Legislature(2025 - 2026)BELTZ 105 (TSBldg)
02/12/2025 03:30 PM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB41 | |
| SB23 | |
| SB22 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 41 | TELECONFERENCED | |
| *+ | SB 22 | TELECONFERENCED | |
| *+ | SB 23 | TELECONFERENCED | |
SB 22-FINANCIAL LITERACY PROGRAM IN SCHOOLS
4:13:40 PM
CHAIR TOBIN reconvened the meeting and announced the
consideration of SENATE BILL NO. 22 "An Act establishing a
financial literacy education program for public schools; and
providing for an effective date."
4:14:03 PM
SENATOR BILL WIELECHOWSKI, District K, Alaska State Legislature,
Juneau, Alaska, Sponsor of SB 22. He stated that SB 22 was
introduced in the previous session, passed the committee, but
failed to advance due to late timing. He explained that the
bill's core goal is to ensure high school students receive
financial literacy education, including skills like balancing a
checkbook, setting up a retirement plan, and applying for
financial aid. He noted that Alaska has the lowest financial aid
application rate in the country and emphasized the importance of
equipping students with foundational financial knowledge. He
described how initial proposals for a standalone course were
revised, based on feedback from school districts and the
committee, to integrate financial literacy into existing
subjects like math and economics. He acknowledged concerns from
educators about added mandates but argued that this is a minimal
requirement with broad flexibility, similar in importance to
civics.
4:16:43 PM
HUNTER LOTTSFELDT, Staff, Senator Bill Wielechowski, Alaska
State Legislature, Juneau, Alaska, Offered a presentation and
sectional analysis on SB 22. He moved to slide 2 and paraphrased
What is Financial Literacy, adding that it is also important for
Alaska's students to know how to apply for financial aid:
[Original punctuation provided.]
What is Financial Literacy
• Understanding how much you earn and spend
• Responsibly managing and paying off debt
• Building assets to achieve personal goals
• Preparing for financial security later in life
4:17:20 PM
MR. LOTTSFELDT moved to slide 3, Why Do We Need Financial
Literacy, and shared the following points:
[Original punctuation provided.]
Why Do We Need Financial Literacy?
• Only third of Americans can comfortably cover a $400
emergency
• Average credit card debt in Alaska: $8,026
• Average student loan debt in Alaska: $35,821 (2k
increase)
• Alaska received an "F" grade in teaching financial
literacy
4:18:01 PM
MR. LOTTSFELDT moved to slide 4, SB 22:
[Original punctuation provided.]
Senate Bill 22
• Adds a 0.5 credit in financial literacy
• Course should cover topics including:
• Making a budget
• Avoiding fraud and financial deception
• Basic principles of retirement accounts
• Postsecondary financial aid and scholarships 4
4:18:22 PM
MR. LOTTSFELDT moved to slide 5, List of Topics, and said
essential SB 22 is trying to build a base for personal finance
as students graduate from public school:
[Original punctuation provided.]
List of Topics
• (1) different types of financial institutions and
opening and managing an account with a financial
institution;
• (2) making a budget;
• (3) basic principles of money management,
including spending, credit, credit scores, and;
managing retail debt, credit card debt, and other
types of debt
• (4) basic principles of completing a loan
application;
• (5) basic principles of personal insurance
policies;
• (6) basic computation of federal income taxes;
• (7) avoiding fraud, financial deception, and
predatory lending practices;
• (8) simple contracts;
• (9) contesting an incorrect billing statement;
• (10) computing interest rates by various
mechanisms; (11) types of savings and
investments;
• (12) basic principles of retirement accounts;
• (13) receiving an inheritance and related
financial implications;
• (14) postsecondary financial aid and
scholarships; and
• (15) financial implications of being a member or
a beneficiary of a Native corporation established
under 43 U.S.C. 1601 et seq. (Alaska Native
Claims Settlement Act) or a similar entity,
including payment of dividends and issuance of
shares.
4:18:40 PM
MR. LOTTSFELDT provided the sectional analysis for SB 22:
[Original punctuation provided.]
SB 22
Sectional Analysis
Section 1. AS 14.30 relating to public schools, adds a
new section
a. Directing school districts to establish and
provide a financial literacy education
program, equivalent to a half credit, for
students in grades nine through 12 that will
be approved by the Department of Education&
Early Development. And topics covered their-
in.
b. Creates an exemption to this graduation
requirement for transfer students who cannot
reasonable complete the course work.
c. Provides definitions.
Section 2. Provides an applicability date of January
1, 2027, for the first graduating class that will need
to meet this requirement.
Section 3. Provides an effective date for the bill of
July 1, 2026.
MR. LOTTSFELDT said that if a student transfers from out-of-state to
a school in Alaska after 10th grade the student does not need to
fulfill the half credit requirement.
4:19:34 PM
SENATOR STEVENS asked whether the Free Application for Federal
Student Aid (FAFSA) is included in SB 22, noting that many
students appear lost when trying to complete the form, which is
required for scholarship eligibility.
