02/21/2007 01:30 PM Senate HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic | 
|---|---|
| Start | |
| SB81 | |
| SB4 | |
| Overview: Public School Funding Formula | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 81 | TELECONFERENCED | |
| = | SB 4 | ||
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
SENATE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                       February 21, 2007                                                                                        
                           1:34 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bettye Davis, Chair                                                                                                     
Senator Joe Thomas, Vice Chair                                                                                                  
Senator John Cowdery                                                                                                            
Senator Kim Elton                                                                                                               
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 81                                                                                                              
"An Act extending the termination date for the Board of                                                                         
Certified Direct-Entry Midwives; and providing for an effective                                                                 
date."                                                                                                                          
     MOVED SB 81 OUT OF COMMITTEE                                                                                               
                                                                                                                                
SENATE BILL NO. 4                                                                                                               
"An Act extending the cash assistance benefit program for                                                                       
seniors under the senior care program and increasing the benefit                                                                
amount; and providing for an effective date."                                                                                   
     MOVED SB 4 OUT OF COMMITTEE                                                                                                
                                                                                                                                
OVERVIEW: Foundation Formula                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  81                                                                                                                  
SHORT TITLE: EXTEND BOARD OF MIDWIVES                                                                                           
SPONSOR(s): SENATOR(s) DAVIS                                                                                                    
                                                                                                                                
02/12/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/07       (S)       HES, FIN                                                                                               
02/21/07       (S)       HES AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
                                                                                                                                
BILL: SB   4                                                                                                                  
SHORT TITLE: SENIOR CARE PROGRAM                                                                                                
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
01/16/07       (S)       PREFILE RELEASED 1/5/07                                                                                
01/16/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/07       (S)       HES, FIN                                                                                               
02/19/07       (S)       HES AT 1:30 PM BUTROVICH 205                                                                           
02/19/07       (S)       Heard & Held                                                                                           
02/19/07       (S)       MINUTE(HES)                                                                                            
02/21/07       (S)       HES AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
Richard Benavides, Aide                                                                                                         
  to Senator Davis                                                                                                              
Alaska State Capitol                                                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented SB 81 for the sponsor                                                                           
                                                                                                                                
Nikki Rouget                                                                                                                    
Division of Legislative Audit                                                                                                   
Juneau, AK                                                                                                                      
POSITION STATEMENT: Available for questions on SB 81                                                                          
                                                                                                                                
Kaye Kanne, Executive Director                                                                                                  
Juneau Family Birth Center                                                                                                      
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported SB 81                                                                                           
                                                                                                                                
Dana Brown, Director                                                                                                            
Alaska Family Health and Birth Center                                                                                           
Fairbanks, AK                                                                                                                   
POSITION STATEMENT: Supported SB 81                                                                                           
                                                                                                                                
Elinor Fitzjarrald, Acting Director                                                                                             
Division of Public Assistance                                                                                                   
Juneau, AK                                                                                                                      
POSITION STATEMENT: Available for questions on SB 81                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  BETTYE  DAVIS  called the  Senate  Health,  Education  and                                                             
Social Services  Standing Committee  meeting to order  at 1:34:55                                                             
PM.  Present at  the call  to order  were Senators  Dyson, Elton,                                                             
Cowdery, Thomas, and Chair Davis.                                                                                               
                                                                                                                                
                SB  81-EXTEND BOARD OF MIDWIVES                                                                             
                                                                                                                              
CHAIR DAVIS announced SB 81 to be up for consideration.                                                                         
                                                                                                                                
1:36:43 PM                                                                                                                    
                                                                                                                                
RICHARD  BENAVIDES, staff  to Senator  Davis, sponsor  of SB  81,                                                               
explained that the bill extends the  sunset date for the Board of                                                               
                                                    th                                                                          
Certified Direct-Entry  Midwives (BCDEM) to  June 30,   2015. The                                                               
extension is in line with  legislative audit recommendations. The                                                               
board  serves  to  educate  midwives of  the  level  of  service,                                                               
experience,  and  education  expected  of  them,  regulating  the                                                               
profession while ensuring public safety.                                                                                        
                                                                                                                                
