Legislature(2023 - 2024)BELTZ 105 (TSBldg)
03/06/2024 03:30 PM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB97 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 97 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 97-TEACHER RECRUITMENT; LUMP SUM PAYMENT
3:32:50 PM
CHAIR TOBIN announced the consideration of SENATE BILL NO. 97
"An Act authorizing lump sum payments for certain teachers as
retention and recruitment incentives; and providing for an
effective date."
3:33:19 PM
DEENA BISHOP, Commissioner, Department of Education and Early
Development (DEED), Juneau, Alaska, offered a brief overview of
SB 97 on behalf of the administration. She moved to slide 2 and
shared the mission, vision, and purpose of the department:
[Original punctuation provided.]
Mission
An excellent education for every student every day.
Vision
All students will succeed in their education and work,
shape worthwhile and satisfying lives for themselves,
exemplify the best values of society, and be effective
in improving the character and quality of the world
about them. - Alaska Statute 14.03.015
Purpose
DEED exists to provide information, resources, and
leadership to support an excellent education for every
student every day.
3:33:54 PM
MS. BISHOP moved to slide 3 and shared what Alaska's Education
Challenge is and its five strategic priorities:
[Original punctuation provided.]
Alaska's Education Challenge
Five Shared Strategic Priorities:
1. Support all students to read at grade level by the
end of third grade.
2. Increase career, technical, and culturally relevant
education to meet student and workforce needs.
3. Close the achievement gap by ensuring equitable
educational rigor and resources.
4. Prepare, attract, and retain effective education
professionals.
5. Improve the safety and well-being of students
through school partnerships with families,
communities, and tribes.
3:34:21 PM
COMMISSIONER BISHOP moved to slide 4 to discuss teacher turnover
rates in Alaska. She provided background on teacher turnover,
noting that Northwest research shows a 22 percent turnover rate
interstate, with rural Alaska facing an acute turnover of nearly
33 percent annually. This high turnover leads to numerous
negative outcomes for students, including disrupted classrooms,
opportunities, loss of teacher-student relationships, and
negative impacts on academic achievement and teacher morale.
Replacing teachers is costly, with 2017 data from the Center for
Alaska Education Policy Research showing attrition costs
exceeding $20,000 per year, and inflation has driven this figure
higher:
[Original punctuation provided.]
Teacher Turnover Rates In Alaska
Produced by Regional Laboratory Education Northwest:
10 percent gap between urban and rural-remote teachers
16 percent gap between urban and rural-remote
principals
2020/21 annual turnover rates
TEACHERS PRINCIPALS
Rural-remote 31 percent 26 percent
Rural-hub/fringe 25 percent 20 percent
Urban-fringe 18 percent 20 percent
Urban 21 percent 10 percent
3:35:35 PM
COMMISSIONER BISHOP moved to slide 5 and explained that Alaska's
first-day certified position vacancy rates are tracked by the
department. The impetus for SB 97 to attract and retain teachers
is to reduce this vacancy data point. She emphasized that this
issue affects school success across all districts, with no
district immune to the challenge of hiring and retaining high-
quality teachers. For the Regional Educational Laboratory (REL)
Northwest report, a vacancy is defined as any unoccupied
certified position on the first day of a teacher's contract,
which varies by district. Vacancies can result from new
positions, unfilled advertised positions, or positions where a
teacher was hired but not present:
[Original punctuation provided.]
Alaska First Day Certified Position Vacancy Rates
2020 - 155
2021 - 227
2022 - 313
2023 - 394
2024 - 507
3:36:05 PM
SENATOR STEVENS joined the meeting.
3:36:34 PM
COMMISSIONER BISHOP moved to slide 6 and outlined the steps
taken to address teacher recruitment and retention, grounding
the discussion in the context of SB 97. She shared that the
Alaska Challenge, initiated in 2016 by the State Board of
Education, selected teacher recruitment and retention (TRR) as a
strategic priority. In April 2020, Governor Dunleavy established
a TRR working group with statewide stakeholders and allocated
funding for the effort. This led to the TRR Action Plan, which
included 18 recommendations across six areas. In August, a
comprehensive playbook was released, revising these
recommendations, and outlining implementation strategies defined
by stakeholders. The plan focuses not only on policy changes but
also on actions that districts, communities, schools, and
educators can take to improve retention. Dr. Goyette and Dr.
Adams were highlighted as key figures in the stakeholder
engagement process.
3:38:50 PM
COMMISSIONER BISHOP moved to slide 7 and discussed the six
essential areas of the TRR (Teacher Recruitment and Retention)
Action Plan. These areas include enhancing recruitment efforts,
streamlining certification, creating paraprofessional pathways
highlighting an exciting new apprenticeship program for
paraprofessionalsrestructuring retirement options, developing
leadership, and strengthening working conditions. She emphasized
the interconnectedness of these steps, particularly noting that
recruitment is key and supported by evidence. The Action Plan
defines fiscal opportunities, such as incentives for school
districts to augment teacher salaries, under the recommendation
to strengthen working conditions. She highlighted that these
suggestions stemmed from educators, with over 4,000 respondents
contributing to the report. She noted that Senator Tobin's
reference to a 27 percent response rate from Alaska educators is
notably high for such work.
3:40:23 PM
CHAIR TOBIN acknowledged Senator Bjorkman joined the meeting.
3:40:25 PM
COMMISSIONER BISHOP moved to slide 8 and discussed the role of
policymakers in supporting teachers in Alaska, highlighting the
stakeholders involveddistricts, state administration, partner
organizations, communities, and elected officials. She
emphasized the collective responsibility to create excellent
working conditions for teachers. SB 97 authorizes lump sum
payments as retention and recruitment incentives for certain
teachers, with a focus on classroom teachers as the core of
education. SB 97 establishes a pilot program offering incentives
of $5,000 to $15,000 per year, paid out twice annually, to
attract teachers to remote and rural areas and encourage them to
stay for the full school year.
