03/30/2012 09:00 AM Senate FINANCE

SENATE BILL NO. 182                                                                                                           
                                                                                                                                
     "An Act amending the amount of state funding provided                                                                      
     to school districts for pupil transportation."                                                                             
                                                                                                                                
SENATOR KEVIN MEYER, explained that  school districts in the                                                                    
state of  Alaska are facing  shortfalls in  overall funding,                                                                    
in  part due  to  the rising  cost  of pupil  transportation                                                                    
programs.  It is  costing more  each year  to transport  our                                                                    
students safely to and from  school. Senate Bill 182 changes                                                                    
the  pupil  transportation   funding,  which  allows  school                                                                    
districts to  keep more of  their foundation funding  in the                                                                    
classroom. Currently most districts  have to subsidize their                                                                    
pupil  transportation   programs,  which   takes  foundation                                                                    
formula  dollars  out  of the  classroom.  This  legislation                                                                    
recalibrates the  funding for pupil transportation  based on                                                                    
the most  recent audits by  the Department of  Education and                                                                    
Early  Development. The  amounts will  be adjusted  annually                                                                    
according to  the Consumer Price Index  (CPI) for Anchorage.                                                                    
This change allows  the funding to match  the amounts agreed                                                                    
to in  their most recent contract  negotiations, providing a                                                                    
more  realistic   figure  for  the  actual   cost  of  pupil                                                                    
transportation.   Although   pupil  transportation   is   an                                                                    
indirect  cost of  education, it  is extremely  important in                                                                    
Alaska.  Road  conditions   are  often  dangerous,  daylight                                                                    
during  the  school  year  is  minimal,  and  sometimes  the                                                                    
distance of transporting students is immense.                                                                                   
                                                                                                                                
Co-Chair Stedman noted  the new fiscal impact  note from the                                                                    
Department of Education and Early Development.                                                                                  
                                                                                                                                
Senator Olson  wondered how many  school districts  would be                                                                    
impacted by  the bill. Senator  Meyer replied that  the bill                                                                    
would benefit  every school district that  currently offered                                                                    
school transportation.                                                                                                          
                                                                                                                                
EDRA  MORLEDGE, STAFF,  SENATOR  MEYER,  furthered that  the                                                                    
bill  represented  49 school  districts  out  of 53  in  the                                                                    
state.                                                                                                                          
                                                                                                                                
Senator Olson surmised  that the bill applied  to the school                                                                    
districts that  currently provided  transportation services.                                                                    
Ms.  Morledge agreed.  She  added that  if  the four  school                                                                    
districts  that  did  not currently  provide  transportation                                                                    
decided  to  provide  transportation in  the  future,  those                                                                    
districts would benefit from the proposal.                                                                                      
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  CS SB  182 (EDC)  out of                                                                    
committee with  individual recommendations,  attached letter                                                                    
of intent, and the accompanying  fiscal note. There being NO                                                                    
OBJECTION, it was so ORDERED.                                                                                                   
                                                                                                                                
SB  182 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation,   attached  Letter   of   Intent  from   the                                                                    
Department of  Education and Early  Development, and  with a                                                                    
new  fiscal  impact from  the  Department  of Education  and                                                                    
Early Development.