Legislature(2023 - 2024)DAVIS 106
03/22/2023 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB65 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 65 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 65-INCREASE BASE STUDENT ALLOCATION
8:06:49 AM
CO-CHAIR RUFFRIDGE announced that the only order of business
would be to hear proposed amendments on HOUSE BILL NO. 65, "An
Act relating to education; increasing the base student
allocation; and providing for an effective date."
8:07:10 AM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, as prime
sponsor, reintroduced HB 65 and reminded the committee that HB
65 would increase the Base Student Allocation (BSA) by $1,250
per eligible student. He said that through public testimony, it
is evident that it is a much needed and strongly supported bill.
He pointed out that since 2012, inflation has increased by at
least 24 percent, while the BSA has only increased 4.2 percent.
He noted the requirements of legislators to support adequate
funding and maintain support for education, adding that the bill
gives the opportunity to follow through with that requirement.
8:09:40 AM
CO-CHAIR RUFFRIDGE invited questions from the committee. Seeing
none, he noted there were two amendments received from
Representative McKay, and Representative Story. He entertained
a motion for amendments.
8:10:11 AM
REPRESENTATIVE MCKAY moved to adopt Amendment 1 to HB 65,
labeled 33-LS0423/A.14\Marx 3/16/23, which read:
Page 1, line 5:
Delete "$7,210"
Insert "$6,110"
REPRESENTATIVE STORY objected.
8:10:28 AM
REPRESENTATIVE STORY stated that her concern was the amount, the
compelling testimony she had heard, and that schools would still
be underfunded.
8:11:24 AM
REPRESENTATIVE MCKAY spoke to Amendment 1. He noted that the
vast majority of testifiers last night consisted of "paid school
district employees of some sort." He explained there are two
components: the BSA, and the foundation formula, the latter of
which he felt needs to be reformed, as it is out of date and
does not put the money where it is needed.
8:14:21 AM
REPRESENATIVE MCCKAY explained that the receipt of the spring
revenue forecast was "quite a bit lower," which results in more
pressure on the current year's budget. He gave brief examples
of the supplemental budget for fiscal year 2023 (FY 23). He
stated it is time to make hard decisions and question the
largest budget item of all, which is education. In an earlier
committee hearing, he explained that there was a conversation
about COVID-19 funds being used for expenses, including salary
raises and bonuses for staff. He also suggested administrators
get recertified to work as teachers to get them back in the
classroom. He stressed that there are budget reductions in the
long-term fiscal plan that will have to be dealt with.
8:19:03 AM
REPRESENTATIVE HIMSCHOOT asked how much is spent on the
permanent fund dividend (PFD). She pointed out that the amount
budgeted for the PFD is larger than the amount budgeted for
education.
REPRESENTATIVE MCKAY replied that it depends on the dividend
formula one follows. He stated that after he gets solid numbers
that ensure accuracy, he can follow up with the information.
8:20:21 AM
REPRESENTATIVE PRAX expressed his support for the amendment.
8:22:57 AM
CO-CHAIR ALLARD commented on public testimony, indicating that
it is vital that the legislative body hear all testimony. She
gave a public apology to anyone who was unable to testify. She
opined that increasing the BSA to $1,250 does not seem
reasonable right now, adding that [the legislature] needs to be
fiscally sound.
8:24:48 AM
REPRESENTATIVE HIMSCHOOT pointed out that school districts are
required to keep enough money in reserves to remain solvent in
the event of a catastrophe.
8:25:20 AM
REPRESENTATIVE MCCORMICK commented on how much the BSA means to
rural Alaska. He said he appreciated consideration of fiscal
responsibility from other representatives, noting that there is
room for more broad discussion. He added that more thought
should be directed towards the subject of cutting the education
system.
8:27:11 AM
CO-CHAIR RUFFRIDGE appreciated the testimony given last night.
He agreed that there is reform needed on the foundation formula,
but altering the formula does not necessarily alter the amount a
school district needs in order to function. Funding issues
still remain within Alaska school districts, he said, adding
that he is behind returning responsibility to Alaska
communities. He stated that he is not in support of Amendment
1.
8:31:26 AM
REPRESENTATIVE MCKAY commented that conversations are needed and
that there must be situational awareness about the budget. He
urged approval of Amendment 1.
8:32:09 AM
REPRESENTATIVE STORY maintained her objection.
A roll call vote was taken. Representatives Prax, McKay, and
Allard voted in favor of Amendment 1. Representatives
McCormick, Himschoot, Story, and Ruffridge voted against it.
Therefore, Amendment 1 failed by a vote of 3-4 .
