Legislature(2007 - 2008)BUTROVICH 205

02/09/2007 08:00 AM Senate SPECIAL COMMITTEE ON EDUCATION


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08:01:48 AM Start
08:02:17 AM SB1
09:00:22 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
* SB 1 INCREASE AMT OF BASE STUDENT ALLOCATION
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
             SENATE SPECIAL COMMITTEE ON EDUCATION                                                                            
                        February 9, 2007                                                                                        
                           8:01 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Gary Stevens, Chair                                                                                                     
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Donny Olson                                                                                                             
Senator Gary Wilken                                                                                                             
Senator Bettye Davis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
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."                                                                                                             
     HEARD AND HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: SB   1                                                                                                                  
SHORT TITLE: INCREASE AMT OF BASE STUDENT ALLOCATION                                                                            
SPONSOR(s): SENATOR(s) WILKEN                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
John Alcantra, Government Relations Director                                                                                    
National Education Association of Alaska                                                                                        
4100 Spenard Road                                                                                                               
Anchorage, AK 99517                                                                                                             
POSITION STATEMENT:  Supported SB 1                                                                                           
                                                                                                                                
Stephanie Allison, Member                                                                                                       
Great Alaska Schools                                                                                                            
9414 Long Run Drive                                                                                                             
Juneau, AK 99801                                                                                                                
POSITION STATEMENT:  Supported SB 1                                                                                           
                                                                                                                                
Michael Sigler, coordinator                                                                                                     
Great Alaska Schools                                                                                                            
1505 Crest Court                                                                                                                
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Supported SB 1                                                                                            
                                                                                                                                
Mike Fisher, Chief Financial Officer                                                                                            
Fairbanks North Star School District                                                                                            
PO Box 71267                                                                                                                    
Fairbanks, Alaska  99707                                                                                                        
POSITION STATEMENT:  Supported SB 1                                                                                           
                                                                                                                                
Sue Hull, School Board member                                                                                                   
Fairbanks North Star School District                                                                                            
PO Box 71267                                                                                                                    
Fairbanks, Alaska  99707                                                                                                        
POSITION STATEMENT:  Supported SB 1                                                                                           
                                                                                                                                
Eddy Jeans, Director of School Finance                                                                                          
Department of Education &                                                                                                       
 Early Development                                                                                                              
        th                                                                                                                      
801 W 10 St.                                                                                                                    
Juneau, AK  99801-1894                                                                                                          
POSITION STATEMENT: Available for questions on SB 1                                                                           
                                                                                                                                
Carl Rose, Executive Director                                                                                                   
Association of Alaska School Boards                                                                                             
316 W 11th St.                                                                                                                  
Juneau, AK  99801                                                                                                               
POSITION STATEMENT: Supported SB 1                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  GARY  STEVENS  called  the  Senate  Special  Committee  on                                                             
Education meeting to order at 8:01:48  AM. Present at the call to                                                             
order  were Senators  Davis, Olson,  Wilken,  Huggins, and  Chair                                                               
Stevens.                                                                                                                        
                                                                                                                                
                                                                                                                                
          SB 1-INCREASE AMT OF BASE STUDENT ALLOCATION                                                                      
                                                                                                                                
CHAIR STEVENS announced SB 1 to be up for consideration.                                                                        
                                                                                                                                
8:02:17 AM                                                                                                                    
                                                                                                                                
SENATOR WILKEN, sponsor of SB 1, explained that it pertains to                                                                  
increasing the base student allocation used in the funding                                                                      
formula to $5,810.                                                                                                              
                                                                                                                                
He said  that since 1998  the K-12 public school  funding formula                                                               
has  distributed   education  dollars  based  on   a  per-student                                                               
allocation. The increase in this  allocation will mitigate rising                                                               
costs  and help  direct more  education dollars  into classrooms.                                                               
The bill does  not address all rising costs in  the public school                                                               
system,  as required  retirement  contributions  alone will  cost                                                               
over  $200 million  statewide in  the next  fiscal year.  It does                                                               
cover the estimated inflation rate  provided by the Department of                                                               
Labor in  2006, and includes  additional funds to aid  schools in                                                               
reducing class size.                                                                                                            
                                                                                                                                
