Legislature(1995 - 1996)
04/12/1995 01:45 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 230
"An Act making appropriations to the Department of
Education for support of kindergarten, primary, and
secondary education and for community schools programs
for fiscal year 1996 and fiscal year 1997; making
appropriations from the constitutional budget reserve
fund under art. IX, sec. 17(c), Constitution of the
State of Alaska; and providing for an effective date."
SHIRLEY HOLLOWAY, DR., COMMISSIONER, DEPARTMENT OF EDUCATION
testified in support of full funding for education. She
observed that the public has demanded better schools. She
asked that dollar decisions consider the consequences to
student learning. She stated that student learning will be
adversely impacted by a funding level that does not include
money for increased enrollment. She observed that students
have special needs that require additional services. She
maintained that ground will be lost if funding does not
remain stable. She stressed that innovations and risks have
been made to keep kids in school, do a better job at
preparing students and raise standards. She discussed some
innovations being made by teachers and parents.
Commissioner Holloway noted that the State Board of
Education is committed to reviewing the foundation formula
in order to provide recommendations to the Legislature.
Representative Martin noted the amount of overhead in
education funding. He suggested that savings could be made
if school districts were combined. Commissioner Holloway
stated that the Board has started a dialogue in regards to
combining school districts.
LARRY WIGGET, ANCHORAGE SCHOOL DISTRICT testified via the
teleconference network. He stated that the Anchorage School
District opposes HB 230. He stressed that the District
supports the $61.0 thousand dollar instructional unit level.
He maintained that HB 230 would result in a loss to the
Anchorage School District of $4.0 million dollars in FY 96
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and $9.0 million dollars in FY 96-97. He observed that the
Anchorage School District is the 80th largest school
district in the United States and the largest in Alaska. He
emphasized the need to pursue computer technology. He
stated that Anchorage has the second lowest student cost in
Alaska.
Representative Grussendorf observed that Sitka has the
lowest student cost in the state.
In response to a question by Representative Brown, Mr.
Wigget noted that student ratios would increase if HB 230 is
enacted. He discussed ramifications of a $4.0 million
dollar reduction to the Anchorage School District.
KATHY HOYT, SOLDOTNA testified via the teleconference
network. She spoke in opposition to HB 230. She compared
the cost of supporting individuals in the criminal system to
educating a high school student in Alaska. She noted that
89 percent of the nation's criminals are high school drop
outs. The high school drop out rate in Alaska is 33
percent. It costs approximately $32.0 thousand dollars to
incarcerate a prisoner annually. In Anchorage in 1991, it
cost $4,050 thousand dollars to educate a high school
student. She insinuated that it is cheaper and better to
provide education than to pay for institutionalizing
offenders.
RICHARD SWARNER, EXECUTIVE DIRECTOR, BUSINESS MANAGEMENT,
KENAI PENINSULA SCHOOL DISTRICT testified via the
teleconference network. He testified in opposition to HB
230. He testified in support of the Governor's proposed
$61.0 thousand dollar foundation formula instructional unit.
He stressed that the foundation program needs to be
reviewed. He observed that the Kenai School District is up
against the local effort cap. He noted that assessed value
in the Borough has dropped 5.87 percent. He noted that the
cost per pupil over 10 years has only increased 1.44
percent. He noted that Kenai School District employee's
salaries have not been raised in four years. He emphasized
that 38 percent of their school district's budget comes from
local contributions.
DEBRA GARRISH, JUNEAU testified in opposition to HB 230.
She expressed concern with the quality of state education.
She observed that the student/teacher ratio is high, books
are obsolete and that teachers have been laid off. She
suggested that state school and income taxes be re-
instituted. She maintained that HB 230 sacrifices the
education and future of children in the state.
JACK FARGNOLI, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF
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THE GOVERNOR testified in support of the Governor's proposal
for full funding. He stated that the Governor is concerned
with the function of the bill and the funding source the
bill uses. He observed that the two year forward funding
mechanism would be disadvantageous in respect to the state's
reserves. He maintained that the state's ability to respond
to cash flow problems will be inhibited. He observed that
if the second year's funding remains in the general fund it
would not provide any of the constancy or predictability
that true forward funding would provide. He stated that the
Governor does not support forward funding. He stressed that
the state is facing a $300 to $400 million dollar deficit in
cash projections. He expressed concern that the work and
purpose of the Long Range Fiscal Planning Commission not be
truncated or prejudged.
