Legislature(2023 - 2024)SENATE FINANCE 532
04/24/2023 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB99 | |
| SB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 78 | TELECONFERENCED | |
| + | SB 99 | TELECONFERENCED | |
| += | SB 67 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 99
"An Act establishing a financial literacy education
course for public schools; and providing for an
effective date."
9:06:25 AM
SENATOR BILL WIELECHOWSKI, SPONSOR, introduced himself and
explained that SB 99 established a financial literacy
education program for public schools, which required the
offering of a half-credit course. The bill was based on
statistics such as that 55 percent of Americans had less
than $1,000 in savings. He opined that most Americans had
nowhere the amount needed for retirement. He cited that the
median average savings for American families was about
$60,000. He cited that Alaska led the nation in credit card
debt. He noted that 22 states had enacted financial
literacy requirements in schools.
Senator Wielechowski continued that after receiving
feedback from school districts, he had crafted the bill to
be as flexible as possible. He furthered that school
districts could choose to incorporate various components of
the information into different classes such as math or
history. He referenced page two of the bill, and listed
provisions such as the inclusion of topics on how to make a
budget, basic money management principles, income taxes,
and savings and retirement.
9:08:52 AM
NICK MOE, STAFF, SENATOR BILL WIELECHOWSKI, addressed a
Sectional Analysis (copy on file):
Section 1. AS 14.30 relating to public schools, adds a
new section
a. directing school districts to establish and
provide a financial literacy education program,
equivalent to a half credit, 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, to the maximum extent practicable.
Section 2. Provides an applicability date of January
1, 2026, 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.
Senator Bishop believed that there was staff from the
Department of Education and Early Development (DEED) online
and available for questions.
9:10:12 AM
KELLY MANNING, DEPUTY DIRECTOR, DIVISION OF INNOVATION AND
EDUCATION EXCELLENCE, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT (via teleconference), introduced herself.
Senator Bishop was curious about how many districts already
taught something like financial literacy.
Ms. Manning did not have numbers to provide but agreed to
bring the information to the committee at a later time. She
knew that there were some components of financial literacy
offered in math curriculum in some districts.
Co-Chair Olson asked how the bill was not considered an
unfunded mandate for school districts.
Ms. Manning could not speak to whether school districts
would perceive the bill as an unfunded mandate. She
referenced fiscal notes that reflected resources needed to
come up with curriculum to meet the bill requirements. She
thought districts would need to weigh in on what the
financial implications would be.
Co-Chair Olson asked the bill sponsor to address Senator
Bishop's question.
Senator Wielechowski relayed that he was not aware of
opposition to the bill, and that he had received a great
deal of support from the Anchorage School District (ASD).
He noted that school districts in Anchorage and Haines
already had components of the curriculum. He had worked
with the Association of Alaska School Boards (AASB) to try
to make it so that bill was not an unfunded mandate. He
noted that the department had a small fiscal note that
would provide the curriculum from the bill. He noted that
there was standardized curriculum available. He thought the
flexibility in the bill would help to keep costs down.
9:13:34 AM
Senator Merrick asked if the sponsor imagined that math
teachers would be teaching the course.
Senator Wielechowski thought school districts would be
teaching the content differently. He pondered that some
school districts would choose to have a specific financial
literacy class, while others may have components taught via
applied mathematics. He reiterated that the bill was
written to be flexible. He thought it was important for
kids to graduate knowing basic fundamental financial
information.
Mr. Moe discussed a presentation entitled "Financial
Literacy - SB 99," (copy on file).
Mr. Moe showed slide 2, "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
Mr. Moe turned to slide 3, "Why do we need Financial
Literacy?:
? Only 1/3 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
Mr. Moe noted that Alaska had the lowest at completion rate
of the Free Application for Federal Aid (FAFSA), which he
thought was a barrier to pursuing college and trade
schools.
Mr. Moe advanced to slide 4, "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
Mr. Moe considered slide 5, "Committee Substitute":
? Met with Stakeholders
? Flexibility
? Relevant Content
Mr. Moe mentioned that there had been a few changes to the
bill in the Senate Education Committee.
Mr. Moe addressed slide 6, "Support for Senate Bill 99,
which listed different stakeholders that including parents,
teachers, students, school administrators, and school board
members.
9:17:38 AM
Co-Chair Olson OPENED public testimony.
9:17:50 AM
Co-Chair Olson CLOSED public testimony.
Senator Bishop thanked the sponsor for bringing the bill
forward. He shared that he had taken a similar course in
economics in high school.
Co-Chair Olson thought it was concerning that the state was
leading the nation in credit card debt, and residents had
so little in savings for emergencies.
SB 99 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 99 (EDC) Explanation of Changes.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |
| SB 99 Sponsor Statement.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |
| SB099 Supporting Documents Ramsey Solutions 2022 Study.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |
| SB099 Supporting Documents Junior Achievement.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |
| SB099 Sectional Analysis Version B.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |
| SB 99 Letters of Support 4.19.23.pdf |
SFIN 4/24/2023 9:00:00 AM |
SB 99 |