8:05:41 AM                                                                                                                    
                                                                                                                                
SENATOR WILKEN  referenced a chart  provided to the  committee to                                                               
explain changes  in student funding  from past fiscal  years, and                                                               
to show that  the current bill's increase in funding  would be in                                                               
line with past increases. He said  that the governor had issued a                                                               
request for  SB 1  to be moved  through the  legislature quickly,                                                               
and he echoed her sentiment.                                                                                                    
                                                                                                                                
8:08:25 AM                                                                                                                    
                                                                                                                                
CHAIR  STEVENS asked  what the  additional, unspecified  funds in                                                               
the increase would be used for.                                                                                                 
                                                                                                                                
SENATOR  WILKEN replied  that the  amount would  offset increased                                                               
energy costs  and the currently high  pupil-to-teacher ratio, and                                                               
help  reduce  the  need  for   local  taxes  paid  by  individual                                                               
districts. He  added that 2007  was the  renewal year for  the No                                                               
Child Left  Behind (NCLB) act,  which may burden  the legislature                                                               
with additional tasks.                                                                                                          
                                                                                                                                
8:11:16 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS asked for the target date for early funding.                                                                    
                                                                                                                                
SENATOR WILKEN  replied that the  target was March 15th,  60 days                                                               
into the session.                                                                                                               
                                                                                                                                
8:12:10 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS  asked if increasing  natural gas costs  would be                                                               
included in the funding increase.                                                                                               
                                                                                                                                
SENATOR WILKEN  replied that that  cost would be included  in the                                                               
portion of the increase meant for inflation.                                                                                    
                                                                                                                                
8:12:55 AM                                                                                                                    
                                                                                                                                
SENATOR OLSON  asked why Senator  Wilken didn't propose  a higher                                                               
increase in funding than 4 percent.                                                                                             
                                                                                                                                
SENATOR WILKEN  replied that  the numbers  were based  on general                                                               
inflation rates.                                                                                                                
                                                                                                                                
SENATOR OLSON asked if the governor was in favor of the bill.                                                                   
                                                                                                                                
SENATOR WILKEN  replied that  the bill was  a starting  point for                                                               
negotiations,  and the  governor's  budget was  still  a work  in                                                               
progress.                                                                                                                       
                                                                                                                                
8:15:56 AM                                                                                                                    
                                                                                                                                
SENATOR  WILKEN   explained  that  the  student   population  has                                                               
decreased by  3,000 since  1999, but  increased funding  is still                                                               
insufficient.                                                                                                                   
                                                                                                                                
8:18:19 AM                                                                                                                    
                                                                                                                                
JOHN ALCANTRA,  Director of Governor  Relations for  the National                                                               
Education  Association of  Alaska  (NEAA), said  that the  NEAA's                                                               
request for  the base  student allocation  was $5,953,  $143 more                                                               
than SB 1 proposes.  Every  $5 increment in the allocation equals                                                               
around $1 million statewide. The  NEAA is working towards funding                                                               
adequacy within  seven fiscal  years, but  much of  public school                                                               
funding goes  to the retirement  system and inflation  costs, and                                                               
not to  classrooms or teachers'  salaries. Public  school funding                                                               
is currently  $400 million  short of what  the NEAA  considers an                                                               
adequate K-12 budget.                                                                                                           
                                                                                                                                
8:23:08 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS  asked what the  NEAA's efforts to work  with the                                                               
administration over the funding matter had been.                                                                                
                                                                                                                                
MR.   ALCANTRA  said   that  the   NEAA  would   work  with   the                                                               
administration to explain that  inflationary costs would diminish                                                               
funding for  school services,  and that  the Public  Employee and                                                               
Teacher  Retirement  Systems  take  up  millions  of  dollars  in                                                               
funding.                                                                                                                        
                                                                                                                                
8:25:34 AM                                                                                                                    
                                                                                                                                
STEPHANIE  ALLISON, member  of Great  Alaska Schools  (GAS), said                                                               
that the  Budget Advisory Group of  Juneau had been asked  to cut                                                               
three million  dollars from the yearly  budget, and that if  SB 1                                                               
passed there would be no need to make such cuts.                                                                                
                                                                                                                                
