Legislature(2013 - 2014)
04/23/2014 07:14 PM Joint HB278
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| Start | |
| HB278 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 278-EDUCATION
7:14:59 PM
CHAIR HAWKER announced that the only order of business would be
HOUSE BILL NO. 278, "An Act increasing the base student
allocation used in the formula for state funding of public
education; repealing the secondary student competency
examination and related requirements; relating to high school
course credit earned through assessment; relating to a college
and career readiness assessment for secondary students; relating
to charter school application appeals and program budgets;
relating to residential school applications; increasing the
stipend for boarding school students; extending unemployment
contributions for the Alaska technical and vocational education
program; relating to earning high school credit for completion
of vocational education courses offered by institutions
receiving technical and vocational education program funding;
relating to education tax credits; making conforming amendments;
and providing for an effective date."
[Before the committee was CSHB 278(FIN)am and SCS CSHB
278(FIN)amS.]
CHAIR HAWKER stated the purpose of this meeting will be to
discuss the open or unresolved items in the House and Senate
versions of HB 278. He reported that significant discussion has
occurred between and among the caucuses and the committee. He
related that a final solution will ultimately come before the
committee in the form of a free conference committee substitute
(FCCS) for HB 278 once the resolution on the remaining open
items has been reached.
7:16:39 PM
CHAIR HAWKER summarized the accord the Free Conference Committee
has reached thus far, including that the state will appropriate
$100 million per year in funding for the education budget for
each of the next three years. This funding will be split
evenly, with $150 million provided within the BSA [base student
allocation] and $150 million provided funding outside the BSA
[outside the foundation formula]. In addition, some direct
grants will be funded as well as specific targeted programs.
The aforementioned $300 million solution will provide a BSA
equivalent increase of $348 in FY 15, $356 in FY 16 and $356 in
FY 17. In addition to this funding increase to the BSA, program
funding will increase by approximately $13 million in FY 15, $11
million in FY 16, and $11 million in FY 17. The reason for the
slight drop off in program funding is due to the number of
studies and further research into education in the first year
and other one-time spending that will not continue beyond the
first year, he said.
CHAIR HAWKER directed attention to the committee handout
entitled "HB 278 Comparison, dated 4/23/14, 7:11 PM," and
offered to identify whether the House or Senate language was
adopted by the Free Conference Committee for insertion into the
proposed FCCS for HB 278.
7:18:57 PM
CHAIR HAWKER directed attention to [Section 2] to the testing-
out option. The House language allowed secondary students
[grades 7-12] to test-out for all topics but the Senate's
version limited the testing-out option to high school students
and credit mastery of core topics. After extensive discussions
with the caucuses, the department, and school districts, the
Free Conference Committee will adopt the House language, but
will limit it to core topics only.
CHAIR HAWKER said the language in Senate Section 3, will be
adopted, which replaces the exit [HSGQE] exam and will allow
students the ability to take either the SAT, ACT, or WorkKeys
prior to high school graduation. Currently, by regulation, the
WorkKeys has been the default exam; however, this change will
allow students an option to also select either the SAT or ACT
exam, which is consistent with the governor's proposal. He
pointed out a number of technical sections were adopted along
with this provision, including Senate Section 54, which will
allow students who has previously been denied a diploma for
failure to complete the HSGQE to apply for and retroactively be
issued a diploma so long as they otherwise meet the graduation
requirements.
CHAIR HAWKER related that the Free Conference Committee accepted
$5 million of the funding in [Senate Section 7A] to bring
Internet speeds for eligible schools up to 10 megabits. This
funding will be needed to access a federal subsidy program for
that activity. The Free Conference Committee did not accept the
[Senate Section 7B] one-to-one personalized learning opportunity
grant program or [Senate Section 7C] the innovative approaches
to learning at this time. Certainly the legislature could
entertain these grants in the future, but the programs needed
additional work.
7:21:58 PM
CHAIR MEYER remarked that the House's education plan was
originally funded at $75 to $76 million per year with the
Senate's version set at $125 million per year since it also
included reform measures. The Senate worked to reduce the
amount to $100 million. Senate Sections 7A, 7B, and 7C were
three items that were also considered. Initially, increased
funding for Internet services was proposed at $7.3 million, but
was ultimately reduced to $5 million. However, the one-to-one
personalized learning opportunity grant program could dovetail
with the capital budget and the governor's digital learning
initiative, he said. He concurred that the innovative approach
to learning grant program needed more time to better define the
program.
7:23:21 PM
CHAIR HAWKER directed attention to Section 13 [House and Senate
version] and indicated that the $500 one-time per student
charter school grant program was adopted. Also accepted was
Senate Section 14, the allotment rollover language, which allows
students in correspondence study programs to rollover funds
without the funds lapsing, recognizing that any unspent funds
will lapse back to their respective districts when students
leave the program. He indicated that with respect to the school
debt reimbursement in Section 20, the 70/30 program was retained
but the 60/40 program, previously altered to a 40/60 program,
was ultimately adopted as a 50/50 program in recognition of the
state's need to consider the amount of educational funding
support to communities for school construction and maintenance.
