Legislature(2023 - 2024)DAVIS 106

05/04/2023 06:00 PM House WAYS & MEANS

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06:16:58 PM Start
06:17:44 PM HB165
07:04:35 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 165 CHARTER SCHOOLS; CORRESPONDENCE PROGRAMS TELECONFERENCED
Moved CSHB 165(W&M) Out of Committee
-- Public Testimony --
        HB 165-CHARTER SCHOOLS; CORRESPONDENCE PROGRAMS                                                                     
                                                                                                                                
6:17:44 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced  that the only order  of business would                                                               
be  HOUSE BILL  NO. 165,  "An  Act relating  to charter  schools;                                                               
relating to  correspondence study programs; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
6:18:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  moved  to adopt  the  proposed  committee                                                               
substitute (CS)  to HB 165, 33-LS0620\R,  Marx, 5/4/23, ("Version                                                               
R") as a working document.                                                                                                      
                                                                                                                                
6:18:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY objected for the purpose of discussion.                                                                     
                                                                                                                                
6:18:36 PM                                                                                                                    
                                                                                                                                
KENDRA  BROUSSARD, Staff,  Representative  Ben Carpenter,  Alaska                                                               
State  Legislature, provided  the explanation  of changes  for HB
165,  Version R,  on behalf  of  the sponsor,  the House  Special                                                               
Committee on  Ways and Means,  of which  Representative Carpenter                                                               
serves as chair.   She read the explanation  of changes [included                                                               
in  the  committee  packet],  which  read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     New Title  has the following words  added, "relating to                                                                    
     public school funding,"                                                                                                    
     The CS deletes Sections 2, 3 from HB 165.                                                                                  
     Section 1                                                                                                                  
     Adds language that it is  the intent of the legislature                                                                    
     that school districts spend the increase in                                                                                
     funding  for correspondence  schools  on allotments  to                                                                    
     parents and not on administering the                                                                                       
     program.                                                                                                                   
     Section 2                                                                                                                  
     Section 1 from HB 165.                                                                                                     
     Section 3                                                                                                                  
     Section 4 from HB 165.                                                                                                     
     Section 4                                                                                                                  
     Section 5 from HB 165,  with the addition to subsection                                                                    
     (19) that the Department of Education                                                                                      
     and  Early Development  provide  to  any district  that                                                                    
     offers a correspondence study program the                                                                                  
     calculation of the  amount of funding that  is going to                                                                    
     the district for that program.                                                                                             
     Section 5                                                                                                                  
     Section 6 from HB 165.                                                                                                     
     Section 6                                                                                                                  
     Section  7  from HB  165  is  amended by  changing  the                                                                    
     correspondence school multiplier to 121.5                                                                                  
     instead of 150.                                                                                                            
     Section 7                                                                                                                  
     Section 8 from HB 165  and adds a section that requires                                                                    
     each district that offers a                                                                                                
     correspondence  study   program  to  account   for  the                                                                    
     program expenses separately, keep complete                                                                                 
     financial records  of its expenses on  the program, and                                                                    
     to provide an annual report to the                                                                                         
     department and to the public of such.                                                                                      
     Section 8                                                                                                                  
     Section 9 of HB 165.                                                                                                       
     Section 9                                                                                                                  
     Section 10 of HB 165.                                                                                                      
                                                                                                                                
6:20:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  questioned the  change of the  multiplier in                                                               
Section 6.                                                                                                                      
                                                                                                                                
CHAIR CARPENTER  stated that there  had been a concern  about the                                                               
high percentage, and, in response,  the percentage was lowered in                                                               
this section.                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRAY  expressed the  understanding that,  when the                                                               
average  daily  membership  (ADM)   percentage  was  set  at  150                                                               
percent, the amount was $8,900.   He asked what the dollar amount                                                               
would be with the proposed 121.5 multiplier.                                                                                    
                                                                                                                                
6:21:36 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:21 p.m. to 6:23 p.m.                                                                       
                                                                                                                                
