Legislature(2017 - 2018)SENATE FINANCE 532
04/14/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| Presentation: Spring Revenue Forecast Update | |
| SB102 | |
| SB103 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 102 | TELECONFERENCED | |
| += | SB 103 | TELECONFERENCED | |
| += | SB 104 | TELECONFERENCED | |
SENATE BILL NO. 102
"An Act relating to funding for Internet services for
school districts; and relating to the Alaska higher
education investment fund."
10:36:33 AM
Co-Chair MacKinnon discussed SB 102. She noted that the
public hearing had been opened and closed on the bill on
April 10, 2017. The bill changed the baseline download
speed from 10 megabits per second (Mbps) to 25 Mbps for
schools in Alaska.
HEIDI TESHNER, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (via
teleconference), discussed a new fiscal note (OMB component
208). She detailed that within the fiscal note there was
$34,000 requested for FY 18. The amount included $30,000
for additional contract houses and technical support for
reviewing applications. In addition, there was $4,000
related to legal services costs related to regulation
changes. It was projected that the increase from 10 Mbps to
25 Mbps would signify an approximately $16 million grant to
the additional qualifying school districts.
Co-Chair MacKinnon asked why a contractor with an
additional fee of $30,000 was needed to maintain the
current program when existing schools already had 10 Mbps
of connectivity.
Ms. Teshner understood that currently the contractor was
part-time, and the additional funding would go toward
processing additional applications after more school
districts qualified for funding.
Co-Chair MacKinnon was not sure of the accuracy of the
fiscal note. She wondered about the connection of other
projects. She reminded that the bill addressed existing
schools, and did not include new construction that would
require additional confirmation to qualify for funds.
Ms. Teshner stated that the $30,000 on the fiscal note
would be split; with $15,000 to approve additional
applications, and $15,000 for the expected additional
technical support to districts to help with applications.
10:40:37 AM
Co-Chair Hoffman stated that the Unalaska School District
had informed that it could not go to 25 Mbps because of the
capacity of satellites.
PATIENCE FREDERIKSEN, DIRECTOR, LIBRARIES ARCHIVES AND
MUSEUMS (via teleconference), stated that if Unalaska was
already receiving 25 Mbps, it would not be eligible for the
enhanced grant that was proposed in the bill. Only
districts with under 25 Mbps would be able to apply for the
funding.
Co-Chair Hoffman restated that the district currently had
20 Mbps of download, which it shared between the school and
the library. He continued that because the district was
receiving the services through the satellite system, it
could not expand the connectivity.
Ms. Frederiksen understood that the Alaska Telephone
Association had authored a letter of support for the bill,
and had guaranteed that every school district could receive
up to 25 Mbps with the networking that was in place.
Additionally, schools that were receiving internet through
satellite would be able to take advantage of the 25 Mbps.
She emphasized that she was speaking outside her area of
expertise.
Senator Hughes stated that there was rapidly advancing
technology that might be able to help with internet
connectivity. She understood that a new satellite had been
launched recently over the State of Texas, and was giving
speeds of 75 Mbps in a spot in Southeast Alaska. She
thought the technology was being tested.
10:44:11 AM
Co-Chair MacKinnon referred to the new fiscal note, and was
uncertain why $30,000 was needed to process grant
applications. She thought the expenditure should be for
one-time contact rather than recurring contact.
Ms. Frederiksen stated that the e-rate contractor in place
reviewed grant applications closely. She specified that the
application was a spreadsheet, and the law needed to be
followed. She discussed certifying school districts that
were receiving less than 10 Mbps. There had been school
districts that had sent quotes from internet service
providers that showed purchase of 50 Mbps that was split
between schools, and the arrangement had not fit the
criteria for the law. She discussed the complexity of the
extensive e-rate application as it pertained to the
criteria of the program. It had taken the e-rate
coordinator two full weeks of work to review applications
the previous fall. The applications changed each year. She
added that the process was intensive and required numerous
phone calls, ergo the need for additional funding. She
added that the state was going from a $2.7 million program
to a $16 million program, and the stakes were much higher.
10:47:35 AM
Ms. Hutchison clarified that the purpose of SB 102 was for
every individual school to have the ability to apply for
and receive broadband assistance grant funding. Each
eligible school could be brought up to an internet download
speed of 25 Mbps. The amount would not be divided in a
district, but would be for each individual school.
Senator Olson thought there were some schools that did not
have the infrastructure to take advantage of the program.
He asked how many schools would not be able to take part in
the program.
Ms. Hutchison did not have the numbers Senator Olson
requested. She referred to a support letter from the Alaska
Telephone Association (the umbrella group for all internet
service companies), which iterated that current technology
and infrastructure was able to deliver 25 Mbps to all
schools in Alaska.
Co-Chair MacKinnon commented that infrastructure was not
covered in the bill.
Senator Olson asked if there were schools that could not
take advantage of the grant funds.
Co-Chair MacKinnon stated that there was no funding to
connect schools that were not already connected. She
continued that there was another project that was trying to
provide services to other communities. She did not have a
list of schools that did not qualify, but offered to obtain
the information for Senator Olson.
Co-Chair Hoffman MOVED to report SB 102 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 102 was REPORTED out of committee with a "do pass"
recommendation and with one new fiscal impact note from the
Department of Education and Early Development.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 041417 DOR Spring 2017 Revenue Forecast Presentation - FINAL.pdf |
SFIN 4/14/2017 9:00:00 AM |
Spring Revenue Forecast |
| SB 103 Alaska Performance Scholarship Walsh.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 CS FIN Work Draft v.U.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 Testimony Sallee.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 2017 04 13 UA Board of Regents Opposition Letter.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 Sectional Analysis (002).pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 2017 04 13 Ltr UA BOR Regent O'Neill Higher Invest Fund APS AEG.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 103 |
| SB 103 Juneau Students Against SB102 and SB103.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 102 SB 103 |
| SB 102 ATA Letter of Support.pdf |
SFIN 4/14/2017 9:00:00 AM |
SB 102 |