Legislature(2017 - 2018)CAPITOL 106
02/21/2018 08:30 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB212 | |
| HB339 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 212 | TELECONFERENCED | |
| += | HB 339 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 212-REAA & SMALL MUNI SCHOOL DISTRICT FUND
8:31:20 AM
CHAIR DRUMMOND announced that the first order of business would
be HOUSE BILL NO. 212, "An Act relating to funding for school
construction and major maintenance; and relating to the regional
educational attendance area and small municipal school district
fund."
8:32:13 AM
REPRESENTATIVE NEAL FOSTER, Alaska State Legislature, speaking
as prime sponsor, stated that this bill would expand the
Regional Education Attendance Area and Small Municipal School
District Fund to include major maintenance. Currently it only
provides funds for new school construction. This bill would
help reduce deterioration of schools and save the state millions
of dollars for full school replacement costs since preventative
maintenance would be done. He indicated that the Coalition for
Education Equity is comprised of several rural school districts.
The CEE has been heavily involved with the Kasayulie case.
8:33:43 AM
JANE PIERSON, Staff, Representative Neal Foster, Alaska State
Legislature, stated that HB 212 would expand the use of funds in
the Regional Education Attendance Area (REAA) and small
municipal school district fund to include major maintenance in
addition to new school construction.
MS. PIERSON explained that the bill had three sections, as
follows: Section 1 would add a new subsection (f) to AS
14.11.013, which would add the requirement that the Department
of Education create two lists to be updated annually for the
capital improvement grant schedule. One list would be for
projects funded for the REAA fund and the second list for all
other projects. Section 2 of the bill would amend AS
14.11.030(a) to allow costs for major maintenance to be to an
allowable use in the REAA fund. Section 3 of the bill would
amend AS 14.11.035, Report on school construction and major
maintenance funding, which would remove outdated references,
clarify the timeframe on annual submission and would include
major maintenance funding under HB 212 to the report.
8:34:36 AM
MS. PIERSON explained that the school construction and
maintenance grant programs were the only significant programs
that provide funding for new construction renovation or major
maintenance for schools in our communities without bonding
capacity. A healthy continued grant program for construction
when needed and ongoing major maintenance would provide a vetted
solution for the funding of high priority major maintenance
needs, including boilers, roofs, and other important systems for
our schools. The program has been a major success. The REAA
and small school district funds are available for funding
projects and school construction grants (indis.) have greatly
reduced the number of schools on the list.
MS. PIERSON said that since 2014, when the legislature passed
Senate Bill 64 placing a moratorium on approving projects that
are funded by debt reimbursement authorized by local voters
until July 1, 2020, there has been an increase in applications
vying for legislative funding on the major maintenance grant
funding list. Therefore HB 212 was good for rural Alaska as
well as urban Alaska, she said. By adding major maintenance to
the REAA and small district fund, other non-REAA projects can
rise more quickly to the top of the major maintenance list.
8:36:10 AM
REPRESENTATIVE KOPP asked for further clarification on the
priority list, specifically how the priorities would be weighed.
MS. PIERSON answered that she conferred with the department who
indicated that two lists would be created. One list would
contain projects for REAA and small school districts and the
second list would list all the rest of the projects. These
projects would continue to be prioritized in the same way they
currently are; however, this new list would include major
maintenance and new school construction. She further explained
that the same rating system currently being used will be used,
including that it would maintain the same appeals process and
reconsideration process currently in statute.
8:37:25 AM
REPRESENTATIVE KOPP related his understanding that it sounded
like that this would be done by regulation.
MS. PIERSON answered yes; that the department said it can do so
without any additional cost.
8:37:35 AM
CHAIR DRUMMOND asked for further clarification on other things
included in major maintenance.
MS. PIERSON answered that major maintenance would also include
bringing things into compliance with building codes and it will
save the state money in the long run by keeping these schools
viable and continuing to create educational opportunities in
these small communities and help foster healthy rural
communities in Alaska.
