Veterans' Home; relating to eligibility for admission to the
Alaska Pioneers' Home and Alaska Veterans' Home; relating to
state veterans' home facilities; making conforming amendments;
and providing for an effective date."
MOVED CSSB 301(HES) OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 1
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing for
an effective date."
MOVED SSSB 1 OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 14
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing for
an effective date."
MOVED SSSB 14 OUT OF COMMITTEE
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 91
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing for
an effective date."
MOVED SSSB 91 OUT OF COMMITTEE
SENATE BILL NO. 90
"An Act relating to the base student allocation used in the
formula for state funding of public education; and providing for
an effective date."
SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 301
SHORT TITLE: PIONEERS' HOMES/VETERANS' HOMES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/06/04 (S) READ THE FIRST TIME - REFERRALS
02/06/04 (S) HES, FIN
02/20/04 (S) HES AT 1:30 PM BUTROVICH 205
02/20/04 (S) -- Meeting Canceled --
02/25/04 (S) HES AT 1:30 PM BUTROVICH 205
02/25/04 (S) Heard & Held
02/25/04 (S) MINUTE(HES)
03/01/04 (S) HES AT 1:30 PM BUTROVICH 205
BILL: SB 1
SHORT TITLE: INCREASE AMT OF BASE STUDENT ALLOCATION
SPONSOR(s): SENATOR(s) WILKEN
01/21/03 (S) PREFILE RELEASED 1/10/03
01/21/03 (S) READ THE FIRST TIME - REFERRALS
01/21/03 (S) HES, FIN
01/12/04 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
01/12/04 (S) HES, FIN
03/01/04 (S) HES AT 1:30 PM BUTROVICH 205
BILL: SB 14
SHORT TITLE: EDUCATION FUNDING INCREASE
SPONSOR(s): SENATOR(s) WAGONER
01/21/03 (S) PREFILE RELEASED 1/10/03
01/21/03 (S) READ THE FIRST TIME - REFERRALS
01/21/03 (S) HES, FIN
01/16/04 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
01/16/04 (S) HES, FIN
03/01/04 (S) HES AT 1:30 PM BUTROVICH 205
BILL: SB 91
SHORT TITLE: INCREASE AMT OF BASE STUDENT ALLOCATION
SPONSOR(s): SENATOR(s) DAVIS
02/28/03 (S) READ THE FIRST TIME - REFERRALS
02/28/03 (S) HES, FIN
03/01/04 (S) HES AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
MR. DENNY DeWITT
Special Staff Assistant to Governor Murkowski
Office of the Governor
Juneau, Alaska
POSITION STATEMENT: Explained the changes made to SB 301,
version I.
MR. HARRY JENKINS
Fairbanks, Alaska
POSITION STATEMENT: Testified on SB 301, asking about the
viability of using the hospital building in Wasilla.
MS. PATTI SKONDOVITCH
Pioneers of Alaska
Fairbanks, Alaska
POSITION STATEMENT: Regarding SB 301, asked why Alaska was the
only state that doesn't have a Veterans' Home paid for by the
U.S. government.
MS. PAT FLEMMING
Pioneers of Alaska
Wasilla, Alaska
POSITION STATEMENT: Testified on SB 301 and expressed concern
about letting Pioneers' Homes deteriorate.
MS. SHEILA PETERSON
Staff to Senator Gary Wilken
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented SSSB 1 on behalf of the sponsor.
SENATOR THOMAS WAGONER
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SSSB 14.
MR. RICHARD BENAVIDES
Staff to Senator Bettye Davis
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented SSSB 91 on behalf of the sponsor.
MR. EDDY JEANS
Manager, School Finance & Facilities Section
Department of Education &
Early Development
th
801 W 10 St.
Juneau, AK 99801-1894
POSITION STATEMENT: Testified there are fiscal notes for SSSB
1, SSSB 14, and SSSB 91.
MS. ANDI STORY, parent
Juneau School Board
Juneau, Alaska
POSITION STATEMENT: Testified on SSSB1, SSSB14, and SSSB 91,
emphasizing the importance of putting dollars into providing for
quality education.
MS. MELODY DOUGLAS
Kenai Peninsula Borough School District
Soldotna, Alaska
POSITION STATEMENT: Spoke in support of SSSB 14.
MR. MIKE FORD, parent
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
saying if the Legislature reflects public priorities, those
priorities are to increase funding for public education.
MS. KATEY MANGELSDORF, parent
Palmer, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
emphasizing the importance of asking, "What can we do right here
today to ensure the children of the state of Alaska will have a
good, sound education?"
