Legislature(2025 - 2026)DAVIS 106

01/27/2025 08:00 AM House EDUCATION

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Audio Topic
08:00:45 AM Start
08:01:47 AM HB69
10:00:55 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 69 EDUCATION FUNDING: INCREASE BSA TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
             HB 69-EDUCATION FUNDING: INCREASE BSA                                                                          
                                                                                                                                
8:01:47 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY announced that the only order of business would                                                                  
be HOUSE BILL NO. 69, "An Act relating to education funding; and                                                                
providing for an effective date."                                                                                               
                                                                                                                                
8:03:19 AM                                                                                                                    
                                                                                                                                
CLAIRE FORDYCE,  Staff, Representative  Rebecca Himschoot,  Alaska                                                              
State  Legislature,  read  the  sectional  analysis  [included  in                                                              
committee  file]  which  read  as  follows  [original  punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     Section   1:  Amends   AS  14.17.470,   by  adding   new                                                                   
     subsections  (b), (c), (d),  and (e) applying  inflation                                                                   
     proofing:                                                                                                                  
     (b)  On  July   1,  2025,  Increase  the   base  student                                                                   
     allocation  of June 30, 2025,  by the average  inflation                                                                   
     adjustment of CY21-CY23, and then add $1000.                                                                               
     (c)  On  July   1,  2026,  Increase  the   base  student                                                                   
     allocation  of June 30, 2026,  by the average  inflation                                                                   
     adjustment of CY22-CY24, and then add $404.                                                                                
     (d)  On  July   1,  2027,  Increase  the   base  student                                                                   
     allocation  of June  30, 2027 by  the average  inflation                                                                   
     adjustment of CY23-CY25, and then add $404.                                                                                
     (e)  On July  1,  2028,  and on  July  1 of  each  year,                                                                   
     Increase the  base student allocation in effect  June 30                                                                   
     of  the previous  fiscal  year  the average  percent  of                                                                   
     increase  of  the  first three  of  the  preceding  four                                                                   
     calendar  years using  the Alaska CPI.  Section 2:  Sets                                                                   
     an effective date of July 1, 2025.                                                                                         
                                                                                                                                
8:06:36 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   HIMSHOOT,  as   prime   sponsor,   gave  a   PowerPoint                                                              
presentation  on  HB  69  [hard copy  included  in  the  committee                                                              
file].   She  began the  presentation on  slides 3  and 4,  titled                                                              
"Evolving Demands  on Education,"  which compared the  differences                                                              
between  a  historic  and  a  current   classroom  setting.    She                                                              
continued  to  slides  5  and 6,  which  displayed  a  table  that                                                              
outlined  the historic  statutory  base student  allocation  (BSA)                                                              
funding  increases since  Fiscal  Year 2010  (FY 10).   She  moved                                                              
through  slides 7-9,  which highlighted  the comparatively  higher                                                              
operating costs  of both rural  and urban public  school districts                                                              
in Alaska.   She skipped  to slide  11, which emphasized  Alaska's                                                              
public   school   funding  that   has   been  exacerbated   by   a                                                              
historically  flat-funded BSA.   She moved  through slides  12-13,                                                              
which   displayed   graphs  that   further   illustrated   funding                                                              
shortages for  public schools  in Alaska.   She continued  through                                                              
slides 14-15, which  highlighted the effect that  inflation has on                                                              
Alaska's public  school system and explained how  one-time funding                                                              
increases  don't  always  directly   benefit  a  classroom.    She                                                              
concluded  the presentation  on  slide  16, which  emphasized  the                                                              
Alaska State  Constitution's obligation  to create and  maintain a                                                              
public school system.                                                                                                           
                                                                                                                                
8:16:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  UNDERWOOD  asked the  bill  sponsor  if she  would                                                              
invite testifiers  from the Mat-Su School District  and shared her                                                              
understanding  that certain school  districts have improved  their                                                              
student outcomes despite a flat-funded BSA.                                                                                     
                                                                                                                                
CO-CHAIR  HIMSCHOOT clarified  that  the Matanuska-Susitna  ("Mat-                                                              
Su") School  District superintendent  was  invited to testify  but                                                              
wasn't available.   She said that  there was a  study commissioned                                                              
by  the  Alaska  State  Legislature  in  2015  that  compared  the                                                              
difference  between funding  and  student outcomes  and said  that                                                              
the   current   formulaic   multipliers   aren't   sufficient   in                                                              
addressing specific district needs.                                                                                             
                                                                                                                                
8:19:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  UNDERWOOD  asked if  the method  of  inflationary-                                                              
adjusted  funding  proposed  under HB  69  would  be tied  to  the                                                              
consumer price index (CPI).                                                                                                     
                                                                                                                                
CO-CHAIR HIMSCHOOT confirmed that is correct.                                                                                   
                                                                                                                                
8:21:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE  outlined  various funding  sources  that                                                              
Alaska's public  schools have  received beside  the BSA  and asked                                                              
how  they could  find  ways  to  utilize further  funding  sources                                                              
outside of the BSA.                                                                                                             
                                                                                                                                
CO-CHAIR HIMSCHOOT  said that  she would  follow up with  specific                                                              
numbers and  explained that  in FY 12-15,  19-20, and  23-25 there                                                              
were funds received  outside of the BSA.  She  highlighted the gap                                                              
in funding during  FY 16-18, FY 21,  and FY 22 as years  where the                                                              
flat-funded  BSA was  more impactful  on a  school's total  fiscal                                                              
profile.   She  emphasized that  federal  funding received  during                                                              
the COVID-19  pandemic allowed districts  to "put aside"  the need                                                              
for a larger BSA.                                                                                                               
                                                                                                                                
8:24:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EISCHEID shared  his understanding  that the  cost                                                              
of public education has historically outpaced inflation.                                                                        
                                                                                                                                
