Legislature(2011 - 2012)CAPITOL 106

04/04/2011 08:00 AM House EDUCATION


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Audio Topic
08:05:06 AM Start
08:05:33 AM Presentation(s): Superintendent Anchorage School District
08:31:22 AM HB199
09:08:57 AM HB198
09:14:35 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Presentation by Anchorage School District TELECONFERENCED
Superintendent
+= HB 199 FUNDING FOR STATE BOARDING SCHOOLS TELECONFERENCED
Moved CSHB 199(EDC) Out of Committee
+= HB 198 SPEC. EDUC. SERVICE AGENCY FUNDING/SUNSET TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
           HB 199-FUNDING FOR STATE BOARDING SCHOOLS                                                                        
                                                                                                                                
8:31:22 AM                                                                                                                    
                                                                                                                                
CHAIR DICK  announced that  the next order  of business  would be                                                               
HOUSE BILL  NO. 199, "An  Act amending the funding  for statewide                                                               
residential educational programs."                                                                                              
                                                                                                                                
8:32:36 AM                                                                                                                    
                                                                                                                                
ELIZABETH   SWEENEY  NUDELMAN,   Director,  School   Finance  and                                                               
Facilities   Section,   Department   of   Education   and   Early                                                               
Development  (EED),  clarified  that   the  statute  covered  the                                                               
programs that operated for the full school year.                                                                                
                                                                                                                                
8:33:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI asked  how  the amounts  in the  statute                                                               
were originally established.                                                                                                    
                                                                                                                                
8:34:24 AM                                                                                                                    
                                                                                                                                
MS. NUDELMAN replied  that these were stipend  rates from another                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KAWASAKI, noting that  the stipend amount would be                                                               
determined on  a regional  basis with  an established  cap, asked                                                               
about  money that  was  granted  but was  then  found  to be  not                                                               
necessary.                                                                                                                      
                                                                                                                                
8:35:11 AM                                                                                                                    
                                                                                                                                
MS. NUDELMAN replied that it had never been an issue.                                                                           
                                                                                                                                
8:35:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  inquired about  the  actual  costs of  the                                                               
housing and food programs.                                                                                                      
                                                                                                                                
8:35:40 AM                                                                                                                    
                                                                                                                                
MS.  NUDELMAN   offered  to  provide   the  information   to  the                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  FEIGE  stated  that,  as the  programs  had  been                                                               
operating for  a number  of years,  it would be  good to  have an                                                               
understanding of the actual costs.                                                                                              
                                                                                                                                
8:36:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON,  directing   attention   to  Exhibit   F                                                               
[Included  in members'  packets], asked  if EED  agreed that  the                                                               
figures provided were accurate.                                                                                                 
                                                                                                                                
8:37:57 AM                                                                                                                    
                                                                                                                                
MS. NUDELMAN  said that  EED had not  reviewed the  document, but                                                               
she noted  that the  program costs  had continually  exceeded the                                                               
cost of the stipend.                                                                                                            
                                                                                                                                
8:39:06 AM                                                                                                                    
                                                                                                                                
ERIC  GEBHART,  Superintendent,   Nenana  City  School  District,                                                               
directed attention to page 2  of a handout titled "Nenana Student                                                               
Living  Center 2010  Actual  Expenditures  [Included in  members'                                                               
packets].  He pointed out that  the revenues and expenses for the                                                               
actual  amount for  2010 and  the budgeted  amount for  2011 were                                                               
listed side  by side.   He confirmed  the revenue  deficiency for                                                               
2010  of $704,868,  and the  projected deficiency  in 2011  to be                                                               
$819,593.                                                                                                                       
                                                                                                                                
CHAIR DICK asked where the operating money was obtained.                                                                        
                                                                                                                                
MR.  GEBHART replied  that it  was from  foundation funding,  and                                                               
local funding from the city, among others.                                                                                      
                                                                                                                                
8:41:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT, referring  to the  budget document  being                                                               
discussed, noted that  the expenses were for nine  months, and he                                                               
asked how many months the requested stipend would cover.                                                                        
                                                                                                                                
MR.  GEBHART replied  that, although  nine months  were currently                                                               
taken, a tenth month would be welcomed and was necessary.                                                                       
                                                                                                                                