MS. MARY HAKALA, parent
Alaska Kids Count
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
asking that the Legislature say, "Yes, we support education."
MR. CARL ROSE
Association of Alaska School Boards (AASB)
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
saying that it matters whether the TRS/PERS issue is addressed
from inside a formula.
MR. DAVE JONES, parent
Finance Director
Kodiak Island Borough School District
Kodiak, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
saying that SSSB 1 provides for about half the money needed for
the desired cost increases.
MR. GERRY DONOHOE, parent
Alaska Kids Count
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91, and
said, "If you want to attract people to Alaska, if you want to
show progress in the state, you've got to increase state
education funding."
MS. MARY FRANCIS
Alaska Council of School Administrators (ACSA)
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
saying the school districts would be grateful for any support.
MS. AMY LUJAN
Nome School District
Nome, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
testifying that a $200 increase would help with PERS/TRS and
increases such as insurance and inflation.
MR. STUART COHEN, parent
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
explaining that class size is of real concern, urging members to
give money to the schools.
MS. SELINA EVERSON
Alaska Native Sisterhood
Juneau, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
emphasizing the importance of cultural understanding.
MR. TIM STEELE
Anchorage School District School Board
Anchorage, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
saying, "Just making it is not sufficient; adequacy and
sustainability need to be addressed."
MS. CHRIS MOORE, parent
Valley Voices for Children
Mat-Su Valley, Alaska
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
advocating for an inflation-proofing component in the foundation
formula.
MR. BOB DOYLE
Chief School Administrator
Mat-Su Valley School District
POSITION STATEMENT: Spoke to SSSB 1, SSSB 14, and SSSB 91,
suggesting an increase of $210 to the base student allocation,
TRS/PERS increases, and additional local support.
ACTION NARRATIVE
TAPE 04-10, SIDE A
CHAIR FRED DYSON called the Senate Health, Education and Social
Services Standing Committee meeting to order at 1:35 p.m.
Present at the call to order were Senators Green, Guess, and
Chair Dyson. Senators Wilken and Davis were excused. Also
present was Senator Wagoner. Chair Dyson announced that after
addressing SB 301 and moving it out of committee, he would take
public testimony on SSSB 1, SSSB 14, and SSSB 91 at the same
time, since the bills are similar. In light of the number of
people wanting to testify, testimony would be limited to 1 or 2
minutes. He said it was his intention to move one or more of
the foundation formula funding bills to Senate Finance where
decisions about availability and allocation of resources would
be made.
SB 301-PIONEERS' HOMES/VETERANS' HOMES
The committee took up SB 301.
CHAIR DYSON stated there is a proposed committee substitute
(CS), version I.
SENATOR LYDA GREEN moved to adopt version I, the proposed CS for
SB 301, for discussion purposes.
CHAIR DYSON asked if there was any objection.
SENATOR GRETCHEN GUESS objected and asked a procedural question.
She noted that she has four objections on record to Amendments 1
through 4, and questioned whether this CS addressed those
objections and whether she needed to remove her objection.
CHAIR DYSON said if she concludes those are not addressed, the
CS would be withdrawn to allow her the chance to address those
amendments.
SENATOR GUESS said Amendments 1 - 4 were Senator Green's
amendments. She withdrew her objections to those four
amendments so that the CS could be adopted.
CHAIR DYSON announced version I [labeled 23-GS2085\I, Mischel,
3/1/04] was the working document before the committee.
MR. DENNY DeWITT, Staff Assistant to Governor Murkowski
explained the changes made to version I as follows: Page 6,
line 29, "may" was changed to "shall." Page 7, lines 1 - 3, the
additional language, "The only Pioneers' Home that may be
maintained as a Veterans' Home is the Pioneers' Home located in
Palmer, Alaska." Page 8, line 6, the word "sale" was removed.
Page 9, after line 19, the section relative to veteran's
benefits and 38 U.S.C. 1110 was removed, at the recommendation
of veterans' organizations. Page 12, lines 20 - 23, in checking
with the Veterans' Administration (VA), the new definition of
veteran is a person who has been discharged from the armed
forces of the U.S., including the Alaska National Guard or the
Alaska Territorial Guard so "the discharge from the armed forces
must be other than dishonorable" was added. Also, sections
pertaining to AS 47.55.035 indicate a resident of 30 years could
go outside and maintain his/her place on the waiting list. The
administration recommends this remain in statute and that it be
addressed in another venue. AS 44.29.400 was put together in
1992 to try and build a self-sustaining Veterans' Home in
Alaska, and it didn't work. Therefore, this bill involves state
participation in the cost of care to the Veterans' Home.
