Legislature(2021 - 2022)DAVIS 106
02/14/2022 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB10 | |
| HB259 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 259 | TELECONFERENCED | |
| += | SB 10 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 259-PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT
8:19:03 AM
CO-CHAIR STORY announced that the final order of business would
be HOUSE BILL NO. 259, "An Act relating to use of income of the
Alaska permanent fund; relating to the amount of the permanent
fund dividend; relating to the duties of the commissioner of
revenue; relating to funding for state aid for school districts,
the state boarding school, centralized correspondence study, and
transportation of pupils; and providing for an effective date."
8:19:44 AM
REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislature, as prime
sponsor, offered a brief overview of the two problems HB 259
seeks to solve: underfunding of education and the fiscal
instability of the state.
8:20:50 AM
CO-CHAIR STORY requested any further comments on HB 259 before
going forward with a motion to move the bill from committee.
8:21:03 AM
REPRESENTATIVE CRONK said he is not sure the legislation belongs
in the House Education Standing Committee, as this is a "huge
budget bill" to determine how to spend the percent of market
value (POMV) draw. He went on to say there is a continual
request for funding for education, but no one has an answer why
more money is needed. He asked the question, "How does more
money relate to better education?" He would like to see
everyone join the discussion, namely the teacher's union and the
school districts. Representative Cronk argued that "until we are
ready to have the hard conversations together," he is not ready
to support increased spending for education. Plus, he said this
legislation is bigger than just funding for education, as it
determines whether a permanent fund dividend (PFD) will be paid.
8:22:52 AM
REPRESENTATIVE ZULKOSKY opined the legislation would be a good
conversation starter aimed at efforts to find a nexus between
Alaska's fiscal issues and how those fiscal issues impact
various essential services, notably education.
8:23:33 AM
CO-CHAIR STORY agreed that with another POMV split, these are
very important conversations to have going to the House Finance
Committee. She said a critical piece of the proposed
legislation frees fixed expenses to pay for gaps in public
services. She said she was pleased with the priority of
essential services to education proposed under HB 259. In
example, she mentioned pupil transportation has not had an
increase in funding to districts in many years, instead, it
takes from the general fund. As inflation was up 10 percent
over the last decade, she said a 4 percent increase in funding
for education in the first year was realistic. She added that
other essential public services would still be covered along
with, in her estimation, a substantial PFD.
8:25:52 AM
CO-CHAIR DRUMMOND noted a large percentage of schoolboard
experience among members of the committee, and with this
experience comes the knowledge that schoolboards struggle every
year with cuts to their budgets. She sees nothing wrong with
the House Education Standing Committee dealing with a funding
bill. She stated her support of HB 259.
8:26:55 AM
REPRESENTATIVE GILLHAM agreed with Representative Cronk. He
said that his biggest issue is any change to the PFD should be
put to a public vote.
8:27:26 AM
REPRESENTATIVE SPOHNHOLZ explained HB 259 was referred to the
House Education Standing Committee because it creates an
education funding stream for public education. She said while
costs have gone up, Alaska now spends $500 less per child on
education than in fiscal year 2008. Nationwide, students in
Alaska show a lower ranking, but comparing student performance
metrics, she observed Alaska's ranking has not fallen, but other
states' rankings have risen due to strategic investment and
innovations those states have made in educational programs. If
Alaska creates "stable and growing funding for education," she
said the state could start making investments and innovations in
proven programs.
REPRESENTATIVE SPOHNHOLZ said HB 259 will be forwarded to the
House Special Committee on Ways and Means and to the House
Finance Committee to look at the fiscal impacts, including
discussion of the PFD formula.
8:29:41 AM
CO-CHAIR DRUMMOND moved to report HB 259 out of committee with
individual recommendations and the accompanying fiscal notes.
8:29:54 AM
REPRESENTATIVE CRONK objected.
8:29:54 AM
A roll call vote was taken. Representatives Zulkosky, Hopkins,
Drummond, and Story voted in favor of the motion to report HB
259 out of committee with individual recommendations and the
accompanying fiscal notes. Representatives Cronk, Gillham, and
Prax voted against it. Therefore, HB 259 was reported out of
the House Education Standing Committee by a vote of 4-3.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 259 oppose.pdf |
HEDC 2/14/2022 8:00:00 AM |
HB 259 |