SENATOR COWDERY asked for the number  of other states that have a                                                               
board of  midwives, and if  the length of the  proposed extension                                                               
is normal.                                                                                                                      
                                                                                                                                
MR. BENAVIDES said that the extension is average.                                                                               
                                                                                                                                
SENATOR COWDERY asked if the members are paid.                                                                                  
                                                                                                                                
MR. BENAVIDES said that he believes  they only receive a per diem                                                               
while on board business.                                                                                                        
                                                                                                                                
1:39:15 PM                                                                                                                    
                                                                                                                                
NIKKI ROUGET, with the Division  of Legislative Audit (DLA), said                                                               
that the DLA  conducted a review of the BCDEM  and concurred that                                                               
the board  is operating in  the best  interest of the  public and                                                               
should be extended, with no  operational recommendations. In 2005                                                               
the  typical  extension was  changed  from  four years  to  eight                                                               
years.                                                                                                                          
                                                                                                                                
SENATOR ELTON commented that the  previous administration had the                                                               
idea  to  reduce the  instance  of  board  overlap, and  said  he                                                               
wondered  if  anyone  knew  of  a similar  plan  by  the  current                                                               
administration.                                                                                                                 
                                                                                                                                
1:41:31 PM                                                                                                                    
                                                                                                                                
KAY KANNE, Executive  Director of the Juneau  Family Birth Center                                                               
(JFBC), said that she has been  a midwife in Juneau for 23 years,                                                               
since there were no midwife laws.   The board was created in 1992                                                               
and she served two consecutive  terms; it strives for the highest                                                               
levels of  training and service, and  is looked to as  an example                                                               
for other  states, most  of which have  midwife boards.  The JFBC                                                               
serves 10 percent of birth population in Juneau.                                                                                
                                                                                                                                
1:43:38 PM                                                                                                                    
                                                                                                                                
SENATOR  COWDERY asked  where midwives  are  concentrated in  the                                                               
state.                                                                                                                          
                                                                                                                                
MS. KANNE replied that most  midwives are concentrated in Juneau,                                                               
Anchorage, and  Fairbanks, and  are required  to practice  near a                                                               
hospital. The  midwife population  has been relatively  stable in                                                               
recent years.                                                                                                                   
                                                                                                                                
SENATOR THOMAS asked if midwife  training is readily available in                                                               
the state.                                                                                                                      
                                                                                                                                
MS.  KANNE  replied  that  it is  readily  available  in  Juneau,                                                               
coupled with  an approved program  with an option for  a masters'                                                               
degree. Training generally takes two to three years.                                                                            
                                                                                                                                
1:46:10 PM                                                                                                                    
                                                                                                                                
BRODIE ANDERSON,  aide to Representative  Kawasaki, said  that he                                                               
was available for questions but did not plan to testify.                                                                        
                                                                                                                                
DANA BROWN,  Director of Alaska  Family Health and  Birth Center,                                                               
said that she  wants to see the board extended  because it does a                                                               
good job  of serving  the profession  and contributing  to public                                                               
safety. The  responsibilities of the board  include investigating                                                               
midwives,  overseeing   regulations,  and   providing  continuing                                                               
education.                                                                                                                      
                                                                                                                                
She added that  the Fairbanks Birth Center assists  in 11 percent                                                               
of local births, and in Wasilla the percentage is 25.                                                                           
                                                                                                                                
1:49:50 PM                                                                                                                    
                                                                                                                                
CHAIR  DAVIS commented  that  all kinds  of  health services  are                                                               
needed across Alaska.                                                                                                           
                                                                                                                                
SENATOR ELTON  said that he  was surprised  by the high  fees for                                                               
board  membership, and  added  that the  board  is important  for                                                               
monitoring confidence and it ensures excellence of care.                                                                        
                                                                                                                                
1:52:44 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON said  that expensive  legal cases  brought against                                                               
the  board mean  penalization  of innocent  members; in  general,                                                               
though,  the board  has  done  an excellent  job  of serving  its                                                               
members.                                                                                                                        
                                                                                                                                
SENATOR DYSON  made a motion  to move  SB 81 from  committee with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
being no objection, the motion carried.                                                                                         
                                                                                                                                
