Legislature(2005 - 2006)CAPITOL 106

02/01/2005 11:00 AM House EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 13 SCHOOL CONSTRUCTION BOND REIMBURSEMENT TELECONFERENCED
Heard & Held
*+ HB 20 EDUCATION FUNDING TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
HB  20 - EDUCATION FUNDING                                                                                                    
                                                                                                                                
CHAIR NEUMAN announced that the  first order of business would be                                                               
HOUSE BILL NO.  20, "An Act relating to  a separate appropriation                                                               
bill  for operating  expenses for  primary  and secondary  public                                                               
education  and establishing  a date  by  which the  bill must  be                                                               
transmitted  to the  governor  each year;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
11:06:21 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, sponsor  to HB  20, stated  that the                                                               
purpose of HB 20 is to  address a problem in districts across the                                                               
state.  He  explained that the education budget  is delayed until                                                               
late in  the year forcing  school districts to fire  teachers and                                                               
then  attempt to  rehire  them later.   He  said,  "This is  very                                                               
disruptive and demoralizing  to teachers."  He  explained that HB
20  requires   the  governor  to  submit   the  education  budget                                                               
separately by the fourth day  of the session, and the legislature                                                               
to approve  that budget by March  15 of each year.   He clarified                                                               
that  the sponsor  substitute for  HB  20 changed  the date  from                                                               
April  1  to  March  15,  because  the  notification  period  for                                                               
teachers is set at March 16.   He explained that Section 2 of the                                                               
bill moves  the notification date  for tenured teachers  to March                                                               
25, providing  a ten-day  window for the  legislature to  act and                                                               
the governor to  approve.  He pointed out that  the bill provides                                                               
for separate funding of the foundation formula.                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON summarized  that the intent of  the bill is                                                               
to get early funding of education.   He noted that while the bill                                                               
does not  address a dollar  amount, it ensures early  funding and                                                               
the districts will  know how much money they have  and the status                                                               
of their  teachers.   He pointed out  that the  committee members                                                               
were given copies  of the sponsor statement and  zero fiscal note                                                               
as well  as letters of  support from the Kenai  Peninsula Borough                                                               
School District,  (KPBSD), the Lower  Kuskokwim District,  and an                                                               
individual  teacher.   The  members  also  received a  letter  of                                                               
support from the National Education  Association of Alaska, (NEA-                                                               
Alaska), although,  he noted,  NEA-Alaska has  an issue  with the                                                               
March 16 date.  He concluded  that the bill needs to be addressed                                                               
so that,  "school districts  throughout the  state have  a better                                                               
working relationship  within the  teaching community and  that we                                                               
don't unnecessarily burden them with disruptive practices."                                                                     
                                                                                                                                
11:09:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GATTO asked if  Representative Seaton had received                                                               
letters of opposition from any school districts.                                                                                
                                                                                                                                
REPRESENTATIVE SEATON responded that he  did not receive any such                                                               
letters.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   GATTO  asked   if  any   professional  teachers'                                                               
associations had commented on the bill.                                                                                         
                                                                                                                                
REPRESENTATIVE SEATON  responded that  NEA-Alaska wrote  a letter                                                               
supporting the  concept of  the bill, however,  "they did  have a                                                               
problem with moving the ...  mandatory date for notifying tenured                                                               
teachers, from the  16th to the 25th [of March].   They supported                                                               
Sections 1 and  3, which is the  essence of the bill."   He added                                                               
that  Cindy Spanyers,  legislative liason  for the  Alaska Public                                                               
Employees    Association/American    Federation   of    Teachers,                                                               
(APEA/AFT), will testify on the bill.                                                                                           
                                                                                                                                
CHAIR NEUMAN  asked what the  major obstacle has been  in passing                                                               
this type of bill.                                                                                                              
                                                                                                                                
REPRESENTATIVE SEATON answered:                                                                                                 
                                                                                                                                
     One of  the problems  was [that] the  date was  April 1                                                                    
     ... it's  been April  15 in the  past, and  that really                                                                    
     didn't cure  the problem  of the  statutory requirement                                                                    
     for  districts  to  notify  their  teachers  that  they                                                                    
     wouldn't be rehired.  ...   The bill moves forward that                                                                    
     date to ...  March 15 ... and then moves  back the date                                                                    
     of the  teacher notification ten  days, to give  a ten-                                                                    
     day window.   So what this  does is gets us  forward of                                                                    
     that so that  districts wouldn't have to  get into this                                                                    
     crunch of notifying their employees of termination.                                                                        
                                                                                                                                