8:32:48 AM
REPRESENTATIVE STORY moved to adopt Amendment 2 to HB 65,
labeled 33-LS0423/A.15\Marx 3/17/23, which read:
Page 1, line 5:
Delete "$7,210"
Insert "$7,110"
Page 1, line 7:
Delete all material and insert:
"* Sec. 2. AS 14.17.470, as amended by sec. 1 of
this Act, is amended to read:
Sec. 14.17.470. Base student allocation. The base
student allocation is $7,458 [$7,110].
* Sec. 3. Section 1 of this Act takes effect on the
effective date of sec. 26, ch. 40, SLA 2022.
* Sec. 4. Section 2 of this Act takes effect
July 1, 2024."
CO-CHAIR ALLARD objected.
8:33:17 AM
CO-CHAIR ALLARD spoke to her objection to Amendment 2. She
stated it is "something we can't afford" as the second largest
budget in the state, which is education.
REPRESENTATIVE STORY explained that Amendment 2 would increase
the BSA by an additional $1,150.00 for the upcoming school year,
and add a two-year funding increase. She gave examples of the
buying power in previous education funding. She noted that
increasing the BSA floats all of the public school choice
options, and stated that it is critically important that as the
House Education Standing Committee, schools are set up for
success. She encouraged the committee to show that they value
education in Alaska and prioritize education funding.
8:39:28 AM
REPRESENTATIVE MCKAY pointed out that Amendment 2 results in a
BSA increase of $1,492 over two years, which would be doubled by
the foundation formula, totaling an approximate $381 million.
He stressed that adding this much money to the budget was a huge
decision, and a commitment that would continue well into the
foreseeable future.
8:40:34 AM
REPRESENTATIVE PRAX spoke in favor of the proposed amendment.
8:40:55 AM
REPRESENTATIVE HIMSCHOOT appreciated the foresight to make the
investment to show the legislature's commitment to education,
and give districts a sense of the future as they go through
their budget process.
8:42:30 AM
CO-CHAIR RUFFRIDGE said he supported the idea of looking ahead
but was concerned with the end result numbers. He shared his
belief that there was a very real dilemma facing this body as to
how to fund the budget in the next couple of months. He moved
to amend a conceptual amendment to Amendment 2, to change the
number on line 3 from $7,110 to $6,640 and alter line 8 from
$7,458 to $6,760.
8:44:05 AM
CO-CHAIR ALLARD objected, stating that she does not support the
conceptual amendment.
8:44:22 AM
REPRESENTATIVE MCKAY sought to clarify the changes proposed by
Co-Chair Ruffridge.
8:44:34 AM
CO-CHAIR RUFFRIDGE reiterated the numbers in his proposal.
8:45:06 AM
REPRESENTATIVE STORY asked Co-Chair Ruffridge about his
rationale for the numbers.
CO-CHAIR RUFFRIDGE responded that there is not a fiscal plan in
place yet, but during testimony, it was apparent that school
districts are in need of additional funding. He described the
$680 figure as "personal" because it would help one of his
school districts maintain their education without increasing
class sizes. He stated that his intention is to look into the
foundation formula during the interim and offer solutions on how
to better fund education moving forward.
8:47:11 AM
REPRESENTATIVE MCCORMICK reiterated that he represents school
districts that lack basic needs, adding that the proposed
reduction makes him uncomfortable.
8:48:11 AM
REPRESENTATIVE ORTIZ appreciated the intent of the conceptual
amendment to Amendment 2 and the supportive comments. He stated
that legislators do not only represent their own districts, and
stressed that there are real education needs throughout Alaska
that are greater than that.
8:51:33 AM
REPRESENTATIVE PRAX supported the direction the conceptual
amendment was going. He noted that some services, such as
education and social services, are discussed in isolation
without considering the overall picture.
8:53:02 AM
The committee took an at-ease from 8:53 a.m. to 8:54 a.m.
8:54:43 AM
CO-CHAIR RUFFRIDGE sought comments and questions on the
conceptual amendment to Amendment 2.
8:54:59 AM
REPRESENTATIVE STORY commented on the support for two-year
funding, stating that it is good education funding policy. She
said she did not agree entirely with the lower number, but would
support the conceptual amendment, being that it is important to
address budget concerns. She expressed her hope that the House
Finance Committee could "wrestle with the numbers" and
ultimately pick a higher number.
8:58:18 AM
REPRESENTATIVE ALLARD recanted her discussion with the president
of the Cordova School Board. She noted that during testimony it
was reiterated over and over that the BSA needs to be increased
for various reasons, but no one had addressed the buildings that
aren't being used to capacity, or the overhead with
administrations that need to be cut down. She expressed her
concern about excess going out, and not enough coming in. There
is no guarantee, she said, that this BSA increase will stay in
the classrooms. She stated she would not support the conceptual
amendment to Amendment 2.