CHAIR DRUMMOND asked whether this would be limited to the 23
districts listed in attachment 1.
MS. PIERSON agreed.
8:39:01 AM
SCOTT MACMANUS, Superintendent, Alaska Gateway School District
(AGSD), said he appreciated the opportunity to speak in support
of HB 212. He stated that he has been at the AGSD for over 20
years and he has been the superintendent for the past 20 months.
The school has been using local wood sources to heat and power
some of the schools. The district has done considerable work on
energy efficiency, including converting the school lighting
system to LEDs. He related that the AGSD has been pursuing any
available federal funds that will help expand those savings to
better serve students.
MR. MACMANUS highlighted one issue, which has been the
district's inability to gain major maintenance funding using the
Capital Improvement Project (CIP) list. His district has not
received CIP funding since 2009. He said the AGSD and the
Coalition for Education Equity strongly support the idea of
allowing flexibility to use school construction funds for major
maintenance. He said he hoped that HB 212 would assist and meet
the district's needs for maintenance projects. He acknowledged
that these projects have been deferred. The AGSD has wanted to
move its maintenance projects forward, such as a sprinkler
system at the Tok school that has been out of compliance and
costs $50 thousand to maintain each year. He related that
classes have to move out of some classrooms due to broken or
leaking pipes. Last year, this critical project moved up from
number 47 to number 14 on the CIP list. Replacement of this
system would cost $1.2 million dollars, which exceeded the
amount the school district could afford to do on its own. He
characterized this project as one glaring example, noting that
all of the schools were aging. He said that the oldest school,
Northway School, was 40 years old, noting the sewer system kept
freezing due to floor shifts since the building sits on
permafrost. He said that funds for major maintenance are being
diverted from the primary mission of educating students. The
district constantly must evaluate how to provide education for
its students. He offered his support and the support of both
organizations for the bill.
8:43:25 AM
REPRESENTATIVE JOHNSTON asked how many people the district
serves.
MR. MACMANUS answered that the district serves 400 students over
26,000 square miles ranging from Eagle Village to Mentasta. He
stated that the district has two fulltime maintenance staff.
8:43:49 AM
REPRESENTATIVE JOHNSTON related her understanding that he has
two fulltime maintenance staff. She asked whether he has
considered using local village resources for some of the
maintenance.
MR. MACMANUS answered that whenever possible he uses local
support; however, it has been difficult to find qualified people
in some of the small communities that can manage the complicated
facilities. Some of the work must be done by those qualified to
do it but whenever possible the district uses local support.
8:44:32 AM
CHAIR DRUMMOND asked whether the Alaska Gateway School District
in the unorganized borough.
MR. MACMANUS answered yes.
CHAIR DRUMMOND answered that the community does not have any
local property taxes or sales taxes.
MR. MACMANUS agreed.
8:45:20 AM
LISA SKILES PARADY, PhD; Executive Director, Alaska Council of
School Administrators (ACSA); Representative, Alaska
Superintendents Association (ASA), Association of Alaska School
Boards (AASB), stated that the ACSA was the umbrella
organization for all professional educators, including the
Alaska Superintendents Association, the Alaska Association of
Secondary Principals, the Alaska Association of Elementary
Principals, and the Alaska School Business Officials. She
stated these organizations are in support of HB 212.
8:46:16 AM
DR. PARADY thanked members for the important work on many
challenges facing Alaska today and especially appreciate their
support of tools that support the school districts. She said
that her organizations support HB 212 since it would allow
access to funds to sustain major maintenance, which helps to
delay replacement capital costs. This bill does so by allowing
REAAs and small municipal school districts to fund major
maintenance in addition to school construction under the REAA
and small municipal funds. For these reasons, and in
recognition of the vital importance of major maintenance to
schools across the state, the organizations she represents
support the bill. She focused on the REAAs across the state and
in small municipal districts without the ability to access other
support. She stated that the organizations strongly support HB
212 as it provides useful flexibility. She characterized it as
another tool in the toolbox during a time that the state has
been struggling. She thanked members for their work.