11:12:38 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE WILSON asked why  tenured and non-tenured teachers                                                               
have different notification dates.                                                                                              
                                                                                                                                
REPRESENTATIVE   SEATON  replied   that  tenured   teachers  have                                                               
specific  rights and  privileges  that  are established,  whereas                                                               
non-tenured teachers are hired on a year-to-year basis.                                                                         
                                                                                                                                
REPRESENTATIVE WILSON opined that  all teachers, tenured and non-                                                               
tenured,  would  like  to  know  whether  they  have  a  job  the                                                               
following year or if they need to apply elsewhere.                                                                              
                                                                                                                                
REPRESENTATIVE SEATON  commented he shares this  opinion and that                                                               
he thinks the  districts use this date for  notifying mainly non-                                                               
tenured teachers  because tenured teachers are  very seldom laid-                                                               
off.    He  said,  "Not   knowing  what  their  budget  is,  [the                                                               
districts] use  this statutory date  for tenured teachers  as the                                                               
date by which they want to notify their non-tenured teachers."                                                                  
                                                                                                                                
REPRESENTATIVE WILSON  stated that because of  decreased funding,                                                               
there are school  systems that have had to  continually cut back.                                                               
She remarked that she knows of  at least four school systems that                                                               
have had  to cut back  to where  they have only  tenured teachers                                                               
left.                                                                                                                           
                                                                                                                                
11:16:31 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARA  said that there  always seems to  be tension                                                               
between early funding and adequate funding.  He continued:                                                                      
                                                                                                                                
     It  seems somehow  the  forces  during the  legislative                                                                    
     session somehow  get to  the point where  we can  get a                                                                    
     better school  budget later in  the session ...  but we                                                                    
     have  the  tension because  we  don't  want the  school                                                                    
     districts to send  out the pink slips, so  we also want                                                                    
     to get  it to them  early and the challenge  has always                                                                    
     been to try and find a way to get them both...                                                                             
                                                                                                                                
REPRESENTATIVE  GARA promoted  changing the  statutory date  when                                                               
school  districts  have  to submit  funding  to  their  municipal                                                               
governments.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON explained that it  would be a disservice to                                                               
make teachers wait  for notifications until May 1,  and that they                                                               
would  miss opportunities  for other  jobs.   He stated  that the                                                               
intention is to  move the process forward so that  if people have                                                               
to be laid  off, they have the best window  of opportunity to get                                                               
the best job possible.                                                                                                          
                                                                                                                                
REPRESENTATIVE GARA said  that completing the budget  by March 15                                                               
would be  a complicated issue and  asked if it could  get done by                                                               
March 15,  each year.  He  then inquired as to  creating coverage                                                               
by statute for PERS/TRS and inflation costs.                                                                                    
                                                                                                                                
11:22:12 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   SEATON  stated   that   covering  PERS/TRS   and                                                               
inflation proofing  is another issue.   He advocated  for dealing                                                               
with each district and it's  needs, individually.  He opined that                                                               
district issues  need to be dealt  with each year.   He explained                                                               
that  the purpose  of this  bill  is to  segregate the  education                                                               
budget  as  a  separate  budget, excluding  the  costs  of  other                                                               
operating considerations.                                                                                                       
                                                                                                                                
REPRESENTATIVE  WILSON said  that  the  municipality fiscal  year                                                               
ends  June 30th  and  that  their budget  is  planned around  the                                                               
school budget.   She commented  that she is  in support of  HB 20                                                               
and thinks that it will make  a big difference for schools in the                                                               
long run.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GATTO stated  that schools are subject  to laws of                                                               
supply  and  demand and  that  now,  the  supply of  teachers  is                                                               
relatively low, and the demand  is relatively high.  He advocated                                                               
for creating  an environment for  teachers that  offers certainty                                                               
in their  job placement.   He expressed his appreciation  for [HB
20].                                                                                                                            
                                                                                                                                
