04/19/1999 01:38 PM Senate HES

                  SB 105-PUBLIC SCHOOL FUNDING                                                                                  
                                                                                                                                
SENATOR ROBIN TAYLOR, sponsor of SB 105, discussed the Ford 3/23/99                                                             
Work Draft K which amends the previous legislation by deleting                                                                  
Section 2.  Section 2 of the legislation would have addressed an                                                                
additional problem that came out of SB 36 last year that involved                                                               
correspondence, alternative and charter schools.  The fiscal note                                                               
was over $17 million, and Senator Taylor said he had no idea it                                                                 
would run that high, or that correspondence schools would be                                                                    
inserted in that section.  By putting correspondence schools in it,                                                             
the Galena School District would have picked up another $2.9                                                                    
million over what they currently receive.  Through its                                                                          
correspondence program, Galena has "basically pirated students all                                                              
over the state," including students from the Senator's own school                                                               
district.                                                                                                                       
                                                                                                                                
The purpose of the work draft before the committee is to limit the                                                              
impact of this cleanup on SB 36 to just 2 school districts,                                                                     
Wrangell and Petersburg, with an overall impact of around $600,000.                                                             
                                                                                                                                
                                                                                                                                
CHAIRMAN MILLER explained a new fiscal note is being prepared                                                                   
because the one with the new CS still has the old numbers.  SENATOR                                                             
TAYLOR agreed that it does and it's incorrect.  CHAIRMAN MILLER                                                                 
asked if this fiscal note is about $700,000 and SENATOR TAYLOR said                                                             
it is.  CHAIRMAN MILLER asked for a motion to adopt the Ford                                                                    
Version K Committee Substitute.                                                                                                 
                                                                                                                                
SENATOR WILKEN moved to adopt CSSB 105(HES).  Without objection, it                                                             
was adopted.                                                                                                                    
                                                                                                                                
SENATOR ELTON asked the rationale for the figure change from 750 to                                                             
450.  SENATOR TAYLOR replied it reduces it so that the same problem                                                             
won't be faced again soon when two or three students happen to                                                                  
leave a school district. In Petersburg this year, the loss of 4                                                                 
students cost them $360,000 because of the way the formula was                                                                  
drafted.                                                                                                                        
                                                                                                                                
CHAIRMAN MILLER asked for discussion, and hearing none, asked the                                                               
will of the committee.                                                                                                          
                                                                                                                                
SENATOR WILKEN moved CSSB 105(HES) Version K be reported out of                                                                 
committee with individual recommendations and the attached fiscal                                                               
note to be revised before the Finance referral.  Hearing no                                                                     
objection, the bill moved out.