Legislature(2001 - 2002)
04/25/2001 09:11 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 149
"An Act relating to employment incentives for teachers and
health care providers, to reemployment of retired teachers, to
loans to and loan forgiveness for teachers and health care
providers, to awards to teachers, to eligibility for major
medical insurance coverage for beneficiaries of the teachers'
retirement system, and to teacher certificates; and providing
for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Senator Leman presented the legislation relating to a topic
discussed by the Committee about finding incentives to improve the
opportunity for hiring and rehiring teachers held at an earlier
meeting. He noted when he first introduced this bill it included
health care providers. However, he said it was decided in the
Senate Health, Education and Social Services Committee to limit the
scope to teachers, as well as deleting language that produced high
fiscal notes.
Senator Leman stressed the need for proactive measures required to
obtain teachers.
AT EASE 9:30 AM / 9:32 AM
Senator Leman continued with his presentation noting that the bill
now targets three items.
PAUL ROETMAN, staff to Senator Leman detailed the three primary
elements of the committee substitute. He listed the first as the
recognition of credentials for out of state teachers, the second as
an incentive for employment of retired teachers through an election
option, and the third as improvement of medical coverage for
current teachers.
Mr. Roetman addressed incentives for out of state teachers as shown
in Sections 1 and 2 of the committee substitute. He stated this
steam lines the process by offering an Alaskan preliminary teaching
certificate to an applicant with a valid teaching credential from
any state, as well as clearance through a criminal background
check. He noted that the preliminary teaching certificate holder
would have to pass the existing competency exam within one year and
complete Alaska studies within three years of receiving the
certificate. He said these preliminary certificates could be issued
for special education and other specialties as well. He remarked
this procedure would make it easier for teachers to move to Alaska
and quickly gain employment. He informed that a teacher, while
employed under the preliminary teaching certificate, does not
qualify for tenure.
Mr. Roetman next spoke to the impact of the legislation on
reemployment of retired teachers as described in Sections 3, 4 and
6. He explained the stipulations under which a school could declare
a teacher shortage and subsequently hire a retired employee covered
by the Teachers Retirement System (TRS). He detailed that a retired
TRS employee could elect to continuation of retirement benefits
upon re-employment as a teacher. He noted additional retirement
benefits would not accrue and that the employee would receive only
a salary. He qualified this re-employment option is not available
for teachers, administrators or principals who retired under the
Retired Incentive Plan (RIP) early retirement program. He also
pointed out tenure could not be accrued by participants.
Mr. Roetman stated that an annual report to the legislature is
required under this legislation to allow monitoring of the impact
of the re-employment of retired teachers on the retirement program
itself. In addition, he noted, the retirement portion of the
legislation has a three-year sunset clause in the event the teacher
shortage situation changes.
Mr. Roetman listed the third element of the legislation, which
increases medical benefits to 100 percent coverage for a teacher
who worked 25 years rather than 20 years. He stated current law
provides for medical benefits on an age-determined basis only; a
TRS member must be 65 years of age or older to begin receiving
coverage. He commented the intent of this portion of the
legislation is to increase retention of teachers by providing
additional medical benefits available at an earlier age.
Senator Hoffman asked if there are incentives for part-time
teachers to help cover the teacher shortages.
Mr. Roetman replied the incentives are for full time employment
only.
Senator Green asked the same question and Mr. Roetman affirmed his
answer.
AT EASE 9:37 AM / 9:39 AM
Mr. Roetman corrected his earlier testimony and stated the
retirement re-employment incentive extends to retirees who accept
part time teaching employment as well as full time employment.
MELISSA HILL, Alaska Teacher Placement Program, testified via
teleconference from Oklahoma, that the Program is "on the front
lines of recruiting". She told how the Program works with the 53
school districts in the state as well as teachers seeking
information regarding employment in Alaska. Therefore, she
surmised, the Program has a unique perspective on the teacher
shortage both instate and nationally.
Ms. Hill listed several facts as follows.
Over the previous five years, there has been a decline
nationally of students pursuing careers in education.
Many states, upon realizing this, began proactive approaches
and raised teacher salaries.