Regarding Sec. 25 (b) and (c), in 2002, the Legislature passed
legislation regarding a pilot project to use the Pioneers' Homes
collectively as a Veterans' Home. This has not been - and it is
unlikely that it will be - acceptable to the Veterans'
Administration.
SENATOR GUESS referred to Sec. 25 and asked, "Why not keep those
on the record? Would repealing these mean that we couldn't,
without coming back to this body, build a self-sustaining
Veterans' Home and/or have a pilot?"
MR. DeWITT responded he doubts that either of those would be the
case. In the first instance, language on page 6, line 31,
allows for the operation of one or more Veterans' Homes.
Regarding the envisioned pilot program, it would take additional
congressional action, but it could be taken advantage of because
Sec. 15 is broad enough. He said they are cleaning the books of
things that are extremely unlikely to ever be used. Regarding
AS 44.29.400, there is a conflict between what SB 301 allows and
what this section requires, so it's important to repeal that
section. He explained that in 1992 when this was added, the
directive to the department/administration was to develop a
process where state funding would not be [indisc.] to the
Veterans' Home. The operations would be fully carried by folks
in the home. There are explanations as to why it fiscally won't
work, he added.
SENATOR GUESS confirmed that under the CS, nothing prohibits
having a self-sustaining facility or a pilot program.
SENATOR LYDA GREEN asked if "020" was the pilot project.
MR. DeWITT replied it was in the original bill, and referenced
the Department of Health and Social Service (DH&SS).
CHAIR DYSON said the legal department advised that making this
specific to the Palmer Pioneer Home might be challenged
constitutionally because of being single purpose legislation; he
asked if this issue has been analyzed.
MR. DeWITT said the administration had a slightly different
opinion and it's important to articulate the reasons for
conversion of the Palmer Pioneer Home. He explained it would
become a state Veterans' Home, working with the U.S. Department
of Veterans' Affairs. There is a change in the operational
nature of that home because they will support only a limited
number of beds as a Veterans' Home; there is a limitation of 79
beds, and a waiver of 3 beds. Changing from a Pioneers' to a
Veterans' Home - although it will be operated almost identically
to a Pioneers' Home, and by the same division - creates a
defensible difference. Palmer has been articulated in the bill
because changing a physical home to another use is a public
policy issue that needs to be debated by the Legislature.
According to their attorney general, there is significant public
policy that would be upheld by any court of law.
SENATOR GREEN inquired about which department would operate the
Home, and the significance of that.
1:52 p.m.
MR. DeWITT said Marian Harmon's (ph) administering of the Palmer
Pioneers' Home would continue for as long as she would like.
The Pioneers' Homes are operated by the DHSS, and the Veterans'
Home will also be operated through the same division. The
intent is to operate the Palmer Pioneers' Home - soon to be the
Palmer Veterans' Home - similarly to operating the other
Pioneers' Homes. VA regulations require that 75 percent of the
residents are veterans, while 25 percent need not be veterans.
The existing Pioneer Home waiting list will be used to fill that
other 25 percent. It will be difficult to detect differences in
the operation of the Palmer Home from other homes in the system
because those differences will be slight. The social model
developed in the early '90s will be used, as it's been extremely
successful. The VA observed our operations and returned to
Washington D.C. interested in what we've demonstrated regarding
appropriate care for the geriatric population. "We think they
are more likely to move towards us than we'll have to move
towards them," he said.
CHAIR DYSON asked if the attorney general would offer counsel in
writing on the single purpose challenge.
MR. DeWITT said this could be received in writing by the time SB
301 was in Senate Finance.
CHAIR DYSON said he would appreciate this, but wouldn't hold the
bill up. He said he understood if "general purpose" law could
do the job, there shouldn't be a special purpose law.
MR. DeWITT noted that although the administration didn't bring
that amendment, they could defend it. That's a choice for the
committee and the Legislature to take.
CHAIR DYSON said the amendment was to give comfort that this
specific remedy wouldn't spread to other facilities without due
consideration.
MR. DeWITT said the assistant attorney general views this
similarly to building another facility in a specified place in
Alaska. For example, if the Legislature decided to construct a
Veterans' Home it wouldn't be considered as special legislation
any more than changing the function of a specific Pioneers'
Home.
CHAIR DYSON wondered if the attorney general considered it wise
to amend and include severability language in the bill so that
progress on the bill wouldn't be negated in case particular
wording is challenged.