CO-CHAIR HIMSCHOOT  replied that she was unable to  say whether or                                                              
not the cost of public education has outpaced inflation.                                                                        
                                                                                                                                
REPRESENTATIBE EISCHEID  retorted that he  was sure that  the cost                                                              
of  public education  has outpaced  inflation  and asked  Co-Chair                                                              
Himschoot if she  could share anecdotal evidence  of a flat-funded                                                              
BSA's impact to children.                                                                                                       
                                                                                                                                
CO-CHAIR HIMSCHOOT  echoed Representative  Eischeid's  remarks and                                                              
added that the cost on student learning is immeasurable.                                                                        
                                                                                                                                
8:29:39 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY announced  that the committee  would hear  invited                                                              
testimony on HB 69.                                                                                                             
                                                                                                                                
8:30:45 AM                                                                                                                    
                                                                                                                                
JENNA  WRIGHT, President  &  CEO, Anchorage  Economic  Development                                                              
Corporation, gave invited  testimony on HB 69.  She  said that the                                                              
most  critical issue  that  Anchorage  and Alaska  as  a whole  is                                                              
facing  is  a workforce  shortage.    She  said that  Alaska  must                                                              
invest in  its students in  order to set  them up for a  future in                                                              
Alaska,  not somewhere  else in  the world.   She emphasized  that                                                              
Alaska's  poorer  funded  schools  are  having an  impact  on  its                                                              
ability to grow economically.                                                                                                   
                                                                                                                                
8:35:16 AM                                                                                                                    
                                                                                                                                
ANDY  DEGRAW,   Chief  Financial   Officer,  Fairbanks   NorthStar                                                              
Borough  School  District,  on behalf  of  Representative  Rebecca                                                              
Himschoot,  gave a  PowerPoint presentation  in support  of HB  69                                                              
[hard  copy  included  in  the committee  file].    He  began  his                                                              
presentation  on slide 2,  which displayed  a "pencil  chart" that                                                              
highlighted  the  difference in  impact  between  BSA funding  and                                                              
one-time  funding  increases.   He  continued  to slide  3,  which                                                              
emphasized  the Fairbanks  North  Star Borough  School  District's                                                              
(FNSBD's)  budget deficits  that have  occurred as  a result  of a                                                              
flat-funded  BSA.   He moved  to  slide 4,  which highlighted  the                                                              
inflationary  pressures that  have  grown on  the Alaska's  public                                                              
education funding  since 2017.   He concluded his  presentation on                                                              
slide  5, which  displayed  a graph  that  emphasized the  growing                                                              
cost  of  public  school's  transportation  systems,  like  school                                                              
busses and resource student services.                                                                                           
                                                                                                                                
8:41:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE  asked Mr. DeGraw what steps  the FNSBD is                                                              
taking to  keep students  in its  public schools  and asked  if it                                                              
would be preferential  for the Alaska State Legislature  to return                                                              
to subsidizing public school transportation.                                                                                    
                                                                                                                                
MR.  DEGRAW acknowledged  that  a  couple thousand  students  have                                                              
dropped their enrollment  in the FNSBD and shared  his belief that                                                              
the biggest  reason for  a lower enrollment  is the  overall issue                                                              
of  outmigration  in   Alaska.    He  said  that   the  FNSBD  has                                                              
established  career  &  technical   education  (CTE)  classes  and                                                              
expanded coursework  to attract more  students.  He added  that it                                                              
would be preferential  for the Alaska State Legislature  to return                                                              
to its public school transportation reimbursement policy.                                                                       
                                                                                                                                
8:47:43 AM                                                                                                                    
                                                                                                                                
NILS  ANDREASSON,  Executive Director,  Alaska  Municipal  League,                                                              
gave  invited  testimony  in support  of  HB  69.   He  began  his                                                              
testimony  by explaining  that the  cost of  public education  has                                                              
grown exponentially since  2013.  He gave a series  of examples of                                                              
different expenditures  that have  grown in  cost in the  previous                                                              
decade and  explained that Alaska's  workers often make  8 percent                                                              
less than a counterpart  of theirs that might work  in the private                                                              
sector.   He said that  the cycle of  ultimatums that  are created                                                              
by  a flat-funded  BSA  are not  sustainable  for communities  and                                                              
cause  long-term  harm  to  Alaska  as  a state.    He  said  that                                                              
underfunded   schools   "undermine   the   very  fabric   of   our                                                              
communities"  and  emphasized  that  the  state needs  to  make  a                                                              
greater capital investment in its public school system.                                                                         
                                                                                                                                
8:55:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE  asked what  other  state public  service                                                              
should be cut to allow the cost of HB 69.                                                                                       
                                                                                                                                
MR.  ANDREASSON  deferred  his  answer  to  the  Alaska  Municipal                                                              
League's fiscal policy recommendations.                                                                                         
                                                                                                                                
8:57:25 AM                                                                                                                    
                                                                                                                                
BENJAMIN  MALLOT, President,  Alaska Federation  of Natives,  gave                                                              
invited testimony  in support  of HB 69.   He began  his testimony                                                              
by  pointing  out the  theme  of  the 2024  Alaska  Federation  of                                                              
Natives  (AFN) convention  that was  largely focused  on the  need                                                              
for the  state to focus its  finances toward its  public education                                                              
system.   He highlighted  a series  of resolutions  in support  of                                                              
public education and  an increased BSA that the AFN  has passed in                                                              
the previous  years.   He said  that the  result of a  flat-funded                                                              
BSA  is  a more  inequitable  public  education  environment  that                                                              
causes  harm to  its communities  and  negatively affects  student                                                              
opportunities and outcomes.                                                                                                     
                                                                                                                                
