Legislature(2023 - 2024)SENATE FINANCE 532
03/25/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB193 | |
| SB259 | |
| SB113 | |
| SB73 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 193 | TELECONFERENCED | |
| *+ | SB 259 | TELECONFERENCED | |
| += | SB 113 | TELECONFERENCED | |
| + | SB 73 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 113
"An Act relating to the regional educational
attendance area and small municipal school district
fund; relating to Mt. Edgecumbe High School; and
relating to teacher housing."
9:17:18 AM
Co-Chair Olson relayed that the committee had heard SB 113
on April 26, 2023, and had taken public testimony at that
time.
9:17:47 AM
TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN, explained that
the Department of Education and Early Development (DEED)
currently used the Regional Educational Attendance Area
(REAA) and Small Municipal School District Fund for grants
within school districts within REAAs. He continued that SB
113 proposed to extend allowable uses of the fund,
including construction and major maintenance projects for
Mount Edgecumbe High School (MEHS), and major maintenance
on teacher housing. Additionally, the bill proposed to
remove the current fund size cap of $70 million. He
explained that the bill was brought before the Senate
because currently MEHS had to compete with all the other
agencies for funding.
Mr. Grussendorf referenced a Deferred Maintenance Backlog
Summary from OMB (copy on file), which indicated that the
total of the backlog summary was $2.1 billion in deferred
maintenance for all departments including the University of
Alaska (UA). He continued that MEHS was on the list under
DEED and therefore was competing with projects from all
other agencies, versus all other schools listed on the
school construction list which totaled about $500 million.
He thought it was fairer for MEHS to be included on the
same list with all other schools versus with all the
agencies on the $2.1 billion list.
Co-Chair Olson thought the bill endeavored to level the
playing field so MEHS could compete on the same level of
other schools to get its educational needs met.
Mr. Grussendorf agreed.
9:20:39 AM
KAREN MORRISON, DIRECTOR OF SCHOOL FINANCE AND SUPPORT
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT,
introduced herself.
LORI WEED, SCHOOL FINANCE MANAGER, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT, introduced herself.
Ms. Morrison spoke to a new fiscal note from the Department
of Education and Early Development, OMB Component 2737. She
cited a total cost of $310.1 thousand for FY 25. She read
from the analysis on the second page of the fiscal note:
The bill amends AS 14.11.025(a) to include Mt.
Edgecumbe High School (MEHS) as a funding recipient
under the Regional Educational Attendance Area and
Small Municipal School District School Fund (REAA
Fund). This would also include funding teacher housing
that is state owned, located in, or provided to REAAs
or small municipal school districts.
This bill amends AS 14.11.030(a) to include MEHS and
major maintenance projects for teacher housing as
eligible projects to receive an allocation from the
REAA Fund.
This bill also amends AS 14.11.030(b) by removing the
REAA Fund's $70 million cap on the fund balance by
adding MEHS facilities and teacher housing as eligible
allocations from the REAA Fund which would increase
the scope and number of facilities under the
Department of Education and Early Development's (DEED)
purview. This would require additional staff expertise
as it relates to residential (dwelling/sleeping unit)
design and construction considerations. To provide
this additional expertise, DEED would need the
following two positions:
- School Finance Specialist 2 at a Range 18, Step B/C,
at $123.5, and
- Building Management Specialist at a Range 19, Step
B/C, at $130.6.
Additionally, on-site technical support and analysis
would need to be provided so these positions will be
required to travel throughout the State. Each position
would need two trips annually at $2.0 per trip ($8.0
total).
There are also support costs associated with
establishing new positions: department chargebacks of
$16.0 per position annually ($32.0 total), as well as
one-time supplies and equipment costs of $5.0 per
position ($10.0 total).
In FY2025, a one-time increment of $6.0 will be needed
for legal services costs associated with revising and
establishing new regulations.
9:24:03 AM
Senator Wilson relayed that he was "fine" with the
legislation. He pondered that every DEED fiscal note
received in the committee seemed to have the same $6,000
allocation for legal costs and regulations. He thought that
other departments seemed to have staff available to do the
work, and wondered if DEED was short-staffed.
Ms. Weed explained that the funds were to address the legal
chargebacks from the Department of Law for review of
regulations and process.
Senator Wilson wondered why DEED had the chargebacks while
other departments did not.
Ms. Weed could not speak to why DEED incurred the costs and
other departments did not. She characterized DEEDs
staffing levels as lean.
Senator Kiehl thought it might be helpful to have
background information on the Department of Laws
chargebacks correlated with the number of regulation
changes that were made by the board. He thought the
regulation packages varied every year.
Ms. Morrison thought Senator Kiehl had posed a great
question. She did not have the answer at hand and offered
to follow up at a later time.
Senator Kiehl asked how many housing facilities statewide
the bill would potentially apply to.
Ms. Weed did not have a current inventory of teacher
housing in the state used by school districts because it
was not on the department's approved facility list and was
not maintained by the department.
Senator Kiehl was curious how to the proposed two positions
were determined. He recalled that there were 5 Position
Control Numbers (PCNs) in facilities, which were
potentially reviewing every school building in the state,
which varied in size and complexity. He sensed that teacher
housing units in rural Alaska would be smaller and less
complex, as well as fewer in number. He questioned the
reasoning for a request of 40 percent more positions.
Ms. Weed relayed that residential structures had a very
distinct set of codes applied compared to school building
structures. She noted that the department would need at
least one position with expertise in the codes to properly
evaluate the projects.
9:28:13 AM
AT EASE
9:29:14 AM
RECONVENED
Senator Bishop asked about a white paper from DEED (copy on
file) that spoke to teacher and student housing currently
not under the departments purview. He relayed that he was
in full support of the bill and in support of housing for
teachers. He suggested that the department interface with
the Alaska Housing Finance Corporation (AHFC), which had
been operating in the field for many years.
Co-Chair Stedman reminded the committee that several issues
had brought the topic of teacher housing forward. He
referenced major maintenance of schools in the capital
budget including some major maintenance of MEHS. The funds
for MEHS had been vetoed with the rationale that the
projects could be on the major maintenance list, which he
did not think was possible. He recounted that the committee
had requested clarification from the department regarding
the veto and inquired whether the clarification had been
provided.
Co-Chair Olson was not sure the committee had ever received
clarification. He thought it was important to address the
position of MEHS and reminded that many Native leaders had
graduated there and there would be many in the future.
Co-Chair Stedman understood that there was $20 million to
$25 million in the governors budget for maintenance, but
without specifics directing the funds. He thought treating
schools around the state equally was very important and he
wanted clarity regarding MEHS. He reminded that the young
Alaskan students at MEHS were living in barracks built in
the early part of World War II. He expressed concern about
requests for major maintenance for MEHS. He supported the
bill.
9:33:38 AM
Co-Chair Hoffman commented that the students at MEHS were
graduating at some of the highest rates of any school in
the state, and he thought the state was proud of the
accomplishments of the school despite the conditions that
existed. He hoped that the department would defend the
improvements to MEHS that were in the current proposed
budget. He described the conditions as despicable. He
reiterated that the students at MEHS were graduating at
high levels despite lack of support from DEED. He
emphasized that the students deserved better and suggested
that DEED defend proposed appropriations for maintenance.
Co-Chair Hoffman MOVED to report SB 113 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 113 was REPORTED out of committee with five "do pass"
recommendations and with two "no recommendation
recommendations, and with one new fiscal impact note from
the Department of Education and Early Development.
9:35:34 AM
AT EASE
9:39:44 AM
RECONVENED