6:23:45 PM                                                                                                                    
                                                                                                                                
BOB  GRIFFIN, Senior  Education  Research  Fellow, Alaska  Policy                                                               
Forum,  responded that  121.5 percent  multiplied by  the current                                                               
base student allocation (BSA) of $5,960 would equal $7,241.40.                                                                  
                                                                                                                                
6:24:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  removed  his  objection.   There  being  no                                                               
further  objection,  Version R  was  before  the committee  as  a                                                               
working document.                                                                                                               
                                                                                                                                
6:24:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY said  that during  last week's  presentation                                                               
the committee was informed that  if 10,500 students signed up for                                                               
correspondence school, there  would be an overall  savings in the                                                               
state  of  $30  million.     He  asked  how  these  savings  were                                                               
calculated.                                                                                                                     
                                                                                                                                
6:25:11 PM                                                                                                                    
                                                                                                                                
MS. BROUSSARD deferred  to the Department of  Education and Early                                                               
Development (DEED).                                                                                                             
                                                                                                                                
6:25:31 PM                                                                                                                    
                                                                                                                                
DONNA ARDUIN,  Staff, Representative Ben Carpenter,  Alaska State                                                               
Legislature,  on  behalf  of  the   sponsor,  the  House  Special                                                               
Committee on  Ways and Means,  of which  Representative Carpenter                                                               
serves as  chair, answered  that the  state currently  saves $162                                                               
million  because of  the  students  receiving the  Correspondence                                                               
School Allotment  Program (CSAP)  funding.  She  said that  if an                                                               
additional  29,000  students  participated, there  would  be  net                                                               
savings of  $35 million.   She projected that when  the breakeven                                                               
point with the increase in  funding is reached, every new student                                                               
would add to the savings.                                                                                                       
                                                                                                                                
6:26:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY asked  for further  clarification about  the                                                               
$162 million in savings.                                                                                                        
                                                                                                                                
6:27:09 PM                                                                                                                    
                                                                                                                                
MR. GRIFFIN explained that there  would be a $1,800 increase cost                                                               
per the  21,000 students already  in CSAP, and for  every student                                                               
who leaves  the program  there would  be a  $6,000 decrease.   He                                                               
said that beyond  the 6,000 students, the state  would save about                                                               
$4,200 per  student.  He said  that a concurrence with  the House                                                               
Finance Standing  Committee would best  solve the answer,  as the                                                               
figures provided  are based  on information  given at  the Policy                                                               
Forum's recent presentation to this  committee.  He said the data                                                               
has been updated to show the  breakeven point may be earlier, and                                                               
the  overall  cost   savings  would  be  about   $35  million  if                                                               
enrollment returned to pre-pandemic levels.                                                                                     
                                                                                                                                
6:28:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY asked  if  the change  from  150 percent  to                                                               
121.5 percent of BSA would change the level of savings.                                                                         
                                                                                                                                
MR. GRIFFIN answered yes.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GRAY inquired  why the  state would  provide CSAP                                                               
students more than BSA.                                                                                                         
                                                                                                                                
MR.   GRIFFIN   explained   that  121.5   percent   would   bring                                                               
correspondence  students up  to par  with students  in brick-and-                                                               
mortar schools, and this would  be accounting for the 1.2 percent                                                               
factor  for non-intensive,  special-needs  students  and the  1.5                                                               
percent factor for career technical education (CTE) students.                                                                   
                                                                                                                                
REPRESENTATIVE  GRAY  observed  the  assumption  that  a  certain                                                               
number of  correspondence students would  meet the criteria.   He                                                               
expressed  the   understanding  that  not  all   would  meet  the                                                               
criteria.                                                                                                                       
                                                                                                                                