9:02:57 AM                                                                                                                    
                                                                                                                                
MADELINE  AGUILLARD, Superintendent,  Kuspuk  School District,  on                                                              
behalf of  Co-Chair Himschoot, gave  a PowerPoint  presentation in                                                              
support  of HB  69 [hard  copy included  in  the committee  file].                                                              
She  began her  presentation  on slide  8,  which highlighted  the                                                              
extreme cost  of public education  in the Kuspuk  School District.                                                              
She continued to  slide 9, which emphasized the  various personnel                                                              
cuts  that have  occurred  since  2023.   She  said that  academic                                                              
programs  have  been  extremely  reduced and  explained  that  the                                                              
Kuspuk  School   District   has  no  arts   programs,  no   health                                                              
curricula,  and limited sports  and cultural  programs due  to the                                                              
surging  cost of  public education  and  a flat-funded  BSA.   She                                                              
concluded the  presentation on slide  10, which highlighted  where                                                              
specific budget  cuts have been  made and explained the  impact of                                                              
each  individual  item  of the  Kuspuk  School  District's  recent                                                              
budget cuts.   She  said that  her school  district is  faced with                                                              
"impossible  choices" when  they are  met with  a deficit  or need                                                              
for a budget cut.                                                                                                               
                                                                                                                                
9:08:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EISCHEID asked  what  would happen  to the  Kuspuk                                                              
School District if  the Alaska State Legislature  were to continue                                                              
with a flat-funded BSA.                                                                                                         
                                                                                                                                
MS. AGUILLARD  replied that she  foresaw the eventual  closures of                                                              
public schools,  which might  eventually  lead to total  community                                                              
outmigration events  in many different  communities in  her school                                                              
district.                                                                                                                       
                                                                                                                                
9:10:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE UNDERWOOD  asked if any policy reforms  with regard                                                              
to  energy and  resources  could  help to  lower  costs of  public                                                              
education.                                                                                                                      
                                                                                                                                
MS. AGUILLARD  said that a change  in utilities and  energy policy                                                              
could help lower the cost of education in the region.                                                                           
                                                                                                                                
9:11:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHWANKE  asked  if  the  Kuspuk  School  District                                                              
could be  benefitted by putting  its project needs on  the capital                                                              
improvement list.                                                                                                               
                                                                                                                                
MS. AGUILLARD  replied that her  district "absolutely"  does apply                                                              
to the capital  improvement list and acknowledged  that the Kuspuk                                                              
School District would be benefitted by it.                                                                                      
                                                                                                                                
9:15:17 AM                                                                                                                    
                                                                                                                                
KATHERINE TATSUDA,  Member, Ketchikan  School Board,  gave invited                                                              
testimony  in support  of  HB  69.   She  began her  testimony  by                                                              
explaining  her relation to  education and  her family  history in                                                              
Ketchikan.   She said  that 35 percent  of the student  population                                                              
in  the Ketchikan  Gateway  Borough  (KGB) have  experienced  food                                                              
insecurity  in  the  last  thirty  days  and  emphasized  that  10                                                              
percent  of students  in the  KGB  are considered  homeless.   She                                                              
explained  a series  of  budget  cuts that  are  being  made as  a                                                              
result  of  a  flat-funded  BSA  and  said  that  the  KGB  School                                                              
District  is   now  facing  decisions   that  are   beyond  simple                                                              
personnel  cuts and  "deeply  impactful" to  the  community.   She                                                              
said  that   schools  in  the   KGB  are  becoming   divisive  and                                                              
emphasized  that   families  are  seriously   considering  leaving                                                              
Ketchikan  to   find  somewhere   with  better  public   education                                                              
opportunities for their children.                                                                                               
                                                                                                                                
9:22:21 AM                                                                                                                    
                                                                                                                                
STEVE ROWE,  Parent, gave invited  testimony in support of  HB 69.                                                              
He began his  testimony by explaining his  professional background                                                              
and  emphasizing  that  a  lot   of  people  are  choosing  to  go                                                              
elsewhere  than Alaska due  to its  insufficient public  education                                                              
system.   He opined  that it  might be  "virtually impossible"  to                                                              
sufficiently  staff certain sectors  of work  in the coming  years                                                              
due  to Alaska's  continued  outmigration  crisis  and added  that                                                              
funding  public education  is  the  first place  to  start in  its                                                              
mitigation.   He emphasized that  education is a sector  that must                                                              
be  funded  and never  sacrificed  in  the  name of  other  policy                                                              
decisions.   He shared  an anecdote  of his daughter's  experience                                                              
in finding that  all of the programs she wanted  to participate in                                                              
were cut and  emphasized that while  he has the means  to help her                                                              
participate  in programs  like  that, other  families  don't.   He                                                              
shared  that  he  purchased  67  computers  for  students  in  the                                                              
Anchorage  School  District  (ASD)  but  stressed  that  financial                                                              
relief of Alaska's public schools cannot come from charity.                                                                     
                                                                                                                                
9:29:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHWANKE  asked what kind of  workforce development                                                              
opportunities Mr.  Rowe believed that  the ASD was doing  well and                                                              
asked what instruction could be improved upon.                                                                                  
                                                                                                                                
MR. ROWE  opined  that the  ASD is doing  a good  job of  bringing                                                              
career providers and union workers into schools.                                                                                
                                                                                                                                
9:33:00 AM                                                                                                                    
                                                                                                                                
ADRIENNE MICHEL,  Parent, gave invited testimony in  support of HB
69.    She  read  from  a  prepared  testimony  [included  in  the                                                              
committee  file],  which  read as  follows  [original  punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     Good  morning,  and  thank   you  for  allowing  me  the                                                                   
     opportunity  to  speak to  you  all  today. My  name  is                                                                   
     Adrienne  Michel and I  am a  3rd generation Alaskan,  a                                                                   
     mother  of  three  and  currently  the  PTA  fundraising                                                                   
     chair for  Bear Valley  Elementary in Anchorage  Alaska.                                                                   
     I am  speaking to you  today representing our  PTA board                                                                   
     and  addressing the  current lack  of education  funding                                                                   
     that  is affecting  our school  and  schools across  the                                                                   
     state.                                                                                                                     
                                                                                                                                