8:47:47 AM
The committee took an at-ease from 4:47 p.m. to 4:49 p.m.
8:49:24 AM
SARAH SLEDGE, Executive Director, Coalition of Education Equity
(CEE), stated that the CEE was a statewide organization
representing Alaska school districts, organizations, and
individuals who are concerned about the quality and breadth of
educational opportunities available to Alaska's children. Her
organization was formerly known as the Citizens for the
Educational Advancement of Alaska's Children (CEAAC), an
organization that advocated for reform at the legislative level
while pursing the Kasayulie and Moore lawsuits, which were
settled in 2011 and 2012, respectively.
8:50:00 AM
MS. SLEDGE asked the committee to consider the Kasayulie
lawsuit, which was filed in 1997 regarding the method of funding
capital projects for education. At the time the lawsuit was
filed, many of the physical facilities of plaintiffs' school
districts were in dire need of replacement or in need of major
maintenance exhibiting widespread deterioration, physical
dangers, structural deficiencies, inability to satisfy relevant
code requirements and a lack of sufficient instructional space.
8:50:33 AM
MS. SLEDGE stated that as REAAs, these school districts do not
have the legal authority to raise capital funds through a local
capital tax levy or bond issue. At the same time, most
municipal school districts have bonding capacity sufficient to
raise capital funds and access to state funding for capital
projects through the state's debt reimbursement program. This
resulted in disparities between facilities in plaintiffs' school
districts and those in districts with the ability to pass local
bond issues to raise the necessary capital for facilities
funding, major maintenance and renovation.
8:51:12 AM
MS. SLEDGE related that in 1999, the court found that the
state's history and practice of funding of rural school
facilities violated its obligations under the education and
equal protection clauses of the Alaska Constitution and Title 6
of the Civil Rights Act. She stated that CEAAC and the State of
Alaska (SOA) reached a settlement in the lawsuit in 2011. Prior
to the settlement, CEAAC worked with legislators in 2010 on
passage of Senate Bill 237, which directed 24 percent of funds
allocated to bond debt reimbursement to REAA schools on the
Department of Education and Early Development's (DEED) CIP list.
This established a systematic mechanism for identifying funding
amounts for rural school construction, which was expanded to
include small municipal districts in 2013. She mentioned that
when Senate Bill 237 was drafted there was discussion on
including language in the bill that would permit the fund to be
used for school construction and major maintenance projects;
however, the need for school construction was great and it was
given priority.
8:52:20 AM
MS. SLEDGE said that while several school construction projects
remain on the CIP list, many have been completed and a
significant backlog of major maintenance exists in REAA and
small municipal school districts. As a result, the situation of
deteriorating school facilities has created unsafe or
uncomfortable environments that interfere with or impede student
learning or create increased costs for maintenance. She
expressed the CEE's concern that continued deferment of major
maintenance will necessitate a larger number of school
construction projects in the future at great cost to Alaska.
This bill would seek to allow the REAA and small municipal
school district fund to be used for major maintenance in
addition to school construction. She said, "We believe this
follows the intent of the Kasayulie case, seeking to achieve
parity in funding between areas with bonding capacity and those
that do not." She offered the CEE's support for HB 212.
8:53:23 AM
CHAIR DRUMMOND announced that HB 212 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 212 - Sponsor Statement 2.16.18.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #1 Districts covered by the bill.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #2 REAA & Sm School Fund.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #3 School School Construction Grant Fund, Final List.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #4 Major Maintenance List FY19 Final.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #5 Kasayulie Order.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Attachment #6 Annual Report School Capital Project Funding Under SB237.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 SB 237 |
| HB 212 Bill version D.PDF |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Fiscal Note DEED Education Support and Admin Services.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| HB 212 Support Document 2.17.18.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 212 |
| AASB Support of HB 339.pdf |
HEDC 2/21/2018 8:30:00 AM |
HB 339 |