MS. BISHOP explained that the pilot program spans three years,
with funding requested for that duration, to assess its impact
on reducing teacher vacancies and turnover. She noted that while
empirical evidence on the effectiveness of bonuses is mixed,
Alaska teachers identified this as an area policymakers could
impact. The data from open positions on the first day of school
will be one measure of success, along with the broader goals of
reducing retraining costs, stabilizing school programs, and
ultimately improving student achievement and outcomes. Retention
incentives will help Alaska compete with other sectors and
states for qualified teachers.
3:43:14 PM
COMMISSIONER BISHOP concluded her presentation.
3:43:23 PM
SENATOR KIEHL asked where in SB 97 a two-payment payout is
mentioned.
3:43:42 PM
COMMISSIONER BISHOP stated her belief that the lump sum payments
were not in SB 97 when it was conceptualized. The intent was to
structure the payments to both attract and retain teachers. She
explained that under the proposed system, a $5,000 incentive
could be split, with $2,500 paid at the beginning of the school
year and the remaining $2,500 paid at the end, contingent on the
teacher staying for the full year. The goal is to encourage
retention by incentivizing teachers to commit to the following
school year, ensuring the payment is not a one-time annual lump
sum but distributed to support long-term retention efforts.
SENATOR KIEHL noted that if the committee is reviewing the
substitute version, it clarifies why the payments occur once
after July 1, which he found helpful. He then inquired about the
study element, specifically asking who will be responsible for
gathering the data and conducting the analysis.
COMMISSIONER BISHOP responded that a specific entity has not yet
been named to conduct the study, but it will be part of the
process to evaluate. She mentioned potential options like the
Institute of Social and Economic Research (ISER) or other
entities with relevant expertise. The department would likely
issue a bid to select the most qualified group to carry out the
study and analysis.
3:45:06 PM
SENATOR KIEHL asked if there is an estimated cost in the fiscal
note for the study.
COMMISSIONER BISHOP stated her belief that there was not.
3:45:20 PM
SENATOR STEVENS stated bluntly that the legislature is in major
negotiations over education funding with the governor. SB 97
faces difficulties. He suggested that the only way to fund the
lump sum payments would be to reduce the Base Student Allocation
(BSA). Drawing on his experience in school administration, he
noted that if districts receive increased funding through the
BSA, they are likely to use it partly for teacher salaries. He
cited one district that guaranteed half of any BSA increase
would go toward teacher salaries, raising the question of
whether the BSA is the wrong mechanism for increasing teacher
pay.
3:46:28 PM
COMMISSIONER BISHOP acknowledged the complexity of teacher
retention and school funding in Alaska and reducing the issue to
just two items. She stated that she couldn't definitively answer
whether the BSA is the best way to increase teacher salaries but
noted that some districts already provide bonuses without
additional funds. Reflecting on her tenure as a superintendent,
she highlighted the unprecedented federal funding for public
education in the past three years, questioning whether enough
was done for educators during that time. She urged consideration
of past actions and the desired future, noting that, after 34
years in public education, the challenges with the BSA have
always been present.
3:47:12 PM
COMMISSIONER BISHOP emphasized that while investing in public
education is vital, there remains dissatisfaction with outcomes.
She argued for aligning investments with desired results and
pointed out that teachers are the most valuable part of the
system outside of students and parents. She said SB 97 is a
direct response to feedback from educators. However, she warned
against simply providing more money without clear goals, stating
that the cycle of asking for more funds without improved
outcomes will continue unless both outcomes and inputs are
clearly defined.
3:49:12 PM
CHAIR TOBIN followed up on the mention of federal dollars
funneled into schools over the last three years, clarifying that
her understanding was those funds were intended for pandemic
response and reimagining education in a different modality, not
simply to fund pre-pandemic and post-pandemic education
services. She asked for confirmation on whether this
understanding was correct or if she had misunderstood the
purpose of the funds.
3:49:32 PM
COMMISSIONER BISHOP replied that while the federal funds were
directed at pandemic-related responses and reimagining
education, the people carrying out that work were teachers. She
emphasized that investing in teachers is inherently part of any
pandemic response, as they are the ones responsible for
implementing those changes and ensuring education continues.
CHAIR TOBIN asked if the federal dollars were for responding to
the pandemic, not necessarily to pay teachers or cover existing
services.
COMMISSIONER BISHOP replied yes, and teachers are part of
responding. They work with the children.
3:50:11 PM
SENATOR BJORKMAN responded to the commissioner's rhetorical
question, stating that the federal funds received by school
districts were used similarly to the Troubled Asset Relief
Program (TARP) funds from 16 years ago. He explained that these
funds primarily preserved staff, programs, and educational
opportunities, allowing teachers to keep their jobs and continue
teaching rather than being laid off. Additionally, some of the
funds were used to raise teacher salaries. However, he pointed
out that changes at the beginning of the Obama administration
led to salary increases being offset by healthcare premiums
tripling. He emphasized that with 80 percent or more of a school
district's budget going to personnel costs, the money is indeed
going to educators. He noted that many negotiated agreements
direct BSA increases toward salaries and questioned the validity
of comments suggesting otherwise.
3:52:01 PM
COMMISSIONER BISHOP acknowledged understanding collective
bargaining and agreed that salary increases alone have not
resulted in more take-home pay for teachers, citing health care
cost increases. She clarified that the incentive payment being
discussed was intended as additional compensation beyond salary,
as requested by teachers in a survey, to improve competitiveness
within and beyond Alaska. Other incentives discussed included
plane tickets, improved working conditions, and leadership
opportunities. She emphasized that school funding and the Base
Student Allocation (BSA) should support personnel, as education
depends on teachers, and the incentive payment was designed to
aid in attraction and retention.
3:53:29 PM
CHAIR TOBIN mentioned that, according to the teacher retention
and recruitment survey, the top priority identified was adequate
compensation and salary increases. The second priority was
positive workplace conditions, followed by personal connections
with students, retirement benefits, and health care. Positive
school culture ranked sixth, and manageable workload was
seventh, while bonuses ranked fifteenth.
