Legislature(2017 - 2018)HOUSE FINANCE 519
02/01/2018 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB321 | |
| HB287 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 321 | TELECONFERENCED | |
| + | HB 176 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 287 | TELECONFERENCED | |
HOUSE BILL NO. 287
"An Act making appropriations for public education and
transportation of students; making appropriations
under art. IX, sec. 17(c), Constitution of the State
of Alaska, from the constitutional budget reserve
fund; and providing for an effective date."
1:57:59 PM
Co-Chair Foster indicated that the committee heard the bill
twice previously and the prior meeting was held on January
30, 2018. He intended to move the bill out of committee.
Co-Chair Foster OPENED public testimony.
^PUBLIC TESTIMONY
1:58:32 PM
MARK MILLER, SUPERINTENDENT, JUNEAU SCHOOL DISTRICT,
JUNEAU, spoke in support of HB 287. He explained the
process of budgeting for the school district. He indicated
that the school district built its budget for the following
school year from January through March each year. If he did
not know the number for the budget, he had to guess, and
the guess must be conservative, or it could result in a
"catastrophic" situation. He believed that the situation
could be averted if a sustainable budget was adopted. He
related that the previous budgets were not completed in
time to work with the school district's budgeting cycle. He
was not sure the bill solved the overarching problem but
felt the bill was the right thing to do.
2:02:00 PM
DAVID BOYLE, ALASKA POLICY FORUM, ANCHORAGE, (via tele-
conference), spoke in opposition to HB 287. He argued that
the education budget should be included within the rest of
the operating budget. He argued that other departments like
the Department of Public Safety, Department of
Transportation and Public Facilities (DOT), and the
University of Alaska might "demand" that its budgets were
forward funded. He characterized the bill as "incentivizing
bad behavior." He understood that the budget had been
passed very late but felt that the district's budgets could
be managed. He stated that the education system was "not a
jobs program." He opined that the education system had been
funded with very "little accountability for increased
student achievement."
2:04:00 PM
AT EASE
2:04:50 PM
RECONVENED
Mr. Boyle continued that the Anchorage School District
transported 15,000 students but received funding for 47,000
thousand students. He suggested prioritizing transportation
costs. He noted that when the school district in Anchorage
distributed pink slips they were only given to teachers and
not to support staff. He argued for privatization of some
support services.
2:07:06 PM
STARR MARSETT, VICE-PRESIDENT, ANCHORAGE SCHOOL BOARD,
ANCHORAGE (via teleconference), spoke in favor of HB 287.
She indicated that the school district had issued
approximately 220 pink slips. She explained the time
consuming process of issuing pink slips. She spoke to the
difficulties of managing health insurance once pink slips
were issued and the many costs associated with issuing pink
slips. Teachers were at risk of losing their health
insurance if they were not reinstated by June 30th each
year. She also noted the loss of new hires and the
difficulty of recruitment because of the state's budget
process and how it impacted education spending. The school
district hired approximately 260 teachers each year due to
turnover and retirements. She indicated that reliable
funding would help avoid unintended costs and the stated
issues while also boosting student and teacher morale.
2:10:48 PM
JENNIFER MCNICHOL, PRESIDENT, SITKA SCHOOL BOARD, SITKA
(via teleconference), spoke in support of HB 287. She
thought that the legislation helped to solve the budgeting
issue for school districts. The budget was done "far too
late for district budgeting requirements." The bill would
assist in teacher retention, which was crucial. The school
district was in the process of initiating the Alaska
Education Challenge, Every Student Succeeds Act (ESSA) and
other projects and did not need budget uncertainty. She
suggested a default to flat funding education if the budget
deadline was missed. However, she hoped flat funding meant
hold harmless because flat funding would equal a decrease
in funding due to the rising costs of health care and
utilities. She remarked that the district's health
insurance increased 13 to 25 percent each year. She spoke
to Mr. Boyles testimony and countered that teachers made up
most of the districts staff and layoffs primarily affected
teachers. Many of the district's support staff worked under
long term contracts that were not able to be changed when a
budget passed. She did not think passing a timely budget
was "throwing money at a problem" as Mr. Boyle suggested.
