02/15/1993 01:30 PM House FIN

                                                                               
  HOUSE BILL 45                                                                
                                                                               
                                                                               
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       "An  Act  making  appropriations to  the  Department of                 
       Education  for support  of  kindergarten, primary,  and                 
       secondary education and  community schools programs and                 
       for school construction debt  retirement; and providing                 
       for an effective date."                                                 
                                                                               
  Representative Foster provided the  Committee with Amendment                 
  $3,372.0  million  dollars  to  the  single   site  schools.                 
  [Attachment #1].                                                             
                                                                               
  LARRY  LA  BOLLE,  CHIEF OF  STAFF,  REPRESENTATIVE  FOSTER,                 
  stated the amendment would allocate  an appropriation to the                 
  twenty-one  single   site   districts   and   indicate   the                 
  distribution  of  the  allocation.    He  pointed  out  that                 
  Amendment #1 was supplied from information  from last year.                  
  He  distributed to  the  Committee  the updated  information                 
  [Attachment  #2] which  reduces  the proposed  amendment  by                 
  $14.5 thousand dollars.                                                      
                                                                               
  Co-Chair Larson asked if the Aleutian Region had a dual site                 
  status and inquired  if that district  would be included  in                 
  the proposed  amendment.  Mr.  LaBolle noted that  last year                 
  the  Aleutian  Region  received $49.6  thousand  dollars  in                 
  funding.                                                                     
                                                                               
  Representative  Hanley  suggested   that  the  amendment  be                 
  technically redrafted to  reflect the additional $3  million                 
  dollar funding sources.  Co-Chair  Larson explained the bill                 
  would  be further discussed  in Committee.   A proposed C.S.                 
  would be drafted  incorporating the updated information from                 
  the Department of Education.                                                 
                                                                               
  Representative Martin asked if  the sponsor of the  bill had                 
  contacted  the  HESS   Committee  which  is  reviewing   the                 
  Governor's  bill which  addresses the  single  site formula.                 
  Representative Martin questioned if the single  site schools                 
  provide better education as a  result of the appropriations.                 
  He felt that the administrative costs were out of balance.                   
                                                                               
  Representative Navarre  noted that  changing the  foundation                 
  program has been discussed  for many years and it  still has                 
  not happened.   He  asked if any  of the single  site school                 
  districts had lobbyists.  Representative Foster replied none                 
  of the three which are in his area have a lobbyist.                          
                                                                               
  REPRESENTATIVE IRENE NICHOLIA spoke in favor of the proposed                 
  amendment.  She explained that Galena and Tanana were in her                 
  district  and  both need  supplemental  funding in  order to                 
  maintain a  basic education program.  Last year, Galena lost                 
  their  half  time  principal  and  five teaching  positions.                 
  Additional cuts would seriously  jeopardize school programs.                 
                                                                               
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  Additional  funding  cuts   would  affect  both   in-service                 
  training and travel for teachers and students.                               
                                                                               
  Representative Hanley  commented that in  the current system                 
  those communities  with high administrative costs  are being                 
  rewarded.   He disagreed with  that practice.   He expressed                 
  his support of early funding at a unit value of $61 thousand                 
  dollars   for    the   single    site   school    districts.                 
  Representative  Martin  agreed  with Representative  Hanley.                 
  Representative Nicholia replied that many of the communities                 
  were not  connected by a road.   She said this  accounts for                 
  the  need  for superintendents  in  each single  site school                 
  district.  The reason the districts chose single site status                 
  was to allow local  control in determining how the  money is                 
  spent and which  teachers are hired.   Representative Martin                 
  felt the cost for local control was too high.                                
                                                                               
  Co-Chair  Larson provided  information regarding  some local                 
  school district  costs.   The average  cost for educating  a                 
  student in  Galena was $17,300  dollars per year  whereas in                 
  Hydaburg the average cost was $11,889  dollars per year.  He                 
  added   that  single   site  school   districts   allow  for                 
  flexibility and local control in the decision making process                 
  although they do increase the administrative costs.                          
                                                                               
  Representative  Nicholia  pointed  out   that  many  of  the                 
  teachers  were new and  consequently were lower  on the wage                 
  scale.    Co-Chair  Larson  pointed  out  that  the  average                 
  teaching cost in Tanana is $48.435 thousand dollars per year                 
  and in Hydaburg the average cost is $36,394 thousand dollars                 
  per year.  The negotiation of  teacher costs does affect the                 
  cost of  educating each student.   Co-Chair Larson  asked if                 
  the increase to the instructional unit last year provided an                 
  increase to each school district in the State.                               
                                                                               
  DUANE  GUILEY,  DIRECTOR,   EDUCATION  FINANCE  AND  SUPPORT                 
  SERVICES, DEPARTMENT OF  EDUCATION, replied the  Legislature                 
  did  approve  an increase  in unit  value  last year  to $61                 
  thousand  dollars.   Some  school  districts in  Alaska have                 
  experienced a decrease in overall funding because of federal                 
  support program requirements.   This  is an issue  affecting                 
  many communities in rural Alaska.                                            
                                                                               
  HB 45 was HELD  in Committee.  A draft  committee substitute                 
  including Amendment #1 is to be drafted for consideration.