                   SB   4-SENIOR CARE PROGRAM                                                                               
                                                                                                                                
1:56:07 PM                                                                                                                    
CHAIR BETTYE DAVIS announced SB 4 to be up for consideration.                                                                   
                                                                                                                                
ELLIE  FITZJARRALD, Acting  Director for  the Division  of Public                                                               
Assistance (DPA),  said that she  was available for  questions on                                                               
the fiscal notes of SB 4.                                                                                                       
                                                                                                                                
JANET CLARK, Assistant Commissioner  for the Department of Health                                                               
and Social Services  (DHSS), said that the  governor introduced a                                                               
senior care bill, SB 90, that  morning and that she could provide                                                               
a comparison of the two.                                                                                                        
                                                                                                                                
MS. FITZJARRALD said  that the current Senior  Care Program (SCP)                                                               
provides  $120 a  month  to  seniors whose  income  is under  135                                                               
percent of the  2005 federal poverty levels.  The governor's bill                                                               
maintains the  $120 payment, raises  the income  qualifying limit                                                               
to  135 percent  of  the 2007  poverty level,  and  allows it  to                                                               
increase proportionally each year; SB  4 increases the payment to                                                               
$150  and maintains  the former  income  qualifying levels.  Both                                                               
bills  eliminate the  little-used prescription  drug benefit.  In                                                               
addition, the governor's  proposal doesn't allow for  a person to                                                               
receive both  senior care and  the longevity bonus;  although the                                                               
provision is not included in SB 4, the intent is the same.                                                                      
                                                                                                                                
She  added that  5040  seniors will  qualify  for the  governor's                                                               
proposal. For SB  4, the number would be 4835.  The total cost of                                                               
benefit payments  under the governor's bill  would be $7,002,557,                                                               
and $8,000,701  under SB  4. SB  90 would  allow for  a five-year                                                               
extension, while SB 4 does not provide a sunset date.                                                                           
                                                                                                                                
2:00:31 PM                                                                                                                    
                                                                                                                                
SENATOR OLSON  said that he was  not an expert on  the governor's                                                               
proposal and could only comment on his own bill.                                                                                
                                                                                                                                
CHAIR DAVIS said  she had not expected the governor's  bill to be                                                               
seen by  the committee that day,  and she asked Senator  Olson to                                                               
try  and combine  some of  the  differences between  his and  the                                                               
governor's bill.                                                                                                                
                                                                                                                                
2:02:48 PM                                                                                                                    
                                                                                                                                
MS. CLARK said that the  governor's plan would cost $7.3 million,                                                               
while  SB 4  would cost  $8.7 million.  The main  differences are                                                               
that  SB  4 increases  the  benefit  amount, and  the  governor's                                                               
proposal increases the income eligibility.                                                                                      
                                                                                                                                
SENATOR  COWDERY asked  where the  governor's funding  would come                                                               
from.                                                                                                                           
                                                                                                                                
MS. CLARK  said that  a provision currently  in the  budget would                                                               
fund the proposal.                                                                                                              
                                                                                                                                
SENATOR  COWDERY  commented  that  he   would  like  to  see  the                                                               
longevity bonus funding taken from Permanent Fund earnings.                                                                     
                                                                                                                                
2:05:03 PM                                                                                                                    
                                                                                                                                
SENATOR ELTON said  that it appeared that more  seniors would opt                                                               
for senior care than he expected, and asked for an explanation.                                                                 
                                                                                                                                
MS. CLARK said that 2500  individuals are eligible for the senior                                                               
care payment but not the longevity bonus.                                                                                       
                                                                                                                                
2:06:59 PM                                                                                                                    
                                                                                                                                
SENATOR  OLSON  said  that  he   is  willing  to  work  with  the                                                               
administration  on  changes  in  his  bill,  and  that  the  main                                                               
priority is to  care for Alaska's seniors as best  and quickly as                                                               
possible. Most  of the issues between  the two bills may  be best                                                               
brought up in the finance committee.                                                                                            
                                                                                                                                
