Legislature(2023 - 2024)BELTZ 105 (TSBldg)

03/11/2024 03:30 PM Senate EDUCATION

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Audio Topic
03:30:14 PM Start
03:31:11 PM SB97
03:56:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 97 TEACHER RECRUITMENT; LUMP SUM PAYMENT TELECONFERENCED
Heard & Held
**Streamed live on AKL.tv**
          SB  97-TEACHER RECRUITMENT; LUMP SUM PAYMENT                                                                      
                                                                                                                                
3:31:11 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."                                                                                                                
                                                                                                                                
3:33:00 PM                                                                                                                    
TAMA  CARSON, Director,  Administrative  Services, Department  of                                                               
Education   and  Early   Development   (DEED),  Juneau,   Alaska,                                                               
introduced herself.                                                                                                             
                                                                                                                                
3:33:08 PM                                                                                                                    
DEB  RIDDLE,  Operations  Manager,  Division  of  Innovation  and                                                               
Education   Excellence,  Department   of   Education  and   Early                                                               
Development (DEED), Juneau, Alaska, introduced herself.                                                                         
                                                                                                                                
MS.  CARSON stated  DEED fiscal  note  for SB  97, OMB  Component                                                               
Number 2796, dated March 1,  2024, shows the cost associated with                                                               
the temporary three-year  program to make lump sum  payments as a                                                               
retention  and   recruitment  incentive  to   eligible  full-time                                                               
public-school teachers. It is estimated  that SB 97 would require                                                               
one  nonpermanent education  associate, Range  17, Step  B/C. The                                                               
position would start  in FY 24 to implement  the program, develop                                                               
regulations  and applications,  and review  applications. Ongoing                                                               
department chargeback  costs associated with the  positions would                                                               
be $16.5  annually. In FY 24,  a one-time cost of  $5,000 for the                                                               
position would be  needed to purchase equipment  and supplies; as                                                               
well  as a  one-time  cost  of $6,000  for  legal services  costs                                                               
associated  with regulation  development. The  total cost  to the                                                               
department in salary and benefits in FY 25 is $61.5 million.                                                                    
                                                                                                                                
3:35:10 PM                                                                                                                    
SENATOR  GRAY-JACKSON  asked  for clarification  regarding  which                                                               
fiscal note was under discussion.                                                                                               
                                                                                                                                
3:35:34 PM                                                                                                                    
MS.  CARSON   apologized  and  explained   there  was   a  recent                                                               
misunderstanding in the development of the fiscal note.                                                                         
                                                                                                                                
3:35:45 PM                                                                                                                    
SENATOR KIEHL  asked if the  extra supplemental cost  of $126,000                                                               
is to hire the one position.                                                                                                    
                                                                                                                                
MS. CARSON  replied yes. It  also includes the one-time  cost for                                                               
FY 25.                                                                                                                          
                                                                                                                                
SENATOR KIEHL  said there  was an earlier  version of  the fiscal                                                               
note. He said this version  mentions the employer contribution to                                                               
Teacher Retirement  System (TRS)  of 12.56  percent. He  asked if                                                               
the administration would change SB 97 to match the fiscal note.                                                                 
                                                                                                                                
3:37:19 PM                                                                                                                    
MS. CARSON  stated she  would need  to follow  up and  provide an                                                               
answer to the committee in writing.                                                                                             
                                                                                                                                
3:37:35 PM                                                                                                                    
CHAIR TOBIN  asked if the  department plans to fill  the position                                                               
this year.                                                                                                                      
                                                                                                                                
MS. RIDDLE replied that the  state struggles to hire teachers but                                                               
does not have difficulty hiring education associate positions.                                                                  
                                                                                                                                
CHAIR TOBIN  asked if the  position would handle appeals  and for                                                               
an explanation of the appeal process.                                                                                           
                                                                                                                                
MS.  RIDDLE  stated  her  belief that  the  position  would  take                                                               
appeals  and   then  receive   assistance  from   higher  ranking                                                               
employees. The process would be laid out in regulation.                                                                         
                                                                                                                                
3:39:02 PM                                                                                                                    
SENATOR  KIEHL said  the commissioner  previously testified  that                                                               
the  bonus would  occur  in two  pay outs.  He  asked what  would                                                               
happen if a teacher failed to complete a year contract.                                                                         
                                                                                                                                
3:39:43 PM                                                                                                                    
MS. CARSON deferred the question to Commissioner Bishop.                                                                        
                                                                                                                                
3:39:51 PM                                                                                                                    
COMMISSIONER  BISHOP  replied that  was  not  a consideration  in                                                               
fiscal note  OMB 2796;  it was based  on all  teachers completing                                                               
the year.  The fiscal note  is the  maximum amount needed  if all                                                               
teachers stayed.  If some teachers  did not stay, there  would be                                                               
remaining funds.                                                                                                                
                                                                                                                                
3:40:25 PM                                                                                                                    
SENATOR  GRAY-JACKSON   stated  the  bonus  does   not  apply  to                                                               
classified  staff. She  asked if  there  was concern  that SB  97                                                               
would affect employee morale.                                                                                                   
                                                                                                                                
3:40:49 PM                                                                                                                    
MS. RIDDLE deferred the question to Commissioner Bishop.                                                                        
                                                                                                                                
3:40:53 PM                                                                                                                    
COMMISSIONER BISHOP replied morale  is always a concern. However,                                                               
the  focus  of  SB  97  was  to  make  teaching  in  Alaska  more                                                               
competitive with  other states.  SB 97  would allow  districts to                                                               
continue their own work to  incentivize employees. She noted that                                                               
in the past incentives were given  to staff but not teachers. She                                                               
opined  that if  the  program works  other  avenues might  become                                                               
available  to   increase  the   salaries  of   other  educational                                                               
professions statewide.                                                                                                          
                                                                                                                                
3:41:58 PM                                                                                                                    
CHAIR  TOBIN asked  if the  administration  expects districts  to                                                               
match the lump sum amount for classified staff.                                                                                 
                                                                                                                                
3:42:19 PM                                                                                                                    
COMMISSIONER BISHOP  replied there is variance  among teacher and                                                               
classified   staff  salaries.   The  state   does  not   have  an                                                               
expectation for districts. Districts  understand the local market                                                               
best.                                                                                                                           
                                                                                                                                
3:43:00 PM                                                                                                                    
CHAIR   TOBIN   stated   that   from   previous   testimony   the                                                               
administration  would like  analysis  done by  a  third party  to                                                               
determine  the  effectiveness  of  the program.  She  stated  her                                                               
understanding that  the cost of  the analysis is not  included in                                                               
the  fiscal  note.  She  asked if  the  administration  plans  to                                                               
analysis data from the three-year program.                                                                                      
                                                                                                                                
COMMISSIONER  BISHOP replied  that  the  administration plans  to                                                               
analyze  the  program.  She  said   the  department  has  current                                                               
contracts  with Region  16 and  Education Northwest  that it  can                                                               
engage with to do surveys and studies.                                                                                          
                                                                                                                                
CHAIR TOBIN asked if the  administration anticipates handling the                                                               
analysis using existing contracts.                                                                                              
                                                                                                                                
COMMISSIONER BISHOP replied yes.                                                                                                
                                                                                                                                
3:45:32 PM                                                                                                                    
CHAIR TOBIN announced public testimony on SB 97.                                                                                
                                                                                                                                
3:45:47 PM                                                                                                                    
SUSAN RITTER, representing self,  Anchorage, Alaska, testified in                                                               
opposition to SB  97. She gave a brief work  history as a teacher                                                               
and stated  that SB 97  targets specific individuals  rather than                                                               
all school  employees. She  said research  shows that  bonuses do                                                               
not retain  teachers long-term. She explained  that bonuses might                                                               
give teachers  a short-term incentive,  but many still  leave for                                                               
states  with pensions.  She  suggested  that contacting  teachers                                                               
about paying off  their debt might be a  more effective retention                                                               
strategy. She emphasized  that SB 97 could  create division among                                                               
educators  and  support  staff. She  argued  that  teachers  need                                                               
defined benefits and  an increase to the  Base Student Allocation                                                               
(BSA) for meaningful improvement.                                                                                               
                                                                                                                                
3:48:11 PM                                                                                                                    
EMILY  MOODY, representing  self, Cordova,  Alaska, testified  in                                                               
opposition  to SB  97.  She  said that  the  only  way to  retain                                                               
teachers  in Alaska  is to  provide a  defined benefit  plan. She                                                               
described the proposed three-year  bonus as an expensive band-aid                                                               
that  will  not  effectively  retain teachers.  She  argued  that                                                               
teachers  are likely  to  leave after  three  years, despite  the                                                               
bonus they receive. Alaska needs a long-term solution.                                                                          
                                                                                                                                
3:50:24 PM                                                                                                                    
SAMUEL ABNEY, representing self,  Anchorage, Alaska, testified in                                                               
support of  SB 97.  He stated  that it is  easy to  determine who                                                               
would benefit from the SB  97, specifying that certified teachers                                                               
completing  a year  of  work  would receive  a  bonus of  $5,000,                                                               
$10,000,  or $15,000.  He acknowledged  that no  perfect solution                                                               
exists for  incentivizing teacher  recruitment and  retention. He                                                               
emphasized the  shortage of  students becoming  teachers, leading                                                               
to  reliance  on foreign  educators.  He  argued that  any  funds                                                               
available  from   a  Republican  governor  should   be  accepted,                                                               
referencing President  Obama's comment  that "you can't  make the                                                               
possible  the enemy  of the  perfect." He  disagreed with  claims                                                               
that bonuses would create animosity among school staff.                                                                         
                                                                                                                                
3:53:25 PM                                                                                                                    
ANDY  HOLLEMAN, representing  self, Anchorage,  Alaska, testified                                                               
in opposition to SB 97. He  suggested that if the state has funds                                                               
for  a  bonus  incentivization   experiment,  it  should  conduct                                                               
different  trials   across  districts   to  determine   the  most                                                               
effective  plan, rather  than relying  on a  single approach.  He                                                               
expressed concern  that SB 97  politicizes teachers'  salaries in                                                               
Alaska,  as it  only  provides bonuses  for  three years  without                                                               
guaranteeing future district funding  if the program succeeds. He                                                               
noted the  uncertainty regarding what future  governors might do,                                                               
regardless  of  outcomes. He  added  that  the politicization  of                                                               
education is problematic and that  teachers should focus on their                                                               
classrooms  rather than  lobbying.  He urged  for local  control,                                                               
smaller  class  sizes, and  additional  resources  like aides  to                                                               
support effective teaching.                                                                                                     
                                                                                                                                
3:55:15 PM                                                                                                                    
CHAIR TOBIN closed public testimony on SB 97.                                                                                   
                                                                                                                                
3:56:18 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Tobi adjourned the Senate Education Standing Committee                                                                    
meeting at 3:56 p.m.                                                                                                            

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