6:31:31 PM                                                                                                                    
                                                                                                                                
MS. ARDUIN  explained that the  education funding  formula begins                                                               
with BSA,  and then the  multipliers are  applied.  She  said the                                                               
first  multiplier,   containing  special-needs  and   gifted  and                                                               
talented students,  goes to every  student in public  schools and                                                               
is a  1.2 multiplier  toward the district's  funding.   She added                                                               
that there is  also a 1.5 multiplier for CTE  students, and there                                                               
are additional multipliers which go  to public schools which have                                                               
school size  and cost factors.   She explained that  the proposed                                                               
legislation would  give CSAP funding  for the first  two factors,                                                               
which already  follow every child  in public  schools; therefore,                                                               
it should follow the children in CSAP as well.                                                                                  
                                                                                                                                
6:33:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE commented  that  the proposed  legislation                                                               
would open CTE  funding to support parents  who are homeschooling                                                               
children.   He  said that  the bill  brings CSAP  students up  to                                                               
parity with the students in the school districts.                                                                               
                                                                                                                                
MS. ARDUIN  expressed uncertainty  concerning the parity,  as the                                                               
funds  following  students  to  public  schools  are  $18,000  to                                                               
$21,000 per student.                                                                                                            
                                                                                                                                
REPRESENTATIVE  MCCABE  expressed  the   opinion  that  it  is  a                                                               
fraction of the  parity, and it would be a  raise for parents who                                                               
retain the choice of CSAP.                                                                                                      
                                                                                                                                
6:35:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY, using  the new multiplier for  a family with                                                               
three homeschooled  children, hypothesized that the  family would                                                               
receive $21,000 in  total.  Furthermore, he stated  that he would                                                               
not be opposed to a cost of  $5,000, if the children were sent to                                                               
a  welding  program;  however,   he  stressed  accountability  on                                                               
funding going  to the parents, as  the money should only  be used                                                               
toward the education of the child.                                                                                              
                                                                                                                                
MS. ARDUIN explained that the  proposed legislation would require                                                               
DEED to  tell school  districts how  much money  is going  to the                                                               
districts  for  correspondence  students; it  also  requires  the                                                               
district to  separately account for  all of the expenses  for the                                                               
programs and publicly report this to DEED.                                                                                      
                                                                                                                                
REPRESENTATIVE  GRAY pointed  out that  the proposed  legislation                                                               
would  direct the  money to  go  to the  parents and  not to  the                                                               
administration.     He   suggested   that  there   might  be   an                                                               
administrative burden  because the  district must report  how the                                                               
money is being spent by all the families.                                                                                       
                                                                                                                                
6:38:15 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER  shared that he is  a parent of a  child in CSAP.                                                               
He  stated that  he  does not  have cart  blanche  access to  the                                                               
money, and  the money  is specifically used  only for  things the                                                               
program allows.                                                                                                                 
                                                                                                                                
6:39:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD  offered  her  understanding  that,  if  a                                                               
parent does not use all  the funding provided in a correspondence                                                               
program, the money rolls over and can be put towards college.                                                                   
                                                                                                                                
MS. ARDUIN responded in the affirmative.                                                                                        
                                                                                                                                
REPRESENTATIVE  ALLARD expressed  the importance  because schools                                                               
need  to be  held accountable.   She  expressed the  opinion that                                                               
CSAPs are good,  as the funds can roll over  for years, even when                                                               
the student  is in  college.  Furthermore,  if one  child decides                                                               
not to  go to college,  another child in  the family can  use the                                                               
funds towards college.                                                                                                          
                                                                                                                                
6:40:31 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:40 p.m. to 6:41 p.m.                                                                       
                                                                                                                                
6:41:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY,  in  regard  to  using  the  money  towards                                                               
college,  expressed agreement  with this;  however, he  suggested                                                               
that Alaskans should be informed  that public education money can                                                               
be used  for higher  education.   He added  that paying  toward a                                                               
religious school would be a different subject.                                                                                  
                                                                                                                                
CHAIR CARPENTER, as  a parent with two children  in CSAP, advised                                                               
that religious  curriculum is paid  for out  of pocket.   He said                                                               
that, under  Version R, correspondence students  would be allowed                                                               
under dual  enrollment, however when  a student is  in university                                                               
only, this would no longer be CSAP.                                                                                             
                                                                                                                                