     As many  of you  know, districts  across the state  have                                                                   
     been  struggling with  how to make  the education  needs                                                                   
     of   our  students   work   within   the  tight   budget                                                                   
     constraints  we  are  currently  presented  with.  Since                                                                   
     2011 the  Base Student  Allocation has increased  around                                                                   
     5%,  whereas  inflation has  increased  by 39%,  we  are                                                                   
     asking  schools  to  do  the same  or  more  with  less.                                                                   
     Much, much less.                                                                                                           
                                                                                                                                
     Over the last  14 years, the easy cuts have  been taken.                                                                   
     There  are no frills,  there are  no extras. Across  the                                                                   
     state School  Boards are grappling  with how to  make it                                                                   
     work  year  after  year as  Band-Aid  one  time  funding                                                                   
     becomes  the  crutch  they   lean  on.  You  can't  hire                                                                   
     teachers  & support  staff  with one  time funding,  you                                                                   
     can't  plan  maintenance  improvements   with  one  time                                                                   
     funding,  you  can  only cover  the  current  holes  and                                                                   
     cross  your  fingers  the funding  comes  through  again                                                                   
     next   year  when  we   are  having   this  exact   same                                                                   
     conversation.                                                                                                              
                                                                                                                                
     Each  year districts  across  the state  are looking  at                                                                   
     their budgets  and trying to  figure out how to  make it                                                                   
     work.  The headlines will  tell you  how that is  going:                                                                   
     "Fairbanks  proposes   5  school  closures"   "Anchorage                                                                   
     proposes 7  school closures" "MatSu faces  $22m deficit"                                                                   
     both Juneau  and Kodiak  have had  to make the  decision                                                                   
     to combine schools  in their areas. In some  cases, yes,                                                                   
     buildings are  not full and a closure is  justified. But                                                                   
     in many  cases this is a  last ditch effort to  make the                                                                   
     money work.                                                                                                                
                                                                                                                                
     Families   have  already  felt   the  weight  of   these                                                                   
     decisions.  Class sizes have  increased leading  to less                                                                   
     and  less educational  focus  for students  on both  the                                                                   
     high and low  end of academics. The opportunity  to have                                                                   
     additional  support  staff  have gone  away,  IEP's  and                                                                   
     504's   become    harder   to   implement,    enrichment                                                                   
     opportunities  and afterschool  programs have  dwindled,                                                                   
     and  building maintenance  is put  off regularly  unless                                                                   
     it can be  passed through a bond measure.  And now, each                                                                   
     year  regardless of  test scores,  staff retention,  and                                                                   
     student  outcomes   they  face  the  threat   of  school                                                                   
     closure.   Instead  of  focusing   on  the   educational                                                                   
     results that  these schools offer they are  being looked                                                                   
     at  in  terms  of  maintenance  costs,  ease  of  moving                                                                   
     students  to   different  schools,  and   probable  cost                                                                   
     savings.  Parents, teachers,  and  students spend  their                                                                   
     time and energy  trying to find a way out  of what feels                                                                   
     like an inevitable doom.                                                                                                   
                                                                                                                                
     When I volunteered  for this PTA position  two years ago                                                                   
     I felt  like it  was an opportunity  to help support  my                                                                   
     children's  school. I stepped  into the position  of PTA                                                                   
     fundraising chair  having no clue how much  our PTA does                                                                   
     to help  fill the gaps  left by insufficient  funding. I                                                                   
     began  this position  thinking  we would  be putting  on                                                                   
     community  building   activities,  bringing  in   a  few                                                                   
     treats for teachers,  and adding some fun  things to the                                                                   
     school here and there.                                                                                                     
                                                                                                                                
     The  reality of  the  situation is  that  our PTA  funds                                                                   
     almost  any  additional  need  the school  has.  A  snow                                                                   
     tractor  to make  sure people  can safely  get from  the                                                                   
     parking  lot  to the  building,  functioning  blinds  so                                                                   
     when our students  practice ALICE drills  their teachers                                                                   
     can  actually   close  them,  updated   technologies  so                                                                   
     classrooms  are equipped  with current  tools, ice  melt                                                                   
     (we just  picked up 10  more bags this weekend),  pallet                                                                   
     jacks,    books    for    the     library,    enrichment                                                                   
     opportunities,  desks  and  chairs for  the  classrooms,                                                                   
     printers, ink,  projector bulbs, a refrigerator  with an                                                                   
     ice maker  for the nurses office,  the list goes  on and                                                                   
     on.  I want to  stress that  our school  as a  community                                                                   
     has the means  and ability to step and do  these things,                                                                   
     but the consistent  ask (especially as all  of our lives                                                                   
     have  also   been  impacted   by  inflation)     is  not                                                                   
     sustainable  long term.  There are  many schools in  our                                                                   
     district  and across the  state that  simply can  not do                                                                   
     this, and therefore, they go without.                                                                                      
                                                                                                                                
     Although this  has become somewhat  of a part  time job,                                                                   
     I am  immensely grateful that  we live in an  area where                                                                   
     parents are  willing and able  to step up and  help fund                                                                   
     the things  our school needs.  However, we as a  PTA can                                                                   
     only cover the  small gaps. The big gaps,  the gaps that                                                                   
     have  been left  by years of  not adjusting  the BSA  we                                                                   
     can not  fund. We can  not fund additional  teachers, we                                                                   
     can not  fund support  staff, we can  not fund  a school                                                                   
     psychologist   or  counselor,   we   can't  fund   major                                                                   
     building  repairs. There  are  limits to  what  we as  a                                                                   
     group  can do  and the  burn out  of constantly  putting                                                                   
     out  fires   caused  by  lack   of  funding   or  budget                                                                   
     shortfall is  real. The amount  of energy that  has been                                                                   
     funneled  into   rallying  against  school   closures  &                                                                   
     advocating  for a BSA  increase when  the need seems  so                                                                   
     very  clear, only  takes away  from what  we as a  group                                                                   
     can do to support our students and teachers.                                                                               
                                                                                                                                