Those states that did not take these measures and are now in a
reactive phase, have adopted measures that include, but are
not limited to, hiring incentives - some as high as $10,000,
housing allowances, loan forgiveness programs and alternative
certification procedures.
Ms. Hill encouraged the Committee to consider all three components
of this legislation, asserting they are only a small effort
compared to other states' activities.
Ms. Hill remarked the preliminary certification of out of state
teachers is the program's highest priority, and would assist in the
certification process for both school districts and educators.
Ms. Hill expressed that the employment of retired teachers "brings
experience and mentors into the classroom."
Ms. Hill stated the increase in medical benefits is "just a small
component" compared to the efforts of other states. She stressed
that any incentives would be helpful.
Ms. Hill told the Committee she was attending a job fair in
Oklahoma with representatives from 11 Alaska School Districts. She
said that the districts in urban areas, such as Anchorage and the
Kenai Peninsula are conducting some interviews. However, she said
the rural school districts were having a difficult time recruiting
for the up to 30 vacant positions in their districts. She warned
that the teacher shortage would get worse before it improves and
stressed the need to certify and hire qualified teachers in Alaska.
To not do so, she cautioned, would not give "justice to Alaskan
children."
DEBBIE OSSIANDER, Legislative Chair and Member, Anchorage School
Board testified in Juneau in support of the legislation. She spoke
of "acute shortage areas" within the Anchorage School District
(ASD) that extended beyond teachers to special education and
related services, librarians, foreign language teacher experts,
math and science teachers and music specialists. She stated that
the district has had to contract with private firms, at a higher
cost, to provide some special education services.
Ms. Ossiander told of requests to the Department of Education and
Early Development for flexibility in accepting out of state
teaching certificates for provisional certification in Alaska.
Ms. Ossiander stated the problems associated with the current
process of issuing the waivers for special education teachers.
Ms. Ossiander expressed the high priority the ASD Board has placed
on establishing a system to re-employ retired TRS teachers. She
informed of the high standards required to obtain an Alaska
teaching certificate and because of this, the length of time
involved in meeting the requirements.
Ms. Ossiander said the increased medical benefits opportunity would
provide an incentive the ASD could offer retired teachers to return
to work.
Co-Chair Kelly asked Ms. Ossiander's professional credentials.
Ms. Ossiander replied she is a certified respiratory therapist who
has become "a quasi education specialist" over her ten-year
involvement with the school board.
Co-Chair Kelly referenced SB 86, regarding alternative
certification and recalled previous Committee discussions about the
fear that communities would opt for retired teachers over
alternative certification of professionals in other fields entering
teaching with a preliminary teachers certificate.
Co-Chair Kelly gave Senator Leman as an example of a Stanford
University educated engineer, with 14 years experience in the
legislature "explaining things to people" and who is willing to
teach. Co-Chair Kelly wanted to know if a recently educated
certified teacher would get preference.
Ms. Ossiander expressed she supported SB 86, giving an example of
foreign language immersion programs and the opportunity to have
certificated teachers fluent in such languages. She requested
school districts be given flexibility to obtain and certify
available specialists. She predicted the districts would find
highly qualified professionals in their field to offer higher-level
education of math, music and other subjects.
Co-Chair Kelly appreciated Ms. Ossiander was not a professional
educator, citing the need for community member involvement. He
commented that retired teachers were easy to rehire but that school
districts should also think about hiring professionals with
expertise in their field. He stated that SB 86 is an attempt to
"think outside of the box" and SB 149 offers a "more utilitarian
answer to a pressing problem" that still allows for alternative
solutions to the teacher shortage.
Ms. Ossiander qualified she is not directly involved in individual
hiring decisions, but said she would convey to the other board
members the importance of having a teacher in the classroom who is
"extremely capable and qualified in the subject that they're
teaching."
Senator Hoffman assessed this legislation as helpful in solving a
short-term problem. However, he cited lowered attendance at teacher
job fairs since 1997 and asked the witness for suggestions in
addressing the long-term problem.