11:27:40 AM                                                                                                                   
                                                                                                                                
EDDY  JEANS, Director,  School Finance,  Department of  Education                                                               
and Early Development,  (EED), stated that the  EED is supportive                                                               
of  the  concept  of  early  funding,  but  would  make  specific                                                               
recommendations  regarding the  March 15  date.   He pointed  out                                                               
that on page 1 line 9, it  is stated that the governor submits an                                                               
appropriations  bill  to the  legislature  limited  to carry  out                                                               
"Alaska  Statute  14.17".    He explained  that  "14.17"  is  the                                                               
foundation program and  that language would limit  the ability to                                                               
include pupil  transportation, schools  for the  handicapped, and                                                               
other  K-12 components.   He  clarified that  he did  not have  a                                                               
written amendment, but that the  word "limited" restricts the EED                                                               
from submitting a bill beyond the foundation program.                                                                           
                                                                                                                                
CHAIR NEUMAN  asked Mr.  Jeans to submit  his suggestions  to the                                                               
committee, in writing.                                                                                                          
                                                                                                                                
11:29:26 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  THOMAS inquired  as  to  the language  associated                                                               
with "Alaska statute 14.21.77".                                                                                                 
                                                                                                                                
MR.  JEANS  explained that  the  provision  referring to  statute                                                               
"14.21.77"  deals with  reductions  in workforce.   He  explained                                                               
that it offers criteria for  districts to meet for eligibility to                                                               
fire tenured  teachers.  He  continued, "so, the way  the statute                                                               
is laid out  is if you think  you are going to  have less funding                                                               
through the appropriation mechanism,  or fewer students, you must                                                               
notify  tenured  teachers  by  March 15  of  the  potential  that                                                               
they'll be laid off.  In  terms of non-tenured teachers, you have                                                               
'til the end of the school year to provide them with notice."                                                                   
                                                                                                                                
11:31:51 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE THOMAS commented  that the language [in  HB 20] is                                                               
difficult to understand.                                                                                                        
                                                                                                                                
DAN   BECK,   Superintendent,   Delta/Greely   School   District,                                                               
("DGSD"), stated that  he supports HB 20.  He  explained that the                                                               
"DGSD" does  not intend  to fire  any teachers  this year  due to                                                               
rapid  growth.   He  explained  that the  "DGSD"  is planning  on                                                               
hiring  highly qualified  teachers to  fill those  positions, but                                                               
the  budget  is unknown.    He  described  the formation  of  the                                                               
district's budget:                                                                                                              
                                                                                                                                
     We have to start with  our projections in REAA's [Rural                                                                    
     Education Attendance  Area] somewhere around  the first                                                                    
     part  of  January  putting the  budget  together;  even                                                                    
     though that budget is not  passed in the final state by                                                                    
     the board until  June, we have to have it  in the state                                                                    
     close enough where  we can go out to hire  in March and                                                                    
     since  personnel makes  up most  of the  budget, it  is                                                                    
     critical to have that information  early.  I think that                                                                    
     Eddy Jeans had  a really good point on  moving the date                                                                    
     in this bill  back to March 1 ... we  support the bill,                                                                    
     in totality.   We were  in the position a  couple years                                                                    
     ago where  we did  lay off  tenured teachers  under the                                                                    
     new reduction  in force, and it's  difficult, it's time                                                                    
     consuming, and I wouldn't wish  that on anybody else in                                                                    
     the state.                                                                                                                 
                                                                                                                                
MARGARET  GILMAN,  Treasurer,   Kenai  Peninsula  Borough  School                                                               
Board, expressed support for Representative  Seaton's HB 20.  She                                                               
related  that as  a school  board member,  she appreciates  known                                                               
funding before hiring  decisions are made.  She said  that in the                                                               
current situation,  with current  funding, there is  a tremendous                                                               
level of uncertainty during the  spring of each year and teachers                                                               
are fearful  of losing their jobs.   She offered a  suggestion of                                                               
planning the  budget one year  in advance so that  staffing would                                                               
be known for the upcoming school year.                                                                                          
                                                                                                                                