     There has been  a lot of talk recently  about investment                                                                   
     in our  state. Investment  in oil, gas,  infrastructure.                                                                   
     Just  as  we want  companies  and  people to  invest  in                                                                   
     Alaska,  we must  invest  in our  children.  We have  an                                                                   
     opportunity to  educate the next generation  of Alaskans                                                                   
     into  well  paying jobs,  creating  sustainable  careers                                                                   
     and  growth right  here.   We not  only need  engineers,                                                                   
     pilots, geologists,  and doctors. We need  electricians,                                                                   
     pipefitters,  surveyors, carpenters,  and all  positions                                                                   
     in  between. With  the  ability to  read,  do math,  and                                                                   
     think critically.                                                                                                          
                                                                                                                                
     HB0069 looks  to close  the gaps left  by years  of flat                                                                   
     funding  and would  give our  schools  and children  the                                                                   
     opportunity  to  move  forward  in a  way  that  doesn't                                                                   
     leave  us grasping  for more  each  year when  budgeting                                                                   
     conversations  happen. Last  year  the legislature  came                                                                   
     heartbreakingly  close to  funding real  change for  our                                                                   
     schools and  our children.  Please make this  a priority                                                                   
     for all of you this year.                                                                                                  
                                                                                                                                
     Thank you                                                                                                                  
                                                                                                                                
9:39:19 AM                                                                                                                    
                                                                                                                                
AMIEE VILLARREAL,  Parent,  gave invited  testimony in support  of                                                              
HB  69.   She read  from  a prepared  testimony  [included in  the                                                              
committee  file],  which  read as  follows  [original  punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
     Hello,  my   name  is  Aimee  Villarreal  and   I  am  a                                                                   
     geologist  in the  Alaska oil  &  gas industry.   I  was                                                                   
     relocated here  7 years ago  and fell in love  with this                                                                   
     beautiful state.   Some oil  workers rotate  through the                                                                   
     state  on a  3-5 year  timeline but  many, like  myself,                                                                   
     choose  to  stay  permanently  and  raise  our  families                                                                   
     here.  I  had to change oil companies to  secure keeping                                                                   
     my family  here permanently to  avoid a rotation  out of                                                                   
     state.    But  recently I  have  been  questioning  that                                                                   
     decision because  Alaska is making it harder  and harder                                                                   
     to choose  to stay and raise  my family here.   The lack                                                                   
     of adequate  school funding is unacceptable.   Getting a                                                                   
     rotation to  Alaska used to  be highly coveted  but that                                                                   
     is  no  longer  the case  and  instead  these  companies                                                                   
     struggle  to  find  employees  willing  to  relocate  to                                                                   
     Alaska.  The  once highly sought-after  Alaskan rotation                                                                   
     is  no  more  because employees  that  have  lived  here                                                                   
     passionately share  their woes about the  Alaskan school                                                                   
     system,  the  lack  of  childcare,  and  the  threat  of                                                                   
     school  closures that  they  endured  when living  here.                                                                   
     This  has  resulted  in  challenges  in  recruiting  and                                                                   
     retention of  quality oil workers in Alaska  and is what                                                                   
     I would like to talk to you about today:                                                                                   
                                                                                                                                
     Good  Schools are  Essential  for Alaska's  Oil and  Gas                                                                 
     Industry                                                                                                                 
                                                                                                                                
     As  families  in  the  oil  and  gas  industry,  and  as                                                                   
     parents,  we see  first-hand how  important schools  are                                                                   
     for  our resource  development  and  jobs. Alaska's  oil                                                                   
     production  is  projected to  increase  162,000  barrels                                                                   
     per day over  the next decadethe  question  is, will the                                                                   
     state  provide stable  school funding  so families  like                                                                   
     ours can stay in Alaska?                                                                                                   
                                                                                                                                
     Many of my  coworkers are born-and-raised  Alaskans, and                                                                   
     others, like  myself, relocated to Anchorage  from other                                                                   
     states  based on work  in resource  industries.   We all                                                                   
     love this  beautiful state  and want it  to be  the kind                                                                   
     of  prosperous  place that  our  children will  want  to                                                                   
     stay and raise their families too.                                                                                         
                                                                                                                                
     We  cannot understate  how important  local schools  are                                                                 
     for  our families'  decisions  to  stay in  Alaska  long                                                                 
     term.                                                                                                                    
                                                                                                                              
     And  the  oil  industry  is   NOT  unique.    There  are                                                                   
     numerous  industries beyond  oil  & gas  such as  health                                                                   
     care,  military,  and  air travel  that  provide  highly                                                                   
     skilled  jobs,   which  require  strong   education  and                                                                   
     training, and  rely heavily on working  families willing                                                                   
     to  relocate from  the Lower  48 to Anchorage.   If  you                                                                   
     look  at growth  projections for  these industries,  you                                                                   
     will see the  true growth potential of our  city and our                                                                   
     state.                                                                                                                     
                                                                                                                                
     For example,  data from  Alaska's Department of  Revenue                                                                   
     projects  a  25% increase  in  Alaskan North  Slope  oil                                                                   
     production  (479,0000 up to  641,100 barrels per  day by                                                                   
     2034).   This is due  to several recent oil  discoveries                                                                   
     and  new  oilfield  developments  on  the  North  Slope,                                                                   
     including  Pikka  which is  the  oilfield I  work  with,                                                                   
     which  will bring an  influx of  revenue and  population                                                                   
     growth  to Anchorage.   Capitalizing  on these  resource                                                                   
     opportunities  requires a strong  school systemboth   so                                                                   
     we  can retain  the families  of highly-skilled  workers                                                                   
     who  already  live  here and  attract  workers  who  can                                                                   
     choose where they want to live.                                                                                            
                                                                                                                                
