Legislature(1999 - 2000)

02/07/2000 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 191                                                                                                              
                                                                                                                                
An Act relating to charter schools; and providing for                                                                           
an effective date.                                                                                                              
                                                                                                                                
MIKE TIBBLES, STAFF, REPRESENTATIVE GENE THERRIAULT, spoke                                                                      
to Amendment #1, 1-LS0598\N.1, Ford, 1/31/00.  [Copy on                                                                         
File].                                                                                                                          
                                                                                                                                
Vice Chair Bunde MOVED to adopt Amendment #1.  Co-Chair                                                                         
Therriault OBJECTED for the purpose of discussion.                                                                              
                                                                                                                                
Vice Chair Bunde explained that that the amendment would                                                                        
make the language of the bill more permissive.  The current                                                                     
language states that a charter school may not elect to                                                                          
receive services.  The amendment clarifies that the charter                                                                     
school and the school district can negotiate over services                                                                      
that are appropriate for the charter school.                                                                                    
                                                                                                                                
Co-Chair Therriault asked if the charter school has no                                                                          
"special needs" children, what would happen to the federal                                                                      
dollar allocation.  Vice Chair Bunde explained that during                                                                      
negotiations, the school district would be responsible to                                                                       
stipulate that the money be used for the "betterment of                                                                         
all".  Co-Chair Therriault WITHDREW his OBJECTION to the                                                                        
amendment.                                                                                                                      
                                                                                                                                
REPRESENTATIVE FRED DYSON foresaw no problem with inclusion                                                                     
of the amendment.  He stated that it was language that was                                                                      
intended to be included.  Inclusion of that language would                                                                      
assume that there is a congenial relationship between the                                                                       
two entities, however, he acknowledged that is not always                                                                       
the case.                                                                                                                       
                                                                                                                                
Representative Foster asked what would occur if the                                                                             
relationship was not smooth.  Representative Dyson replied                                                                      
that the school boards would be the final entity to make                                                                        
that decision.                                                                                                                  
                                                                                                                                
There being NO further OBJECTION, Amendment #1 was adopted.                                                                     
                                                                                                                                
Mr. Tibbles spoke to Amendment #2, 1-LS0598\N.2, Ford,                                                                          
2/3/00.  [Copy on File].  He noted that the amendment would                                                                     
give charter schools more flexibility in the space in which                                                                     
they could operate.  Representative Foster asked if the fire                                                                    
codes would be more restrictive.  Co-Chair Therriault voiced                                                                    
concern with the amendment.                                                                                                     
                                                                                                                                
Co-Chair Mulder MOVED to adopt Amendment #2.  Co-Chair                                                                          
Therriault OBJECTED for the purpose of discussion.                                                                              
                                                                                                                                
Representative Dyson explained that the school building                                                                         
safety requirements are very stringent.  What the charter                                                                       
school people have found is that if they can not find public                                                                    
school space, it is inordinately difficult to find a                                                                            
building to lease that meets the school requirements.  The                                                                      
charter school people want to go with the same standards                                                                        
that are used for "large groups of people who come                                                                              
together".  Representative Dyson pointed out that most of                                                                       
the charter schools have small populations.  He noted that                                                                      
in the language of the amendment, it stipulates that the                                                                        
safety codes for the children are met.  He emphasized that                                                                      
it has been very difficult for prospective charter schools                                                                      
to find adequate facilities.                                                                                                    
                                                                                                                                
Co-Chair Therriault inquired if the same standards had to be                                                                    
met by private schools.  Representative Dyson replied that                                                                      
they did not.  Currently, private schools must have the same                                                                    
standard as exists in public building facilities.                                                                               
                                                                                                                                
Representative Foster questioned how those standards would                                                                      
apply to a public building.  Representative Dyson explained                                                                     
that each school administrator would have the final say on                                                                      
that concern.  He stressed that getting small children out                                                                      
of a burning building is always a concern.  He believed that                                                                    
any superintendent would be capable of making the proper                                                                        
decision.  He noted that the amendment would extend the                                                                         
contract period.                                                                                                                
                                                                                                                                
Vice Chair Bunde advised that he would support the amendment                                                                    
because the chief supporting administrator would have the                                                                       
final say and would ultimately be in charge.  The liability                                                                     
would be "personified" in that person.  He stressed that the                                                                    
language of the amendment does not provide a lot of                                                                             
flexibility as the ultimate authority rests in that person.                                                                     
                                                                                                                                
Representative Grussendorf noted that he opposed the                                                                            
amendment because it would require that the safety standard                                                                     
rest solely on the school official.  The standards for                                                                          
public schools are always much more stringent because of                                                                        
that responsibility.  He emphasized that it would be a                                                                          
mistake to incorporate the amendment.                                                                                           
                                                                                                                                
Co-Chair Therriault noted that he would be more comfortable                                                                     
knowing that school administrator was directly responsible                                                                      
for the decision.  Co-Chair Therriault WITHDREW his                                                                             
OBJECTION to Amendment #2.                                                                                                      
                                                                                                                                
Representative Grussendorf OBJECTED to adopting Amendment                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Foster, Austerman, Bunde, G. Davis,                                                                                   
Therriault, Mulder                                                                                                              
OPPOSED:  Grussendorf, Moses, Williams                                                                                          
                                                                                                                                
Representative J. Davies and Representative Phillips were                                                                       
not present for the vote.                                                                                                       
                                                                                                                                
The MOTION PASSED (6-3).                                                                                                        
                                                                                                                                
