Legislature(2023 - 2024)BELTZ 105 (TSBldg)
03/29/2023 03:30 PM Senate EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| SB99 | |
| Presentation Alaska Native Science and Engineering Program | |
| Presentation Alaska Excel | |
| Presentation Career and Technical Education in the Bering Straits Region: a Nome-based Regional Training Center Perspective | |
| Presentation Alaska Technical Center and Star of the Nw Magnet School | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 99 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 99-FINANCIAL LITERACY COURSE IN SCHOOLS
3:31:49 PM
CHAIR TOBIN announced the consideration of SENATE BILL NO. 99
"An Act establishing a financial literacy education course for
public schools; and providing for an effective date."
3:32:05 PM
SENATOR BILL WIELECHOWSKI, District K, Alaska State Legislature,
Juneau, Alaska, provided the following statement as the sponsor
of SB 99:
[Original punctuation provided.]
Senate Bill 99
Financial Literacy Curriculum
Sponsor Statement
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
costeffective 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 for the
2024-2025 school year, giving districts over a year to
develop a curriculum that meets the needs of their
students.
Passing SB 99 will help students become financially
responsible adults, leading to greater stability and
security in their lives, and improving our state.
3:34:16 PM
KAILI SPENCER, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, and began the presentation by
saying financial literacy is making sure individuals have the
skills and knowledge to make informed and effective decisions
about their finances. She spoke to the following points on slide
2:
[Original punctuation provided.]
What is Financial Literacy?
? Understand how much you earn and spend
? Repay and avoid debt
? Build assets and achieve personal goals
? Achieve financial security later in life
3:35:49 PM
MS. SPENCER turned to slide 3 and spoke to the following:
Why do we need Financial Literacy?
? 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
? F rating for financial literacy education
MS. SPENCER said Alaska is number one in the nation for credit
card debt.
3:36:50 PM
MS. SPENCER turned to slide 4 and provided more details on the
following content of SB 99:
[Original punctuation provided.]
SENATE BILL 99
? 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
3:38:01 PM
CHAIR TOBIN asked how much time it would take to complete 0.5
credits.
MS. SPENCER replied that it would be 1-semester credit or half
of a school year.
3:38:19 PM
MS. SPENCER moved to slide 5 and stated there is broad support
for SB 99:
[Original punctuation provided.]
Support for Senate Bill 99
? Margo Bellamy, ASD School Board President
? Matt Hunter, Teacher (17 years)
? Leola Rutherford, Concerned Parent, Educator, & 5th
Generation Alaskan
? George L Stewart, Parent
? Nava A. Stephenson, Student
? Maria Nafzger, Student
? Harper Landry, Student
? Kelly Lessens, Anchorage School Board Treasurer and
Finance Chair
? Nonie Mucha, Student
? Madeleine Ashour, ExcelinEd in Action
3:38:50 PM
SENATOR KIEHL opined that financial literacy is a needed
curriculum. He asked whether the 0.5 credit would be part of the
21 credit hours required statewide for a student to graduate or
if SB 99 makes the graduation requirement 21.5 credits.
MS. SPENCER said the state does not have a financial literacy
requirement. She stated her belief that SB 99 would make the
graduation requirement 21.5 credits. There are school districts
that already exceed the 21-credit requirement. For example, the
Anchorage School District requires 22.5 credits to graduate, and
Haines already offers financial literacy and requires 24.5
credits.
3:39:50 PM
SENATOR STEVENS stated concern that only 16 percent of students
have applied for the Free Application for Federal Student Aid
(FAFSA). He opined that every person should apply so they
realize there are options available for college and career
training. He opined it would be good if the class required
students to complete the FAFSA.
3:40:26 PM
SENATOR GRAY-JACKSON said the statistics were alarming. As a co-
sponsor, she looks forward to SB 99 moving forward.
3:40:51 PM
MS. SPENCER offered the following sectional analysis for SB 99:
[Original punctuation provided.]
Senate Bill 99
Sectional Analysis
Section 1. AS 14.30 relating to public schools, adds a
new section
a. directing school districts to establish and
provide a half credit financial literacy
education course for students in grades
nine through 12 that will be approved by
the Department of Education & Early
Development.
b. provides a list of topics to be covered in
the course.
Section 2. Provides an applicability date for the
first graduating class that will need to meet this
requirement.
Section 3. Provides an effective date for the bill of
July 1, 2025.
CHAIR TOBIN stated that from discussions about SB 99 she
suggests the following:
• SB 99 should require discussion on Alaska Native
Corporations dividends and shares, as well as other
entities.
• Expand account discussions to include credit union
accounts.
• Include discussions on predatory lending practices, a topic
that receives a lot of attention and advocacy currently.
3:42:30 PM
SENATOR BJORKMAN joined the meeting.
3:42:39 PM
MS. SPENCER stated that Ms. Rutherford is a Girdwood teacher
certified to teach the Next Gen Personal Finance (NGPF)
curriculum to other teachers.