     One  very important  factor determining  whether or  not                                                                   
     families will  choose to move to and stay  in Alaska for                                                                   
     these  jobs is  the presence  of a  high quality  public                                                                   
     school  system. Good  schools  mean  families like  ours                                                                   
     can  remain  in  Alaska  and   mean  our  employers  can                                                                   
     recruit  and retain  workers for the  many other  highly                                                                   
     skilled,  highly-paid  jobs  our industry  is  creating.                                                                   
     If we  fail to  invest in schools,  we will continue  to                                                                   
     see a  tragic out-migration  of families who  can choose                                                                   
     where  they live.   When highly  skilled workers  leave,                                                                   
     either our  employers can't  develop the resources  from                                                                   
     which all  Alaskans benefit, or  those jobs go  to Lower                                                                   
     48 residents who fly up for shift work.                                                                                    
                                                                                                                                
     Our  Alaska  Constitution  directs  the  legislature  to                                                                   
     develop our  resources for  the maximum public  benefit.                                                                   
     That means we  need to support resource  development and                                                                   
     think about  maximizing job opportunities  for Alaskans.                                                                   
     Good   schools   mean   economic    growth   today   and                                                                   
     opportunity  for our children  tomorrow.  Good  schools,                                                                   
     like  good fiscal  policy  and a  pro-growth  regulatory                                                                   
     climate, are essential for our industry.                                                                                   
                                                                                                                                
     I  want   to  thank  all   of  you  who  campaigned   on                                                                   
     supporting  schools.    I   urge  you  to  pass  a  bill                                                                   
     updating   the  Base   Student   Allocation  (BSA)   and                                                                   
     indexing  it to inflation  and to do  so soon to  ensure                                                                   
     school districts  can make informed budgetary  decisions                                                                   
     as they craft  their budgets in late February.   We love                                                                   
     Alaska  and   are  committed   to  developing   the  oil                                                                   
     resources  that  fund  core   services  like  education.                                                                   
     Let's  invest in good  schools so  our industry and  all                                                                   
     of Alaska can continue to grow.                                                                                            
                                                                                                                                
     -Thank  you for  your  time and  the  opportunity to  be                                                                   
     here today.                                                                                                                
                                                                                                                                
9:45:21 AM                                                                                                                    
                                                                                                                                
STACEY DIXSON,  Parent, gave  invited testimony  in support  of HB
69.    She  read  from  a  prepared  testimony  [included  in  the                                                              
committee  file],  which  read as  follows  [original  punctuation                                                              
provided]:                                                                                                                      
                                                                                                                                
          Advocating  for Increased  BSA  Funding to  Support                                                                   
     Gifted Learners                                                                                                            
                                                                                                                                
     Good   morning,  Madam   Chair   and   members  of   the                                                                   
     Committee,                                                                                                                 
     My name  is Stacey Dixson,  and I  am the parent  of two                                                                   
     boys  in  the  highly gifted  program  at  Roger's  Park                                                                   
     Elementary  School  in Anchorage.  I  am here  today  in                                                                   
     support of HB  69 and urge members of this  committee to                                                                   
     support  a  predictable  increase  to the  BSA  so  that                                                                   
     districts  across  Alaska  can  adequately  support  the                                                                   
     learning needs of ALL children.                                                                                            
                                                                                                                                
     For  years, Alaska  has failed  to fund  education at  a                                                                   
     pace that  - at a minimum  - matched the rising  cost of                                                                   
     living  and  working in  this  state.   And  for  years,                                                                   
     districts  and schools  have  been asked  to  streamline                                                                   
     budgets,   operate  more   efficiently,  tighten   their                                                                   
     belts,  make  hard  decisions, have  big  feelings,  and                                                                   
     become  more  accountable   for  funds  that  have  been                                                                   
     allocated.                                                                                                                 
                                                                                                                                
     Year after  year, we  parents watch  in horror as  class                                                                   
     sizes  increase, enrichment  opportunities are  removed,                                                                   
     bus  routes   get  longer,   maintenance  is   deferred,                                                                   
     specialized  programs  are  cut, beloved  teachers  burn                                                                   
     out and walk  away, and neighborhood schools  are put on                                                                   
     the chopping block for closure.                                                                                            
                                                                                                                                
     And every year,  more and more families   like  my own -                                                                   
     are forced to  consider whether it still makes  sense to                                                                   
     live  in  a  state  where  public  education  is  not  a                                                                   
     priority.                                                                                                                  
     ------------------------                                                                                                   
     Like  so   many  other  families  who   have  considered                                                                   
     relocating to  Alaska, our first priority was  finding a                                                                   
     viable  school fit  for  our two  elementary-aged  boys,                                                                   
     both of  whom are  twice exceptional.   On paper,  ASD's                                                                   
     language  immersion  programs,  open  optional  schools,                                                                   
     weekly  IGNITE pull  outs,  and the  Highly Gifted  (HG)                                                                   
     program    at    Rogers     Park    seemed    fantastic.                                                                   
     Unfortunately, the  reality of what we  have experienced                                                                   
     is far different.                                                                                                          
                                                                                                                                
     Securing  a  spot  in  one  of  the  language  immersion                                                                   
     charter  schools   or  open  optional   programs  proved                                                                   
     impossible  for  our oldest  son  who was  entering  the                                                                   
     lottery   at   a   higher    grade,   rather   than   in                                                                   
     kindergarten.  And while  we deliberately  chose a  home                                                                   
     that was  zoned for the highest-performing  neighborhood                                                                   
     school  in the  district, it  took seven  weeks for  the                                                                   
     teachers  and  administrators  at  this  new  school  to                                                                   
     accept  our son's  gifted placement  from another  state                                                                   
     so that he could attend IGNITE classes.                                                                                    
                                                                                                                                