REPRESENTATIVE  GRAY  hypothesized  that   a  family  with  three                                                               
children received $21,000.  After  one of the children graduated,                                                               
the family had $5,000 left over  from the program.  He questioned                                                               
whether these funds could be used towards college.                                                                              
                                                                                                                                
CHAIR CARPENTER,  relating his own  experience, stated  that once                                                               
his two  children graduated from correspondence  school, they did                                                               
not  have   access  to   funds  afterwards.     He   offered  his                                                               
understanding that  the correspondence program would  collect the                                                               
remainder of the funds.                                                                                                         
                                                                                                                                
REPRESENTATIVE  GRAY asked  whether  the  proposed 121.5  percent                                                               
would  be   given  to  the   parents  upfront,  or   whether  the                                                               
correspondence program  holds the funding, and  the parents would                                                               
have to request money with receipts.                                                                                            
                                                                                                                                
CHAIR   CARPENTER,  from   personal  experience,   expressed  the                                                               
understanding that the program would  hold the money and a family                                                               
would use a reimbursement process.                                                                                              
                                                                                                                                
REPRESENTATIVE  GRAY, regarding  the hypothetical  situation with                                                               
three children,  he questioned what  would happen if  only $7,000                                                               
out  of  the  $21,000  was  used.    He  questioned  whether  the                                                               
correspondence school would keep the remaining $14,000.                                                                         
                                                                                                                                
CHAIR   CARPENTER  expressed   uncertainty   concerning  what   a                                                               
correspondence program  would do  with any  funds which  were not                                                               
spent  at  the  end  of  the   year.    He  recalled  a  personal                                                               
conversation with a  CSAP representative who said if  there was a                                                               
need above  the allotment there  may be some additional  funds at                                                               
the end of the school year.                                                                                                     
                                                                                                                                
6:45:49 PM                                                                                                                    
                                                                                                                                
MS.  ARDUIN said  the document  sent  to members  after the  last                                                               
meeting shows  the laws  which allow  rollovers on  the accounts.                                                               
She reminded members that the  proposed legislation would require                                                               
an explanation of how all funds are spent.                                                                                      
                                                                                                                                
6:46:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD expressed  the  opinion that  there is  no                                                               
such thing as  a "blank check," and parents would  need to submit                                                               
spending requests with receipts for educational materials.                                                                      
                                                                                                                                
CHAIR  CARPENTER  added  that  course   work  would  need  to  be                                                               
regularly submitted in order to demonstrate progress.                                                                           
                                                                                                                                
6:47:42 PM                                                                                                                    
                                                                                                                                
MS. ARDUIN added  that families are assigned  a certified teacher                                                               
from the program to oversee the plans, lessons, and results.                                                                    
                                                                                                                                
CHAIR  CARPENTER  confirmed  that  there  is  a  contact  teacher                                                               
assigned to every student to help them learn.                                                                                   
                                                                                                                                
6:48:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY  advised that  there  could  be bad  actors,                                                               
especially if the homeschooling parent  has a broad definition of                                                               
"field trip."   He questioned  the definition of "field  trip" in                                                               
correspondence programs.                                                                                                        
                                                                                                                                
REPRESENTATIVE ALLARD  stated that  during the  COVID-19 pandemic                                                               
she  had transferred  her children  out of  the Anchorage  School                                                               
District and  into the Florida  Virtual School.   Regarding field                                                               
trips, she  said that receipts  must be  submitted, as well  as a                                                               
report of the educational accomplishments.                                                                                      
                                                                                                                                
REPRESENTATIVE   GRAY   recounted    the   committee's   previous                                                               
discussion on student testing and  how it does not matter because                                                               
in public  schools, 80 percent  of students are tested  versus 15                                                               
percent of  the total  students in  correspondence programs.   He                                                               
said that  the comparison is  not "apples to apples"  because the                                                               
state   does   not   have  the   standardized   test   data   for                                                               
correspondence students.                                                                                                        
                                                                                                                                