3:53:59 PM
SENATOR KIEHL asked if there was guidance from the Department of
Education and Early Development (DEED) recommending school
districts not use COVID funds for reoccurring costs.
3:54:18 PM
COMMISSIONER BISHOP replied she would get back to the committee
because she did not work for the department then. She stated
that the federal government gave guidelines. However, it is
common knowledge that commitments using one time funding require
careful consideration. Sometimes one time funding is renewed and
sometimes it is not.
SENATOR KIEHL stated that this effectively settles the question
of whether the one-time pandemic assistance was inappropriately
withheld from teachers.
3:55:06 PM
At ease
3:55:28 PM
CHAIR TOBIN reconvened the meeting and announced invited
testimony for SB 97.
3:55:52 PM
RANDY TRANI, Superintendent, Mat-Su Borough School District,
Palmer, Alaska, referenced Teacher Bonus for Recruitment and
Retention: An Alternate Approach, a document he created and
shared on BASIS. He stated that, by his calculations, the
proposal reduces the upfront cost to the state by about one-
sixth in the first year and would reduce total costs over time,
while increasing the compensation teachers receive over time. He
modeled this after the Alaska Teacher Scholarship Program from
the 1980s and 1990s, which forgave an increasing portion of a
teacher's college debt for each year they taught in rural
Alaska. He compared it to "golden handcuffs" meant to retain
teachers long-term and noted that he himself benefited from it,
staying in Alaska for 34 years.
3:57:27 PM
MR. TRANI mentioned challenges with hiring teachers with J-1
visas, specifically those from the Philippines, as the current
system grants $15,000 annual bonuses over three years, totaling
$45,000, which leaves the state when teachers must return home
due to visa restrictions. He discussed his following bonus
proposal:
Teacher Bonus for Recruitment and Retention:
An Alternate Approach
Plan: Incentivize longer retention through progressive
bonuses. Rationale:
• Mimics old Alaska Teacher Scholarship Loan process
that worked in the 80's and 90's.
• Allows employees to "grow roots" hopefully resulting
in longer retention after the bonus period is
exhausted.
• Does not send money away to foreign countries as
rapidly as the current proposal.
• Currently we have plenty of applicants from the
Philippines?the bottle neck for those folks is
not the money. It is the J1 Visa process.
• Therefore we do not need to attract them.
• Since they can only stay for three
years on a J1 Visa we can not retain
them.
• We would be wasting money on
someone we can not retain and
already can attract
Logistics:
Tier 1 Incentive
Most Rural
Year 1 $2500
Year 2 $5000
Year 3 $7500
Year 4 $10,000
Year 5 $12,500
Year 6 $15,000
TOTAL $52,000
Tier 2 Incentive
Rural
Year 1 $1500
Year 2 $3000
Year 3 $4500
Year 4 $6,000
Year 5 $7,500
Year 6 $10,000
TOTAL $32,500
Tier 3 Incentive
Urban
Rural
Year 1 $750
Year 2 $1500
Year 3 $2250
Year 4 $3000
Year 5 $3750
Year 6 $4500
TOTAL $15,750
3:58:26 PM
MR. TRANI added that because some people will washout of the
program, in the long run, it would be cheaper for the state to
institute this bonus structure.
Additional Ideas for the Bonus:
• Triggered on a BSA of $6640.
• Alternately, allow districts to select which
areas/positions they award bonuses with a 50
percent match from state.
Additional idea to address concerns regarding current
employees, certificated and classified.
• To encourage continued retention of current
employees consider a Permanent Educator Fund
similar to the PFD. All current teachers receive
some annual bonus, tiered by area.
3:59:26 PM
MR. TRANI added that while his district has been able to fill
teaching positions relatively well, districts face difficulties
finding and hiring other positions like therapists and other
support staff.
CHAIR TOBIN asked about the application costs associated with J-
1 visas, noting that some districts struggle to cover these
upfront expenses, which impacts their ability to recruit
educators. She mentioned that the process can take about a month
and inquired if incentive programs could be adjusted to support
districts in recruiting from other places, particularly if Base
Student Allocation (BSA) funds are insufficient. She requested
thoughts or insights on how to address these costs effectively.
4:01:28 PM
MR. TRANI responded that he did not feel he was the most
qualified to discuss J-1 visa issues, as the Mat-Su district has
not needed to utilize J-1 visa educators. He suggested reaching
out to the superintendent in Kodiak, who has an interesting
program for recruiting these employees, as well as the
superintendent from Aniak, as both could provide valuable
feedback on this topic.
4:02:28 PM
DAYNA DEFEO, Director, Center for Alaska Education Policy
Research (CAEPR), Anchorage, Alaska, an associate professor of
education policy, stated she was invited to discuss research
conducted by the Institute of Social and Economic Research
(ISER) on Teacher compensation in Alaska: Bonuses, benefits, and
pay bonuses for teachers. She noted that while ISER's work on
bonuses is limited, they have done more extensive research on
overall teacher compensation, of which bonuses are a part. She
planned to first address bonuses and then provide a broader
overview of teacher compensation research to offer context for
the discussion.
4:03:25 PM
MS. DEFEO moved to slide 2 - 3 and explained that she was
advised to answer the question directly before presenting
evidence. Regarding whether bonuses work, she said it is
complicated, and the evidence is inconclusive. She noted that
local control in Alaska leads to varied salary and benefit
packages, which complicates assessment. The small number of
teachers receiving different packages means practical effects
may not always show statistical significance. She emphasized
that a lack of evidence does not mean bonuses are ineffective
but rather under-researched. She highlighted the importance of
listening to those in the field and stated that ISER provides
research evidence, which she would present.
