Legislature(1995 - 1996)
02/03/1995 09:10 AM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SHES - 2/3/95
SB 22 APPROP: K-12 SUPPORT; DEBT RETIREMENT
Number 254
CHAIRMAN GREEN introduced SB 22 as the next order of business
before the committee.
SENATOR HALFORD, Prime Sponsor, expressed the need for a decision
on the funding of education by March, before the budget rush. He
pointed out that SB 22 lists Mental Health Trust Income as one of
the funding sources. He offered an amendment which would change
the amount of funding in regards to the student load increase.
This change would bring the funding level per unit to that of last
year while increasing the cost.
Number 292
SENATOR LEMAN asked how education funding, which is the largest
portion of the budget, could be increased while other areas absorb
budget cuts. All areas of the budget should face the same
constraints. The state faces a $300 million to $500 million budget
deficit; it would not be fiscally responsible to consider total
cost increases even if the cost per unit remains the same.
SENATOR HALFORD stated that he wanted to put the question of the
foundation formula before the legislature. He expressed
frustration in that SB 22 would be adding to the least equitable
and understandable formula. The formula should be rewritten. He
emphasized the need to deal with the formula soon in order that the
municipalities can set their tax rates.
SENATOR HALFORD explained that his amendment would correct the
Mental Health question. The amendment would be necessary if the
committee desired to proceed with the total amount in SB 22. The
amendment does not change the total amount; there is only a change
in the fund source.
Number 340
SENATOR MILLER moved Amendment 1. Without objection, it was so
ordered.
SENATOR HALFORD clarified that the amendment would change the
funding source from the Mental Health Trust to the General Fund.
DEBRA GERRISH, a concerned parent, pointed out that there was a
paper available which explained the foundation formula. She gave
examples of the decline in education in her district: students
without books for six weeks, lack of desks, and elementary classes
with 28 and 30 students. She urged the committee to increase the
foundation formula because inflation decreases the formula when the
units of the children are considered. She suggested instituting a
school tax and an income tax.
SENATOR LEMAN understood Ms. Gerrish's request to increase the
amount of the foundation formula. He asked what the fund source
should be. DEBRA GERRISH reiterated two possible funding sources:
a school tax and an income tax. She informed the committee that
the high school parent group would be writing a letter suggesting
that the local Board of Education freeze the step in column in the
district.
SENATOR LEMAN asked Ms. Gerrish if she were willing to pay a
portion of the cost of the education of her children. DEBRA
GERRISH stated that she would be willing to contribute directly
only if there was a sliding scale fee instituted so that parents
would contribute only as much as they could afford.
WANDA COOKSEY, Small Single Site School District, asked the
committee to include the small single site school district in SB 22
in the amount of $3.2 million, as it did last year.
SENATOR LEMAN inquired as to the correctness of the amount for the
single site schools. SENATOR HALFORD explained that the amount was
$3.2 million last year, but the single site amount and list has
changed throughout the years.
Number 438
WANDA COOKSEY offered the committee a proposed legislative
correction which would put single sites into statutes so they would
not have to be added every year. She informed the committee that
in the previous three years the amount for single sites and the
list of single site schools has stabilized.
VERNON MARSHALL, Executive Director of the National Education
Association of Alaska, thanked Senator Halford for bringing this
funding issue before the committee so early. He expressed concern
with the contents of the bill. The growth of the student
population, school violence, and student respect all need to be
addressed. He pointed out that the instructional unit has been
increased only once since 1987; there is a need for inflation-
proofing in education. He stated that omitting the single site
school district does not solve the problem and those children need
to be addressed. He urged the committee to address all the
problems he cited and increase the area of technology. In
conclusion, he said that he was committed to rewriting the formula.
Number 504
SENATOR HALFORD clarified that single site schools were not present
in SB 22 because the formula does not call for single site schools,
they are essentially an addition to the formula. VERNON MARSHALL
felt that this issue could be addressed in the rewrite of the
formula.
SENATOR LEMAN informed the committee that SB 22 is a $800 million
General Fund investment plus the $120 million of the other
resolution which is a considerable investment. In Alaska, $10,000
to $11,000 is spent per student per year on average which includes
local matches for K-12. He suggested that the total cost of
education be decreased without hurting the services provided. He
related his own good experience in the Alaska school system before
there was even oil money. How can the best services be provided in
an atmosphere of decreasing revenues?
VERNON MARSHALL explained that he felt education should be
structured so that student competition can occur in the new
century. The world has changed and so should the schools and the
instruction of the children. He suggested creating incentives for
local school districts to contribute their share to educate their
own children. He pointed out that many states have fifty percent
or more of their General Fund going towards education, while Alaska
contributes thirty-two percent of the General Fund. He explained
that Alaska has a unique position; the bush has an increased
delivery expense per child which should be addressed in the
formula.
Mr. Marshall discussed the need to set a goal and then review the
approaches and the money needed to achieve the objectives. He
stated that educational money should be spent in a manner to allow
students the best possibility of becoming viable citizens.
TAPE 95-1, SIDE B
Number 583
SENATOR LEMAN asked if competition were applied could educational
services be better with decreased cost. VERNON MARSHALL felt that
the educational system could do better, but it is trying to do its
best now. Mr. Marshall felt that public education already faces
competition with correspondence courses, private schools, and home
schooling. Mr. Marshall explained that parents want development of
their children, but increased class sizes creates difficulty in
achieving this development for all children.
STEVE McPHETRES, Executive Director of the Alaska Council of School
Administrators, pointed out that the committee had the Council's
paper which expresses their desire to increase the foundation
portion of SB 22. He appreciated the sponsor's prompt timing with
this legislation. He informed the committee that after attending
a parent meeting, the parents' desire to have a safe, healthy
environment with acceptable class sizes was apparent. These
objectives cannot be achieved with continual cuts in state funding.
For example, Fairbanks, Juneau, Kenai, and Kodiak all face $2
million reductions in order to maintain current levels of programs.
The reserves have been used, these areas cannot contribute any
more. He urged the committee to realize that the cost of
maintaining the status quo has increased while cuts continue.
SENATOR MILLER moved that SB 22 as amended be moved out of
committee with individual recommendations. Without objection, it
was so ordered.
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