05/08/2024 01:30 PM House FINANCE

CS FOR SENATE BILL NO. 99(EDC)                                                                                                
                                                                                                                                
     "An Act establishing a financial literacy education                                                                        
     program for public schools; and providing for an                                                                           
     effective date."                                                                                                           
                                                                                                                                
7:21:10 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster discussed the agenda  items and how he would                                                                    
proceed through the remainder of session.                                                                                       
                                                                                                                                
HUNTER   LOTTSFELDT,  STAFF,   SENATOR  BILL   WIELECHOWSKI,                                                                    
provided a description  of the bill. He  summarized that the                                                                    
legislation created a half  credit requirement for financial                                                                    
literacy for  high school students. He  explained that there                                                                    
was a  list of 14  topics found on page  2 of the  bill. The                                                                    
point of  the bill was  to teach  students how to  balance a                                                                    
check  book.   He  noted  that   22  states  had   the  same                                                                    
requirement and some school districts  in the state required                                                                    
the course.  Alaska led  the nation in  credit card  debt at                                                                    
$8,026 per  person with the  second highest state's  debt at                                                                    
$7,000.  The  average  student loan  debt  was  $34,000.  In                                                                    
addition, only  one-third of Americans  could cover  a $400.                                                                    
emergency. The American  Public Education Foundation awarded                                                                    
Alaska  a  grade  of  F  on its  national  report  card  for                                                                    
financial literacy.  He delineated that the  bill provided a                                                                    
flexible pathway to  adopt the mandate. The  program must be                                                                    
completed before  graduation and  the school  district could                                                                    
choose how they wanted design and offer the course.                                                                             
                                                                                                                                
7:25:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal note.                                                                          
                                                                                                                                
KELLY MANNING,  DEPUTY DIRECTOR, DIVISION OF  INNOVATION AND                                                                    
EDUCATION  EXCELLENCE,  DEPARTMENT  OF EDUCATION  AND  EARLY                                                                    
DEVELOPMENT  (via  teleconference), reviewed  the  published                                                                    
(FN2 (EED)  fiscal impact  note dated  January 10,  2024, in                                                                    
the amount of  $71,000  in one-time funds. The appropriation                                                                    
supported the  development of a  rubric to  evaluate courses                                                                    
against the  requirements and would  bring together  a group                                                                    
of  20  educators  that  included   paying  a  stipend.  The                                                                    
appropriation also  enabled the  hiring of a  facilitator to                                                                    
develop  the  rubric  and  evaluation  process  and  lastly,                                                                    
$6,000 was for legal fees to implement regulation changes.                                                                      
                                                                                                                                
7:27:18 PM                                                                                                                    
                                                                                                                                
Representative   Galvin  emphasized   that  she   was  fully                                                                    
supportive  of the  bill and  the concept  of learning  life                                                                    
skills and  financial literacy. She was  concerned about the                                                                    
multitude  of unfunded  mandates  and how  class sizes  were                                                                    
growing  and  growing.  She  asked  the  department  how  20                                                                    
teachers  and  stake holders  would  be  enough to  put  the                                                                    
mandate  in place  and train  hundreds if  not thousands  of                                                                    
teachers. Ms. Manning responded  that the 20 educators would                                                                    
comprise  a committee  participating in  the development  of                                                                    
the rubric and evaluation of  curriculum at the start of the                                                                    
process. She elaborated  that the group would  help create a                                                                    
process  to  ensure a  course  aligned  with the  standards.                                                                    
Moving  forward   the  department  would  ensure   that  any                                                                    
curriculum   districts submitted  for approval  would follow                                                                    
the  process.   The  districts  would  be   responsible  for                                                                    
training   educators  and   providing   resources  and   the                                                                    
department  would ensure  the  curriculum  aligned with  the                                                                    
requirements.  Representative  Galvin  understood  that  the                                                                    
department  would  hand  the curriculum  to  districts.  She                                                                    
asked  if  there  would  be any  support  for  districts  in                                                                    
training or  classroom management. Ms. Manning  replied that                                                                    
the  provisions  of  the bill  required  the  department  to                                                                    
evaluate  the  districts'  courses   and  the  districts  to                                                                    
implement the course.                                                                                                           
                                                                                                                                
