04/01/2005 01:30 PM House FINANCE

SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 20                                                                                      
                                                                                                                                
     "An Act  relating to a  separate appropriation  bill for                                                                   
     operating  expenses  for  primary and  secondary  public                                                                   
     education  and establishing  a  date by  which the  bill                                                                   
     must be transmitted to the  governor each year; relating                                                                   
     to  notice of  nonretention  for tenured  teachers;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
Representative Paul Seaton explained  that SSHB 20 requires a                                                                   
separate  appropriation  bill   for  operating  expenses  for                                                                   
primary and secondary  public education.  The  purpose of the                                                                   
bill is  to get early  funding for  education.  The  governor                                                                   
would submit an  education bill, which the  legislature would                                                                   
pass out by March 5.  This would  improve teacher morale when                                                                   
pink slips  have to be sent  out because the  school district                                                                   
does  not know  their  budget ahead  of time.    It would  be                                                                   
limited to the operating budget.                                                                                                
                                                                                                                                
Co-Chair Meyer noted that Amendment 1 has been withdrawn.                                                                       
                                                                                                                                
3:50:55 PM                                                                                                                    
                                                                                                                                
Representative Hawker indicated  that the bill bifurcates the                                                                   
budget process  and may violate a fundamental  constitutional                                                                   
principle  regarding dedicated  funds.   The  bill creates  a                                                                   
situation where education is funded first.                                                                                      
                                                                                                                                
Representative  Seaton related  that legislative legal  found                                                                   
no constitutional problems with  the bill.  It only sets up a                                                                   
procedure and tries  to do what the House did  this year; get                                                                   
early funding.                                                                                                                  
                                                                                                                                
Representative  Hawker   maintained  that  it   violates  the                                                                   
constitution.  He opined that  the legislature has the option                                                                   
to  deal with  this issue  in  another way.   He  said he  is                                                                   
looking  for substance  in the bill.   Representative  Seaton                                                                   
replied that the legislature does  this quite a bit.  He gave                                                                   
examples  of the  Alaska  Seafood Marketing  Association  and                                                                   
Aquaculture Associations  where taxes are collected  with the                                                                   
intent to rebate.  In those instances,  a procedure is set up                                                                   
similar to that in the bill.                                                                                                    
                                                                                                                                
3:55:50 PM                                                                                                                    
                                                                                                                                
Representative Hawker agreed in principle.                                                                                      
                                                                                                                                
Representative  Joule noted  that each  funding increase  has                                                                   
come at the very end of the session.                                                                                            
                                                                                                                                
Representative Seaton  stressed that the  prevailing argument                                                                   
is  adequate funding  versus early  funding.   He  emphasized                                                                   
that education  has become  a priority.   He pointed  out the                                                                   
number of  letters from school  districts in support  of this                                                                   
legislation.                                                                                                                    
                                                                                                                                
3:59:56 PM                                                                                                                    
                                                                                                                                
Representative  Kelly  acknowledged  the  importance  of  the                                                                   
issue  and   questioned  if  similar  legislation   has  been                                                                   
discussed in previous legislatures.                                                                                             
                                                                                                                                
Representative  Seaton recalled that  HB 19 was  discussed in                                                                   
       rd                                                                                                                       
the  23  Legislature.  Previously,  many  school boards  felt                                                                   
they had  a better chance  of receiving increased  funding by                                                                   
coming  before the  legislature at  the end  of the  session.                                                                   
Many  school boards  have  concluded  that early  funding  is                                                                   
preferred.                                                                                                                      
                                                                                                                                
Representative    Kelly    expressed   concern    that    the                                                                   
Legislature's hands not be tied.                                                                                                
                                                                                                                                
4:03:50 PM                                                                                                                    
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF EDUCATION AND  EARLY DEVELOPMENT, testified  in support of                                                                   
the legislation.                                                                                                                
                                                                                                                                
Co-Chair  Meyer  wondered  if education  would  receive  more                                                                   
funding  by  holding  out  to  the  end  of  the  legislative                                                                   
session.                                                                                                                        
                                                                                                                                
Mr.  Jeans  observed  that the  increase  to  the  foundation                                                                   
formula must come through the  student base allocation, which                                                                   
occurs  through   statute.  He   acknowledged  the   problems                                                                   
associated  with notification  of  tenured  teachers and  the                                                                   
purchase  of supplies.   He cautioned  school districts  from                                                                   
building   budgets  beyond  the   amount  allocated   through                                                                   
statute.   Local  school  districts are  required  by law  to                                                                   
                                                      st                                                                        
submit their budgets to local municipalities by May 1.                                                                          
                                                                                                                                
Representative Foster MOVED to  report CSSSHB 20 (EDU) out of                                                                   
Committee with the accompanying  fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSSHB  20 (EDU) was  REPORTED  out of Committee  with  a "no                                                                   
recommendation" recommendation.                                                                                                 
                                                                                                                                
Co-Chair  Meyer announced  that HB  131 and  HB 132 would  be                                                                   
postponed until March 4.