MELODIE  DOUGLAS,   Chief  Financial  Officer,   Kenai  Peninsula                                                               
Borough School District, (KPBSD), stated  that the KPBSD Board of                                                               
Education has adopted  a legislative priority in  support of this                                                               
type  of  action.   She  said  the  Board of  Education  supports                                                               
recommendations moving  the date forward  to March 1  and leaving                                                               
the notification date  for hiring at March 16.   She related that                                                               
it  is  disruptive  in  school  districts  to  go  through  these                                                               
processes and  it affects  children in  the classroom  when staff                                                               
are worried  about their job  status.   She said that  moving the                                                               
date could  hinder the hiring  process; job fairs start  in March                                                               
and run through  April and May.  She opined  that it is essential                                                               
to stabilize education and beneficial  to fund early.  She echoed                                                               
Mr. Jeans's  recommendation that this  bill should be  amended to                                                               
reflect all K-12 programs, and  that those programs are important                                                               
in the planning process from  a budget standpoint.  She expressed                                                               
thanks in being  given the opportunity to  comment and encouraged                                                               
support of HB 20.                                                                                                               
                                                                                                                                
11:38:45 AM                                                                                                                   
                                                                                                                                
Anne  Kilkenny stated  that she  is  an active  volunteer in  the                                                               
Kenai school  system and agrees  with the  aforementioned reasons                                                               
for early funding.  She  opined that [early funding] would reduce                                                               
anxiety and uncertainty, help districts  properly budget and make                                                               
the system  more efficient.   She said  that she  appreciates the                                                               
debate generated by  this bill and the reasons  for early funding                                                               
have good merit.                                                                                                                
                                                                                                                                
11:42:37 AM                                                                                                                   
                                                                                                                                
BRUCE   JOHNSON,  Director,   Quality  Schools/Quality   Students                                                               
Service,  (QS2), Association  of  Alaska  School Boards,  (AASB),                                                               
stated that the AASB does not  have a position or a resolution on                                                               
this particular concept.  He continued:                                                                                         
                                                                                                                                
     we've had one  in the past ... we  certainly agree with                                                                    
     Representative Seaton  that it would do  many things in                                                                    
     terms of  stabilizing our  teaching force  and assuring                                                                    
     people that they have positions  and in no way would we                                                                    
     want to ... discredit this  ... adequacy is really what                                                                    
     we are after as an association.   We will be working on                                                                    
     this issue with our  membership ... urging districts to                                                                    
     weigh in  on this issue in  a way that makes  sense for                                                                    
     them personally in their own circumstances.                                                                                
                                                                                                                                
REPRESENTATIVE  GATTO asked Mr. Johnson  if he thinks that we are                                                               
trading  one problem  for another  because  education funding  is                                                               
tied to our  budget, our budget is  tied to the price  of oil and                                                               
the price of oil is unpredictable.   He stated that he understood                                                               
that being  present for  funding decisions  later in  the session                                                               
when the price of oil is known is desirable.                                                                                    
                                                                                                                                
MR. JOHNSON  opined that  education has  been well  served during                                                               
times of scarcity.  He stated that  it is a trade off and schools                                                               
can benefit from  early funding and from  contributing to funding                                                               
decisions when the projections are known.                                                                                       
                                                                                                                                
JOHN   ALCANTRA,   Director,   Government   Relations,   National                                                               
Education Association of Alaska,  (NEA-Alaska), stated that [NEA-                                                               
Alaska] represents  about 12,500  public school  employees around                                                               
Alaska.    He  applauded Representatives  Seaton,  Chenault,  and                                                               
Wilson and  thinks the forward  funding concept is a  great idea.                                                               
He  described a  recent [NEA-Alaska]  assembly where  400 elected                                                               
delegates set  policy for  the year and  passed a  resolution for                                                               
adequate and  forward funding of  education.  He opined  that the                                                               
suggestions made by the administration  and Eddy Jeans suggesting                                                               
the March 1/March 5 date and  leaving the tenure date at March 16                                                               
were good  and hopes  they will  be considered.   He  thanked the                                                               
committee  for  hearing  this  bill  and opined  that  it  is  an                                                               
important  concept.     He  stated  that   [NEA-Alaska]  has  had                                                               
resolutions of support in the  past and mentioned the letter from                                                               
PRESIDENT  BJORK  of  NEA-Alaska, within  the  committee  packet,                                                               
which applauded  Sections 1 and  3 of HB  20.  He  explained that                                                               
[NEA-Alaska] supports  changing the date  from March 16  to March                                                               
25.  He  thanked Representative Seaton and  the other co-sponsors                                                               
for moving [HB 20] forward.                                                                                                     
                                                                                                                                
11:47:27 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARA asked  Mr. Alcantra if the  resolution is for                                                               
early and  adequate funding.   He questioned if  the [NEA-Alaska]                                                               
resolution  supports  a stand-alone  early  funding  bill, or  if                                                               
there is  a caveat  saying that  the [NEA-Alaska]  supports early                                                               
funding if adequate funding can be provided.                                                                                    
                                                                                                                                