Mr. Lottsfeldt  pointed to page 2,  line 4 of the  bill that                                                                    
included language  to the  maximum extent practicable," with                                                                    
the understanding that smaller districts  may not be able to                                                                    
offer the course. He delineated  that in the House Education                                                                    
Committee,  Representative Himschoot  included an  amendment                                                                    
requiring  a  list  of  open   source  free  curriculum  was                                                                    
available to the teacher.                                                                                                       
                                                                                                                                
7:32:50 PM                                                                                                                    
                                                                                                                                
Representative Galvin  favored the language   maximum extent                                                                    
practicable.  She referenced the  large class sizes and felt                                                                    
that the current  policy had left children  behind, and some                                                                    
districts were  cutting music programs and  closing schools.                                                                    
She would be  supportive of the bill, but  she was concerned                                                                    
that   the  underlying   problem  of   ensuring  there   was                                                                    
predictable  and  adequate  funding   for  schools  was  not                                                                    
settled.                                                                                                                        
                                                                                                                                
Representative  Hannan noted  that the  mandate required  an                                                                    
increase in  graduation credits.  She asked  if there  was a                                                                    
graduation requirement.  She did  not find  it in  the bill.                                                                    
She determined that SB 99  referenced a program, and she was                                                                    
trying  to determine  if it  was a  specific requirement  to                                                                    
graduate  or  if merely  an  equivalent  program had  to  be                                                                    
offered. Mr.  Lottsfeldt answered it was  an additional half                                                                    
credit  requirement for  graduation. He  pointed to  page 1,                                                                    
line  13 of  the  bill  and read:  "?A  school district  may                                                                    
provide the program  through one or more  courses offered by                                                                    
the school district?"  The sponsor wanted to leave  it up to                                                                    
the school  districts whether  to integrate  existing course                                                                    
work already  offered. He  viewed it  being taught  in other                                                                    
courses as  well and not  all in one  course. Representative                                                                    
Hannan thought that  was the reason the  bill was confusing.                                                                    
She exemplified  teaching an  economics course  and wondered                                                                    
if it  needed to  account for all  of the  requirements. She                                                                    
asked if the  requirement was for a new credit,  a change in                                                                    
curriculum, or  up to  the districts  to decide  if existing                                                                    
courses fulfilled the requirement.                                                                                              
                                                                                                                                
7:37:32 PM                                                                                                                    
                                                                                                                                
Mr. Lottsfeldt responded that for  a school district such as                                                                    
Haines that  had a financial literacy  requirement would not                                                                    
require  the  additional  half credit.  He  understood  that                                                                    
existing programs  could count, but a  junior achievement or                                                                    
other  program would  need to  account for  the half  credit                                                                    
which   equated  to   60  to   90   hours  of   instruction.                                                                    
Representative Hannan  relayed that  she had  graduated from                                                                    
the Anchorage School District and  had been required to take                                                                    
personal finance.  She asked  if Mr.  Lottsfeldt knew  if it                                                                    
was still  a requirement. Mr. Lottsfeldt  answered that when                                                                    
he attended  West Anchorage  High School it  had not  been a                                                                    
requirement.                                                                                                                    
                                                                                                                                
Representative Stapp thought it  was very important to teach                                                                    
personal  finance. He  relayed that  he would  cross sponsor                                                                    
the  bill. He  thought  it was  very  relevant and  strongly                                                                    
favored the concept. He would like to move the bill.                                                                            
                                                                                                                                
Representative Cronk did not disagree  with the bill, but he                                                                    
reported  that "they"  spent two  years  arguing over  local                                                                    
control. However,  the bill  mandated that  school districts                                                                    
teach the course.                                                                                                               
                                                                                                                                
7:40:48 PM                                                                                                                    
                                                                                                                                
Representative Ortiz  agreed that  financial literacy  was a                                                                    
good thing to  learn; however, he shared  the concerns about                                                                    
local control.  He referenced  the document  specifying that                                                                    
Alaska received an  F grade in financial  literacy and asked                                                                    
how it was  determined. Mr. Lottsfeldt answered  that he did                                                                    
not know how the  rating had been determined. Representative                                                                    
Ortiz  was   skeptical  that   the  requirements   could  be                                                                    
evaluated, and a curriculum could  be developed for $71,000.                                                                    
He asked how it would  work. Mr. Lottsfeldt answered that he                                                                    
did  not   know.  He  understood  that   the  Department  of                                                                    
Education  and  Early  Development (DEED)  put  forward  the                                                                    
amount  that was  necessary to  do the  work. Representative                                                                    
Ortiz  commented that  the mandates  were  all  good stuff,                                                                     
but  the reality  was it  would not  all happen  through the                                                                    
process outlined in the fiscal note.                                                                                            
                                                                                                                                