SENATOR GREEN moved to adopt the SB 301 Letter of Intent,
entitled "Health, Education, and Social Services Committee
Alaska State Senate Letter of Intent."
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.
MR. HARRY JENKINS testified via teleconference and asked about
bringing the abandoned hospital in Wasilla up to code rather
than putting money into the Palmer Pioneers' Home.
CHAIR DYSON said various experts felt this option would not be
suitable and it would be far more expensive to bring the
building up to code.
MS. PATTI SKONDOVITCH testified via teleconference, and asked
why Alaska is the only state that doesn't have a Veterans' Home
that is paid for by the U.S. Government.
MS. PAT FLEMMING, Pioneers of Alaska, testified from Wasilla,
expressing concern about letting Pioneers' Homes deteriorate.
She suggested legislative oversight of leasing or renting that
might take place within the Pioneers' Home System. She wondered
if the federal VA system recognizes the Alaska Pioneers' System
as being unique.
2:00 p.m.
MR. DeWITT responded VA representatives were in Alaska last
August and visited the Palmer Valley Hospital in Palmer, and
concluded that the cost would be prohibitive; it would be more
difficult and the likelihood of the hospital being successful
was not as probable as the Palmer Home. It was partially
economics and partially construction issues. He responded it
isn't accurate that Alaska is the only state without a Veterans'
Home paid for by the U.S. government. The federal government
assists in the building of state Veterans' Homes, participating
in 65 percent of the capital costs while the states provide the
other 35 percent. Alaska will get that same cost sharing.
Currently there are three states without Veterans' Homes -
Delaware, Hawaii, and Alaska - Hawaii is a bit ahead of Alaska
in constructing a Home. Delaware is also applying and is a bit
behind Alaska. Mr. DeWitt said soon all 50 states would have
homes.
SENATOR GREEN moved to report version I, CSSB 301 (HES), out of
committee with the accompanying fiscal notes and the Letter of
Intent.
CHAIR DYSON asked if there was any objection. Seeing and
hearing none, it was so ordered.
2:07 p.m.
SB 1-INCREASE AMT OF BASE STUDENT ALLOCATION
CHAIR DYSON announced that he would hear all three bills
together - SSSB 1, SSSB 14, and SSSB 91 - since the bills are
very similar. Public testimony would be limited to 1 minute and
would be closed shortly after 3:00 p.m. If members were
willing, he would like to move one or more of the bills out of
committee.
MS. SHEILA PETERSON, staff to Senator Gary Wilken, presented
SSSB 1. She said it increases the student dollar $94, raising
it to $4,263. The proposed increase was based on the estimated
inflation rate for calendar year 2003, which at the time the
bill was drafted was estimated as a 2.25 percent increase.
Unfortunately, in addition to the impacts of inflation, school
districts this year are faced with additional costs. Senator
Wilken recognizes this and sees SSSB 1 as opening discussions
about increasing school funding.
CHAIR DYSON said he understood from Senator Wilken if sponsors
of the other bills were interested, he would gladly include them
as co-sponsors; he asked if this were true, and received
confirmation from Ms. Peterson that it was correct.
SENATOR GUESS asked if Senator Wilken had determined what the
appropriate numbers should be, noting that this deals with
inflation and, based on PERS/TRS, every district would lose
money.
MS. PETERSON said he is looking at additional dollars, but wants
to hear testimony from the various school districts.
[The following action was taken at the end of the meeting:
SENATOR GREEN moved to report SSSB 1 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. There being none,
it was so ordered.]
SB 14-EDUCATION FUNDING INCREASE
SENATOR WAGONER, sponsor of SSSB 14, testified that he
introduced this bill last year because over the past 12 years,
the Kenai Peninsula Borough School District (KPBSD) has cut its
budget every year. Without going into particulars, KPBSD
determined $4,500 as the minimum amount needed to meet
educational requirements. He read a letter from a constituent
from his district regarding how badly things are going in his
district:
I believe it is time to increase school funding. At
Kenai Middle School where both my sons will attend
school next year, budget cuts have already exceeded
acceptable levels. Anticipated cuts for next year
will severely limit the ability of teachers and staff
to educate our youth. Kenai Middle School
administrators have already eliminated shop and art
classes. The librarian only works half time. The
school counselor spends two thirds of her day as a
classroom teacher. There are some classes with 35
students and one teacher. This is at a time when the
teachers are responsible for meeting the requirements
of the No Child Left Behind (NCLB) act and I mean the
teachers. Students and their parents are no longer
held responsible for learning. Teachers in schools
are now responsible. Next year's anticipated cuts
include the loss of Quest, the loss of our librarian,
a reduction in the hours worked by the school nurse,
and the elimination of more teaching positions. The
situation is abysmal. I currently spend 10.5 hours
each week volunteering in the public schools. We're
cutting school budgets when we need to be increasing
them.
