Legislature(2003 - 2004)
03/11/2003 11:00 AM House EDU
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 171-REPEAL CHARTER SCHOOL GRANTS Number 1335 CHAIR GATTO announced that the next order of business would be HOUSE BILL NO. 171, "An Act repealing the charter school grant program; and providing for an effective date." Number 1323 EDDY JEANS, Manager, School Finance and Facilities Section, Education Support Services, Department of Education and Early Development, testified in support of HB 171 and provided background information about the bill. He told the committee HB 171 would repeal the state grant program that was implemented in fiscal year 2002 (FY 02) that allocates $500 per ADM [average daily membership] to each new charter school. The funding was intended to supplement the startup grants for charter schools. The state Department of Education and Early Development is working very closely with the U.S. Department of Education to increase the level of startup grants through the federal program, thereby, eliminating the need for the state supplemental program. MR. JEANS said the state would allocate to new charter schools $150,000 per year for the first three years, and $45,000 in the fourth year, for a total of $495,000 in startup funds through the federal program. He pointed out that this legislation would not take effect until July 1, 2004. The reason is that in the current year's budget there is a request for $158,400. That is the additional money that is due to the existing charter schools under this state program; [the department is] recommending that be funded in the current year's budget, and that this section of statute be repealed in the subsequent year. The state would then rely 100 percent on the federal grants. Mr. Jeans pointed out that the startup grants for the charter schools that exist right now range from approximately $160,000 to $180,000, and that is why there was a need for additional funding under the state program. Number 1198 CHAIR GATTO asked, if a charter school is in the process of forming right now and its goal is to get started prior to the deadline and get full funding, whether it will be able to do that before the effective date without finding some obstacles. Number 1157 MR. JEANS replied that the Department of Education and Early Development currently has four new charter schools on its agenda for the state school board next week. It is the department's intent that those new schools would be funded under the new federal program, not under the current state program. REPRESENTATIVE SEATON asked what the difference is in funding between the new program, using federal dollars, versus the old program, using state general fund dollars. MR. JEANS replied that under the old program the state allocated $160,000 to $180,000 of federal startup grants to charter schools. In addition, the charter schools could apply for a state startup grant that was equal to $500 per student. Obviously, the state allocation varied, depending on the number of students enrolled. What these charter schools were allocated under the federal program was reviewed, and the allocation under the state program was added. It was found that the largest single allocation was to the Family Partnership Charter School out of Anchorage, which generated between the two programs $478,000. What the department is suggesting is that with the new authorization under the federal program, the department would be able to fund any new charter school at $495,000 in startup funds. Number 1072 CHAIR GATTO announced as a point of information for the 30 individuals waiting on line to testify on HB 174 that the time is already 12:30 p.m. and the meeting will end at 1 p.m. He said everyone is welcome to continue to listen and to give testimony; however, it is unlikely that everyone will have time to testify today. Number 1019 REPRESENTATIVE GARA asked Mr. Jeans about just amending the law to say that if adequate federal funding is available, then the $500 state appropriation will not be available, but leaving the law on the books for those schools and instances where federal funding will not be adequate. He asked why the legislature should repeal the law. MR. JEANS replied that the law was adopted to supplement the level the state was funding school districts under the federal program. The department has been working very closely with the Director of Charter Schools at the U.S. Department of Education, Dean Kern, and has forwarded this proposal to him. Mr. Kerns supports [the department's] proposal at the level of $150,000 per year for the first three years, plus $45,000 in the fourth year, and with that support the administration does not see the need to leave the state statute on the books. Number 0921 REPRESENTATIVE GARA said he is concerned that while startup money will be available for the next few years, there is no guarantee it will be available in the future. He asked Mr. Jeans: Why not leave this program in place that allows state money to be used in those instances when there is not enough federal money? Why not come up with a state formula that allows state money to kick in when there is not enough federal funding available? MR. JEANS responded that the legislature could amend the statute to say that if a charter school did not receive $450,000 in federal funds that the school would qualify for an additional state grant. That is an option the legislature will have to decide. The Department of Education and Early Development believes that through the federal program there will be more resources available for startup funds than are currently available under the old federal program in combination with the state's startup grants. Number 0820 CHAIR GATTO announced that testimony is closed on HB 171. [HB 171 was held over.]
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