CHAIRMAN RANDY PHILLIPS introduced SB 136 (NATIVE LANGUAGE EDUCATION) as the next order of business before the committee. ANNIE LANDRUM, staff to Senator Lincoln, explained the changes in the draft committee substitute to SB 136. SENATOR TAYLOR expressed his concern that SB 136 does not address the communities where the majority of native children live. SENATOR ADAMS said that nothing in SB 136 prohibits any local school district from offering the local tongue. He moved to adopt CSSB 136 (CRA). Hearing no objections, it was so ordered. Senator Adams requested that bills be held until the following week when information or material is received that morning. Number 340 ANNE KESSLER, Program Manager for Bilingual Education, Department of Education, informed the committee that there are 48 district with bilingual programs. She referred to the attachments for the specifics of each district's program. In response to Senator Taylor's question, she stated that bilingual means to have limited english proficiency or to be able to speak more than one language. She explained that Anchorage provides an English as a Second Language (ESL) program, but that each school district can offer different options according to their population and student needs. Number 230 SENATOR TAYLOR asked if any of the current programs were dictated by racial orientation. Ms. Kessler said that the bilingual program is not based on ethnicity. She said that the state funds are based on the category of the students within the bilingual regulations and the amount of proficiency they have in english, then the school decides what options to implement. ANNE KESSLER explained that the unit of funds is not necessarily equal everywhere. The unit of funds depends upon the category of the student, not per student. She stated that to create a program for native language is more expensive because you have to develop materials and do staff training, however it is not recognized in the foundation funding. She noted that the estimated $60,000 per site seems to be a fairly good average. SENATOR TAYLOR asserted that the $60,000 estimate only becomes a valid fiscal note if the districts without a program decide to have a program which is added to the state foundation formula. He asked if that increases the foundation formula by $60,000 per group or do they have to eat the $60,000 as a choice within the money they receive. Ms. Kessler pointed out that there are only three districts that are not currently receiving bilingual money who could possibly apply. Approximately $213,000 if every one of those applied. TAPE 94-5, SIDE A Number 001 ANNE KESSLER added further comments regarding cost issues. CHAIRMAN RANDY PHILLIPS held SB 136 until Tuesday morning.