SENATOR WAGONER continued reading:
The current funding levels will destroy public
education. I realize that my request will require
taxation or at least a reduction of the Permanent Fund
Dividend program. It is about time. I do not believe
that it is realistic to expect the state of Alaska to
pay for my family and me more in Permanent [Fund]
Dividend checks than we pay in taxes. We are getting
paid to receive state services. The situation is
absurd. It is no wonder that we are having trouble
with students in our schools. They are learning from
the example of the permanent fund dividend program
that you can get something for nothing, that life
requires no effort. This is not true. This is a
horrendous example of public policy gone berserk.
Thank you for serving in our Legislature. I realize
that this is a difficult time for our state; however,
I'm tired of those people whose only request is to cut
state spending while sparing their favorite program.
I am not involved in most aspects of the state budget
so I can't say if further cuts can still be made. But
I know because of my involvement in public education
that cuts here have been too deep.
SENATOR GUESS acknowledged that the Kenai area expressed the
needed amount of $4,500 and asked if Senator Wagoner had looked
at other districts.
SENATOR WAGONER replied that Kenai was probably as bad off if
not worse off, than most districts in the state, and that $4,500
was just about a break-even number.
SENATOR GUESS said from her analysis there are about four
districts that wouldn't make the PERS/TRS cut-off at $4,500.
She asked if it was the case in the Kenai that about half the
cuts were from PERS/TRS.
SENATOR WAGONER said this amount came in last year, prior to the
PERS/TRS discussion.
SENATOR GUESS asked if this meant that for the Kenai, an
additional PERS/TRS amount of $2.2 million was needed.
SENATOR WAGONER confirmed this was the case.
SENATOR LYDA GREEN mentioned that the Kenai's problems are
different from the Mat-Su or other growing districts, because of
a declining enrollment.
SENATOR WAGONER confirmed there was a declining enrollment and
an inability to close or consolidate schools without a major
penalty, saying that several things have gone "kinda sideways."
[The following action was taken at the end of the meeting:
SENATOR GUESS moved to report SSSB 14 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.]
SB 91-INCREASE AMT OF BASE STUDENT ALLOCATION
MR. RICHARD BENAVIDES, staff to Senator Bettye Davis, presented
SSSB 91 on behalf of the sponsor. He said originally SSSB 91
was introduced last February. SSSB 91 brings the base student
allocation to $4,600 and includes an inflation-proofing
provision and an annual increase for class size reduction and
compliance with the NCLB act. He said he wanted to echo
statements of the previous two speakers that the time has come
to look into changing the base student allocation.
CHAIR DYSON asked if the department wanted to testify on the
three bills.
MR. EDDY JEANS, Manager of the School Finance and Facilities
Section, Department of Education and Early Development (DEED),
testified that fiscal notes have been prepared for each of the
three bills. Analysis includes additional local contributions
or local caps that will be increased by each district. The
department believes the increase in state support goes hand-in-
hand with increased local support, and wanted to show the
impacts of those dollar amounts on districts' abilities to
contribute additional local revenue. He mentioned looking
forward to working further on this issue in Senate Finance.
CHAIR DYSON then took public testimony.
MS. ANDI STORY, a parent of three children in the Juneau School
district and also a Juneau School Board member, testified as
follows:
I became interested in running for the school board
because the class sizes were getting high in Juneau
and I felt that public education was going down. I
ran and now I'm seeing the realities of what the
school board members are facing across the state.
The increase to the PERS/TRS contribution is $1
million to the Juneau School District alone, and much
more to the bigger school districts. Eighty-eight
percent of the Juneau School District budget is
salaries and benefits and we cannot absorb a cost of
this size without negatively impacting class sizes.
The current ratio in our high school in Juneau is 31
students per classroom teacher, 31 in the middle
school, and about 25 in elementary. This is not
quality in my opinion. Quality is eroding across
Alaska without a long-term plan for providing for
adequate education. Without increases in cost for
living expenses, students hurt. In Juneau alone,
increases in property taxes, property insurance,
liability insurance, and workers' comp [indisc.] will
be $202,000, next year. Just flat funding is not
enough to retain quality. In order to pay the
$202,000 it comes out of programs or class sizes. The
requirements of NCLB and the exit exams, again, we see
pockets of students who aren't performing, so we need
to provide extra math teachers, tutors; we have to
pull those teachers out of teaching other classes, so
then the class sizes go up again. And so students are
hurting because of all these factors.