7:43:22 PM                                                                                                                    
                                                                                                                                
Mr.   Lottsfeldt   agreed    with   Representative   Ortiz's                                                                    
statements. He noted that there  was an interest in creating                                                                    
a more  real world  experience for students  upon graduation                                                                    
but there  were legitimate  questions regarding  funding. He                                                                    
understood the concerns.                                                                                                        
                                                                                                                                
Representative  Coulombe  had  similar concerns.  She  noted                                                                    
that the bill  contained "a lot of shalls."  She relayed the                                                                    
following  from the  bill [page  2, lines  2 through  3]: "A                                                                    
school  may  not  issue  a secondary  school  diploma  to  a                                                                    
student  unless  the  student   has  completed  a  financial                                                                    
literacy  program?"  She  agreed  that  students  should  be                                                                    
taught financial  literacy. However,  she was  shocked there                                                                    
was  not pushback  about the  types of  bills from  the same                                                                    
people  advocating  for  local   control.  She  asked  if  a                                                                    
district already  offered a financial curriculum  whether it                                                                    
could it  be grandfathered in. Mr.  Lottsfeldt answered that                                                                    
the intention was for districts  to use what already existed                                                                    
if it  met the rubric.  The sponsor  was trying to  make the                                                                    
mandate  as  easy  as  possible   to  adopt,  realizing  the                                                                    
constraints.  Representative  Coulombe  opined  that  school                                                                    
districts should be teaching  reading, civics, and financial                                                                    
literacy  courses  but  the state  thought  they  were  not.                                                                    
Hence, there  was a  READS Act, a  Civics bill,  a Financial                                                                    
Literacy  bill. She  was unsure  whether  she supported  the                                                                    
bill. She  supported teaching  financial literacy,  but they                                                                    
were adding more  and more layers of  bureaucracy for school                                                                    
districts. She  believed that there  was an  "obvious trend                                                                     
for the state to  keep  telling districts what to do and she                                                                    
did not support it.                                                                                                             
                                                                                                                                
Mr. Lottsfeldt thanked the committee.                                                                                           
                                                                                                                                
Co-Chair Foster set an amendment  deadline of Friday, May 10                                                                    
at 5:00 p.m.                                                                                                                    
                                                                                                                                
CSSB 99(EDC)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Foster discussed  the likely  schedule and  agenda                                                                    
for the following day.                                                                                                          
                                                                                                                                
Representative  Hannan interjected  that  the committee  had                                                                    
heard  another  education  bill  earlier  in  the  day.  She                                                                    
relayed that  she taught  social studies  for 30  years. She                                                                    
announced that she would not be  voting for any of the bills                                                                    
where the legislature was  dictating curriculum to students.                                                                    
She  argued   that  school   districts  taught   courses  in                                                                    
different  ways.  She  presumed   that  if  a  rural  school                                                                    
district did  not require a  course to graduate, they  had a                                                                    
specific reason for choosing not  to require it. She did not                                                                    
support mandating  a district teach something  when they may                                                                    
need  to  focus  on  applied math  or  other  subjects.  She                                                                    
indicated that there  were three bills heading  to the floor                                                                    
where  the  legislature  was mandating  specific  curriculum                                                                    
with no extra  money. She stated that  Junior Achievement as                                                                    
a  program was  incredibly  successful  in Juneau.  However,                                                                    
when the  class that always  hosted Junior Achievement  as a                                                                    
club  was   cut  Junior  Achievement  was   eliminated.  She                                                                    
believed that  everyone supported teaching  better financial                                                                    
literacy  and   civics  engagement,  but  she   opposed  the                                                                    
legislature overreaching into areas of local control.                                                                           
                                                                                                                                
Co-Chair Foster noted that SB  228 would be removed from the                                                                    
schedule for the following day.                                                                                                 
                                                                                                                                
Co-Chair  Foster RECESSED  the meeting  until the  following                                                                    
morning [note: the meeting never reconvened].                                                                                   
                                                                                                                                
7:52:47 PM                                                                                                                    
RECESSED