3:43:20 PM
LEOLA RUTHERFORD, Teacher, Girdwood School, Girdwood, Alaska,
said she is a concerned parent, 6th-grade teacher, and 5th
Generation Alaskan. She stated that financial literacy is an
equity access issue. It is commendable that Anchorage,
Glenallen, and Haines teach financial literacy, but the
opportunity must be available to all Alaskan students. Alaska
ranks 46th in the nation for financial literacy. Eighty-eight
percent of parents and 76 percent of high school students agree
that financial literacy education is needed. However, less than
2 percent of high schools offer it as guaranteed access for
graduation. She said she supports SB 99 because it is rigorous
and meets the national jumpstart standards for financial
literacy. Through SB 99, the financial literacy curriculum would
prepare students to take an optional nationally recognized
certification test called W!se Financial Literacy. Students
could put this certification on resumes and college
applications. SB 99 also offers flexibility in how 0.5 credit is
acquired. School districts could embed the curriculum in social
studies, math, or as an elective. She noted that ensuring the
course is not a barrier to graduation is important. SB 99 allows
flexibility by allowing schools to decide how financial literacy
fits into their curriculum. She named a few free online
curriculums and professional development courses that schools
can utilize. The financial literacy credit is also available
through AK Grad, a self-paced credit recovery and advancement
program. There is a $75 course fee, but grants and scholarships
are available.
3:47:52 PM
SENATOR BJORKMAN said several options were mentioned by which
students could achieve the new requirement that would not add
additional funding to school districts' budgets. He said that in
the school where he taught, students earn three social study
credits by taking Alaska History (0.5 credits), World History
(1.0 credits), U.S. History (1.0 credits), and U.S. Government
(0.5 credits). He asked which class students should not take so
they can take financial literacy.
MS. RUTHERFORD replied that it is not an either-or choice,
making SB 99 ideal legislation. School districts could add
financial literacy to student's elective or math requirements
for graduation. School districts can maintain the rigor of other
curriculums and still implement financial literacy.
3:48:59 PM
SENATOR BJORKMAN asked whether any entity had assessed the
additional cost to school districts to offer an additional 0.5
credit course as a math or other elective.
3:49:21 PM
MS. SPENCER stated that a portion of the fiscal note attached to
SB 99 addresses giving stipends to teachers that instruct other
teachers on how to teach the curriculum. DEED has not assessed
the impact on individual school districts.
3:49:42 PM
MS. RUTHERFORD said there are programs that districts can
purchase; however, increasing financial literacy is a nationwide
grassroots, bi-partisan effort, so free support and curriculums
are available, such as Junior Achievement or Next Gen Personal
Finance.
3:50:05 PM
SENATOR WIELECHOWSKI said the Anchorage School District supports
teaching financial literacy. He opined that there would be
tremendous benefit to teaching financial literacy within applied
math for real-world exposure. It would make learning the subject
more enjoyable for students.
3:50:43 PM
SENATOR KIEHL said he thought the fiscal note supported the
development of a rubric to approve courses rather than
curriculum purchasing. He asked whether free and district-
developed or purchased courses would meet the rubric's
requirements.
3:51:33 PM
DEBORAH RIDDLE, Operations Manager, Division of Innovation and
Education Excellence, Department of Education and Early
Development (DEED), Juneau, Alaska, said the fiscal note states
20 educators would create a rubric to help school districts by
evaluating available courses and curriculums that the department
gathers. The rubric is developed based on content and
availability of free resources and hybrid programs to meet the
needs and wants of school districts. The rubric sets the tone
for curriculum content since no standards exist. Each school
district chooses its curriculum.
3:53:06 PM
SENATOR BJORKMAN stated that the issue was not about selecting a
curriculum or finding materials but rather about utilizing staff
resources that schools already use to teach other courses. He
pointed out that adding a new mandatory course for graduation
essentially created a zero-sum game, where schools must
sacrifice existing activities to accommodate the new
requirement. Based on his experience as a teacher for 14 years,
he argued that it is not feasible for teachers to take on
additional responsibilities continuously.
He acknowledged the importance of financial literacy but
suggested that school districts should offer it as an elective
rather than a requirement. He highlighted that making it a
requirement would significantly impact a school's budget and
affect the availability of other elective programs such as art,
band, or drafting. He cautioned against adding more requirements
and mandates, particularly when Alaska faces significant
education funding shortfalls amidst inflation, with no
foreseeable plans to address the gap.
3:55:02 PM
SENATOR KIEHL opined that the applicability section is a
relatively quick implementation. Students finishing their
freshmen year in 2023 must complete a financial literacy course
by the time they graduate high school. He asked about the timing
and stated that some students plan their coursework before
entering high school.
MS. SPENCER replied that the department selected the dates
without thinking the deadline would be considered rushed.
SENATOR WIELECHOWSKI said it was a policy call. America is a
capitalist society, and people must understand how to manage
money, so they do not live destitute. He opined that people in
the US are on the precipice of a cliff, with excessive debt and
limited savings. Children need to learn about managing finances.
He understands Senator Bjorkman's point regarding incorporating
financial literacy into the classroom, but SB 99 allows schools
to handle the requirement in a way most suited to their
programmatic schedule.
3:57:35 PM
SENATOR STEVENS said financial literacy is crucial. He perused
the list of topics the financial literacy course would cover and
agreed that students must be aware of the financial issues they
will encounter, so he supports SB 99.
3:58:19 PM
CHAIR TOBIN said the committee would discuss the fiscal notes
for SB 99.
3:58:34 PM
MS. RIDDLE said the fiscal note for SB 99 contains three one-
time expenses totaling $71,000:
[Original punctuation provided.]
1) $30.0 for stipends ($1.5 each) for 20 educators and
community stakeholders for participation in the
development of a rubric to evaluate courses, and to
complete the review based on the developed rubric; 2)
$35.0 to contract an education expert to facilitate
the development of a rubric and evaluation of courses;
and, 3) $6.0 for legal fees to implement the necessary
regulation changes.
3:59:32 PM
CHAIR TOBIN held SB 99 in committee.