I had signed up to testify under all three [bills] and
I will say to you that SB 1 is too little - SB 14 and
SB 91 - SB 91 actually provides for this cost of
living, and to make us be more than mediocre schools.
I believe we are mediocre schools and people are not
going to stay here, we are not going to attract people
unless we invest in putting dollars into providing
quality education and programs.
2:22 p.m.
MS. MELODY DOUGLAS testified via teleconference that she
supports additional funding to public education but wanted to
speak specifically in support of SSSB 14. She said that $4,500
has been the needed figure in the Kenai Peninsula for several
years, and as the chief financial officer, when she calculated
the numbers for the Kenai School District, $4,570 would hold
them on par with FY 04. This includes an accounting for the
PERS/TRS rate; if that were not factored in, $4,392 would be
needed to hold them equal to FY 04. She recalled that 10
percent of the classroom staff was cut last year, so they are
well in excess of $4,500 and [indisc.] to try to give back to
some level of normalcy from an educational classroom standpoint.
MR. MIKE FORD, parent of a second grader in the Juneau School
System, said he spends time in the classroom and also in Juneau
School District budget negotiations. He said the system is
stressed because there aren't resources to meet the standards
the Legislature has created, and the system won't work unless
there are resources to meet those standards. The state is
obsessed with the PFD, but he submits there is no system that
pays better dividends than the public school system. By
investing in that system, dividends pay off for years. He said
if the Legislature is truly a reflection of public priorities,
the priorities are to increase funding for public education.
Juneau has a $2 million budget gap. That means fewer teachers
and larger class sizes. That trend needs to be reversed.
MS. KATEY MANGELSDORF, parent of three children, testified via
teleconference and said she would support using part of the
earnings from the Permanent Fund.
TAPE 04-10, SIDE B
MS. MANGELSDORF continued as follows:
My main reason for speaking today is to encourage you
to put aside differences of opinion, don't look at
what has been done or what has not been done, but
answer this question with clarity of thought. "What
can we do right here today to ensure the children of
the state of Alaska will have a good, sound
education?" I know you know every school in the state
is hurting terribly. You also know how to work with
the finances to find a solution. The funding formula
needs to be increased in a significant way. What is
proposed will not meet the needs of the schools in
Alaska. Of one thing I am sure: There is a solution.
I know you can find it if you focus on the one
question I stated. Ideas are beginning to grow.
Build on these ideas. Forget the past and look at the
legacy you can set in place for our children. Please
do what is right and good. I want to trust your good
judgment. And I will support what is necessary to
guarantee my children and the children in Alaska to
get the solid, well-rounded education they deserve and
need.
MS. MARY HAKALA, a parent of three children and coordinator for
"Alaska Kids Count," noted there were quite a few members of
that organization in the room. She said a month ago there were
a handful of parents, whereas now "Alaska Kids Count" is a
statewide network of 400 parents, community members, and
grandparents. She told members parents were seeing the damage
and the regression that has occurred and will occur if "you
don't act." She said membership consists of volunteers, both in
and out of the classroom. Members see the system is strapped
with the current level of funding. She expressed appreciation
for anything that can be done to prevent dire consequences from
happening if action is not taken regarding cuts due to the
PERS/TRS issue and escalating costs due to inflation. She
stated that merely putting a band-aide on doesn't address the
systemic issue. She said they were asking not only for
impending cutbacks to be taken care of, but also to rejuvenate
the schools and to take the discussion to "Yes, we support
education."
MR. CARL ROSE testified that there are problems with PERS/TRS,
and with depleted resources available for maintenance and
operation of schools. He stated it matters whether the PERS/TRS
issue is addressed from inside a formula or not. He said
regarding monies distributed inside a formula, because of
calculations and the eroding floor, dollars directed toward a
specific issue might not reach there because it is impacted by
the distribution of funds and the foundation formula.
SENATOR GUESS commented that from her calculations, $4,590 was
needed to hold districts harmless on PERS/TRS, if it goes inside
the formula.
MR. DAVE JONES, Director of Finance for the Kodiak Island
Borough School District, and father of several children,
testified as follows:
Kodiak is in the same condition as districts across
the state. To just maintain our current programs,
we're facing a $2,047,000 revenue deficit. Roughly
half a million of that is related to declining
enrollments, so I'm not going to come to you and ask
for that; we need to deal with that internally. This
leaves us with $1.5 million deficit of that.