4:04:37 PM
MS. DEFEO moved to slide 4 and said explained that the yellow
circles in her presentation link to the full report at the end,
with corresponding references for more detail. She clarified
that while teacher bonuses were not a direct focus of ISER
inquiry, their research addressed bonuses in two studies. In
2023, ISER conducted an inventory of collective bargaining
agreements as part of the Teacher Recruitment and Retention
Initiative. They categorized and analyzed teacher benefits
across Alaska and compared them with national agreements. ISER
then did a brief evidence review around the effectiveness of the
different benefits in recruiting and retaining teachers.
Another study from 2015 developed a model for equitable
compensation across Alaska schools, examining how compensation
including salary and benefitsaffected teacher recruitment and
retention.
4:06:01 PM
MS. DEFEO moved to slide 5 and said stated that ISER looked at
signing bonuses included in collective bargaining agreements
(CBAs). These bonuses are used both in Alaska and in the lower
48 to attract teachers. At the time of their review, seven
districts in Alaska included such bonuses, ranging from $1,000
to $4,000, with another district offering them for hard-to-staff
schools. She noted a wider range of bonuses in the lower 48 due
to varied teaching contexts but confirmed that signing bonuses
are used in both regions to entice teachers to take jobs.
4:06:46 PM
MS. DEFEO moved to slide 6 and said the evidence for signing
bonuses is unclear, as it is difficult to determine their direct
impact on convincing someone to take a job. She explained that
candidates might have accepted the job without the bonus, making
the effect challenging to isolate. While there is a lack of
research, she mentioned ISER would be eager to study this if
implemented. She referenced a study in Massachusetts around
2000, which suggested signing bonuses might have helped recruit
teachers, but many of those teachers were already committed to a
teaching career. Additionally, when she and her colleague Matt
Berman modeled teacher compensation, signing bonuses did not
show significant effects, likely because the bonuses they
examined were relatively small. She concluded that the presence
of signing bonuses typically indicates an imbalance in the labor
marketa shortage of qualified individuals to fill teaching
positions.
4:08:17 PM
MS. DEFEO moved to slide 7 and stated that ISER also reviewed
longevity and retention bonuses in Alaska, which were included
in 14 collective bargaining agreements (CBAs). She noted that
one additional district uses these bonuses for specific school
sites. There is significant variation in the amount,
eligibility, and timing of these bonuses, both in Alaska and
nationally. She confirmed that longevity and retention bonuses
are a type of benefit used by some districts in both Alaska and
the lower 48.
4:08:57 PM
MS. DEFEO moved to slide 8 and discussed the evidence for
longevity bonuses, noting that it is limited, partly because
these bonuses are often implemented sporadically in small
districts, making them hard to evaluate. She explained that it
is difficult to determine if recipients would have stayed
regardless of the bonus. She referenced an evaluation in the
U.S. Southwest, where turnover increased after teachers received
their lump sum payment. She also mentioned an Alaska district
that offered significant bonuses, but the requirement of 10
years of service resulted in few teachers staying long enough to
qualify.
4:10:03 PM
MS. DEFEO moved to slides 9 - 10 and discussed compensation. She
stated that Alaska teacher salaries are lower than they should
be. She referenced her first study with ISER, conducted about 10
years ago, which modeled the salaries needed in each district to
attract and retain qualified teachers. The 2015 study compared
the modeled ideal salaries with actual salaries, finding that
statewide salaries were, on average, 15 percent below the level
needed to retain teachers. She noted significant variation, with
some districts meeting or slightly exceeding the recommended
salaries, while many others were paying significantly less than
what the models indicated was necessary.
4:11:24 PM
MS. DEFEO moved to slide 11 and explained that the slide
depicted two main points: teacher pay relative to Anchorage (on
the y-axis) and the proportion of qualified teachers schools
could attract for that pay (x-axis). Each triangle on the chart
represented a school, with dark purple triangles indicating
remote rural schools and light purple triangles representing
other schools in Alaska. Anchorage was marked by a red square.
She highlighted that schools ideally want to be on the green
line, meaning they are matching salary levels to attract 100
percent qualified teachers. Although some districts paid more
than Anchorage, as indicated by dots above the red square, many
were still not attracting enough qualified teachers. She pointed
out the large variation in salaries across the state and noted
that, despite higher salaries, many schools, especially remote
and rural schools, remained to the left of the green line,
showing they struggled to recruit and retain qualified teachers.
4:13:08 PM
CHAIR TOBIN asked if the Mat-Su core schools, represented by the
blue dots clustered around the green line, indicated that Mat-Su
was paying an appropriate salary to attract high-quality
teachers.
4:13:21 PM
MS.DEFEO replied that Chair Tobin's interpretation was correct,
that in 2015 Mat-Su's salaries were sufficient to attract and
retain highly qualified teachers. She added that the study needs
updating to determine if salaries are still appropriate.
4:13:49 PM
MS. DEFEO moved to slide 12 and said the graph was from a paper
ISER released on [March 5, 2024], which builds on a study
published in Alaska Economic Trends from last fall. She
explained that the graph essentially shows the same findings as
the article: Alaska teacher salaries are, on average, about 10
percent higher than the national average.
4:14:13 PM
MS. DEFEO moved to slide 13 and stated that the graph was still
from the same ISER study released [March 5, 2024], but her team
adjusted the salary figures to reflect the cost of living in
Alaska.
4:14:39 PM
MS. DEFEO moved to slide 14 and mentioned that she had
previously testified about adjustments to per-pupil spending,
using 2019 data, which showed spending was 7 percent below the
national average after adjustments. She noted that the graph
with green bars and the graph on slide 13 with a yellow bar use
a similar approach, but instead adjusts average teacher
salaries. She stated that, after adjusting teacher salaries in
2019, Alaska was 24 percent below the national average, and in
2021, this figure was 25 percent below the national average.
4:15:40 PM
MS. DEFEO moved to slide 15 and stated that teachers are hired
in a national market, meaning Alaska competes with other states.
Since most teachers are imported, Alaska must be aware of what
is happening in other states.