Ms. Ossiander replied, "I think that there is no one simple
answer," as evident by the different legislation pertaining to the
issue. She expressed she is encouraged by the increased per pupil
allocation in the foundation funding formula as it would allow the
district to hire and maintain qualified teachers.
AT EASE 9:54 AM / 9:59 AM
Senator Green recalled concerns about the rehire of a state
employee, including a legislator, and the possible complications
associated with participation in another retirement package.
ALISON ELGEE, Deputy Commissioner, Department of Administration
explained that currently a retired Public Employees Retirement
System (PERS) member who takes a job as a teacher, or a retired TRS
member who takes a job in a PERS position, would not have to
suspend receipt of retirement benefits since that employee is
entering different retirement plan. However she noted the
certification requirements necessary to obtain a teaching position.
Ms. Elgee suggested if the intent is to allow a retired PERS member
to become a teacher, clarification language should be inserted in
the legislation to stipulate whether that employee, with a
preliminary certification, is to be covered by TRS or continue to
be eligible to receive PERS retirement payments. She noted that a
public employee must be covered under a benefit plan and
recommended PERS as a default in these instances.
Co-Chair Kelly asked if at the point the teacher becomes fully
certified, the employee is then covered under TRS.
Ms. Elgee affirmed TRS is the appropriate system for a teacher who
has fulfilled all requirements for becoming fully certified.
Senator Green shared a conversation she overheard about the desire
to hire retired PERS members as teachers at the University of
Alaska. She asked what system the university participates in.
Ms. Elgee listed classified staff as PERS members and certified
staff as TRS members. She noted there is also an optional
retirement plan available to teachers.
Co-Chair Kelly understood the Department of Education and Early
Development might have contradictory information on the subject.
BRUCE JOHNSON, Deputy Commissioner of Education, Department of
Education and Early Development stated a determination made during
the creation of SB 36, from the Twentieth Alaska State Legislature,
specified that a "subject matter specialist" would have a teacher
certificate. He cited language from that legislation, "A person
employed as a subject matter expert teacher … is considered a
certificate employee" for purposes of TRS.
Senator Green assured she was not attempting to "muddy the waters"
on either SB 86 or SB 149, but pointed out this was a problem
presented and that the manner of transferring from PERS to TRS, for
both school districts and the university, should be clarified. She
assumed there were provisions allowing a retired PERS or TRS member
to instruct at the University of Alaska on a part time basis.
Ms. Elgee affirmed a public employee could work in a separate
field, as long as the new position is eligible to participate in a
retirement system different than the one the employee retired from.
Senator Hoffman asked if the employee would have to "start all
over" to become vested in the new retirement program.
Ms. Elgee answered that is correct and noted the vesting
requirement for TRS is eight years.
Mr. Johnson testified the "department has been excited about the
concepts" presented, and judges SB 149 to be good legislation that
would provide "additional tools" to ensure the most qualified
individuals are employed as teachers in Alaska. He reaffirmed the
situation is acute, that job fairs are attracting fewer applicants
and that Alaskans could be recruited as teachers.
Mr. Johnson added the department's support for the acceptance of
teacher certificates from other states for preliminary
certification. He expressed, "That makes good sense and eliminates
tremendous barriers that we've had up to this point in time."
Mr. Johnson noted the Alaska State Board of Education had recently
adopted preliminary certification regulations similar to the intent
of the bill.
Senator Green asked if an employee retired under PERS, who becomes
a teacher, could elect to not participate in TERS. She predicted
this could save the school districts money.
Ms. Elgee responded that currently a full time employee does not
have the election to not participate in the applicable retirement
system. She noted that the re-hire provisions in the bill for
retired TRS members do give the option to not participate, but that
retired PERS members would be required to participate in the TRS
program.
Co-Chair Kelly pointed out that by requiring these teachers to
participate, they are actually contributing to the retirement fund.
He stated this is a long-term advantage of the fund.
Senator Leman offered a motion to move SS SB 149 from Committee
with accompanying Department of Education and Early Development
zero fiscal note and fiscal note from the Department of
Administration for $50,000.
SFC 01 # 85, Side B 10:13 AM
There was no objection and the bill MOVED from Committee.
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