Approximately $700,000 is related to retirement system
increases. I'm going to be an optimist and believe
that you [indisc.] solve that problem as a separate
issue. This leaves us with a little over $800,000
deficit that's related to increases in salaries,
benefits, fuel, costs, freight costs, etc. We're at
the cap in Kodiak and we can't look locally for any
additional help. The solution for us has to come at
the state level. That's why I want to thank you for
considering the bills that are before you today. I
think it's imperative that the bills that come out of
your committee that are brought forward with the
substantial increases to the base student allocation,
[indisc.] for the fixed cost increases we incur.
If you set the retirement issue aside, SB 1 gives us
about half the money we need to get to the cost
increases we're looking at. A $200 increase, with the
corresponding ability to increase local support would
let us continue the programs that we have today.
I'm going to take five seconds to tell you that I'm
throwing my 'dad hat on' and tell you that I want you
to tax me. I want to pay an income tax. I want to
use the permanent fund earnings. And I want you to
let me help pay for my children's education by doing
that.
2:33 p.m.
MR. GERRY DONOHOE, parent of two children in the Juneau School
District, said he and his family could have moved anywhere in
the world, but they chose to move back to Juneau because of the
quality of life and the great community. One of the only
compromises was the declining state of the educational system.
He said they were lucky in Pennsylvania because the kids had 18
- 20 students in their public school classrooms. That school
district spent $8,500 on each enrollee. He stated, "If you want
to attract people to Alaska, if you want to show progress in the
state, you've got to increase state education funding."
MS. MARY FRANCIS, Executive Director of Alaska Council of School
Administrators (ACSA), testified that all of the school
districts support the additional base student allocation and
would be grateful for any support, the higher the better to keep
pace. As a former superintendent, she said it was incredible
how erosion can occur in a year or two, and it might take eight
to ten years to reinstate some programs; good people providing
services will not be there and it's very hard to build programs
back. She supports consideration of these bills.
MS. AMY LUJAN, Business Manager in the Nome School District,
testified that Nome needs a $200 increase in basic needs to keep
on par with FY 04. She explained that about two thirds, or $134
would be for PERS/TRS, and about one third would be for
insurance and other increases encountered in planning for next
year. This still doesn't take into account cuts in programs in
the past few years. There are fewer junior and senior high
school offerings. There are larger class sizes, which is
especially problematic for elementary school. The nurse, social
worker, elementary assistant principal, and one of the two
counselor positions have been cut. There are fewer aides, some
large deferred maintenance needs, and professional development
is not paid for out of the school district general fund;
professional development is from grants. This is difficult when
trying to implement state and federal requirements for quality
schools. The $200 increase in basic needs won't bring back the
cuts just mentioned, but would help with PERS/TRS and basic cost
increases such as insurance and inflation.
MR. STUART COHEN, parent of two children in the Juneau School
District, reflected that his own third grade class had 34
students, but class composition didn't include students with
behavioral or learning problems. He pointed out that our
society has chosen to no longer place those children in separate
classrooms, condemning them to a lifetime of limited economic
possibilities. He also noted that if one has taught school or
worked with groups of kids, the reality is that one or two kids
who have difficulty learning or focusing can make the class 20
percent or 30 percent harder and limit what the other kids can
learn. He said it was important to realize that talk about
class size is of real concern, and he urged members to give as
much money as possible to the schools.
MS. SELINA EVERSON, representing the Alaska Native Sisterhood,
said she has four grandchildren in the school system, and
expressed concern for adequate funding, especially in the
village areas where "her people reside." She said, "Our history
should be taught in the school system and I can't believe that
it has been this long. Because when you understand another
race, you understand and can tolerate that person. You
understand where they're coming from." She said the teachers
called her dyslexic grandchild "stupid" and this was hurtful.
In short, the funding should not be cut. She said her parents
used to pay a school tax, and she would be willing to pay a
school tax for her grandchildren and her great grandchildren.
And she would be willing to pay an income tax.
MR. TIM STEELE testified from Anchorage and mentioned 332 jobs,
program cuts, increase in class size, and so forth. Regarding
solutions, he said the state is at a breaking point, and
additional funding is necessary. The superintendent has
indicated that about $238 will hold us harmless, assuming
PERS/TRS is outside. Just making it is not sufficient; adequacy
and sustainability need to be addressed. These Senate bills
don't have HB 471's two percent cost of living. We need some
way to not be back in this same fix, year after year.
Legislative research shows that $252 in purchasing power has
been lost since 1999.