4:16:04 PM
MS. DEFEO moved slide 16 and said she recently gave a
presentation for Educators Rising and shared some facts about
Alaska schools. She noted that there are about 443 public
neighborhood schools in Alaska. For context, Maryland, which is
much smaller in landmass, has 1,400 public schools. She added
that the Lower Kuskokwim School District (LKSD) covers an area
roughly the size of West Virginia but has just one school
district, compared to 57 in West Virginia. She emphasized that
while Alaska must stay competitive with national teacher
salaries, it is also crucial to consider Alaska's unique
educational context.
4:16:58 PM
MS. DEFEO moved to slide 17 and stated that salary and benefits
are not the only factors driving turnoverworking conditions
also matter significantly. She noted that improving working
conditions could lead to longer teacher retention, even without
increasing salaries:
[Original punctuation provided.]
Salaries matter to teacher retention, but it's more
than just dollars.
• 2018: we surveyed teachers about their satisfaction
with various school, community, & work conditions
• Biggest predictors of teachers' decision to leave =
satisfaction with
• Parent & community relationships
• School & district leadership
• Community characteristics
4:17:27 PM
MS. DEFEO moved to slide 18 and said solutions are hard and
there is not always a straightforward way to solve problems.
There is work to do at every level of recruiting and retention
of educators.
[Original punctuation provided.]:
This is a wicked problem.
The problem is
• Complex
• Systemic
• Highly variable
• Characterized by distributed responsibility
Solutions
• There's no single solution.
• Some solutions are objectively "good" or "bad"
for the outcome.
• Some solutions create new tensions.
• Efforts will need to be coordinated.
• Communities
• Schools
• Districts
• State
• The effects of our efforts will not be immediate
4:18:07 PM
MS. DEFEO moved to slide 19 and said in addition to her contact
information she provided links to the sources used in the
presentation.
4:18:22 PM
CHAIR TOBIN CHAIR TOBIN asked if there were any available data
correlating bonuses with inadequate salaries. Specifically, she
inquired whether individuals receiving an inadequate salary were
more likely to stay if they were also receiving a bonus.
MS. DEFEO replied she was not aware of any research specifically
to that effect.
4:18:47 PM
SENATOR KIEHL found the information helpful and asked which
bonus structures are most successful. He inquired if hiring
bonuses, end-of-year payments, or splitting bonuses into
installments were more effective.
MS. DEFEO stated that the research on bonus structures is quite
limited, so there is no straightforward answer on the most
effective approach. She hoped that the evidence provided could
help structure something that seems supported by available data
but noted ISER do not have direct evidence to answer the
question definitively.
4:19:42 PM
CHAIR TOBIN asked if Ms. DeFeo had any recommendations on how to
structure a study to determine if bonuses are effective.
4:20:07 PM
MS. DEFEO said she would need some time to think about
structuring such a study. She suggested using a combination of
methods due to the complexity of the question, likely including
a retrospective analysis and a choice experiment. She indicated
that this would involve ISER economists and education research
experts and offered to draft a detailed proposal if desired.
4:20:40 PM
CHAIR TOBIN said she would appreciate even a brief outline to
provide insight.
4:20:53 PM
At ease
4:21:25 PM
CHAIR TOBIN reconvened the meeting.
4:21:41 PM
NICOLE LYKE, Counselor, Klatt Elementary School, Anchorage,
Alaska, invited testimony for SB 97, provided a presentation on
SB 88. She shared that she and other family members are
educators who love Alaska. As a school counselor, she emphasized
that a lot of good work is being done for students at Klatt
Elementary. She mentioned that her daughter aspires to become a
teacher. However, she expressed concern that without a pension,
she and her husband may not have sufficient funds for
retirement.
CHAIR TOBIN informed Ms. Lyke that the hearing was for SB 97.
She asked if she had any comments about SB 97.
4:27:39 PM
MS. LYKE expressed a major concern about "education tourism,"
where educators come to Alaska for adventure, gain experience,
and leave after five years due to a lack of long-term
incentives. She opined that, as a school counselor, she does not
qualify for the bonuses being offered and that bonus money will
leave the state with the temporary educators it attracts. She
stated that bonuses do not provide the long-term financial
security her family needs to stay in Alaska.
4:28:18 PM
SENATOR GRAY-JACKSON stated her understanding that it is Tier IV
that does not offer a defined benefit not Tier III. She asked if
there is a difference between the Teachers' Retirement System
TRS and the Public Employees' Retirement System (PERS).
4:28:35 PM
MS. LYKE replied Tier III does not have a defined benefit.
SENATOR GRAY-JACKSON thanked her for the clarification.
4:29:11 PM
DAN MACLEAN, Teacher, Service High School, Anchorage, Alaska,
thanked the committee and acknowledged Governor Dunleavy for
emphasizing the need to improve educator salaries and benefits.
He agreed on the importance of improving teacher retention. He
introduced himself as a science teacher and department chair at
Service High School since 2007, after graduating from UAA with a
master's in teaching (MAT). He noted that he and his wife have
three children in the Anchorage School District.
4:29:49 PM
MR. MACLEAN stated that bonuses are not a workable solution for
three main reasons. First, bonuses cost more than the defined
benefit outlined in SB 88. Second, bonuses have not improved
teacher retention in other states where they have been
implemented. Third, Alaska's retirement system for teachers is
uniquely unfair, and bonuses do nothing to address this issue.
4:30:15 PM
MR. MACLEAN elaborated on his first point, stating that bonuses
are projected to cost $58 million per year for three years,
whereas SB 88 is projected to cost, at most, $40 million in the
first year if everyone opts for the defined benefit. He
mentioned Senate Finance Committee and the Ghilarducci report
which indicated that subsequent years would save at least $76
million annually. He concluded that a defined benefit saves
money over time, while bonuses represent an ongoing cost.
