02/25/2022 09:00 AM House EDUCATION

         HB 273-INCREASE BASE STUDENT ALLOC. INFLATION                                                                      
                                                                                                                                
[Contains discussion of HB 164.]                                                                                                
                                                                                                                                
9:15:17 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  DRUMMOND  announced that  the  next  order of  business                                                               
would  be HOUSE  BILL NO.  273,  "An Act  relating to  education;                                                               
increasing  the base  student allocation;  and  providing for  an                                                               
effective date."   [Before  the committee,  adopted as  a working                                                               
document during  the 2/11/22  House Education  Standing Committee                                                               
meeting, was the  proposed committee substitute (CS)  for HB 273,                                                               
Version 32-LS1366\W, Marx, 2/7/22 ("Version W").]                                                                               
                                                                                                                                
9:15:36 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY moved  to report  CSHB 273,  Version 32-LS1366\W,                                                               
Marx, 2/7/22,  out of  committee with  individual recommendations                                                               
and the accompanying fiscal notes.                                                                                              
                                                                                                                                
9:15:52 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND objected for the purpose of discussion.                                                                       
                                                                                                                                
CO-CHAIR  STORY, as  prime sponsor,  summarized Version  W.   She                                                               
reviewed  that the  bill would  inflation-proof the  base student                                                               
allocation (BSA) every year on  July 1, starting with fiscal year                                                               
2024.   This  would be  done using  a three-year  average of  the                                                               
consumer price index for urban Alaska,  with a one-year gap.  She                                                               
stated the cost  would be $26,136,000.  She stated  that there is                                                               
a  recognition  of increased  costs  to  delivering education  in                                                               
Alaska;  however,  this  modest   increase  would  help  maintain                                                               
services to students by creating  efficiencies, which would allow                                                               
districts to focus  on student achievement instead  of what needs                                                               
to be cut  from the budget.  She encouraged  her fellow committee                                                               
members to vote in favor of the bill.                                                                                           
                                                                                                                                
9:17:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  cited that  the  Wielechowski  v. State  of                                                             
Alaska, 403P.3d 1141, 1150 n.52,  (2017), decision put forth that                                                             
appropriation supersedes statutes, "so  there's no way to control                                                               
it."   He  argued that  this  legislature should  not be  telling                                                               
future legislatures  how to  spend money.   He remarked  that the                                                               
legislature  has  no  control  over  the  consumer  price  index;                                                               
therefore, the future of the price index is unknown.                                                                            
                                                                                                                                
9:18:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GILLHAM  commented  that HB  164  has  provisions                                                               
which  would   accomplish  the  same   things  as   the  proposed                                                               
legislation.   He  recommended bringing  HB 164  back before  the                                                               
committee.                                                                                                                      
                                                                                                                                
9:19:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  DRUMMOND  remarked  that  past  legislatures  have  had                                                               
issues   increasing   BSA.     She   expressed   agreement   with                                                               
Representative Gillham on moving HB  164; however, she said those                                                               
expenditures  would be  in addition  to BSA  and the  foundation.                                                               
She said  because of fixed costs,  schools have had to  make cuts                                                               
in the classroom, which adversely affects students.                                                                             
                                                                                                                                
9:20:45 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  STORY, responding  to the  comment from  Representative                                                               
Prax, emphasized that  the legislature never seems  to finish its                                                               
budget before schools must create theirs.                                                                                       
                                                                                                                                
9:22:05 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND removed her objection.                                                                                        
                                                                                                                                
9:22:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX objected.                                                                                                   
                                                                                                                                
9:22:19 AM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Story,  Hopkins,                                                               
Zulkosky, and Drummond voted in favor  of the motion to move CSHB
,  Version 32-LS1366\W,  Marx, 2/7/22,  out of  committee with                                                               
individual  recommendations   and  the  attached   fiscal  notes.                                                               
Representatives  Cronk,  Gillham,  and  Prax  voted  against  it.                                                               
Therefore, CSHB 273(EDC) was reported  out of the House Education                                                               
Standing Committee by a vote of 4-3.