8:59:52 AM
CO-CHAIR RUFFRIDGE emphasized that he appreciated local control
of Alaska school districts. Members from the communities are
elected to be school board members to help direct how education
is funded, and it is imperative that is maintained, he said. He
stated that during the interim, his intention would be to look
into unfunded mandates.
9:03:41 AM
REPRESENTATIVE STORY encouraged the committee to remember that
there are many fixed costs districts have to pay, which was one
of the intended reasons to increase the BSA to a significantly
higher number. She maintained her concern about the amount of
money being purposed in the conceptual amendment. She
encouraged members to attend school board budget meetings.
9:07:28 AM
REPRESENTATIVE PRAX commented on unfunded mandates and The
Alaska Reads Act being used as an example of how we
[legislators] are not thinking correctly about providing the
service.
9:09:34 AM
The committee took an at-ease from 9:09 a.m. to 9:13 a.m.
9:13:02 AM
CO-CHAIR RUFFRIDGE sought final comments or questions on the
conceptual amendment to Amendment 2.
9:13:20 AM
A roll call vote was taken. Representatives Prax, McCormick,
McKay, Himschoot, Story, and Ruffridge voted in favor of
Conceptual Amendment 1 to Amendment 2. Representative Allard
voted against it. Therefore, Conceptual Amendment to Amendment
2 passed by a vote of 6-1.
9:14:00 AM
CO-CHAIR RUFFRIDGE returned attention to Amendment 2, as
amended.
9:14:10 AM
CO-CHAIR ALLARD maintained her objection to Amendment 2.
9:14:15 AM
A roll call vote was taken. Representatives Story, Prax,
McCormick, Himschoot, and Ruffridge voted in favor of Amendment
2, as amended. Representatives Allard and McKay voted against
it. Therefore, Amendment 2, as amended passed by a vote of 5-2.
9:15:27 AM
The committee took an at-ease from 9:15 a.m. to 9:21 a.m.
9:21:25 AM
CO-CHAIR RUFFRIDGE clarified, for the record, that Amendment 2
passed, as amended, by a vote of 5 yeas, 2 nays. He announced
that the committee would return to HB 65, as amended. He
invited Representative Ortiz to give closing comments.
9:21:57 AM
REPRESENTATIVE ORTIZ said he had no closing comments but thanked
the committee for their consideration and discussion.
9:22:17 AM
REPRESENTATIVE STORY commented on the dollars in districts, and
explained that there are new requirements of districts in
relation to, for example, The Alaska Reads Act.
9:24:17 AM
REPRESENTATIVE MCCORMICK said he was glad to see HB 65 move out
of committee but disappointed that it had been drawn down to the
number it was.
9:25:58 AM
REPRESENTATIVE PRAX commented on unfunded mandates, and at times
not being able to sort out "invalid arguments."
9:27:13 AM
REPRESENTATIVE STORY clarified a misstatement. She said she
hoped that when the House Finance Committee looks at the bill,
they would significantly increase it.
9:27:49 AM
REPRESENTATIVE HIMSCHOOT stated that she was happy to get the
bill moving but was counting on the House Finance Committee to
"give a really close look."
9:28:24 AM
REPRESENTATIVE MCCORMICK moved to report HB 65, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes.
9:28:50 AM
REPRESENTATIVE MCKAY objected.
9:29:01 AM
A roll call vote was taken. Representatives Himschoot, Story,
Prax, McCormick, and Ruffridge voted in favor of reporting HB
65, as amended, out of committee. Representatives Allard, and
McKay voted against it. Therefore, CSHB 65 (EDC) was reported
out of the House Education Standing Committee by a vote of 5-2.
9:29:43 AM
The committee took an at-ease from 9:29 a.m. to 9:34 a.m.
9:34:02 AM
CO-CHAIR RUFFRIDGE invited any final comments and briefly
discussed future business.
9:34:43 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 9:35 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 65 Support received as of 3.20.23 Redacted.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB 65 oppose received as of 3.20.23 redacted.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB 65- two amendments received 3.20.23.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB65 Sectional Analysis ver A 2.9.23.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB65 Sponsor Statement ver A 2.9.23.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB65 ver A.PDF |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB 65 fiscal note 2.10.23- DEED.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |
| HB 65 fiscal note- Fund Capitalization 2.10.23.pdf |
HEDC 3/22/2023 8:00:00 AM |
HB 65 |