02/26/1998 08:40 AM Senate FIN

                                                                               
 SENATE BILL NO. 36                                                            
"An Act relating to transportation of public school                            
students; relating to school construction grants;                              
relating to the public school foundation program and to                        
local aid for education; and providing for an effective                        
date."                                                                         
                                                                               
Co-chair Sharp convened the meeting and asked Senator                          
Phillips to make the necessary announcements regarding SB
.                                                                            
                                                                               
Senator Phillips said the foundation formula bill was                          
scheduled for public hearing tonight from 6:00 p.m. until                      
9:00 p.m.                                                                      
                                                                               
Co-chair Sharp confirmed that the first public hearing was                     
scheduled for this evening and tomorrow evening from 4:30                      
p.m. until 6:30 p.m. and Saturday would continue from 10:00                    
a.m. until 3:00 p.m. or as needed.                                             
                                                                               
Senator Phillips advised there would be work draft form of                     
the bill for the committee to consider with an attached                        
proposed amendment on Tuesday.  It was marked 0-LS0070\H.4,                    
Ford, 2/25/98.  For this evenings meeting the Department of                    
Education would be present and distribute spread sheets                        
based on the following assumption:  one, FY '99 level of                       
funding requested by the Governor; two, FY '99 ADM (average                    
daily membership) of $130,800.55.  The FY '99 foundation                       
support includes $633,021,600 in general funds; $20,791,000                    
PL81874 funds and the public school trust funds of                             
$7,118,700.  This made for a grand total of $660,931,300 or                    
$29,253.6 million more than the general fund only level of                     
$631,677,700 as discussed earlier.                                             
                                                                               
Senator Adams asked if these numbers included new enrollees,                   
single sites and other resources that perhaps are not                          
included in this particular number.                                            
                                                                               
Co-chair Sharp said it included the Administration's student                   
estimate.                                                                      
                                                                               
Senator Pearce referred to the projected FY '99 number of                      
students from the Department of Education.  The $633 million                   
is the Governor's request for the foundation formula.  The                     
$3 million that was the next line down in the budget, the                      
single site money, was not included in the run.                                
                                                                               
Senator Phillips said further the amendment along with the                     
spreadsheet from the Department would be distributed for                       
Tuesday's meeting.  The amendment corrected an error in the                    
work draft, section twenty-six, which describes the funding                    
for a two-year transition period.  The spreadsheet,                            
generated by the Department, would illustrate the per                          
student funding formula using the new transition language.                     
He said he felt everyone who was interested in the education                   
of our children would appreciate the legislation allocating                    
simply and equitably on a per student basis to individuals.                    
He then asked the Co-chair to announce the schedule for                        
public testimony this evening.                                                 
                                                                               
Co-chair Sharp indicated that testimony would be limited to                    
three minutes as customary this evening over a three-hour                      
period.  He wanted to work around the State giving everyone                    
a chance to speak.  He said the same guidelines would be                       
followed Friday evening and Saturday.                                          
                                                                               
Senator Adams asked if it would be possible for the                            
Department to come to the table and explain that with the                      
given numbers how the single sites would be affected.  Co-                     
chair Sharp advised Senator Adams that the Department was                      
given instructions to use assumptions and to do the spread                     
sheets accordingly.  When the bill comes back before the                       
committee the department will provide a briefing.  He                          
cautioned that assumptions change and budgets are modified                     
by the Administration and the Legislature.  The starting                       
point was the figures mentioned and the formula has some                       
accommodations for single site allotments in the                               
calculations.  He hoped the spreadsheets would be available                    
around noon today and they would be provided by wire service                   
to all the LIO's along with the CS that has been made                          
available electronically.                                                      
                                                                               
Senator Phillips said he would provide any additional                          
information Senator Adams required.                                            
                                                                               
Senator Adams expressed concern in no allocation being made                    
to the North Slope and felt it was an error.  He also said                     
taxation of unincorporated areas was not simple and                            
equitable.  He again referred to the McDowell Study and said                   
it was flawed and was done too quickly.                                        
                                                                               
Senator Phillips asked the Co-chair to allow time for                          
Senator Adams to participate in a question and answer period                   
with the McDowell group as he wasn't present at their                          
original invitation before the committee.  Co-chair Sharp                      
advised he would try to get something set up again for next                    
week.  Senator Adams asked for approximately five minutes at                   
this evening's meeting to show why the study was flawed and                    
then he would also put his comments in writing.  Co-chair                      
Sharp said he would allow Senator Adams five minutes before                    
the taking of public testimony this evening.  Senator                          
Phillips concurred.  Senator Torgerson requested that the                      
McDowell group be given adequate time to respond to Senator                    
Adams' questions and Co-chair Sharp they could respond next                    
week.                                                                          
                                                                               
Senator Adams asked if there was anything else the                             
Department required.                                                           
                                                                               
Richard Cross, Deputy Commissioner, Department of Education                    
was invited to join the committee.  He advised they had all                    
the information needed to do runs.  He hoped they would be                     
completed and checked by noon or shortly thereafter.                           
                                                                               
Co-chair Sharp reiterated that the numbers were to be based                    
on assumptions and were subject to change as far as total                      
dollars.  He set aside SB 36 until this evening at 6:00 p.m.                   
He explained the committee would take public testimony for                     
the next three days and then on Tuesday morning start in                       
working on the bill at committee level.  The next bill the                     
Co-chair called was SB 273.