SB 57-LITERACY, PUPIL TRANSP, TEACHER NOTICES  8:03:52 AM CHAIR STEVENS announced that the first order of business would be SB 57. He noted it is the second hearing of the bill. SENATOR DUNLEAVY moved to adopt CSSB 57, labeled 28-LS0474\N, as the working document. CHAIR STEVENS objected for discussion purposes. TIM LAMKIN, staff, Senator Gary Stevens, sponsor of SB 57, described the changes in the new CS. He explained that the first change is found on page 1, line 7. At the request of the Department of Education, and in reflection of the fiscal note, to avoid hiring additional staff at the state level to coordinate data with local districts in gathering information about parents statewide or at a local level, a change was made that places that responsibility on the school districts since they already have that data and parents are more accustomed to receiving information directly from the districts, as opposed to the state. The change only refers to publishing and distributing pamphlets to parents at the local level. MR. LAMKIN explained that subsection (b) on page 2, maintains that the state would continue to have a publicity campaign using local media outlets to promote parental involvement in early literacy by third grade. He related that Section 2, page 2, reflects the Consumer Price Index (CPI) annual adjustment, based on Anchorage's inflationary CPI index, regarding pupil transportation. That is consistent with language that was passed unanimously by the Senate last year. He said that Section 3 is the "pink slip section" of the bill. In instances when school districts are not aware of their budgetary levels or expectations, they are obliged, by March 16, to issue pick slips to allow non-tenured faculty to be notified of a potential lay off or non-retention the following school year. This is an effort to synchronize the budget process of the legislature with that date, rather than creating unnecessary angst at the district level. He noted that Section 3 has been on the books for some time - since 1949. The March 16 date has been maintained for decades. He related that Section 4 repeals a law that was passed last year with regard to pupil transportation at a fixed rate of 1.5 percent. The average approximate CPI inflation rate is about 3 percent annually. Section 5 is applicability language necessary for existing contracts as it relates to the pink slip provision, allowing those contracts to expire before the changes are made. Section 6 applies an effective date of July 2013. 8:08:15 AM SENATOR GARDNER referred to Section 1 and asked if school districts could make that information available to parents by sending it home with their children; it does not require postal distribution. MR. LAMKIN answered that is correct. A number of districts are already in compliance; the bill would ensure that all districts comply. SENATOR GARDNER asked if there was a fiscal note for Section 2. MR. LAMKIN reported that the original fiscal note reflects personal services of $97,500, which would be removed in version N of SB 57. CHAIR STEVENS asked the Department of Education & Early Development (DEED) to address the change of removing the department from the obligation to distribute information to parents, which would require less staffing. 8:09:53 AM SUSAN MCCAULEY, Director, Teaching and Learning Support, Department of Education and Early Development, answered questions related to SB 57. She said the previous fiscal note reflected the need for the department to contact the parents of 45,000 students regarding the distribution of material related to early literacy. The change in version N will result in a change to the fiscal note. The bill does maintain the department's responsibility for an annual media campaign. CHAIR STEVENS commented it makes sense for school districts to make contact with parents. MS. MCCAULEY agreed. She added that schools often have electronic newsletters and other in-place communication methods with parents. 8:11:50 AM CHAIR STEVENS noted the department is still providing handouts to school districts. MS. MCCAULEY said the department's intent is to provide consistent, accurate information that reflects current research regarding early literacy. SENATOR STEDMAN voiced concern about Section 2. He said indexing into the CPI creates formula-driven issues. He opined that, in light of decreasing revenue, it is important to consider challenges to the operating budget that are driven by formula issues. CHAIR STEVENS inquired if Senator Stedman was comfortable moving the bill on to the Senate Finance Committee to deal with those issues. SENATOR STEDMAN replied yes. CHAIR STEVENS opened public testimony. DAVID JONES, Assistant Superintendent, Kenai Peninsula Borough School District, urged the committee to pass the bill. LUKE FULP, Chief Business Official, Mat-Su Borough School District, expressed support of all components in the bill. PEGGY COWAN, Superintendent, North Slope Borough School District, testified in support of SB 57. She pointed out that many of the issues are state wide, including providing for pupil transportation with state funds. 8:16:00 AM JOHN ALCANTRA, Government Relations, NEA Alaska, testified in favor of SB 57. He referred to a letter of support from the president of NEA - Alaska, Ron Fuhrer. He voiced concerns on the dates contained in the bill regarding teacher tenure. He suggested May 20 as a compromise date. BRUCE JOHNSON, Executive Director, Alaska Council of School Administrators, testified in support of SB 57. He commented on non-retention and lay-offs. He pointed out that districts are not going to wait until May 15 to determine whether they are going to keep tenured and non-tenured teachers. He maintained that Alaska's school districts will approach that issue in a highly professional manner and give themselves a cushion if funding is unknown. Districts in rural Alaska are currently issuing contracts in February in order to get their staffing plan in place. 8:19:07 AM SENATOR GARDNER asked if the date of the job fairs would change due to the date of May 15. MR. JOHNSON replied that he did not think so because the rest of the nation operates on similar timelines. He reiterated that districts would determine staffing retention earlier, allowing those non-retained teachers to attend job fairs. SENATOR GARDNER asked for Mr. Johnson's opinion about amending the April 20 date. MR. JOHNSON answered that the Alaska Council of School Administrators has not discussed it. He added it is good for management to have as much flexibility as possible. 8:20:39 AM CHAIR STEVENS closed public testimony. 8:20:50 AM SENATOR GARDNER moved an amendment to change the date to April 20, as a compromise, because it is after the legislative adjournment date and school districts should be aware of their funding by then. She said the change of date would also meet the needs of teachers and the districts. CHAIR STEVENS saw no major problem with the conceptual amendment. SENATOR DUNLEAVY said he would not favor the amendment. CHAIR STEVENS asked if the department has an opinion on the proposed amendment. SENATOR HUGGINS commented that Mr. Johnson just reported that district management could exercise a date change. It is to the advantage to have maximum flexibility for both the employee and management. SENATOR DUNLEAVY understood that Mr. Alcantra stated that having the date as close as possible to the end of the legislative session gives school districts an advantage. He maintained that April 15 is too early. He recommended staying with the date contained in the bill. 8:23:24 AM MS. MCCAULEY said Senator Dunleavy's comments are similar to Mr. Johnson's and Mr. Alcantra's comments, rather than to the department's. CHAIR STEVENS declared that there is no rush on the bill and the committee could choose to take more time to consider it. SENATOR STEDMAN said he was ok with moving the bill. SENATOR GARDNER withdrew her amendment. CHAIR STEVENS appreciated the testifier's comments. CHAIR STEVENS removed his objection. 8:24:32 AM SENATOR DUNLEAVY moved to report CS for SB 57, version N, from committee, with individual recommendations and attached fiscal note(s). CHAIR STEVENS announced that without objection, CSSB 57(EDC) is reported from the Senate Education Standing Committee.