     Seven weeks is a really long  time for a kid like ours.                                                                    
     The reality of  moving from a class of 14  students to a                                                                   
     class of 31  was that our son's new teacher  didn't have                                                                   
     the bandwidth  or support to  tailor her instruction  to                                                                   
     students who  fell outside the normal range  on the bell                                                                   
     curve. In  those first  7 weeks at  his new school,  our                                                                   
     curious, intense,  hungry learner became  frustrated and                                                                   
     angry.  He  slipped into  a  depression  and had  to  be                                                                   
     convinced to walk into school most mornings.                                                                               
                                                                                                                                
     Watching his  love for learning disintegrate  so quickly                                                                   
     was  heartbreaking. My  husband and  I felt powerless                                                                      
     and against  our strong commitment to  public education,                                                                   
     we  started  looking  into   private  schools  and  even                                                                   
     homeschooling  options   despite   both  of  us  working                                                                   
     full-time jobs.                                                                                                            
                                                                                                                                
     THIS  is how  public  education  systems lose  kids  and                                                                   
     families.  Not  because we think a private  education is                                                                   
     better or  because we are excited  to quit our  jobs and                                                                   
     become  homeschool teachers.  We  move our  kids out  of                                                                   
     the public  schools because  they are not meeting  their                                                                   
     needs,  because they  are  falling through  the  cracks,                                                                   
     and because they are suffering.                                                                                            
                                                                                                                                
     ---------------                                                                                                            
     Officially,  gifted  students   make  up  almost  5%  of                                                                   
     learners  across the  state of  Alaska and  about 8%  of                                                                   
     learners  in  the Anchorage  School  District.  However,                                                                   
     nationwide  research  shows  that many  gifted  children                                                                   
     are never  identified, especially minority  learners and                                                                   
     those from lower socio-economic backgrounds.                                                                               
                                                                                                                                
     Gifted students,  many of whom  are twice exceptional                                                                      
     have  uniquely wired  brains and  unique learning  needs                                                                   
     that  can be challenging  for teachers  who are  already                                                                   
     stretched  with too  many  students,  too much  testing,                                                                   
     and  inflexible  standards  and  requirements.    Asking                                                                   
     them  to differentiate  their  lesson  plans  for a  few                                                                   
     students is  simply not feasible  in most public  school                                                                   
     classrooms.                                                                                                                
                                                                                                                                
     Over  time, gifted  kids whose  learning  needs are  not                                                                   
     met can become disengaged, frustrated, and disruptive.                                                                     
     They often earn    and then internalized -  a reputation                                                                   
     as  the  "classroom  troublemaker"  and  are  too  often                                                                   
     mislabeled  as having  a behavioral  disorder.      This                                                                   
     lack   of  appropriate   engagement,   enrichment,   and                                                                   
     accommodation  during these  critical  early years  when                                                                   
     kids  either learn  to love  learning or  learn to  hate                                                                   
     school  can  have devastating  future  consequences  for                                                                   
     our  brightest  children     especially  boys.    Gifted                                                                   
     education  is not a nice  to have.   It is not  elitism.                                                                   
     Gifted education is equity.                                                                                                
                                                                                                                                
     ---------                                                                                                                  
     I wish  you could  have seen  the transformation  in our                                                                   
     son once  he was  finally allowed  to attend IGNITE.  He                                                                   
     found   a  teacher  that   nourished  his   intellectual                                                                   
     curiosity  and a  space that  became a  refuge from  his                                                                   
     boredom.                                                                                                                   
                                                                                                                                
     While  it was only  1-2 times  a week  for a few  hours,                                                                   
     IGNITE, under  the direction  of Doug Weimann,  provided                                                                   
     a  lifeline   for  Sam.  He   learned  to  play   chess,                                                                   
     undertook   structural   engineering    projects,   grew                                                                   
     microgreens,  debated climate  change, and became  adept                                                                   
     at  using at  using  a 3D  printer.  He  learned to  ask                                                                   
     questions,  research answers,  and figure out  solutions                                                                   
     to  real challenges  put before  him.  By Christmas,  we                                                                   
     had our happy, inquisitive kid back.                                                                                       
                                                                                                                                
     But  as  you   all  know,  IGNITE  and   other  programs                                                                   
     designed for  gifted learners are  some of the  first to                                                                   
     be  cut  when  ASD  attempts  to  fix  its  huge  budget                                                                   
     deficit    as if these  programs are auxiliary,  nice to                                                                   
     have  enrichment activities  for  smart kids.   But  for                                                                   
     our son  (and so  many other  students over the  years),                                                                   
     IGNITE  is  the  thing  that   rekindled  his  love  for                                                                   
     learning and made  his time in school feel  a little bit                                                                   
     brighter.                                                                                                                  
                                                                                                                                
     ASD claims  that it cannot  afford programs  like IGNITE                                                                   
     at every  school or  extra teachers  needed to  decrease                                                                   
     the student-teacher  ratio in highly gifted  classrooms,                                                                   
     but  I am  certain  that saving  this  money today  will                                                                   
     cost the state of Alaska much more in the end.                                                                             
     Given  our  state's  real   conundrum  of  outmigration,                                                                   
     Alaska  cannot afford  to waste this  potential and  the                                                                   
     wonderful  human resources that  are living right  here.                                                                   
     We cannot  afford to  lose these kids  who will  one day                                                                   
     lead  our state  and fill  jobs  in critical  industries                                                                   
     like    healthcare,     teaching,    technology,     and                                                                   
     engineering.                                                                                                               
                                                                                                                                