MR. ALCANTRA  stated that the  NEA-Alaska supports  early funding                                                               
if it is adequate.  He  said that the [NEA-Alaska] believes there                                                               
is  room in  this  budget  for fiscal  year  (FY)  06 and  future                                                               
budgets to adequately fund K-12  public education as well as fund                                                               
it  early so  districts know  what  they are  going to  get.   He                                                               
related that  the NEA-Alaska thinks that  the two can go  hand in                                                               
hand and  expects that they  will and  that this is  another year                                                               
where  legislators will  put  K-12 education  as  the number  one                                                               
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARA  asked if NEA-Alaska  supports the  bill only                                                               
if there is a guarantee of adequate funding.                                                                                    
                                                                                                                                
11:49:15 AM                                                                                                                   
                                                                                                                                
MR.  ALCANTRA  stated that  NEA-Alaska  supports  the bill.    He                                                               
described the letter  in the committee packet  as verification of                                                               
the support of  early funding.  He explained  that the NEA-Alaska                                                               
believes that early  and adequate will be coupled and  go hand in                                                               
hand.                                                                                                                           
                                                                                                                                
KATHIE  WASSERMAN, Policy  Coordinator,  Alaska Municipal  League                                                               
(AML), stated  that AML has identified  forward education funding                                                               
as one of  the priorities for this year, and  stands behind HB 20                                                               
in  full support.   She  said that  there are  some trickle  down                                                               
effects  that  inhibit  municipalities from  going  forward  when                                                               
there is  not forward funding  on education.  She  explained that                                                               
many  small  communities  make their  revenues  from  rentals  to                                                               
teachers and if they can't identify  how many teachers will be in                                                               
their  community, it  impacts their  budgets.   She said  that if                                                               
[the notification date] were changed to  June 1, it would be very                                                               
difficult  for  school  boards and  municipal  councils  to  come                                                               
together and  make decisions by July  1.  She concluded  that the                                                               
AML is in full support of HB 20.                                                                                                
                                                                                                                                
11:51:10 AM                                                                                                                   
                                                                                                                                
CINDY  SPANYERS,  Legislative  Liaison, Alaska  Public  Employees                                                               
Association/American  Federation  of Teachers,  (APEA/AFT),  read                                                               
written testimony as follows [original punctuation provided]:                                                                   
                                                                                                                                
     Among  other   bargaining  groups  in   state  service,                                                                    
     city/borough  governments, and  with the  University of                                                                    
     Alaska,  we   represent  employees   within  Anchorage,                                                                    
     Valdez,  Juneau,   and  Petersburg   school  districts.                                                                    
     Their  professions  ranges from  para-professionals  to                                                                    
     maintenance   workers;   school    nurses   to   school                                                                    
     librarians; teachers  and special  education providers,                                                                    
     and administrative personnel.                                                                                              
                                                                                                                                
     But I am  also here on behalf of my  seven-year old son                                                                    
     and   his   second-grade   classmates   at   Auke   Bay                                                                    
     Elementary.                                                                                                                
                                                                                                                                
     I  would like  to begin  by thanking  HB 20's  sponsor,                                                                    
     Representative  Seaton, and  members of  this committee                                                                    
     for making  education a priority.   Last  year, several                                                                    
     of   you   who   served    on   this   committee   took                                                                    
     responsibility   for  securing   on   of  the   biggest                                                                    
     increases in  educational funding.   During  the course                                                                    
     of these  discussions, you  also realized  the quandary                                                                    
     local school  districts and the local  governments face                                                                    
     when  establishing  their  budgets  and  meeting  their                                                                    
     obligations in a timely fashion.                                                                                           
                                                                                                                                
     I  appreciate any  efforts you  can do  to help  school                                                                    
     districts  become fully  funded  early  enough to  make                                                                    
     solid plans for the forthcoming  school year.  HB 20 is                                                                    
     a big step in the right direction.                                                                                         
                                                                                                                                
     Again, thank you  for your efforts to  help provide the                                                                    
     best education to our children.                                                                                            
                                                                                                                                
[HB 20 was held over.]                                                                                                          
                                                                                                                                
11:53:38 AM                                                                                                                   
                                                                                                                                

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