8:42:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE, referring to  the budget document, inquired                                                               
about the increase in wages, salaries, and benefits.                                                                            
                                                                                                                                
MR.  GEBHART, in  response,  said that  there  were increases  in                                                               
salaries  and  health  insurance,  as well  as  the  addition  of                                                               
another staff.                                                                                                                  
                                                                                                                                
8:43:07 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK pointed  out  that staff  needs  extended beyond  the                                                               
school year.                                                                                                                    
                                                                                                                                
8:43:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE,  referring   to  the  aforementioned  cost                                                               
increase for  additional staff, asked  if the number  of students                                                               
had also increased.                                                                                                             
                                                                                                                                
MR. GEBHART replied  that some services were  currently not being                                                               
met, including  the need for  a counselor and a  certified person                                                               
for academic support.                                                                                                           
                                                                                                                                
8:44:34 AM                                                                                                                    
                                                                                                                                
CHAIR DICK reported  on his visit to the facility,  and said that                                                               
he had  found it  to be a  bare bones operation  with a  need for                                                               
additional staff.                                                                                                               
                                                                                                                                
8:45:14 AM                                                                                                                    
                                                                                                                                
CRAIG  CULBERT,  Assistant  Superintendent,  Galena  City  School                                                               
District, reporting  on the program  costs, stated that  the food                                                               
cost for 255 students was $17,136,  of which the state paid about                                                               
$5800.   He  detailed that  a four  year grant,  received through                                                               
Senator  Lisa  Murkowski's  office,  would  most  likely  not  be                                                               
renewed.                                                                                                                        
                                                                                                                                
8:46:27 AM                                                                                                                    
                                                                                                                                
CHAIR DICK asked about the fuel costs.                                                                                          
                                                                                                                                
MR. CULBERT  replied that  about $1.1 million  worth of  fuel had                                                               
been donated from the military,  but that future costs would also                                                               
need to  be addressed.   This  would bring  the deficit  total to                                                               
almost $2 million.                                                                                                              
                                                                                                                                
8:47:46 AM                                                                                                                    
                                                                                                                                
CHAIR DICK agreed that the bill would make time available to                                                                    
research a long term solution.                                                                                                  
                                                                                                                                
MR. CULBERT said that EED had the valid costs for comparison.                                                                   
                                                                                                                                
8:48:56 AM                                                                                                                    
                                                                                                                                
CHAIR DICK closed public testimony.                                                                                             
                                                                                                                                
8:49:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON moved to adopt Amendment 1, labeled 27-                                                                   
LS0594\B.1, Mischel, 3/21/11, which read:                                                                                       
                                                                                                                                
     Page 1, following line 2:                                                                                                  
     Insert a new bill section to read:                                                                                         
       "* Section 1. AS 14.16.200 is amended by adding a                                                                      
     new subsection to read:                                                                                                    
          (c)  In addition to the programs eligible for                                                                         
     reimbursement of  costs under (a) of  this section, the                                                                    
     department   may    approve   three   district-operated                                                                    
     statewide residential  educational programs  that began                                                                    
     operating  after  July 1,  2011, for  reimbursement  of                                                                    
     costs  incurred  by  the   district  in  operating  the                                                                    
     program under regulations adopted by the department."                                                                      
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
8:49:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI objected for discussion.                                                                                
                                                                                                                                
8:49:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON explained that proposed Amendment 1 would                                                                 
allow a procedure for EED to accept up to three applications and                                                                
proposals for full year programs.                                                                                               
                                                                                                                                
8:51:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAWASAKI asked if there were any other boarding                                                                  
school programs between 2005 and 2011.                                                                                          
                                                                                                                                
8:51:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON replied that  some residential programs had                                                               
been offered but  not on a year around basis.   He explained that                                                               
the proposed amendment removed the  restriction for any applicant                                                               
who  met all  the  qualifications,  but did  not  require EED  to                                                               
accept any applications.                                                                                                        
                                                                                                                                
8:52:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI  asked if  the  specified  dates in  the                                                               
proposed amendment excluded any schools.                                                                                        
                                                                                                                                