He characterized this measure as a little "belt tightening," and
a compromise from the original bill.
CHAIR HAWKER directed attention to Senate Section 23, noting the
adoption of the increase to the residential school stipend to
$2.25 million, bringing the stipend for residential schools to
the level recommended by the administration. This was partially
funded in the past but is now fully funded, he said.
7:25:20 PM
CHAIR HAWKER turned to Senate Section 24 and emphasized that
substantial dialogue occurred with respect to increasing the
required local contribution by altering the local mill tax levy,
but ultimately it was not accepted in this bill.
7:25:53 PM
CHAIR HAWKER noted Senate Section 26 was accepted, which will
increase state funding for the correspondence study factor from
80 percent to 90 percent of the BSA. Further, the Free
Conference Committee also accepted Senate Section 27, to provide
additional funding for charter school grants for the first three
years to support the initiation of charter schools.
CHAIR HAWKER directed attention to House Sections 20, 21, and
22, with respect to the BSA. The Free Conference Committee
adopted an increase of $150 to the BSA the first year, an
additional $50 increase in the second year, and an additional
$50 increase in the third year. Thus, the overall effect will
be to increase the BSA by $150 in FY 15, $200 in FY 16, and $250
in FY 17, he said.
CHAIR HAWKER related that the Free Conference Committee has
expressed an interest in a comprehensive study of Alaska's
education system. He directed attention to House Section 47 and
Senate Section 55, relating the Free Conference Committee
accepted the House version for a salary and benefits proposal
study. Under the proposal, the Department of Administration
will perform a thorough statewide exam of school salary and
benefits as well as tenure issues and come back to the
legislature with statewide recommendations for best practices on
all these issues, he said.
7:27:20 PM
CHAIR HAWKER directed attention to House Section 48, to grants
outside the BSA. As previously recapped, this mechanism will
provide $100 million of funding each year, split evenly over the
course of three years between funding inside the BSA and funding
outside the BSA [formula]. He related the total grant amounts
of $42,953,000 in FY 15; $32,243,000 in FY 16, and $19,904,000
in FY 17. He explained that the decrease in grant funding
reflects the proposed increase to the BSA for the same
timeframe, with the BSA increasing to $37.5 million in FY 15,
$50 million in FY 16, and $62.5 million in FY 17.
7:28:24 PM
REPRESENTATIVE KITO III asked for further clarification on the
BSA for FY 15.
CHAIR HAWKER answered that the $37.5 million total funding
represents a $150 increase in the BSA.
7:28:43 PM
CHAIR HAWKER directed attention to Sections 50-51, to the two
studies recommended by the Senate - the District Cost Factor
Study and the School Size Factor Study. These studies were
rolled into a more comprehensive approach to evaluate all
aspects of education funding and spending, including to further
review the Department of Administration's salary and benefits
and tenure proposals. He related that these studies will begin
immediately this summer via professional services contracts
issued by the Legislative Budget & Audit Committee (LB&A). He
anticipated that the 29th Legislature will evaluate the
proposals and make recommendations for all aspects of education
and spending in the next legislature.
7:29:27 PM
CHAIR HAWKER reported that the School Design and Construction
Study in Senate Section 52 was adopted and will consider energy
efficient and cost effective designs for engineering and
construction school facilities statewide. He reported that
Senate Section 53 was accepted, which will extend the ANSEP
[Alaska Native Science and Engineering Program] high school STEM
[Science, Technology, Engineering and Math] program for a pilot
program in middle schools that will terminate June 30, 2017.
Upon completion, this program also requires a performance report
and an evaluation report, he said.
7:30:13 PM
CHAIR HAWKER reported that the Free Conference Committee did not
adopt the House changes to teacher tenure [House Sections 23-
24]. Instead the Free Conference Committee would like teacher
tenure to be thoroughly studied and reported the legislature to
allow the legislature to make decisions on how to approach
teacher tenure from a best-practices standpoint.
CHAIR HAWKER said this concludes the Free Conference Committee's
recommended changes. He commended Chair Meyer for a productive
negotiation process.
7:31:03 PM
CHAIR MEYER also exchanged optimistic statements with the House
Chair. He said that the proposed [FCCS for HB 278] is a good
compromise bill, which is acceptable and in accord with both
bodies. He reiterated that the Senate's education bill had set
overall funding at $125 million and the House's version totaled
approximately $75 million. This committee has met in the middle
at $100 million, with half inside the BSA and half outside the
BSA. Although some Senate members would have preferred not to
increase BSA funding since the overall foundation formula needs
to be addressed, other members preferred that the additional
funding should remain outside the BSA. Still, a compromise was
struck and the bill contains additional reform that will advance
educational practices in Alaska. Further, the proposed [FCCS HB
278] will provide parents with more options and teachers with
adequate resources. He thanked the Senate members for their
participation.