REPRESENTATIVE  ALLARD  explained  the  testing  system  used  by                                                               
Florida  Virtual  School  and  expressed  the  opinion  that  the                                                               
Performance  Evaluation for  Alaska's Schools  (PEAKS) is  not of                                                               
any worth.                                                                                                                      
                                                                                                                                
6:52:00 PM                                                                                                                    
                                                                                                                                
CHAIR   CARPENTER   commented   that  testing   requirements   in                                                               
correspondence  programs  are  the same  as  in  brick-and-mortar                                                               
schools; furthermore, the ability of  parents to opt children out                                                               
of the standardized test exists in  both environments.  He said a                                                               
standardized test is a bureaucratic  way to assess a large number                                                               
of students in a short period of time.                                                                                          
                                                                                                                                
6:53:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  said that, in his  experience, most teachers                                                               
do  not   care  for  standardized  testing.   He  explained  that                                                               
administrators  want  to  see   results,  reward  teachers  whose                                                               
students are doing well, and help  the teachers who are not doing                                                               
well.    He  expressed  curiosity as  to  the  large  discrepancy                                                               
between the 80  percent of public education students  and the few                                                               
students in correspondence programs who take the test.                                                                          
                                                                                                                                
CHAIR CARPENTER  expressed the opinion  that a  standardized test                                                               
is not  the solution.  He  said that CSAPs across  the nation are                                                               
becoming   more  readily   accepted  and   sought  after   as  an                                                               
alternative  way  for  parents  to educate  children.    He  said                                                               
numbers suggest  that if  the state's  school system  switched to                                                               
correspondence,  the state  would see  cost savings,  with better                                                               
outcomes  than the  traditional  school settings.    He said  the                                                               
intent  of  the  legislation  is   to  increase  the  quality  of                                                               
education and decrease the cost.                                                                                                
                                                                                                                                
6:56:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  asked whether  correspondence schools  are a                                                               
good fit for households with working parents.                                                                                   
                                                                                                                                
CHAIR CARPENTER  responded that some  families use CSAP  funds to                                                               
hire a teacher  during the day; therefore, a  single parent would                                                               
have the possibility of finding such a program.                                                                                 
                                                                                                                                
6:57:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD  added that  she  knows  of five  families                                                               
which hire teachers in this way.   She expressed the opinion that                                                               
standardized tests are taken because of federal funding.                                                                        
                                                                                                                                
6:58:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY  asked how  the teacher  would be  paid using                                                               
the allotment from CSAP.                                                                                                        
                                                                                                                                
CHAIR CARPENTER,  speaking to his  personal experience,  said the                                                               
relationship is  only between  the parents  and the  teacher, not                                                               
the program, and the reimbursement process is through CSAP.                                                                     
                                                                                                                                
7:00:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  advised that this is  a voluntary program.                                                               
He  shared the  positive experience  his daughter  has had  while                                                               
homeschooling her child.                                                                                                        
                                                                                                                                
7:01:45 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 7:01 p.m. to 7:02 p.m.                                                                       
                                                                                                                                
7:02:19 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER  opened  public  testimony on  HB  165.    After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
7:03:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  moved  to  report HB  165,  labeled,  33-                                                               
LS0620\R,  Marx,   5/4/23,  out  of  committee   with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
7:03:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY objected.                                                                                                   
                                                                                                                                
A  roll call  vote was  taken.   Representatives Allard,  McCabe,                                                               
McKay, Tilton, and  Carpenter voted in favor of  reporting HB 165                                                               
out of  committee.  Representatives  Groh and Gray  voted against                                                               
it.   Therefore,  CSHB 165(W&M)  was  reported out  of the  House                                                               
Special Committee on Ways and Means by a vote of 5-2.                                                                           

Document Name Date/Time Subjects
CSHB 165 v.R.pdf HW&M 5/4/2023 6:00:00 PM
HB 165
CSHB 165 - Explanation of changes v.R.pdf HW&M 5/4/2023 6:00:00 PM
HB 165
HB 165 HW&M Public Testimony.pdf HW&M 5/4/2023 6:00:00 PM
HB 165