2:08:43 PM                                                                                                                    
                                                                                                                                
SENATOR ELTON  made a  motion to  move SB  4 from  committee with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
SENATOR DYSON commented that he  would have preferred to hear the                                                               
governor's  bill before  deciding on  the sunset  date, and  said                                                               
that he objected to passing the bill from committee.                                                                            
                                                                                                                                
A roll-call vote was taken,  and Senators Cowdery, Elton, Thomas,                                                               
and Chair  Davis voted yea;  Senator Dyson voted  nay. Therefore,                                                               
SB 4 passed from committee.                                                                                                     
                                                                                                                                
                                                                                                                                
            ^OVERVIEW: PUBLIC SCHOOL FUNDING FORMULA                                                                        
                                                                                                                                
CHAIR DAVIS  announced the  committee would  hear an  overview of                                                               
public school funding formula.                                                                                                  
                                                                                                                                
2:11:38 PM                                                                                                                    
                                                                                                                                
EDDY JEANS, Director of School  Finance for the Alaska Department                                                               
of Education and Early Development  (DEED), said that he would be                                                               
presenting  the  Foundation Funding  Formula,  as  defined in  AS                                                               
14.17.  The  Adjusted  Average Daily  Membership  (AADM)  is  the                                                               
school's  population adjusted  by  the  base student  allocation,                                                               
which equals the basic need.                                                                                                    
                                                                                                                                
He explained  that the  count period of  the ADM  population ends                                                               
the  4th  Friday  in  October;   the  result  is  the  number  of                                                               
enrollments in a district. Qualifying  students must be six years                                                               
                      st                                                                                                        
of age  by September 1   of the school  year or under the  age of                                                               
twenty-one and have not graduated.  Also, students of five yrs of                                                               
age may enter kindergarten. Children  with disabilities may enter                                                               
school  at  the age  of  three  and  may continue  through  their                                                               
twenty-first year.                                                                                                              
                                                                                                                                
He said that the first step  in calculating the AADM is adjusting                                                               
the  student  population  by the  school  size,  multiplying  the                                                               
result  by  the  student  cost factor,  and  finally  adding  the                                                               
intensive   service  funding   and   the  correspondence   count.                                                               
Community funding  is determined  by a population-based  scale; a                                                               
population  of  10-100  is  funded  as  a  single  school  and  a                                                               
population of 101-425 is funded as two schools.                                                                                 
                                                                                                                                
2:17:34 PM                                                                                                                    
                                                                                                                                
SENATOR COWDERY asked if the  percentage of vocational funding is                                                               
the  same  statewide or  if  it  depends  on  the status  of  the                                                               
community as urban or rural.                                                                                                    
                                                                                                                                
MR. JEANS  replied that  such funding  is contained  within block                                                               
funding.                                                                                                                        
                                                                                                                                
SENATOR COWDERY asked for the dropout rate in high schools.                                                                     
                                                                                                                                
MR. JEANS replied that he did not have the answer with him.                                                                     
                                                                                                                                
He  continued to  explain that  a  community with  more than  425                                                               
students  would have  each of  its facilities  funded separately,                                                               
excepting  alternative  schools  or  technical  schools.  Charter                                                               
schools  must   have  at  least   150  students  to   be  counted                                                               
separately.                                                                                                                     
                                                                                                                                
He used  the Nome school  district as  an example to  explain the                                                               
school  size adjustment  table for  different population  levels,                                                               
and said that the larger the  student population in a school, the                                                               
smaller   the  adjustment   because  larger   schools  are   more                                                               
efficient. He  then gave an example  of how to adjust  a school's                                                               
daily average.                                                                                                                  
                                                                                                                                
2:22:06 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS asked  if the adjustment for charter  schools is a                                                               
severe disadvantage to  their funding, and why  small schools are                                                               
added to the largest.                                                                                                           
                                                                                                                                
MR. JEANS  said that the  DEED wants to encourage  charter school                                                               
efficiency,  and that  the population  threshold used  to be  200                                                               
students.                                                                                                                       
                                                                                                                                