8:27:48 AM                                                                                                                    
                                                                                                                                
MICHAEL SIGLER, member  of GAS, explained that  the GAS coalition                                                               
of parents  and community members  supported the increase  in the                                                               
allocation. Past increases in school  funding have gone mainly to                                                               
covering retirement costs and  inflation but haven't sufficiently                                                               
met  education  quality needs.  The  coalition  wishes to  see  a                                                               
fiscal plan  including inflation-proofing and  updated geographic                                                               
cost differentials.                                                                                                             
                                                                                                                                
8:29:58 AM                                                                                                                    
                                                                                                                                
SENATOR  HUGGINS  asked  what  efforts   GAS  was  making  beyond                                                               
improving funding.                                                                                                              
                                                                                                                                
MR. SIGLER  replied that  most people  involved in  the coalition                                                               
are active  in schools as  volunteers or work  in community-based                                                               
activities such as coaching.                                                                                                    
                                                                                                                                
SENATOR  HUGGINS said  that the  Juneau school  district is  one-                                                               
third the  size of the Mat-Su  district, yet has the  same number                                                               
of special needs  students. He asked if that  created any special                                                               
challenges for parents or teachers.                                                                                             
                                                                                                                                
MR.  SIGLER replied  that such  students  typically require  more                                                               
adult  supervision  than other  schoolchildren,  and  in a  fixed                                                               
budget  fulfilling   their  needs   can  take  money   away  from                                                               
mainstream education and create larger classrooms sizes for non-                                                                
special needs children.                                                                                                         
                                                                                                                                
SENATOR  HUGGINS  asked if  Mr.  Sigler  was satisfied  with  the                                                               
efforts towards educating special needs children.                                                                               
                                                                                                                                
MR. SIGLER  replied that aides  are underpaid, the  turnover rate                                                               
is high, and needs are not  fully met, which means less available                                                               
funding for mainstream students.                                                                                                
                                                                                                                                
8:33:14 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS mentioned that the  dropout rate in the Mat-Su is                                                               
44 percent, and  asked for Mr. Sigler's thoughts on  the rates in                                                               
Juneau.                                                                                                                         
                                                                                                                                
MR. SIGLER said that the Juneau  rate is around 33 to 35 percent,                                                               
and that  insufficient parenting and  a poor academic  model were                                                               
two  causes of  dropping out.  More attention  should be  paid to                                                               
post-high school vocational education.                                                                                          
                                                                                                                                
8:34:46 AM                                                                                                                    
                                                                                                                                
MIKE FISHER,  CFO for the  Fairbanks North Star  School District,                                                               
said  that while  retirement funding  is important  it is  taking                                                               
money  away from  the classrooms,  which are  in serious  need of                                                               
basic  supplies.  School  districts  are having  to  cut  program                                                               
funding to allow for retirement funding increases.                                                                              
                                                                                                                                
SUE  HULL, Fairbanks  North Star  School  District board  member,                                                               
said that  school districts need  funding to make  investments in                                                               
technology and technical career preparation.                                                                                    
                                                                                                                                
                                                                                                                                
8:38:19 AM                                                                                                                    
                                                                                                                                
EDDY JEANS, Director of School  Finance for the Alaska Department                                                               
of  Education and  Early Development  (DEED),  explained the  two                                                               
fiscal notes  prepared by  the department  for SB  1: $88,928,200                                                               
for the  increase in  the base  student allocation,  and $825,000                                                               
for the Alaska  Military Youth Academy.  He  said that increasing                                                               
the  statewide   allocation  will  increase   local  government's                                                               
ability  to give  money to  education. Districts  are allowed  to                                                               
contribute  23 percent  of their  basic need  in addition  to the                                                               
required  local  contribution,  so  if  the  base  allocation  is                                                               
increased  by   $100  million  the   increased  range   of  local                                                               
contribution would be around $20 million.                                                                                       
                                                                                                                                
8:41:19 AM                                                                                                                    
                                                                                                                                
SENATOR  WILKEN  said  that the  2008  funding  formula  required                                                               
$16.18 million  in local contribution  to qualify for  state aid,                                                               
and that the  $20 million figure was  additional optional funding                                                               
on  a   local  level.   This  year   organized  Alaska   will  be                                                               
contributing $205.2 million before receiving state aid.                                                                         
                                                                                                                                