4:30:42 PM
MR. MACLEAN continued by stating that other states have tried
bonuses. He referenced the ISER presentation and the Alaska
Beacon article from February 29, which discussed the experiences
of Massachusetts, North Carolina, Denver, and 52 other
educational entities. All saw only slight retention increases
while bonuses were in place, which disappeared once the bonuses
ended. He noted that those states found that year-to-year pay
and consistent support for schools were more impactful for
retention.
4:31:25 PM
MR. MACLEAN addressed the third drawback, stating that Tier III
teachers in Alaska have the worst retirement plan compared to
any employee in the United States, including Alaska PERS Tier IV
workers. He explained that becoming a teacher in Alaska results
in a 50 percent reduction in Social Security benefits for both
previous and future non-teaching earnings. He emphasized that
teachers lose retirement money simply by working in Alaska due
to federal law, which affects state employment.
4:31:57 PM
MR. MACLEAN continued, stating that when someone becomes a
teacher in Alaska, they see how the state undervalues teachers.
He noted that PERS workers either receive Social Security
benefits or the equivalent amount is contributed to their
Supplemental Benefits System (SBS) accounts, whereas teachers do
not receive this benefit. As a result, teachers miss out on 13
percent of their salary, compounded over their careers.
4:32:30 PM
MR. MACLEAN emphasized that when someone becomes a teacher in
Alaska, they eventually need to leave the state to secure better
financial stability. He noted that, financially, it is
preferable for teachers to leave as soon as possible to make up
for the financial losses incurred while working in public
schools in Alaska.
4:33:26 PM
MR. MACLEAN shared his initial reaction to the bonus proposal,
saying it sounded appealing at first. However, upon further
consideration, he realized the money would end up going out of
state. He explained that his oldest daughter, an outstanding
student planning to become an engineer, does not want to attend
the University of Alaska due to budget cuts. Instead, she will
attend an out-of-state university, meaning the $5,000 increase
in his income would simply be reflected on the FAFSA form and
ultimately go toward higher tuition. He added that $5,000 does
not compensate for even one year's 50 percent reduction in
Social Security benefits, the missed SBS contributions, or the
unfairness of the current retirement system. He mentioned that,
during a recent conversation with principals from two major high
schools, they referred to the bonuses as "moving money,"
predicting that teachers would use it to leave Alaska once they
hit five years of service, seeking better retirement systems in
other states.
4:34:27 PM
SENATOR KIEHL stated that the SB 97 clearly indicates that the
$5,000 bonus will be reduced by both the employee and employer
contributions to the Teachers' Retirement System (TERS) before
taxes, resulting in an actual bonus amount of $4,400.
4:34:46 PM
CHAIR TOBIN noted for the record that an updated fiscal note is
available on BASIS, indicating the initial cost of the SB 97 is
$61 million.
4:35:19 PM
NATASHA GRAHAM, Teacher, Service High School, Anchorage, Alaska,
invited testimony SB 97 provided the following testimony:
[Original punctuation provided.]
I am a lifelong Alaskan, born on Elmendorf Air
Force Base, a graduate of the Kenai Peninsula School
District, and the University of Alaska
Anchorage.
My two oldest children graduated from Service High
School in Anchorage and my youngest will
be an Anchorage School District grad in 2033.
I am currently an English Language Arts teacher at
Service High School in Anchorage. I began my
teaching career as a military spouse stationed at Fort
Bragg, North Carolina in 2000.
I am grateful that the Governor is acknowledging that
educators should be paid more. I would
love a bonus but I need a pension and Alaska's
students deserve adequately funded schools.
4:36:14 PM
MS. GRAHAM continued:
The legislature's own analysis and the fiscal notes
available clearly indicate that the annual cost
of the proposed bonuses will cost the state more money
than a defined benefit pension for all
Alaska public employees. Furthermore, offering a
pension could save the cost of recruitment
expenditures.
Alaska already has a high teacher turnover rate - four
times higher than the national average.
When I was growing up under the Tier I program
educators flocked to our state and Alaska
students did well when measured in national
standardized tests. Without the ability to retain
our current educators we will continue to see fresh
faced folks from Outside come here for 5
years, gain experience, get vested and then leave.
High teacher turnover rates are directly linked
to poor student achievement; we need to support
student achievement not contribute to its
decline.
My own experience in North Carolina where a bonus
system was utilized proved bonuses to be
divisive, did not incentivize longevity, nor improve
student outcomes.
I would rather our limited state dollars go to
improving the overall educational experience of my
students. That would include smaller classroom sizes,
paraprofessionals receiving a living wage,
and programs that foster engagement and a love of
learning.
4:37:33 PM
MS. GRAHAM continued:
Our underpaid paraprofessionals are essential to the
students' learning however it is common
knowledge that they can make more money working at
Target. My school has had 8 unfilled
paraprofessionals openings all year. This means that
dozens of students with disabilities are not
receiving the services they should and are required by
law to have. I worked alongside a
paraprofessional who worked with our highest needs
students in the life skills classroom. After
17 years as an educator, he only earned $40,000 a
year; he had to work 3, and sometimes 4,
other jobs to be able to provide for his family. He
left the education profession at Christmas to
become a firefighter.
More friends, colleagues, and acquaintances than I can
count have left our profession, or left
the state, because of a lack of retirement and no
opportunity to earn Social Security as an
educator. Fewer opportunities and fewer people also
hurts our economy.
Teaching for me is very much a public service. I teach
because I want to help improve society,
and I know I can have a small part of that by
educating young people to be critical thinkers and
capable communicators. Those of us in public service
deserve a defined benefit pension.
I have not met a teacher who prefers the bonus over a
pension. Everyone I know wants to see
the investment going into overall funding for schools
and students. Most Alaskans were
heartened to see the focused and bipartisan agreement
to prioritize and increase funding for
education. Bonuses will cost us more and will not
result in better student outcomes.
4:40:06 PM
CHAIR TOBIN opened public testimony on SB 97.
4:40:34 PM
JUDY CARSTENS, representing self, Kodiak, Alaska, testified in
opposition to SB 97. She thanked the committee for their service
and gave a brief personnel history. She stated that she and
Kodiak board members oppose a one-time bonus, citing reasons
shared by others. She emphasized that all school staff,
including cooks and janitors, play a crucial role in supporting
students. She concluded that the one-time bonus is not a good
idea, noting Kodiak has its own negotiated bonuses.
4:43:21 PM
SENATOR STEVENS thanked Ms. Carstens for being a great advocate
for education.
4:44:02 PM
CHRIS HELDEMANN, President, Juneau Education Association,
Juneau, Alaska, testified in opposition to SB 97. He appreciated
the governor's acknowledgment of the need for higher teacher pay
and recognition of the recruitment and retention issue but
stated his belief that bonuses were not the right solution. In
his district, schools are closing, unprecedented numbers of
teachers are being laid off, and class sizes are increasing. He
opined that these are problems a one-time bonus won't solve. He
argued that only a substantial, permanent increase in the Base
Student Allocation (BSA) could address these issues effectively,
benefiting both students and educators. He also highlighted that
the pension bill passed earlier would cost around $44 million,
while this bonus bill is projected at $61 million. He urged the
legislature to override any veto of the bipartisan education
bill if the governor chooses to veto it, emphasizing that such a
veto would directly impact educators facing layoffs.
4:46:24 PM
MICHELLE OLDS, Teacher, Klatt Elementary School, Anchorage,
Alaska, testified in opposition to SB 97. She thanked the
committee and expressed gratitude for the proposed teacher
bonuses but stressed that increasing the BSA through SB 140 is
the long-term solution. She noted that the BSA has not increased
since 2017, leading to larger class sizes and reduced
individualized instruction. As a fifth-year educator, she shared
that she has been displaced twice in five years due to flat
funding, which causes uncertainty and distracts from her role as
an educator. She urged for an increase in the BSA to better
support student learning.
4:48:09 PM
TOPAZ STOTTS, Teacher, Klatt Elementary School, Anchorage,
Alaska, testified in opposition to SB 97. She appreciated the
governor's acknowledgment of the need for better teacher pay but
stressed that increasing the BSA is essential for reducing class
sizes, especially in K-2, to improve student success. She noted
that since 2017, BSA stagnation has increased teacher-pupil
ratios, leading to larger class sizes, which hinder effective
instruction. She stated that bonuses are less important than
manageable class sizes and a pension plan for retaining
teachers. Alaska teachers lack Social Security or a pension,
with Tier III teachers having only a 31 percent chance of
retirement success after 30 years, which is unacceptable. She
urged the legislature to pass SB 140 and appreciated the ongoing
collaboration.
4:50:40 PM
SARAH CAMPBELL, representing self, Ketchikan, Alaska, testified
in opposition to SB 97. She said she is a 24-year teacher from
Ketchikan, testified that hiring deficits have worsened since
COVID, affecting all job classifications. The lack of a defined
benefit pension hampers attracting and retaining educators,
leading many long-term teachers, some with as many as 15 years
invested, to leave for states offering real pensions. She shared
that her own teachers, who had Tier I retirement, still reside
and contribute to Ketchikan, unlike current Tier III educators
who leave due to lack of retirement and Social Security. She
urged the committee to fund schools properly and provide
meaningful retirement benefits, not temporary payouts, to foster
long-term educator commitment.
4:53:21 PM
JOHN HARGIS, Superintendent* Lower Yukon School District,
Mountain Village, Alaska, testified with concerns on SB 97. He
said on behalf of the Lower Yukon School District, he expressed
reservations about SB 97, which proposes $15,000 bonuses for
full-time teachers after a full year of teaching. He raised
concerns about unintended consequences, including difficulties
in distinguishing deserving educators based solely on longevity
and creating pay disparities between teachers and
administrators, which could lead to divisions. He noted that
bonuses could also create inequities between districts based on
geography and funding. He argued for a more sustainable
approach, suggesting increased base salaries, professional
development, and investment in resources rather than temporary
bonuses, to better address teacher retention and educational
quality.
4:56:19 PM
LOGAN PITNEY, Teacher, South Anchorage High School, Anchorage,
Alaska, testified in opposition to SB 97. He shared his concerns
about whether he can afford to make a career in teaching,
support his family, retire, and send future children to college.
He emphasized that many teachers, despite their dedication, are
considering leaving due to financial instability. While he
appreciates the proposed bonuses, he likened them to a "band aid
on an arterial bleed" compared to what is needed. He advocated
for increasing the BSA and restoring the defined benefit
retirement system to reduce turnover and provide stability. He
thanked Senate leadership for their efforts and urged continued
support for meaningful investments in education.
4:59:08 PM
LON GARRISON, Executive Director, Association of Alaska School
Boards, Juneau, Alaska, testified in opposition to SB 97. He
stated that one of the Association of Alaska School Boards'
(ASB) legislative priorities for 2024 is teacher and staff
retention and recruitment. He spoke in support of SB 97, citing
four ASB resolutions included with his written testimony. He
emphasized that having highly qualified teachers is essential
for student success, but current issues like unpredictable
funding, insufficient salaries, lack of retirement benefits, and
worsening working conditions make recruitment and retention
difficult. He noted that while SB 97's bonus proposal is
presented as a targeted effort to retain teachers, ASB sees it
as just one tool, and by itself, is unlikely to produce the
desired results. He pointed out that some districts already use
bonuses for recruitment or retention, but more comprehensive
action is needed to benefit all staff, not just teachers. To
effectively support educators, he suggested stabilizing school
funding, investing in infrastructure, and providing
opportunities for professional development and recognition. He
urged the legislature to treat SB 97 as part of a broader
strategy, alongside other initiatives aimed at improving staff
training, retention, and overall working conditions. He
concluded that while ASB appreciates SB 97's focus on supporting
teachers, it cannot be the only measure used to address
recruitment and retention challenges in Alaska's schools.
5:01:43 PM
PETER HOEPFNER, Vice President, Cordova School District,
Cordova, Alaska, testified in opposition to SB 97. He said he
appreciated the governor's recognition that teachers need higher
pay but argued that bonuses are not the right solution. He
emphasized that administrators and other school staff also
deserve pay increases, noting that Cordova pays
paraprofessionals $17.35 per hour while city workers earn $20 as
receptionists. He criticized the proposed three-year incentive
pilot program, highlighting its $61 million cost, lack of
empirical evidence of effectiveness, and dependency on annual
legislative approval. He added that the teacher retention
workgroup identified adequate compensation as the primary
request from teachers and warned that the incentives might drive
teachers to move out of state, particularly to Washington, which
offers better pay, retirement benefits, and social security. He
concluded that increasing the Base Student Allocation (BSA) and
reforming the retirement system are necessary for addressing
Alaska's teacher retention problem.
5:04:45 PM
MARGARET MCDONAGH, representing self, Anchorage, Alaska,
testified in opposition to SB 97. She said she has worked in the
Anchorage School District for 25 years, transitioning from a
classroom teacher to a counselor. She agreed with others
opposing SB 97 and argued that Alaska must fix the Teacher
Retirement System (TRS) to effectively recruit and retain
teachers. She considered herself fortunate as a Tier II employee
receiving defined benefits, and she emphasized that the absence
of defined benefits is deterring quality individuals from
teaching in Alaska. She added that her mother received Tier I
benefits, which she believes all teachers deserve.
5:06:43 PM
JULIANA ARMSTRONG, representing self, Anchorage, Alaska,
testified in opposition to SB 97. She said she is a retired
teacher and administrator, with a husband who was also a teacher
and children who are grateful graduates of the Anchorage School
District (ASD). She focused her comments on her perspective as a
retiree. She worked many extra hours but loved the work. She
emphasized that Alaska's retirement system showed her that her
work was valued. Now, as a retiree, she lives modestly, and is
thankful for a stable retirement and health insurance. She
argued that occasional lump sum payments do not provide the same
security, comparing such incentives to bribes that treat
teachers like children.
5:08:38 PM
WILL MULDOON, Finance Chair, Board of Education, Juneau School
District, Juneau, Alaska, testified in opposition to SB 97.
agreed with the testimony of Mr. Heldemann. He stated that his
district is facing a $9.7 million deficit due to flat funding
and declining enrollment. The proposed Base Student Allocation
(BSA) increase would provide $5.2 million, which is less that
what is needed but better than SB 97. He argued that SB 97 will
not solve the district's financial challenges. He cited research
indicating that bonuses are not what teachers want and will not
address recruitment and retention issues, urging the legislature
to trust educators, support local control, and listen to
communities opposing SB 97.
5:10:15 PM
PAMELA BLODGET, representing self, Anaktuvuk Pass, Alaska,
testified in support of SB 97. She said she is a teacher in
North Slope, expressed uncertainty about linking the retention
bonus with all the other issues in Alaska's education system.
She acknowledged that teacher turnover has a devastating effect
on students and stated that if SB 97 can help reduce turnover,
she supports it. However, she suggested that reallocating the
bonus funds to increase the Base Student Allocation (BSA) might
be a better objective. Her main concern is addressing teacher
turnover effectively.
5:11:32 PM
RIANNE ASTER, representing self, Anchorage, Alaska, testified in
opposition to SB 97. She stated she previously worked in oil and
gas as an engineer before earning a master's degree in education
and is now in her second-year teaching high school chemistry.
She knew teaching would involve a pay cut but expected to still
have a reasonable retirement plan, which under the current
system, is not the case. She noted that her husband's federal
and military pensions allow her to continue teaching, but many
of her colleagues do not have that option. She argued that
bonuses are a short-term fix to a long-term problem, whereas
offering a pension is an effective way to retain teachers.
5:14:01 PM
CAROLE BOOKLES, representing self, Juneau, Alaska, testified in
opposition to SB 97. She stated she is a teacher and highlighted
findings from the Teacher Recruitment and Retention Survey. She
noted that teachers' top priorities are, first, a competitive
salary, which is linked to the Base Student Allocation (BSA);
second, salary steps, which are also linked to BSA; third, a
defined benefit retirement plan; and fourth, retention benefits.
She expressed disbelief that retention benefits are what is
currently being offered to teachers. She provided examples of
why teachers leave, including unreasonable workloads. Fifteen
years ago, she noted, salaries and retirement plans were strong
enough that teachers moved to Alaska for a good lifestyle, even
if their families lived elsewhere. She added that the teachers
who will benefit most from the proposed bonus are those who
already have a secure retirement plan from earlier tiers and are
not planning to leave.
5:16:30 PM
MICHAEL BUCY, representing self, Juneau, Alaska, testified in
opposition to SB 97. He said he is a teacher and remarked that
doubling his pay while on the Titanic, a sinking ship, would not
make much difference. As a Tier II teacher, he looks forward to
retiring in a few years, noting that the Tier II retirement
system was the reason he returned to teach in Alaska. He
described the challenges of teaching music without adequate
resources, especially when students are required to take the
course despite having no interest, which undermines those who
are genuinely interested. He argued that offering a bonus
without also increasing the Base Student Allocation (BSA) is not
a responsible approach.
5:18:45 PM
CHAIR TOBIN held public testimony on SB 97 open.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 97 Fiscal Note EED-SSA 03.01.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Presentation 03.05.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Research - Alaska Teacher Retention and Recruitment Playbook 03.06.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Research - TRR Survey Results 03.06.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Research - Financial Opportunities to Augment Teacher Salaries 03.04.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Research - ISER Presentation 03.06.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Testimony - Randy Trani 03.06.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Testimony - Nicole Lyke 03.06.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |
| SB 97 Testimony - Received as of 03.07.2024.pdf |
SEDC 3/6/2024 3:30:00 PM |
SB 97 |