04/01/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 235                                                                                                           
                                                                                                                                
     "An Act relating to charter school approval and                                                                            
     funding."                                                                                                                  
                                                                                                                                
9:44:27 AM                                                                                                                    
                                                                                                                                
SENATOR KEVIN MEYER requested his staff present the                                                                             
legislation.                                                                                                                    
                                                                                                                                
JOMO STUART, STAFF, SENATOR MEYER,                                                                                              
                                                                                                                                
     Senate Bill 235 amends existing state statute to allow                                                                     
    the Department of Education & Early Development to                                                                          
     compete on behalf of Alaska charter schools for                                                                            
     facility maintenance & start-up grant funds nationally                                                                     
    available through the U.S. Department of Education.                                                                         
     Alaska and its charter schools are currently                                                                               
     ineligible.                                                                                                                
                                                                                                                                
     Senate Bill 235 addresses this inequity in two ways:                                                                       
                                                                                                                                
     First, Senate Bill 235 removes the statutory cap which                                                                     
     limits the number of charter schools, on a statewide                                                                       
    basis to sixty.  As the only authorizer of charter                                                                          
    schools, local school boards thoroughly examine and                                                                         
    evaluate charter applications prior to agreeing to                                                                          
     accept a charter for their district. In this way,                                                                          
     local school boards act as a check on charter school                                                                       
     over-proliferation and growth - today, there are only                                                                      
     26 charter schools in existence across Alaska - making                                                                     
     a state mandated cap unnecessary.                                                                                          
                                                                                                                                
     Second, Senate Bill 235 creates in statute the                                                                             
     programmatically required state funding mechanism                                                                          
     necessary to comply under the federal grant program.                                                                       
     It amends current law to establish in Alaska the per-                                                                    
     pupil facilities aid program required under the U.S.                                                                       
     Department of Education's applicant eligibility                                                                            
     requirements.  Senate Bill 235 then seeds the in-state                                                                     
    aid program with a nominal $1 dollar per pupil per                                                                          
     year.  However, it is communities and school districts                                                                     
     which must arrange for themselves the means to provide                                                                     
    the 10% local contribution necessary to achieve the                                                                         
     initial 90% federal match and subsequent, escalating                                                                       
     match proportions.                                                                                                         
                                                                                                                                
     With minimal State involvement, but maximized local                                                                        
     initiative & control, Senate Bill 235:                                                                                     
                                                                                                                                
        · Improves the State of Alaska's ability to secure                                                                      
          the Federal Start Up Funds for Alaskan Charter                                                                        
          Schools.                                                                                                              
        · Makes charter schools eligible to compete for                                                                         
          federal grants for facilities.                                                                                        
        · Is strongly supported statewide by school boards,                                                                     
          school districts, and charter schools.                                                                                
        · Reduces a major barrier to the development of                                                                         
          charter schools.                                                                                                      
        · Benefits Alaska's children.                                                                                           
        · Will increase educational choices for parents &                                                                       
          opportunities for students.                                                                                           
                                                                                                                                
Co-Chair  Stedman mentioned  one fiscal  note from  DEED for                                                                    
$301 thousand  in general  funds of  which $150  thousand is                                                                    
requested for adoption of the  regulations and the remainder                                                                    
is  for  one  and  one  half  positions  to  administer  the                                                                    
program.                                                                                                                        
                                                                                                                                
9:48:12 AM                                                                                                                    
                                                                                                                                
LORETTA  NARDI, PRESIDENT,  PARTNERSHIP  FOR ALASKA  CHARTER                                                                    
SCHOOLS (via  teleconference), testified  in support  of the                                                                    
legislation. She stressed the  importance of charter schools                                                                    
as  public  schools.  Alaska  charter  schools  often  lease                                                                    
facilities with funds slated for student use.                                                                                   
                                                                                                                                
9:51:02 AM                                                                                                                    
                                                                                                                                
BARBARA  GERARD,  PRINCIPAL,  ACADEMY  CHARTER  SCHOOL  (via                                                                    
teleconference)  testified in  support  of the  legislation.                                                                    
She  stressed  her  support  for  charter  schools.  SB  235                                                                    
strengthens Alaska's charter school law.                                                                                        
                                                                                                                                
9:53:52 AM                                                                                                                    
                                                                                                                                
KIKI    ABRAHAMSON,    FIREWEED    ACADEMY,    HOMER    (via                                                                    
teleconference), testified in support  of SB 235. She stated                                                                    
that the facility equity allows access.                                                                                         
                                                                                                                                
9:55:31 AM                                                                                                                    
                                                                                                                                
SAM KITO,  FACILITIES ENGINEER,  ALASKA EDUCATION  AND EARLY                                                                    
EDUCATION, stated  that the administration  does not  have a                                                                    
position  on the  legislation. He  reported that  the fiscal                                                                    
note was  prepared based on  the best interpretation  of the                                                                    
legislative language  and intent.  The fiscal  note includes                                                                    
funding to implement regulations  to administer the program.                                                                    
The  program  allows start  up  or  enhancement funding  for                                                                    
charter  school  facility  programs. The  grant  funding  is                                                                    
stepped  so  that  the federal  government  receives  larger                                                                    
amounts  in  the  first  year   with  declining  amounts  in                                                                    
subsequent years.  The department believes  that regulations                                                                    
are  necessary for  the implementation  of a  new facilities                                                                    
funding  program. The  department estimates  the need  for a                                                                    
single full  time staff person  dedicated to  the management                                                                    
of the funding.                                                                                                                 
                                                                                                                                
9:58:04 AM                                                                                                                    
                                                                                                                                
Senator Thomas  commented that the  bill addresses  the long                                                                    
term problem of financing for charter school facilities.                                                                        
                                                                                                                                
Senator Huggins noted  that there are 26  charter schools in                                                                    
the state.  He opined that  SB 235 represents a  solution to                                                                    
part   of  the   problem.  He   expressed  support   of  the                                                                    
legislation.  Charter  schools  are  part  of  the  national                                                                    
strategy to move the education system forward.                                                                                  
                                                                                                                                
Senator  Meyer explained  that he  and  Senator Huggins  met                                                                    
with  a group  of  concerned parents  who see  SB  235 as  a                                                                    
mechanism to help charter schools  whose largest obstacle is                                                                    
facility funding.                                                                                                               
                                                                                                                                
10:01:29 AM                                                                                                                   
                                                                                                                                
SB  235  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.