8:52:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  agreed  that   there  was  no  intent  to                                                               
exclude, however,  the date  in the  proposed amendment  could be                                                               
amended to encompass all the schools.                                                                                           
                                                                                                                                
8:53:29 AM                                                                                                                    
                                                                                                                                
CHAIR  DICK asked  if  the proposed  amendment  would affect  the                                                               
fiscal note and inhibit the bill's passage.                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  offered  his  belief  that  the  proposed                                                               
amendment  would not  cause any  changes, but  that EED  would be                                                               
able to better answer.                                                                                                          
                                                                                                                                
8:54:41 AM                                                                                                                    
                                                                                                                                
MS.  NUDELMAN  opined  that  the  proposed  amendment  would  not                                                               
increase the  fiscal note,  as EED  would solicit  proposals with                                                               
stated criteria.                                                                                                                
                                                                                                                                
8:55:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved to  adopt Conceptual Amendment  1 to                                                               
proposed Amendment 1, which read:                                                                                               
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "July 1, 2011"                                                                                                 
          Insert "January 1, 2005"                                                                                              
                                                                                                                                
8:56:26 AM                                                                                                                    
                                                                                                                                
There  being no  objection,  Conceptual Amendment  1 to  proposed                                                               
Amendment 1 was passed.                                                                                                         
                                                                                                                                
8:56:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI   removed  his  objection   to  proposed                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
8:56:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  for an  explanation as  to how  this                                                               
would have a zero fiscal note.                                                                                                  
                                                                                                                                
8:57:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON, in response,  said that proposed Amendment                                                               
1 merely stated that EED  may solicit applications with a process                                                               
for  approval;  hence,  it was  permissive,  but  not  mandatory,                                                               
language.   He agreed that  a future fiscal  note to fund  may be                                                               
necessary.                                                                                                                      
                                                                                                                                
8:58:30 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:59:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON moved to adopt Amendment 1, as amended.                                                                   
                                                                                                                                
9:00:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT objected  and  asked to  clarify what  was                                                               
being added to the bill.   He stated that there was no additional                                                               
funding, as  it merely  stated that three  more schools  could be                                                               
approved.                                                                                                                       
                                                                                                                                
9:00:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   explained  that  proposed   Amendment  1                                                               
removed the  existing statutory  restriction for  adding eligible                                                               
schools.   He offered his belief  that it should not  require re-                                                               
titling.                                                                                                                        
                                                                                                                                
9:01:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT  asked  if   the  process  could  lead  to                                                               
approval prior to FY 2012.                                                                                                      
                                                                                                                                
REPRESENTATIVE  SEATON replied  that EED  had testified  that the                                                               
process was lengthy,  and that EED would not  approve an unfunded                                                               
program.                                                                                                                        
                                                                                                                                
9:02:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRUITT  opined that  a  long  term outlook  would                                                               
reflect a return to the current stipend level after 2013.                                                                       
                                                                                                                                
9:02:50 AM                                                                                                                    
                                                                                                                                
MS.  NUDELMAN   explained  that,  at   a  future  date,   if  new                                                               
residential programs  were added  to the  statute and  funded via                                                               
appropriation, then the costs would increase.                                                                                   
                                                                                                                                
REPRESENTATIVE PRUITT  offered his  belief that there  were costs                                                               
associated with  this proposed  amendment, even  if they  did not                                                               
occur this year.                                                                                                                
                                                                                                                                
9:04:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT removed his objection.                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
9:04:42 AM                                                                                                                    
                                                                                                                                
There being  no further objection,  Amendment 1, as  amended, was                                                               
passed.                                                                                                                         
                                                                                                                                
9:05:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAWASAKI acknowledged  that there  was a  current                                                               
existing need,  but he offered  his belief that  boarding schools                                                               
had not yet been determined to  be the best approach to the needs                                                               
of Alaska education.  He said that he would not oppose the bill.                                                                
                                                                                                                                
CHAIR DICK expressed his agreement.                                                                                             
                                                                                                                                
9:06:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT moved to report  HB 199, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There being  no  objection, CSHB  199 (EDC)  was                                                               
reported from the House Education Standing Committee.                                                                           

Document Name Date/Time Subjects
Rep Seaton Conceptual Amendment.pdf HEDC 4/4/2011 8:00:00 AM