Mr. Fargnoli discussed the effect that the legislation would
have on the Constitutional Budget Reserve Fund. He stated
that the Governor prefers that education is funded through
the general fund as all other items.
(Tape Change, HFC 95-84, Side 1)
In response to a question by Representative Martin, Mr.
Fargnoli agreed that the state's cash flow problem would be
diminished by funding education from the Constitutional
Budget Reserve Fund. He stated that there is no consensus
in regards to leveling expenditures or altering revenue in-
flows.
STEVE MCPHETRES, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF
SCHOOL ADMINISTRATORS testified in opposition of HB 230. He
spoke in support of the $61.0 thousand dollar instructional
unit. He observed that parents are concerned about
education. He stressed that the state is not broke. He
referred to the Alaska Permanent Fund Dividend Program.
Representative Therriault suggested that rural Alaskan's
will support the re-institution of an income tax over the
use of their permanent fund dividends. He observed that a
15 percent state income tax would only cover half of the
state's deficit. He emphasized that a combination of taxes
and spending cuts are needed to balance the budget.
Mr. McPhetres stated that school administrators would
welcome dialogue in regards to raising revenues. He
emphasized that "all the cards have got to be placed on the
table."
WILLIE ANDERSON, NEA-ALASKA testified in opposition to HB
230. He observed that if the instructional unit had kept
pace with increases in the cost of living the instructional
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unit would now be $81,318 thousand dollars. He urged the
Committee to "do the right thing by our kids." He
maintained that we must educate our children and look to the
future. He suggested that revenues could be raised through
taxes or capping permanent fund dividends. He stressed the
need for quality education.
Representative Kelly questioned if NEA-Alaska would accept
downward negotiations in teacher's pay. Mr. Anderson
pointed out that increases were not taken in 1986 - 1987.
He stressed that teachers or public schools employees should
not carry the whole burden.
Representative Parnell stressed that education funding will
increase by $200 million dollars over the next five years at
the current rate. He emphasized that we need to reinvent
how we provide government and education. He urged NEA-
Alaska to join in rethinking the delivery of education
services. He stressed that he has a deep concern about the
children of Alaska.
Mr. Anderson agreed that education delivery must be
rethought, but emphasized that it cannot be transformed
overnight. He observed that technology can assist in
education delivery. Representative Parnell emphasized the
need to start working towards doing something now.
ROBERT GOTTSTEIN, ALASKA STATE SCHOOL BOARD spoke in support
of full funding for education. He acknowledged the need to
do more with less. He stressed that solutions must be
found. He noted that there are 54 school districts in
Alaska. He suggested that the number of school districts is
not cost effective. He observed that the correspondence
school program costs about $1.5 hundred dollars. It costs
about $7.5 hundred dollars to teach a student in the
Anchorage School District. He maintained that the level of
parent involvement makes the difference. He stressed that
principles and teachers cannot replace parents. He observed
the value of quality parents and emphasized the need to
provide opportunities to improve parenting skills. He
acknowledged the need for change. He asserted that success
will be greater if funding is protected than if it is cut.
He stated that the state of Alaska must invest in our
children, their parents and in creating an economic
opportunity for everyone in the state. He stressed that if
the state does more for children the public will do more for
the state. He maintained that revenue will not be raised by
making the state less worthy. He stated that there is no
area in state government more worthy than education. He
expounded that the way out of this dilemma is to make sure
that everyone has a value received from the state. He
maintained that there is no better opportunity than to
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provide a value education.
Representative Grussendorf noted the need to maximize the
revenue that is due the state of Alaska. Mr. Gottstein
stated that an Anchorage survey showed that if the public
was guaranteed educational opportunities for everyone in
their family, including postsecondary education, then 85
percent would be willing to give up their dividend and begin
to pay taxes.
DALE STALEY, PRESIDENT, JUNEAU SCHOOL BOARD testified in
support of full funding for education. He noted that
nurses, counseling services, janitorial services and
teachers have been reduced in the Juneau School District.
He observed that the District will not be able to lay
teachers off in the coming year since most are tenured.
There are only 8 non-tenured staff and 3 non-tenured
administrators. He observed that the District's teaching
staff is experienced and well educated. He observed that if
the state reduces funding to the Juneau School District, the
local contribution must also be reduced. He noted that
Juneau's local contribution has been at its cap for several
years. He acknowledged the need to do more with less, but
asserted that it cannot be accomplished in the next three or
four months.
HB 230 was HELD in Committee for further discussion.
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