Legislature(1993 - 1994)
1994-05-05 Senate Journal
Full Journal pdf1994-05-05 Senate Journal Page 4364 SB 301 SPONSOR SUBSTITUTE FOR SENATE BILL NO. 301 "An Act relating to the calculation of instructional units used in determining state aid for education and increasing elementary and secondary instructional units for certain school districts with 800 or fewer students in average daily membership; and providing for an effective date" was read the second time. Senator Pearce moved and asked unanimous consent for the adoption of the Finance Committee Substitute offered on page 4315. Senator Duncan objected, then withdrew his objection. There being no further objections, CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 301(FIN) "An Act allowing a school district to offset a reduction of five percent or more in elementary and secondary school instructional units that the district is eligible to receive under the foundation formula; and providing for an effective date" was adopted. CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 301(FIN) was read the second time. Senator Zharoff offered Amendment No. 1 : Page 1, line 3, after "formula;": Insert "increasing the elementary and secondary instructional units received in a district that consists of a single funding community with an average daily membership of 800 or fewer students;" Page 3, after line 17: Insert a new bill section to read: "* Sec. 3. AS14.17.041 is amended by adding a new subsection to read: 1994-05-05 Senate Journal Page 4365 SB 301 (e) In a district that consists of a single funding community with an average daily membership of 800 or fewer students, the elementary and secondary instructional units received under (a) or (b) of this section shall be multiplied by the factor determined under the following table: ADM Factor 1 - 250 1.12 251 - 525 1.08 526 - 800 1.06." Renumber the following bill section accordingly. Senator Zharoff moved for the adoption of Amendment No. 1. Senator Taylor objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CS SSSB 301(FIN) Second Reading Amendment No. 1 YEAS: 11 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Jacko, Kerttula, Lincoln, Little, Salo, Taylor, Zharoff Nays: Frank, Halford, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp and so, Amendment No. 1 was adopted. Senator Phillips offered Amendment No. 2 : Page 1, lines 1 - 3: Delete all material. Insert "An Act relating to the public school foundation program; and providing for an effective date." 1994-05-05 Senate Journal Page 4366 SB 301 Page 1, after line 4: Insert new bill sections to read: "* Section 1. AS14.17.021(b) is amended to read: (b) The basic need of a school district is determined by multiplying the school price index for [AREA COST DIFFERENTIAL OF] the district under AS14.17.049 [AS14.17.051] by the number of instructional units in the district under AS14.17.031 and then multiplying that product by the instructional unit value in AS14.17.056. * Sec. 2. AS14.17.024(a) is amended to read: (a) Money for the instructional services provided in a fiscal year by the state boarding school established under AS14.16.010 includes an allocation from the public school foundation account in an amount calculated by (1) multiplying the instructional unit value in AS14.17.056 by the total number of instructional units under AS14.17.031 for that fiscal year, as determined by treating the school as if it were a school district consisting of a single funding community; (2) multiplying the product determined under (1) of this subsection by the school price index [AREA COST DIFFERENTIAL] that is applicable to calculation of the entitlement for the adjacent school district under AS14.17.049 [AS14.17.051]; and (3) adding 10 percent of the eligible federal impact aid received for that fiscal year on behalf of the school plus any federal impact aid received on behalf of the school which the state, under P.L. 81-874 (20 U.S.C. 236 - 244), as amended, and regulations adopted under it, could not consider as local resources if the school were considered a school district. * Sec. 3. AS14.17.025(a) is amended to read: (a) Local contributions to a city or borough school district shall include at least the lesser of (1) the equivalent of a four mill tax levy on the full and true value of the taxable real and personal property in the district as of January1 of the second preceding fiscal year, as determined by the Department of Community and Regional Affairs under AS14.17.140 and AS29.45.110; or 1994-05-05 Senate Journal Page 4367 SB 301 (2) 50 [35] percent of the district's basic need for the preceding fiscal year, as determined under AS14.17.021(b). * Sec. 4. AS14.17.031(a) is amended to read: (a) The department shall adopt regulations defining funding communities within each district that reflect geographic and attendance area factors, and that include at least 25 students in average daily membership. For the purpose of determining instructional units, students are counted in the district and the funding community from which they receive educational services. The total number of instructional units in a school district is the sum of the following units for each funding community within the district, as determined by the department: (1) the number of units for elementary and secondary students determined under AS14.17.041(a) or (b); (2) the number of units for vocational education determined under AS14.17.043; (3) the number of units for special education determined under AS14.17.045; and (4) the number of units for bilingual education determined under AS14.17.047." Page 1, line 5: Delete "* Section 1." Insert "* Sec. 5." Renumber the following bill sections accordingly. Page 3, line 18: Delete all material. Insert new bill sections to read: "* Sec. 7. AS14.17.041(b) is amended to read: (b) For