8:42:39 AM                                                                                                                    
                                                                                                                                
SENATOR HUGGINS asked  if any boroughs besides the  Mat-Su had an                                                               
organized tax cap.                                                                                                              
                                                                                                                                
MR. JEANS replied  that Anchorage did as well, but  he was unsure                                                               
of any others.                                                                                                                  
                                                                                                                                
8:43:26 AM                                                                                                                    
                                                                                                                                
CHAIR  STEVENS asked  for Mr.  Jeans' comments  on the  declining                                                               
student population.                                                                                                             
                                                                                                                                
MR.  JEANS  replied  that  the  DEED  doesn't  provide  long-term                                                               
student projections,  but that the  state population is  an aging                                                               
one.                                                                                                                            
                                                                                                                                
8:45:01 AM                                                                                                                    
                                                                                                                                
SENATOR OLSON asked  Mr. Jeans if the drop  in student population                                                               
was in rural or urban areas.                                                                                                    
                                                                                                                                
MR. JEANS replied that it was a combination of both.                                                                            
                                                                                                                                
8:46:03 AM                                                                                                                    
                                                                                                                                
CHAIR  STEVENS  asked how  rising  funding  correlated with  high                                                               
student dropout rates.                                                                                                          
                                                                                                                                
MR.  JEANS replied  that rising  funding is  due to  increases in                                                               
fixed  costs beyond  the  scope  of the  DEED  such  as fuel  and                                                               
insurance prices.  These costs can  mean reduced  services, which                                                               
may contribute to reduced student achievement.                                                                                  
                                                                                                                                
8:47:49 AM                                                                                                                    
                                                                                                                                
CARL  ROSE,  Executive  Director  of the  Association  of  Alaska                                                               
School Boards,  said that  the NCLB  act has  caused funds  to be                                                               
taken  from  regular  classroom instruction  to  provide  special                                                               
needs services. The  curriculum is being narrowed  and has become                                                               
inadequate,  and digital  resource funding  is needed.  Classroom                                                               
funding has become secondary to retirement funding.                                                                             
                                                                                                                                
8:51:23 AM                                                                                                                    
                                                                                                                                
SENATOR WILKEN  said that last year  $5 million was added  to the                                                               
capitol budget  to start  a digital  learning program  for sixth-                                                               
graders across the  state, and that he hoped  similar funds would                                                               
be included in the current year's budget.                                                                                       
                                                                                                                                
8:53:01 AM                                                                                                                    
                                                                                                                                
SENATOR THOMAS asked  Mr. Jeans for his opinion  on the narrowing                                                               
classroom curriculum.                                                                                                           
                                                                                                                                
MR. ROSE  replied that digital  learning is important  for career                                                               
development,   and  classrooms   are  equipped   for  vocational-                                                               
technical  training  but  the programs  are  not  funded.  Course                                                               
relevance  has much  to  do  with students  deciding  to stay  in                                                               
school.                                                                                                                         
                                                                                                                                
8:56:00 AM                                                                                                                    
                                                                                                                                
SENATOR OLSON  asked what  digital learning  programs will  do to                                                               
affect the dropout rate.                                                                                                        
                                                                                                                                
MR.  ROSE replied  that  such pilot  programs  show how  children                                                               
respond to  technology, and  are shown  to be  effective learning                                                               
tools.                                                                                                                          
                                                                                                                                
8:59:43 AM                                                                                                                    
                                                                                                                                
MARY  FRANCES,  Executive  Director  for the  Alaska  Council  of                                                               
School Administrators, said that  administrators across the state                                                               
were  in the  beginning stages  of budget  preparation and  would                                                               
have a  better idea  in a  few weeks of  what the  increase would                                                               
mean  for  school  districts,  but  in  general  they  were  very                                                               
supportive of SB 1.                                                                                                             
                                                                                                                                
CHAIR STEVENS  thanked the participants  for their  testimony and                                                               
held SB 1 in committee.                                                                                                         
                                                                                                                                
Seeing  no   further  business,   CHAIR  STEVENS   adjourned  the                                                               
committee meeting at 9:00:22 AM.                                                                                              
                                                                                                                                

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