SENATE JOINT RESOLUTION NO. 11 Urging the Congress of the United States to provide federal education funds as a block grant to the state. The Senate Finance Committee sponsored this resolution and earlier discussions were on record relating to the drafting of the language and its content. BRUCE JOHNSON, Director Teaching and Learning Support, Department of Education, testified that the department generally supported block grant funding, which gave the state and local districts the greatest flexibility in program development and delivery. However, he urged the Legislature to maintain vigilance as the federal block funding was finalized in the US Congress when assessing the long-term benefits to Alaskan students and school districts. The department encouraged the oversight for two reasons. First, Alaska was a small state in terms of overall state population and school enrollment. Since many allocations from the federal level were based on student population, it could be that future allocations could be diminished as a result of formula revisions based solely on student populations. Secondly, as federal dollars become tighter in future years, the tendency could be to reduce overall funding for block grants than money allocated on a categorical basis, which generally had a strong and vocal constituency. Co-Chair John Torgerson asked if he was in favor of the resolution and if he believed block grants should be requested. Bruce said he supported both but encouraged oversight, as there were some potential shortcomings with block grant funding. He felt that the Legislature should maintain vigilance and support for Alaska's fair share. Senator Al Adams asked for the status of the pending federal bill. Bruce Johnson said it had passed the House and was currently in the Senate. Senator Al Adams wanted to know, if the law was in effect and the state was to receive a block grant, how would the selection process be made as to who got the money. Bruce Johnson said that wasn't known precisely. The general procedure with block grants was that local communities had the power to set its priorities in terms of expenditure. They would have flexibility if there were no state regulations governing a particular group of students. If so, civil rights laws would need to be followed to make sure no population was short-changed. Co-Chair John Torgerson referred to the block grant system for welfare funding and said because of problems encountered in drafting that legislation, a certain "whereas" was inserted into this resolution. Senator Al Adams asked if the Legislature was placing the cart before the horse by sending this before Congress had passed the bill. Bruce Johnson didn't have any direct knowledge of what was occurring with the federal bill except that there was negotiation ongoing. The concerns seemed to be with some proposed amendments rather than with the block grant concept. Co-Chair John Torgerson noted a proposed CS that referenced the federal bills on line 11. The CS would apply the resolution to the current federal bills. Senator Randy Phillips moved for adoption of the CS Version "I". Senator Al Adams asked if the aforementioned change was the only difference from the original resolution. Co- Chair John Torgerson affirmed and pointed out that this was a time sensitive item to send to Congress. The CS was adopted without objection. Senator Sean Parnell offered a motion to move CS SJR 11(FIN) from committee. Without objection, it was so ordered.