7:32:47 PM
SENATOR DUNLEAVY acknowledged that the agreement in the
committee's proposal doesn't represent all of his preferences;
however, he said the overall "package" will help the state look
toward the future since questions about sustainability certainly
exist. Further, studies within the proposal will examine some
of the issues and help the state make decisions on an overall
approach to education and delivery system in Alaska. While the
current system may not be sustainable, it doesn't mean that the
state can't have a robust public education system, although it
may ultimately not look like it does now. For one thing, the
current educational system is costly. He anticipated further
discussions on other items, including "common core" standards,
concern about implementation of standards, and the high school
graduation assessment [exit exam] to determine whether high
school graduates are prepared for the future. He emphasized
that the proposal contained in the proposed [FCCS for HB 278]
will buy the state time to explore the issues in more detail.
He cautioned members not to be afraid of change since some
changes will better serve students.
7:35:36 PM
CHAIR HAWKER, in response to Senator Dunleavy's comments on
"common core" standards, advised that the proposed [FCCS for HB
278] contains two House provisions related to "common core"
standards. First, the proposed FCCS for HB 278 will contain a
provision to prohibit the EED from spending funds on "common
core" standards implementation for K-12. Second, the proposed
bill will contain language to ensure that the state may not cede
any measure of autonomy or control over education standards and
assessments. This language places a "firewall" between the
state and infiltration of the "common core" standards into the
state education system, he said.
CHAIR HAWKER acknowledged that House members have diverse
opinions and all members are not happy with all elements in the
proposal. Certainly, House members had preferred less overall
spending and more spending inside the BSA than outside the BSA;
however, the Free Conference Committee has reached a very good
agreement. He said, "One of my watchwords is one always have to
be careful not to let the perfect be the enemy of the possible."
He offered his belief that what has been accomplished is what is
possible.
7:36:57 PM
REPRESENTATIVE GATTIS acknowledged that the proposal spends more
money than initially was considered; however, there are many
great things in the proposed [FCCS for HB 278]. She said isn't
a huge proponent of studying matters; however, she thinks these
studies are long overdue. She related correspondence studies
are important in her district and she is pleased some charter
school provisions are included in the proposal since many
parents want charter schools. Finally, she offered her belief
that the proposed [FCCS for HB 278] indicates that the state
strongly supports public education.
7:38:06 PM
REPRESENTATIVE KITO III commended the Chair and his staff for
keeping the committee informed. He also agreed that the caucus
would have appreciated additional BSA increases; however, $100
million [for each of three years] is fairly substantial funding.
He expressed concern about the potential loss of teachers,
hoping not many teachers would be laid off. He expressed
further concern that the one-time funding is not being put
through the formula.
REPRESENTATIVE KITO III remarked on the existing education
system. Statewide studies have shown the state has had an
increase in poverty levels in the state from 31 percent to 46
percent. Thus, a significant number of students have higher
needs in our schools. Despite the increase in poverty levels,
schools have experienced an increase in student scores. For
example, students might not be reading at the right level in
fourth grade, but by eighth grade are reading at level or
better. This might mean that the state is falling behind in
early education and pre-kindergarten, he said, so examining pre-
kindergarten funding will be important. Although the funding is
approximately $100 million in increased spending, in terms of
the $5.8 billion operating budget and a substantial capital
budget, these are small amounts that will allow the state to
adjust and prioritize education in the system. He appreciated
the work the Chair and other members have put forth to reach
this proposal.
7:40:12 PM
SENATOR DUNLEAVY pointed out that local school districts, school
boards, parents, and other groups will ultimately be making
determinations on spending and decisions on salaries, hiring
teachers, or starting pre-kindergarten programs.
7:41:01 PM
CHAIR MEYER thanked the governor for proposing the initial bill.
The bill was taken up in both bodies and the conference
committee blended the House and Senate views. He hoped the
respective bodies of the legislature will support the [HCCS for
HB 278] when it comes to the floor. He thanked Chair Hawker and
all parties involved in the process, including staff. He
specifically thanked David Teal, Suzanne Armstrong, and Edra
Morledge for their assistance. He said that the Free Conference
Committee could not have operated without good staff.
CHAIR HAWKER joined in expressing thanks to participants. He
acknowledged that his staff, Juli Lucky, Rena Delbridge, and
Cecile Elliott, are invaluable.
7:42:50 PM
CHAIR HAWKER announced that the next meeting will be recessed to
a time certain. He advised that the proposed free conference
committee substitute (FCCS) for HB 278 is currently being
drafted and will be reviewed and distributed.
7:43:40 PM
CHAIR HAWKER recessed the meeting until 10:00 a.m. on April 24,
2014.
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