4:19:55 PM
MR. LOTTSFELDT stated that SB 22 addresses both FAFSA and the
Alaska Performance Scholarship. He shared his concern over
Alaska's FAFSA completion rate, noting it dropped from 16
percent last year to 13.7 percent as of January 31. He added
that the rate was as low as 11.9 percent just two weeks earlier
and expressed hope it would improve by the end of the school
year. He emphasized that the consistently low rates remain a
significant concern.
4:20:36 PM
SENATOR CRONK stated support for SB 22 but sought clarification,
asking whether it mandates that every student must complete
financial literacy education as a graduation requirement
beginning after 2027.
4:20:49 PM
SENATOR WIELECHOWSKI replied that SB 22 does mandate students
complete financial literacy education.
SENATOR STEVENS addressed concern about the use of the term
unfunded mandates and said the state provides over a billion
dollars to education. He asserted that certain priorities, like
financial literacy, must be addressed. He maintained that
districts should be able to allocate time and resources within
existing funding to teach this content.
4:21:25 PM
CHAIR TOBIN asked for clarification on language in SB 22, page
two, lines three and four, specifically the phrase "the program
must include, to the maximum extent practicable, discussion of
or instruction on..." She requested an explanation of what that
language might mean in practical terms for a school, especially
in the context of concerns about unfunded mandates.
SENATOR WIELECHOWSKI explained that the phrase "to the maximum
extent practicable" was language added by the committee last
year to provide flexibility. He stated that if a school
districtsuch as one in a rural areacannot reasonably implement
the requirement, then meeting the standard of practicability
would relieve them of the obligation. He emphasized that the
bill requires the Department of Education and Early Development
to make a list of approved open educational resources available
to districts, as noted on page one, lines eight and nine. He
added that many credible online financial literacy curricula
exist, and some districts, like Anchorage, have already
successfully integrated them. He noted that the provision serves
as a pressure relief valve for districts unable to meet the
requirement.
4:23:16 PM
CHAIR TOBIN stated that changes intended to simplify the Free
Application for Federal Student Aid (FAFSA) process have instead
contributed to low completion rates. She expressed hope that
those rates will improve. She shared her experience attending
the State Higher Education Executive Organization's annual
convening, where the Alaska Commission on Postsecondary
Education (ACPE) and others emphasized the importance of
financial literacy in high school. She noted that students are
often taking on significant debt without fully understanding the
long-term financial impact and that parents may be unable to
guide them. She expressed support for the legislation,
highlighting the state's responsibility to prepare students for
financial success.
4:24:17 PM
SENATOR KIEHL emphasized that students cannot complete the FAFSA
on their own because they need their parents' tax information.
4:24:37 PM
SENATOR WIELECHOWSKI confirmed Senator Kiehl's statement.
4:25:13 PM
KELLY MANNING, Deputy Director, Division of Innovation and
Education Excellence, Department of Education and Early Child
Development, Juneau, Alaska, reviewed the fiscal note for SB 22.
She stated that the fiscal note for SB 22 was based on the
requirement that DEED maintain a list of approved open
educational resources that align with the bill. She explained
that the department would convene a committee of 20 educators,
compensated through stipends, to develop a rubric for evaluating
these resources. The committee would align the bill's
requirements with existing education standards and use the
rubric to assess and compile a vetted list of materials. She
added that the fiscal note also includes funding for a financial
literacy expert to support the process and covers fees related
to necessary regulation changes.
SENATOR STEVENS SENATOR STEVENS asked for an explanation of
"existing open resources."
4:26:56 PM
MS. MANNING explained that while some financial literacy
curricula come with costs and must be purchased by districts,
others are free open educational resources. These free resources
are often developed through federally funded grants or by
educational nonprofit organizations and are publicly available
for use. She stated that the department would typically issue a
Request for Information (RFI) to identify potential partners
offering relevant materials. The department would then research
what is currently available and in use by other states or
districts, and compile those resources for evaluation based on
quality and alignment with educational standards.
4:27:59 PM
SENATOR CRONK asked whether using a stipend is a common past
practice. He also inquired about the amount of the stipend per
person and the expected timeframe for the educators' work.
4:28:17 PM
MS. MANNING explained that the stipend is intended for Alaska
educators who participate in the committee process. She stated
that each educator would receive $1,500, based on the estimated
time required to review standards, develop a rubric, and
evaluate materials. She noted that the work would take place
over several months and emphasized that since these educators
are already balancing district responsibilities, the stipend
both encourages participation and recognizes the additional
commitment and work involved.
4:29:38 PM
SENATOR WIELECHOWSKI stated that SB 22 has broad support from
various organizations, including the Alaska Chamber of Commerce,
the Anchorage School District, the Rural Alaska Community Action
Program Inc. (RurAL CAP), Alaska Credit Union League, and
others. He thanked the committee for their time and
consideration.
4:30:01 PM
CHAIR TOBIN held SB 22 in committee.