04/04/2001 09:38 AM House EDU

HB 203-APPROP: STUDY OF SCHOOL COST FACTORS                                                                                   
                                                                                                                                
CHAIR BUNDE announced  that the final order of  business would be                                                               
HOUSE  BILL NO.  203,  "An  Act making  an  appropriation to  the                                                               
Legislative Council for a study  of school district cost factors;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
Number 0942                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON,  as sponsor  of HB  203, stated  that this                                                               
bill is  an Act appropriating  money for a school  district cost-                                                               
factor study.   Those  multipliers have  not changed  since 1986,                                                               
and  the Alaska  constitution  has an  obligation  to fully  fund                                                               
education for all students.   Inherent in this mission, she said,                                                               
is to account for the  diverse geographical, ethnic, and economic                                                               
changes  in Alaska.   She  explained  that this  would study  the                                                               
school district cost  differential to see what it costs  to run a                                                               
school in each district.                                                                                                        
                                                                                                                                
CHAIR  BUNDY  asked  if  this bill  would  task  the  Legislative                                                               
council to lead a contract to perform this study.                                                                               
                                                                                                                                
REPRESENTATIVE WILSON stated that he was correct.                                                                               
                                                                                                                                
REPRESENTATIVE GUESS stated  that in her mind  the methodology of                                                               
the study  that was done  during SB 36  was extremely poor.   She                                                               
asked if  [HB 203]  addresses ensuring  that this  doesn't happen                                                               
again  or that  every two  years [the  state] would  have to  pay                                                               
$350,000  for a  new  formula  instead of  creating  one that  is                                                               
updateable.                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON answered that  she thinks [the study needs]                                                               
to be done  correctly in order to  see what it costs  for fuel in                                                               
each school district; what the  property insurance is; or what it                                                               
costs to  get a fire inspector  to the school and  check the fire                                                               
extinguishers.   For example,  with a small  school like  that in                                                               
Tok,  someone might  have to  fly  in or  take all  day to  drive                                                               
there.   All  of  these factors,  she said,  need  to be  thought                                                               
about, checked,  and done carefully.   She added that she  has an                                                               
amendment  that would  add "housing,"  after "food,"  on page  1,                                                               
line 10.                                                                                                                        
                                                                                                                                
Number 1137                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER made  a motion to adopt  Amendment 1, which                                                               
would insert "housing," after "food," on page 1, line 10.                                                                       
                                                                                                                                
REPRESENTATIVE  GUESS objected  for  the  purpose of  discussion.                                                               
She  said  she  has  talked   to  some  of  the  top  educational                                                               
economists, and housing is very  difficult to do from an economic                                                               
standpoint in  small areas, which  is why there aren't  any small                                                               
area CPIs (consumer price indexes).   She added that although she                                                               
thinks it  is a  great intent,  it might not  be possible  to do.                                                               
She withdrew her objection.                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS asked  Representative  Wilson  if she  is                                                               
talking  about  the  housing  costs  for  educators  or  for  the                                                               
districts in providing for housing for their employees.                                                                         
                                                                                                                                
REPRESENTATIVE  WILSON  stated  that  she is  talking  about  the                                                               
housing cost  to the districts.   In  some areas, she  said, [the                                                               
districts] have to  provide housing for teachers in  order to get                                                               
them to come [to those areas].                                                                                                  
                                                                                                                                
REPRESENTATIVE PORTER  stated that he agrees  with Representative                                                               
Guess  that  [the legislature]  should  try  to do  something  to                                                               
inspire  the appropriate  type of  examination of  the cost.   He                                                               
remarked that last time [the  money] being spent was examined, as                                                               
opposed to what  the costs were.  He added  that the direction to                                                               
the  Legislative Council  is to  get  somebody to  study what  it                                                               
costs, not what is being spent.                                                                                                 
                                                                                                                                
Number 1243                                                                                                                     
                                                                                                                                
CHAIR  BUNDE announced  that there  being  no further  objection,                                                               
Amendment 1 was adopted.                                                                                                        
                                                                                                                                
REPRESENTATIVE STEVENS remarked that he  thinks it is a good idea                                                               
to do  a study like  this.  He stated  that he is  concerned that                                                               
this is  seen as being  in place of  an increase to  a foundation                                                               
formula.                                                                                                                        
                                                                                                                                
REPRESENTATIVE WILSON  responded that  there have  been a  lot of                                                               
changes  in the  economic climate  in many  areas since  1986 and                                                               
that this  is just to make  sure that everyone is  "playing on an                                                               
even playing board."  She added  that this has nothing to do with                                                               
where the  funding comes in  the formula.   She noted  that there                                                               
has been  a lot of comment  and work put into  looking at funding                                                               
for  schools.     When  the  Department  of Education  and  Early                                                               
Development [EED] had the last  study done by the McDowell Group,                                                               
it  recommended that  another study  be done  by reexamining  the                                                               
methodology.                                                                                                                    
                                                                                                                                
CHAIR  BUNDE  noted that  this  is  a  tool that  the  foundation                                                               
formula  thought to  use and  in no  way mitigates  the need  for                                                               
increasing the foundation formula.                                                                                              
                                                                                                                                
Number 1364                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUESS  clarified that  this legislative  body, not                                                               
the [EED],  did the McDowell  study.   She stated that  there are                                                               
four  other  states that  have  cost  factors;  all are  done  in                                                               
different ways.  She remarked  that every researcher she talks to                                                               
says  there is  nothing in  educational research  right now  that                                                               
says it  should be done a  certain way; every system  has a bias.                                                               
From her research,  she said, she believes this is  the worst way                                                               
to do  it.  She  added that she would  like every report  that is                                                               
created to discuss  the bias because there is not  going to be an                                                               
unbiased study.   Finally, she said she would like  for any study                                                               
or system that comes back to be updateable.                                                                                     
                                                                                                                                
Number 1460                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER made  a motion to move HB  203, as amended,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal  notes.   There being  no objection,  CSHB 203(HES)  moved                                                               
from the House Special Committee on Education.