The board's number one goal was to close achievement gaps.
She thanked the committee.
2:13:51 PM
MAYOR BERT COTTLE, CITY OF WASILLA, WASILLA (via
teleconference), spoke in support of HB 287. He noted that
he did not have a direct impact on the district's budget
but observed through experience that late funding affected
morale and retention. He believed that early funding helped
school districts and communities know what their budgets
would be. He asked the legislature to take care of the
education budget early in the session.
Co-Chair Seaton asked when the school district was required
to submit its budget to the municipality or if the budget
was submitted directly to the borough. Mr. Cottle responded
that the district's budget went directly to the borough.
2:15:40 PM
JOHN RINGSTAD, FAIRBANKS NORTH STAR BOROUGH SCHOOL
DISTRICT, FAIRBANKS (via teleconference), spoke in favor of
the legislation. He related that the prior late funding was
problematic for all school districts. He thought that early
funding focused the process on educating children. He
talked about the process that was required when funding was
in question each year. He thought more focus on the
classroom was the goal instead of developing contingency
budgets, which increased administrative costs instead of
leaving more money for the classroom. He stated that
anything to move the budgeting process efficiently forward
would be helpful. He thanked the committee.
2:17:59 PM
Co-Chair Foster CLOSED Public Testimony.
Representative Pruitt reported that every year he had been
in the legislature he heard concerns about properly funding
education even when it was forward funded. He argued that
the bill was unnecessary, and it implied that the
legislature would not get its job done in 90 days. He
thought that most members of the legislature and the
governor were aligned with the numbers in the education
budget. He contended that the bill was overcapitalizing and
withdrawing $800 million out of the Constitutional Budget
Reserve (CBR) was needless. However, he would support
moving the bill from committee even though he objected to
the budgetary process in the bill. He felt that a vote
against the bill would be portrayed as though he was
against children and teachers. He relayed his wholehearted
support of teachers. He reiterated that the real discussion
was about a budgetary process. He contended that children
and teachers were being "weaponized" in and argument over a
budgetary process. The bill did not fully fund education
for the following year; only key pieces were being funded
as they related to education in the bill. He opined that
the issue was about a process and how the legislature
pieced things together.
2:22:02 PM
Vice-Chair Gara spoke to the point of why early funding
mattered. He indicated that when pink slips were issued
teachers and parents took it seriously. The result was the
loss of great teachers. He hoped that bipartisan support
existed for early funding education to avoid sending out
pink slips. He noted that the prior few year's late
budgeting threatened troopers, teachers, and other vital
state professionals' jobs, which contributed to retention
issues.
Co-Chair Seaton clarified that the purpose of the bill was
to make the education system more efficient. He reiterated
the testimony he heard of the effects of late budgeting on
the school districts. He thought the bill needed a
cooperative effort. He deemed it was much more efficient to
take money from the CBR because it earned significantly
less than the Earnings Reserve Account (ERA). He offered
that there would be no point to draw from the ERA instead
of a fund that earned less. He thought the bill was
promoting efficiency on several levels, would help with the
retention of teachers, and morale issues. He hoped the
legislators would agree to fund education early. He
encouraged members to vote the bill out of committee.
2:26:45 PM
Vice-Chair Gara MOVED to report HB 287 out of Committee
with individual recommendations.
2:27:18 PM
AT EASE
2:27:48 PM
RECONVENED
Vice-Chair Gara WITHDREW his motion.
Vice-Chair Gara MOVED to report HB 287 out of Committee
with individual recommendations. There being NO OBJECTION,
it was so ordered.
HB 287 was REPORTED out of committee with a "do pass"
recommendation.
Co-Chair Foster reviewed the schedule for the following
day.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 321 FY2018_Supplemental_Spreadsheet_2-1-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| HB 321 FY2018_Supplemental_Backup_2-1-2018.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| FY2018_Supplemental_Summary_1-29-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| DHSS Review WDR-HB176-2-6-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 176 |
| HB 321 OMB Response HFIN Meeting 2.1.18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| HB 321 FY2018 Supplemental UNAC & FFU.PDF |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |