Legislature(2023 - 2024)DAVIS 106
01/24/2024 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 99 | TELECONFERENCED | |
SB 99-FINANCIAL LITERACY PROGRAM IN SCHOOLS
8:01:21 AM
CO-CHAIR RUFFRIDGE announced that the only order of business
would be CS FOR SENATE BILL NO. 99(EDC), "An Act establishing a
financial literacy education program for public schools; and
providing for an effective date."
8:01:55 AM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, as prime
sponsor, presented CSSB 99 (EDC). He proclaimed that Alaska has
the worst financial aid in the U.S. and does not do well in
financial literacy. He paraphrased the sponsor statement
[included in the committee packet] as follows [original
punctuation provided]:
Senate Bill 99 will give Alaskan students important
life skills they will use throughout the rest of their
lives by requiring school districts to offer financial
literacy curriculum for high school students.
Teaching financial literacy will equip students with
the knowledge they need to avoid common financial
pitfalls and manage their money successfully. This
course will teach the ability to understand and manage
personal finances, including topics such as budgeting,
investing, managing debt, and avoiding scams and
fraud. It will also help students access post-
secondary education opportunities in the most cost-
effective way by teaching about the Alaska Performance
Scholarship and how to apply for financial aid.
Giving students a well-rounded financial literacy
education will help Alaskans save, avoid debt, and
improve the Alaskan economy. It will also help reduce
reliance on social programs funded and administered by
the state. Increasing consumer debt can significantly
harm our overall economy and is associated with lower
GDP growth, higher unemployment, and greater
likelihood of a future banking crisis.
It is easy for young adults to fall into the trap of
predatory lending or to agree to interest rates or
loan terms they do not understand. Alaska leads the
nation in credit card debt at $8,026 per person. The
average US household owes $17,000 in credit card debt
and $56,000 in student loans. Fifty-five percent of
Americans have less than $1,000 in a savings account
and the median retirement savings is only $60,000 for
all families in America. This bill will arm young
Alaskans with the knowledge they need to use credit
and other financial tools responsibly before they sign
up for a loan or open a new credit card.
SB 99 gives school districts the flexibility to choose
how to incorporate the financial literacy course into
their elective curriculum requirements. Twenty-two
states already have a similar financial literacy
requirement, and many more school districts offer
similar curriculum. This bill will take effect July 1,
2025.
Passing SB 99 will help students become financially
responsible adults, leading to greater stability and
security in their lives, and improving our state.
SENATOR WIELECHOWSKI added that the intention is to make working
with the school districts as easy as possible, and that he is
sensitive to the mandate issue.
8:05:52 AM
HUNTER LOTTSFELDT, Staff, Senator Bill Wielechowski, Alaska
State Legislature, presented a PowerPoint, titled "Financial
Literacy SB 99," on behalf of Senator Wielechowski, prime
sponsor of CSSB 99 (EDC). He moved to slide 3, titled "Why do
we need Financial Literacy?," which read as follows [original
punctuation provided]:
? Only ? of Americans can comfortably cover a $400
emergency
? Average credit card debt in Alaska: $8,026
? Average student loan debt in Alaska: $34,024
? Alaska received an "F" grade in teaching financial
literacy
MR. LOTTSFELDT moved to slide 4, titled "Senate Bill 99," which
read as follows [original punctuation provided]:
? Adds a 0.5 credit in financial literacy
? Course should cover topics including:
? Making a budget ? Avoiding fraud and financial
deception
? Basic principles of retirement accounts
? Postsecondary financial aid and scholarships
MR. LOTTSFELDT continued to slide 5, titled "Committee
Substitute," which read as follows [original punctuation
provided]:
After meeting with more stakeholders we amended SB99
to allow schools more flexibilty in how they impliment
these topics and expanded the scope of the bill to
include a greater breath of financial
institutions/scenarios.
MR. LOTTSFELDT added that the CS is designed to make academic
subjects more applicable to the real world, and ideally, a
school district could implement it over math or other elective
courses.
8:08:36 AM
MR. LOTTSFELDT advanced to slide 6, titled "Support for Senate
Bill 99," which featured broad support for the bill from
districts to parents. He concluded on slide 7, titled
"Questions," and invited comments and questions from the
committee.
8:08:58 AM
REPRESENTATIVE STORY brought up funding and that it would take
extra administration time of 60 to 90 hours. Someone must
coordinate and verify this with the districts, she said, and she
asked about specific funds.
SENATOR WIELECHOWSKI explained what the fiscal note for $71,000
covered.
REPRESENTATIVE STORY asked whether there should be money for the
districts for having to "keep coordinating this" until they know
the framework of how it would be delivered.
SENATOR WIELECHOWSKI said the way it is envisioned is that
schools would incorporate financial literacy in classes that are
already being taught.
REPRESENTATIVE STORY brought up graduation requirements and
whether there should there be an amendment to address transfer
students.
SENATOR WIELECHOWSKI stated he would look into the transfer
issue.
8:13:53 AM
REPRESENTATIVE PRAX reflected on Alaska having the worst loan
application rate and asked whether that was a misunderstanding.
SENATOR WIELECHOWSKI clarified that he said the state had the
lowest percentage of students applying for financial aid.
REPRESENTATIVE PRAX expressed surprise that these topics are not
currently being taught.
SENATOR WIELECHOWSKI acknowledged that some schools may have
been teaching the "specific things laid out here," but recently
many districts have made it a requirement.
REPRESENTATIVE PRAX offered his belief that it is a matter of
motivation, and that he was unsure if another mandate would be
successful.
8:16:57 AM
CO-CHAIR RUFFRIDGE welcomed invited testimony.
8:17:40 AM
LEOLA RUTHERFORD, Teacher, Girdwood PreK-8 School, gave invited
testimony in support of CSSB 99 (EDC). She added to
Representative Prax' thoughts on motivation and stressed that
teachers show passion to teach. She stated that Alaska
currently has an F rating on America's score card and the state
can do better in getting everyone an essential education that
ensures they are career and life ready. She said there is a
large percentage of parents and students that want a valuable
curriculum like financial literacy to be taught, and although
financial literacy should be common sense, things are always
changing. She urged the committee to pass SB 99 and help
teachers and students. She added that transfer students could
still graduate with the requirement.
8:22:24 AM
REPRESENTATIVE HIMSCHOOT asked Ms. Rutherford to speak about
online curricula and how it tied into the 14 requirements in
CSSB 99 (EDC).
MS. RUTHERFORD stated that Next Gen Personal Finance (NGPF) is
one of the four curriculum she uses to create a program. She
added that more modules could be shared with other teachers
across the state for free access to the curriculum. She brought
up an example of financial algebra, which she integrates into
her math classes.
8:25:39 AM
REPRESENTATIVE STORY expressed that one of her concerns was of
the district putting requirements on teachers and causing time
constraints. She stated another concern about the quality of
delivery being provided at no cost.
MS. RUTHERFORD explained that when teachers take the training,
it helps both them and their students. The curriculum provides
real life applications integrated into many subjects.
8:29:24 AM
FLORA TEO, President, Junior Achievement of Alaska, gave invited
testimony in support of CSSB 99 (EDC). She said that Alaska has
not addressed financial literacy and the state needs to be
graduating students that understand the mechanics of personal
finance and how to apply the concepts. She opined that
leadership from Juneau on this issue is needed.
8:31:03 AM
REPRESENTATIVE STORY expressed her appreciation to everyone in
Junior Achievement (JA) and said Juneau was fortunate to have
them visit and deliver lessons to the children.
8:31:27 AM
REPRESENTATIVE HIMSCHOOT expressed her gratitude and gave a
personal example of her involvement with JA. She asked whether
Ms. Teo's organization tracks where junior JA is offered, such
as rural districts, and whether there are online options with
JA.
MS. TEO replied yes, in 2010 the Rural Alaska Initiative was
created, and she related its teachings of financial literacy.
She further explained the teachings are not "one size fits all"
and the more it can be aligned to the environment students learn
in, the more effective it can be. In response to a follow-up
question, she confirmed that JA is available in Google Classroom
and Canvas as well as an online program titled JA Connect.
8:35:14 AM
REPRESENTATIVE HIMSCHOOT asked Ms. Teo to elaborate on the
recommended 60 to 90 hours and whether it is a cumulative thing
where multiple grades are covered.
MS. TEO explained that because it is not a requirement
currently, it is cumulative and also tracked that way. She
added it is done both in one day but also could be a 60- to 90-
hour, semester-long elective.
8:38:16 AM
REPRESENTATIVE STORY requested to hear from Ms. Riddle.
Focusing on the fiscal note and how the bill would affect the
Department of Education and Early Development (DEED), she asked
why DEED does not give a fiscal note when it thinks something
will cost the district money.
8:38:35 AM
DEB RIDDLE, Division Operations Manager, Division of Innovation
and Education Excellence, Department of Education and Early
Development, explained she could get more information as to why
the department does not make estimates for the districts, but
typically, she added, DEED looks at how the fiscal note would
affect the budget of the department.
8:41:06 AM
REPRESENTATIVE MCCORMICK acknowledged that the bill was
important, but he shared concerns regarding unfunded mandates
that seem to be a perpetual problem. He asked what the limits
to the flexibility in the CSSB 99 (EDC) would be.
SENATOR WIELECHOWSKI referred to page 1, lines 12 and 13 of CSSB
99 (EDC), that "the program must include, to the maximum extent
practicable". He said in some communities, it may not be
practicable for this information to be taught.
8:43:17 AM
REPRESENTATIVE STORY asked for understanding of language
beginning on page 1, line 11, "A school may not issue a
secondary school diploma to a student unless the student has
completed a financial literacy program under this section."
SENATOR WIELECHOWSKI said the intent is that districts must have
a financial literacy program. He gave an example of if a small
district cannot obtain teachers for certain subject matter
related to financial literacy, then the district has gone to the
maximum extent practicable.
REPRESENTATIVE STORY pointed out lines 6 and 7 in the bill and
observed that someone in each school would have to put together
a flexible curriculum, and she expressed her concern that that
would take some finance resources on the part of the district.
She said she appreciated the bill but opined that a fiscal note
should be added to CSSB 99 (EDC).
8:46:15 AM
REPRESENTATIVE HIMSCHOOT asked Senator Wielechowski whether he
could "drill down" on the 60 to 90 hours.
SENATOR WIELECHOWSKI replied the requirement is on page 1, line
10, and related he did not know how much a half-credit is, but
it is in statute.
REPRESENTATIVE HIMSCHOOT referred to lines 7 and 8, and relayed
concern over districts having to create a curriculum and have it
approved by the department. She further asked for clarification
as to what the rubric would be.
SENATOR WIELECHOWSKI replied, "It says what it says." In
response to a follow-up question, he explained if there is a
small school district that wanted to alter the plan, then the
department would review it and approve or deny it.
REPRESENTATIVE HIMSCHOOT pointed out lines 11 and 12, and asked
whether a student would still graduate if they have not
completed the course. She further inquired about any rural
districts Senator Wielechowski had worked with on the bill.
SENATOR WIELECHOWSKI reiterated, "That is what it says." In
response to a follow-up question, he stated that the bill had
been through the Senate Standing Education and Finance
Committees, and he could not give specific names of school
districts. He added he was not aware of any opposition from
rural school districts.
8:49:39 AM
REPRESENTATIVE HIMSCHOOT agreed most of the educators in her
district also support the bill, but the word "shall" is causing
concern.
SENATOR WIELECHOWSKI restated that he had not received any
opposition. He said legislators set policy. He added that from
his personal perspective, it is important to set in policy that
kids should learn things they can use and need each day of their
lives, such as how to make a budget. He reiterated Alaska had
the lowest application rate in the U.S. From a policy
perspective, he said, it would help kids understand the economic
realities they will face once they leave high school.
8:53:28 AM
CO-CHAIR RUFFRIDGE asked Senator Wielechowski whether there was
a history of teaching financial literacy in other places. He
also inquired whether there would be ongoing costs.
8:55:04 AM
SENATOR WIELECHOWSKI replied that he could not provide a history
of how it came to this point. He stated there is a tremendous
amount of theory involved. He provided a personal example of
his daughter's class, and classes in general moving towards real
life application. He opined that in the future, kids need to be
taught more practical things such as this.
8:59:01 AM
REPRESENTATIVE PRAX pointed out that there was a difference
between a good idea and a good law. He reiterated that [the
state] cannot require someone to be motivated. Teaching
financial literacy works if there are enthusiastic people, and
people are not required to be enthusiastic. He said 50 years
ago, these materials were taught, one of them being consumer
economics. He gave further examples of past educational
practices and the lack of motivation that could come about.
9:03:34 AM
REPRESENTATIVE MCKAY opined that the bill was a great idea but
questioned who in the 54 districts would be the financial
literacy officers to decide if the plan is adequate for their
regions. He brought up the idea of a potential module that
could be created at the state level that would be available to
be taught across the board.
9:06:08 AM
SENATOR WIELECHOWSKI said there is tension within local control
versus state mandate, and it is his intention to balance that in
SB 99, with flexibility built into the program. He added that
DEED will look at what is submitted and say "yes" or "no".
9:07:42 AM
MS. RIDDLE added that the idea of the rubric was to provide to
the districts, and make sure the courses meet requirements.
9:08:16 AM
REPRESENTATIVE STORY expressed her belief that it was important
to fund the districts because they do not have enough funds to
move forward adequately. She stressed that the legislature must
back it up with the dollars.
9:09:53 AM
CO-CHAIR RUFFRIDGE invited comments from the committee and set
an amendment deadline for CSSB 99 (EDC).
[CSSB 99 (EDC) was held over]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB099 Supporting Documents Ramsey Solutions 2022 Study.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB099 Sponsor Statement.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB099 Supporting Documents Junior Achievement.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB99 Fiscal Note_DEED_Ed support and Admin Services as of 1.10.24.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| CSSB 99 (EDC) Explanation of Changes.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB 99 Financial Literacy Presentation 1.16.24.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB099 Sectional Analysis Version R.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| CSSB 99 (EDC) Version 33-LS0498R.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |
| SB099 Letters of Support 1.24.24.pdf |
HEDC 1/24/2024 8:00:00 AM |
SB 99 |