2:23:34 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON  said   he  thinks  the  threshold   needs  to  be                                                               
revisited,  and that  some schools  are  being penalized  through                                                               
this formula.  For charter schools  to meet  safety requirements,                                                               
finding  rentable  space  is  a   big  challenge.  However,  some                                                               
districts  have  found  ways  to get  more  revenue  for  charter                                                               
schools.                                                                                                                        
                                                                                                                                
MR.  JEANS said  that in  the last  three years  there have  been                                                               
supplemental   appropriations   for  smaller   charter   schools,                                                               
allocated on  a per-student basis.  He then continued  to explain                                                               
the  adjustment table  using  an example  school.  He added  that                                                               
youth  detention facilities  are counted  separately for  funding                                                               
purposes.                                                                                                                       
                                                                                                                                
2:28:03 PM                                                                                                                    
                                                                                                                                
SENATOR   ELTON  said   that  youth   facilities  have   shifting                                                               
populations and asked how funding is determined.                                                                                
                                                                                                                                
MR. JEANS replied that funded is allocated on a per-bed basis.                                                                  
                                                                                                                                
He then  explained the next  step in determining  school funding,                                                               
and  said that  adjustments  to cost  differentials are  required                                                               
every other year.  He said that he doesn't find  the Institute of                                                               
Social  and  Economic  Research  (ISER)  report  evaluating  cost                                                               
differentials  to   be  100  percent  accurate,   but  that  cost                                                               
differentials will always be a point of contention.                                                                             
                                                                                                                                
CHAIR DAVIS asked when the first study was conducted.                                                                           
                                                                                                                                
MR. JEANS replied that it was done in 2002.                                                                                     
                                                                                                                                
He continued to say that the  next step in the funding formula is                                                               
the adjustment  for special  needs, which is  a 20  percent block                                                               
allocation;  intensive   needs  children,  however,   are  funded                                                               
separately.  A study was required  to determine the impact of the                                                               
change from individual  to block funding, and it  showed that the                                                               
new  method generated  $14 million  more than  the previous  one.                                                               
Also,  categorical  funding  in   the  previous  funding  formula                                                               
generated  fixed  amounts  of  money;  now  departments  have  to                                                               
justify their spending.                                                                                                         
                                                                                                                                
2:32:47 PM                                                                                                                    
                                                                                                                                
SENATOR  ELTON  asked if  new  block  grants penalize  vocational                                                               
education over other categories like bilingual programs.                                                                        
                                                                                                                                
MR.  JEANS agreed  that the  most pressure  is put  on vocational                                                               
programs, which must compete for funding.                                                                                       
                                                                                                                                
SENATOR ELTON  asked if there  are now fewer  vocational programs                                                               
than before the block funding was implemented                                                                                   
                                                                                                                                
MR.  JEANS replied  affirmatively;  he said  that  the intent  of                                                               
block funding was to stop  labeling children to unfairly generate                                                               
revenue.  The percentage  could  be  increased, but  distribution                                                               
would still be the same.                                                                                                        
                                                                                                                                
SENATOR ELTON  commented that  vocational education  shouldn't be                                                               
lumped in  with other subjects,  because districts are  forced to                                                               
take funding away from it when money is needed.                                                                                 
                                                                                                                                
2:36:41 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON  said  that  he  thinks  funding  for  gifted  and                                                               
talented   children  isn't   necessarily   more  important   than                                                               
vocational or bilingual education.                                                                                              
                                                                                                                                
MR. JEANS  said that  gifted and talented  funding is  also under                                                               
pressure.                                                                                                                       
                                                                                                                                
2:38:40 PM                                                                                                                    
                                                                                                                                
MR.  JEANS explained  how to  adjust the  allocation for  special                                                               
needs children,  and that  intensive needs costs  are based  on a                                                               
one-day count period.  These  students are also included in other                                                               
funding categories as  well as in intensive needs.   The DEED has                                                               
been conducting audits of intensive  needs cases because they had                                                               
increased  disproportionately  in  recent years.  The  department                                                               
used  to  do  random  sampling   and  districts  were  only  held                                                               
accountable for the  inappropriate claims found.   Now audits are                                                               
done on a 100 percent  basis; children are still being improperly                                                               
claimed and  so districts are  being penalized. There was  a DEED                                                               
meeting in Anchorage  in January to discuss  intensive funding; 2                                                               
percent block funding was suggested;  audits would be ceased, and                                                               
unique  circumstances would  be accounted  for. Yearly  intensive                                                               
children cost $65,000 to $75,000 thousand apiece.                                                                               
                                                                                                                                
2:43:32 PM                                                                                                                    
                                                                                                                                
SENATOR DYSON referenced a newspaper  article about a child whose                                                               
out-of-state  treatment expenses  were being  paid by  the school                                                               
district who  could not  provide them itself,  and asked  if this                                                               
would become a trend.                                                                                                           
                                                                                                                                
MR. JEANS said that such a  decision would not be the parents'. A                                                               
hearing  would have  to be  held, and  the school  district would                                                               
still be able to claim such kids for its funding.                                                                               
                                                                                                                                
SENATOR ELTON  said that  such children need  to be  evaluated as                                                               
either mental health or educational responsibilities.                                                                           
                                                                                                                                
CHAIR  DAVIS  commented  that required  intensive  needs  funding                                                               
takes funds away from the general student population.                                                                           
                                                                                                                                
MR. JEANS said that school  districts want to receive 100 percent                                                               
reimbursement for such funding, but  that such a program would be                                                               
enormously costly, and another mechanism should be used.                                                                        
                                                                                                                                
2:47:38 PM                                                                                                                    
                                                                                                                                
MR. JEANS  gave an  example of how  to calculate  intensive needs                                                               
and  correspondence needs  for a  total  entitlement figure,  and                                                               
showed a spreadsheet with district AADMs and basic need figures.                                                                
                                                                                                                                
He  explained  that  there  are  three  school  funding  sources:                                                               
required  local contribution,  state  aid, and  federal aid.  The                                                               
state  assessor   determines  the   district  taxable   value  to                                                               
calculate the required local effort.                                                                                            
                                                                                                                                
2:51:26 PM                                                                                                                    
                                                                                                                                
SENATOR  DYSON asked  if a  community can  not meet  the required                                                               
local contribution, if the state must pay the rest.                                                                             
                                                                                                                                
MR. JEANS  said that  was correct. He  explained that  areas that                                                               
have struggling  economies have dropping property  values and are                                                               
still paying the same percentage  of required contribution, while                                                               
some more  rapidly growing areas  pay lower percentages  of their                                                               
value. The percentage disparity needs  to be leveled out to avoid                                                               
cost problems.                                                                                                                  
                                                                                                                                
2:56:06 PM                                                                                                                    
                                                                                                                                
SENATOR ELTON  commented that lowering the  required contribution                                                               
would limit voluntary contribution.                                                                                             
                                                                                                                                
MR. JEANS said that  this is true, but the loss  would be made up                                                               
by state funds.                                                                                                                 
                                                                                                                                
2:57:07 PM                                                                                                                    
                                                                                                                                
SENATOR  THOMAS  asked  how  less money  can  be  available  when                                                               
property valuations are going up.                                                                                               
                                                                                                                                
MR. JEANS said that the funding  burden is being shifted from the                                                               
local taxpayers to the state.                                                                                                   
                                                                                                                                
He  explained that  the  required local  effort  can't exceed  45                                                               
percent of the  district's basic need from the  prior year, which                                                               
guarantees funding from the state.                                                                                              
                                                                                                                                
3:00:11 PM                                                                                                                    
                                                                                                                                
MR.  JEANS explained  that federal  impact aid  comes in  lieu of                                                               
property  taxes,   and  much  comes  from   Alaska  Native  Claim                                                               
Settlement  Act (ANCSA)  lands.  Federal aid  is  required to  be                                                               
treated as  local revenue, and unorganized  school districts have                                                               
no required contribution.                                                                                                       
                                                                                                                                
He added that there is a cap to additional local contribution.                                                                  
The supplemental funding floor, for which nine districts                                                                        
qualify, is under $1 million now and is disappearing.                                                                           
                                                                                                                                
There being no further business to come before the committee,                                                                   
Chair Davis adjourned the meeting at 3:03:30 PM.                                                                              
                                                                                                                                
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