funding communities that are not included under (a) of this section, 1994-05-05 Senate Journal Page 4368 SB 301 (1) instructional units for elementary students are determined by the formula: units = 15 + ((ADM-200)/16) [15 + ((ADM-200)/17)], where ADM is the number of students in average daily membership in grades kindergarten through 6; (2) instructional units for secondary students are determined by the formula: units = 18 + ((ADM-200)/13), where ADM is the number of students in average daily membership in grades 7 through 12. * Sec. 8. AS14.17.041 is amended by adding a new subsection to read: (e) A district with an ADM of 900 or less that consists of one funding community shall increase the elementary and secondary instructional units received under (a) or (b) of this section by multiplying the instructional units by a percentage determined under the following table: District ADMPercentage 1 - 250 1.12 251 - 525 1.08 526 - 900 1.06. * Sec. 9. AS14.17 is amended by adding a new section to read: Sec. 14.17.049. SCHOOL PRICE INDEX. (a) The department shall determine the school price index for a district based on an average of costs for educational goods and services utilized by the school districts receiving aid under this chapter. The department, by regulation, shall assign weights for the following categories of costs: (1) salaries and benefits of certificated employees; (2) salaries and benefits of noncertificated employees; (3) other expenses for nonpersonnel educational goods and services; (4) other factors intended to take into account the extent to which an educational program reflects the additional cost of providing free public education in particular types of school districts, including a district that is geographically isolated or to a particular type of student, including a student with a disability. 1994-05-05 Senate Journal Page 4369 SB 301 (b) The department shall adjust the school price index for a district or districts in fiscal year 1999 and every third fiscal year thereafter, based on a national elementary and secondary school price index as designated in regulations adopted by the department. The department shall notify school districts annually of the school price index for each district. (c) The department may require school districts to submit uniform cost reports as designated in regulations adopted by the department. (d) The department shall assign a school price index to a new district based on the school price index for districts that the department determines have similar characteristics, including remoteness, population density, and geographic location. * Sec. 10. AS14.17.080 is amended to read: Sec. 14.17.080. STUDENT COUNT ESTIMATES. Each district shall prepare and submit to the department, by November20 [OCTOBER15] of each fiscal year, in the manner and on forms prescribed by the department, an estimate of its average daily membership and other student count data for the succeeding fiscal year, upon which computations can be made of the amount of estimated state foundation aid for which the district will be eligible under AS14.17.021 in that fiscal year. In making this estimate for the succeeding fiscal year, the district shall consider its average daily membership in the current fiscal year, other student count data, the pattern of growth or decline in preceding years, and other pertinent information available to the district. The preliminary reports required by this section are the basis for estimating the need for state foundation aid for the next fiscal year. * Sec. 11. AS14.17.160(b) is amended to read: (b) Upon written request and for good cause shown, the commissioner may permit a district to use a 20-school-day counting period from the same school year other than the periods set out in (a) of this section. However, the counting period must be 20 consecutive school days. 1994-05-05 Senate Journal Page 4370 SB 301 * Sec. 12. AS14.17.160 is amended by adding new subsections to read: (c) Upon written request, and for good cause shown, the commissioner may permit a district to use, for purposes of reporting its average daily membership, the October or February counting period report described in (a) of this section, or the report for another period authorized under (b) of this section, from the immediately preceding school year. The report must accompany a request under this subsection, and is in addition to the October report for the current school year required by (a) of this section. (d) For purposes of this section, "good cause" includes reduction in student enrollment. * Sec. 13. AS14.17.051 is repealed. * Sec. 14. TRANSITION: REGULATIONS. The Department of Education may immediately proceed to adopt regulations necessary to implement this Act. The regulations take effect under the Administrative Procedure Act, but not before July1, 1994. * Sec. 15. Sections 1, 2, and 13 of this Act take effect July1, 1995. * Sec. 16. Section 14 of this Act takes effect immediately under AS01.10.070(c). * Sec. 17. Sections 3 - 12 of this Act take effect July1, 1994." Senator Phillips moved for the adoption of Amendment No. 2. Objections were heard. Senator Rieger called the Senate. The President stated the call was satisfied. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CS SSSB 301(FIN) am Second Reading Amendment No. 2 YEAS: 9 NAYS: 11 EXCUSED: 0 ABSENT: 0 1994-05-05 Senate Journal Page 4371 SB 301 Yeas: Donley, Halford, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp Nays: Adams, Duncan, Ellis, Frank, Jacko, Kerttula, Lincoln, Little, Salo, Taylor, Zharoff and so, Amendment No. 2 failed. Senator Sharp offered Amendment No. 3 : Page 1, line 1: Delete "five" Insert "10" Page 1, line 7: Delete "five" Insert "10" Senator Sharp moved for the adoption of Amendment No. 3. Senator Taylor objected. Senator Kelly lifted his call.