     --------                                                                                                                   
     Both of  my sons moved to  the Highly Gifted  program at                                                                   
     Roger's Park  for the 2024-2025  school year    a school                                                                   
     that we were  led to believe would be the  right fit for                                                                   
     learners like  them.  But what we found  was overcrowded                                                                   
     classrooms,   combined  grades,   inflexible   teaching,                                                                   
     higher  level   math  classes  without   live  teachers,                                                                   
     opaque, inconsistently  applied policies,  lack of  / no                                                                   
     desire  for  parent  engagement, a  lack  of  leadership                                                                   
     (which  was just filled  by a  wonderful educator),  and                                                                   
     most   noticeably,   a   recent   history   burnt   out,                                                                   
     unsupported teachers  that have left the  classroom. The                                                                   
     RPHG program  does not have  the funding or  benefits to                                                                   
     recruit,  retain, and  train teachers  who are  uniquely                                                                   
     qualified to  support these  learners, and our  kids are                                                                   
     not thriving.                                                                                                              
                                                                                                                                
     This  is ASDs only  school for  highly gifted  students,                                                                   
     and just  like every other  program in the  district, it                                                                   
     is operating  with inadequate  resources to support  the                                                                   
     needs  of the kids  it was  designed to serve.  Families                                                                   
     like  mine are  still  wondering if  it  makes since  to                                                                   
     stay in a state where this is the best we can expect.                                                                      
                                                                                                                                
     --------                                                                                                                   
     Ultimately, the  best way to support gifted  learners is                                                                   
     to provide  adequate, predictable  funding for  Alaska's                                                                   
     schools  by  increasing  the  BSA  and  by  putting  the                                                                   
     resources  in place  to  recruit and  retain  qualified,                                                                   
     experienced  educators.     All  of  our  students  need                                                                   
     talented  teachers and  smaller class  sizes where  they                                                                   
     can  received appropriate,  effective instruction.  They                                                                   
     deserve  educators   who  are  well  compensated,   feel                                                                   
     valued,  are  professionally   fulfilled,  and  who  are                                                                   
     supported  rather than  burnt out.  And right now,  very                                                                   
     few of them have that.                                                                                                     
                                                                                                                                
     If  we continue  down this  path and fail  to invest  in                                                                   
     our  schools and  in our  most  important resources,  we                                                                   
     will continue  to lose  families, talented workers,  and                                                                   
     economic  investment  to  states  that  genuinely  value                                                                   
     education.  Increasing  the BSA  is  the first  step  in                                                                   
     ensuring  all  students  in   Alaska,  including  gifted                                                                   
     learners,  have access to  the resources, teachers,  and                                                                   
     programs they need to succeed.                                                                                             
                                                                                                                                
     Madame  Chair, our schools  have no  more "fat" to  cut.                                                                   
     We      the   parents,  teachers,   school   counselors,                                                                   
     principals, nurses,  resource aids, and PTA  members are                                                                   
     all   exhausted    by   this   predictable    cycle   of                                                                   
     unpredictable funding.   Nearly 80% of  Alaskans support                                                                   
     significantly increasing school funding.                                                                                   
     Many of  you are here  because you are former  educators                                                                   
     and  school board  members- because  you are  passionate                                                                   
     about  children  fulfilling  their potential.    We  can                                                                   
     make this  happen with appropriately funded  schools and                                                                   
     educators.                                                                                                                 
                                                                                                                                
     I urge  you to take bold  action, to do the  right thing                                                                   
     - even in the  face of political pressure    and vote to                                                                   
     increase  BSA  funding  so  that  Alaska's  schools  can                                                                   
     provide the quality education every child deserves.                                                                        
                                                                                                                                
     Thank you.                                                                                                                 
                                                                                                                                
9:53:57 AM                                                                                                                    
                                                                                                                                
CLAYTON HOLLAND,  Superintendent,  Kenai Peninsula Borough  School                                                              
District,  on behalf  of  Co-Chair  Himschoot, gave  a  PowerPoint                                                              
presentation  in support  of  HB  69 [hard  copy  included in  the                                                              
committee file].   He  began the presentation  on slide  13, which                                                              
highlighted  the unique  geographic  and fiscal  hurdles that  the                                                              
Kenai Peninsula Borough  School District (KPBSD) faces.   He moved                                                              
through slides  14-15, which emphasized  various budget  cuts that                                                              
have been  made due  to inadequate funding  from the  Alaska State                                                              
Legislature and the  impacts that the cuts have had  on the KPBSD.                                                              
He highlighted  that his  26-year-old son chose  not to  come back                                                              
to Alaska because the state is "beyond its days."                                                                               
                                                                                                                                
9:59:14 AM                                                                                                                    
                                                                                                                                
CO-CHAIR STORY thanked the invited testifiers, delivered                                                                        
committee announcements, and set the amendment deadline for HB
69 to Friday, January 31, 2025.                                                                                                 
                                                                                                                                
[HB 69 was held over].                                                                                                          

Document Name Date/Time Subjects
HB 69 version G 1.24.25.pdf HEDC 1/27/2025 8:00:00 AM
HB 69 Sponsor Statement version G 1.24.25.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Research Leg Fin 2.23 Citizens Guide K-12 Funding AK.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Research ISER_K-12_Spending_3.22.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Research Leg Res PublicEd Funding 4.8.24.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Research Leg Fin Memo 9.30.24 Impact of Inflation on K-12 Funding.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Resolution AASG 10.11.24.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Resolution Anch Muni 1.7.25 School Bd 12.17.24_M079A.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB 69 Testimony Lower Yukon SD Resolution 9.24.24.pdf HEDC 1/27/2025 8:00:00 AM
HB 69 Research Presentation Slides Final 1.27.25.pdf HEDC 1/27/2025 8:00:00 AM
HB 69 Sectional Analysis 1.24.25.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB69_Testimony_FNSBSD_Andy DeGraw_1.26.25.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB69_Testimony_KuspukSD_Dr.MadelineAguillard_1.26.25.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69
HB69_Testimony_KenaiPBSD_ClaytonHolland_1.26.25.pdf HEDC 1/27/2025 8:00:00 AM
HEDC 1/29/2025 8:00:00 AM
HEDC 1/29/2025 5:00:00 PM
HB 69