2:45 p.m.
SENATOR GUESS said since Senator Davis wasn't there to speak to
her bill, she offered that SSSB 91 inflation-proofs the
foundation formula for future years.
MS. CHRIS MOORE, mother of four children and representing Valley
Voices for Children, an organization from the Mat-Su, testified
that children's needs are not being met. Children are not
receiving an adequate education and deserve a quality education.
Although she loves living in Alaska, the education issue is
looming like a dark cloud. She said she advocates for an
inflation-proofing component in the foundation formula.
MR. BOB DOYLE, Chief School Administrator for the Mat-Su Valley
School District, representing about 14,000 children and their
parents, suggested a three-prong approach. This includes an
increase to the base student allocation of $210, which would be
sufficient as long as TRS/PERS cost increases from this year
were also dealt with, and it could be either inside or outside
the formula. Also, as the base student allocation is moved up,
we're able to get additional support from the local assembly to
get full support for the schools, as well. With that approach,
we would be held harmless this year and the focus could be on
improving student learning and getting on with efforts in
curriculum alignment.
CHAIR DYSON asked if anybody wanted to add to his/her testimony.
MR. COHEN addressed the issue of taxes, saying that he was
already taxed so to speak, because he writes checks to the
school, as do other parents. In his 20 years in business,
traveling to countries such as Mongolia or Argentina, he has
observed different philosophies of taxation, ranging from
communist China to Bolivia. In some countries, people in charge
have a philosophy of not re-distributing wealth through taxation
and because they have been "too successful" in implementing that
philosophy, educational systems are such that the wealthy
children go to excellent private schools. However, if you're of
the middle class, your child probably goes to a church-run
Catholic school and gets an O.K. education, whereas if you're
living in poverty as 60 to 95 percent of the country's
population does, your child probably has to share a pencil at
school. Those countries have lost much of their human capital,
as represented by their children, and for other reasons also,
they'll never get out of the situations they're in. He asked
members to consider, "A little bit of taxation can be a good
thing."
CHAIR DYSON closed public testimony.
SENATOR WAGONER mentioned that $4,500 would hold the district
harmless for 2004, and PERS would be outside of that. He wanted
to reiterate for the record, that for the year prior to that,
Kenai Peninsula Borough School District cut an additional 56
positions, amounting to about $2.5 million. He said the
discrepancy was due to his thinking of 2003, not 2004. He said
they have been cutting for a long time, and that "I stick pretty
tight to the $4,500 without the PERS being in it. That would
heal a little bit of the problems they've got on student numbers
and classroom numbers."
SENATOR GREEN said the discussion has been on whether these
funding pieces were handled separately, and questioned if it
would be better for funds to go directly to retirement and
benefits - a portion of it - and not accrue to the school
district. Or, would it be necessary to send it directly to the
district and, in turn, pay for a portion of PERS/TRS? She said
this information was still important, and the conversation was
continuing.
SENATOR GREEN moved to report SSSB 1 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. There being none,
it was so ordered.
SENATOR GUESS moved to report SSSB 91 out of committee with
individual recommendation and attached fiscal note.
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.
SENATOR GUESS moved to report SSSB 14 out of committee with
individual recommendations and attached fiscal note.
CHAIR DYSON asked if there was any objection. Seeing none, it
was so ordered.
SENATOR GUESS said since others in committee were in Senate
Finance while she wasn't, she told members that PERS/TRS is not
a one-time hit, and that serious consideration needs to be given
to putting it in the foundation formula. She said this issue
would need to be dealt with in multiple years, and we don't know
what will happen with the market, which caused this problem to
begin with. She suggested that as a policy matter, one-time
money sometimes does more harm than good over the long run,
although this isn't a one-time problem. Anchorage looks at $22
million as part of PERS/TRS. Every district is going to deal
with this next year. She recommended putting it in, and keeping
all districts harmless.
SENATOR GUESS told members that because the minority has been
recently criticized for not making policy intentions clear
[enough], that Democrats believe SSSB 91 is the best policy for
education funding. Democrats will be offering amendments on the
Floor if they're not in the final bill. She said, "I don't want
to surprise anyone, since we got criticized for some reason for
not giving you guys enough heads-up, so I'm just on the record,
stating that."
SENATOR GREEN said she believed there was still more information
to follow on the PERS/TRS issue, particularly because of the
board meeting scheduled for the third week in March. She noted
that the numbers continue to float, so there needs to be
sensitivity to that.
There being no further business to come before the committee,
Chair Dyson adjourned the meeting at 2:58 p.m.
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