CS FOR HOUSE BILL NO. 233(EDU) am "An Act increasing the base student allocation used in the formula for state funding of public education; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by Representative Wilson, "increases the student dollar by $419 to $4,588 per student." REPRESENTATIVE PEGGY WILSON, read the sponsor statement into the record as follows. School districts all over the state are budget trimming to cope with inflationary factors including but not limited to greatly increased insurance costs. The legislature supports the concept of "No Child Left [Behind] Act" and it is imperative that increased funds be allocated in order to implement this act and assure that no child is left behind. In addition greatly increased costs of PERS/TERS were largely unforeseen and if additional dollars are not added to cover these increased costs that will cause direct cuts to the classroom. Public education is charged with assuming greater responsibility at the same time they face a reduction in the purchasing power of the student dollar. Alaska cannot continue to ask its school districts to meet all these additional responsibilities with insufficient dollars; therefore additional funding is a necessity. Providing additional funding for K-12 education early in the session would be tremendously helpful to school districts. It would keep many school districts from having to hand out pink slips, which cause unnecessary anxiety in schools across the state. The substantial increase of $419 to the base student allocation in CS House Bill 233 as amended would bring needed help to our local schools districts at this very challenging time. This would assist them in meeting and hopefully exceeding the public's expectations and demands. The time to act is now and I ask your support of CS HB 233 as amended which will raise the base student allocation to $4,588. Co-Chair Wilken noted a drafting error in the committee substitute passed by the House of Representatives, in which the current base student allocation should read $4,169, rather than $4,010. He also informed that fiscal note #2 is incorrect and the Department of Education and Early Development would submit an updated fiscal note. Representative Wilson clarified that $4,010 was the base student allocation amount the previous year when this bill was first introduced. Co-Chair Wilken ordered the bill HELD in Committee.