Vice Chair Bunde MOVED to adopt Amendment #3, 1-LS0598\N.3,                                                                     
Ford, 2/4/00.  [Copy on File].  Mr. Tibbles explained that                                                                      
the amendment was submitted by the Department of Education                                                                      
and Early Development to clear up the statutes and reference                                                                    
on basic need.   He reminded members that there are four                                                                        
factors which determine basic need.  The Department believes                                                                    
that it is important to reference all four of these                                                                             
concerns.                                                                                                                       
                                                                                                                                
WES KELLER, STAFF, REPRESENTATIVE FRED DYSON, replied that                                                                      
the amendment was a housekeeping measure.  Co-Chair                                                                             
Therriault stated that from previous conversations with                                                                         
Representative Dyson, he did not have an objection to the                                                                       
amendment.  There being NO OBJECTION, Amendment #3 was                                                                          
adopted.                                                                                                                        
                                                                                                                                
Vice Chair Bunde MOVED to adopt Amendment #4, 1-LS0598\N.4,                                                                     
Ford, 2/3/00.  [Copy on File].  Mr. Tibbles explained that                                                                      
the amendment would delete the sunset clause.  There being                                                                      
NO OBJECTION, Amendment #4 was adopted.                                                                                         
                                                                                                                                
BARBARA THOMPSN, DEPTY DIRECTOR, DIVISION OF TEACHING AND                                                                       
LEARNING SUPPORT, DEPARTMENT OF EDUCATION AND EARLY                                                                             
DEVELOPMENT, spoke to the fiscal note.  She stated that the                                                                     
bill would expand the number of charter schools throughout                                                                      
the State.  The fiscal note would provide funding for that                                                                      
endeavor.  This legislation would institutionalize the State                                                                    
program.  Those people who intend to start a charter school                                                                     
must have the expertise to help plan and implement that                                                                         
endeavor and the fiscal note would provide for that.  Co-                                                                       
Chair Therriault questioned the need for a full time                                                                            
education specialist at Range 21.  Co-Chair Mulder added                                                                        
that the Range 21 position would need a + time sectary.  He                                                                     
additionally, questioned the contractual $50 thousand                                                                           
dollars requested to evaluate the effectiveness and success                                                                     
of charter schools within Alaska.                                                                                               
                                                                                                                                
Ms. Thompson advised that the contractual amount includes                                                                       
funding for providing essential evaluations and covers costs                                                                    
for the regular contractual agreement.                                                                                          
                                                                                                                                
Representative Williams asked about the statewide acceptance                                                                    
of the charter schools concept.                                                                                                 
                                                                                                                                
(TAPE CHANGE HFC 00 - 27, Side 2)                                                                                               
                                                                                                                                
Ms. Thompson noted that there is a lot of interest in                                                                           
concept of charter schools.  She noted that it is obviously                                                                     
indicated by viewing charter school applications from within                                                                    
the Alaska schools districts.  The bill will allow more                                                                         
schools to start up.                                                                                                            
                                                                                                                                
Representative Williams observed that the bill would be                                                                         
asking the State to spend more money.  He questioned how the                                                                    
additional funds would be spent and asked if there was                                                                          
supporting material indicating that the charter schools are                                                                     
doing well.  Ms. Thompson replied that there has not been                                                                       
funding available at any time to provide an extensive                                                                           
evaluation.                                                                                                                     
                                                                                                                                
Co-Chair Therriault pointed out that the legislation does                                                                       
exist due to requests by constituents.  Representative                                                                          
Williams reiterated that there is additional funding                                                                            
requested with the legislation.  Co-Chair Therriault advised                                                                    
that the fiscal concerns for the extra personnel would be                                                                       
addressed at the end of session during Conference Committee.                                                                    
                                                                                                                                
Representative Grussendorf referenced Section 4(f).  He                                                                         
asked why would the school board approve another charter                                                                        
school given the considerations of Section 4(f).  He                                                                            
believed that would curtail the growth of charter schools                                                                       
throughout the State.                                                                                                           
                                                                                                                                
Mr. Keller replied that he did not think that would happen.                                                                     
He commented that it is only fair that the local                                                                                
contribution be distributed equitably.  Most school                                                                             
districts are distributing local contribution in excess of 4                                                                    
mils.                                                                                                                           
                                                                                                                                
Co-Chair Therriault agreed that Section #4 merited concern                                                                      
with regard to compliance with federal guidelines.                                                                              
                                                                                                                                
Mr. Tibbles explained that at this time, he did not know if                                                                     
Section #4 would cause complications with the federal                                                                           
guidelines.  Mr. Tibbles had not had an opportunity to speak                                                                    
with the federal auditors regarding charging direct and                                                                         
indirect costs.  He noted that Section #4 would require that                                                                    
the district itemize each service provided. In that each                                                                        
service must be recorded, a potential exists that may                                                                           
require itemization of the indirect costs.  The problem with                                                                    
that is the federal guidelines that determine how things                                                                        
should be accounted for. It could be a problem if a charter                                                                     
school "pushed" the school district to itemize the indirect                                                                     
costs.  Anchorage and Fairbanks school districts have                                                                           
indicated that this could become an accounting "nightmare".                                                                     
Without solid information from the auditors, Mr. Tibbles did                                                                    
not know the scope of the problem this could cause.                                                                             
                                                                                                                                
In response to Co-Chair Therriault, Mr. Tibbles pointed out                                                                     
that Legislative Legal has suggested options for language to                                                                    
address this concern.  He noted that language could be                                                                          
included in the "exceptions" section for the indirect costs                                                                     
by providing specific examples, or to add the language                                                                          
"except for services that are not required to be itemized".                                                                     
                                                                                                                                
Representative Bunde asked if it should be included as an                                                                       
amendment or simply stated through the intent of the                                                                            
Committee.  Co-Chair Therriault believed that it should be                                                                      
placed in the "exceptions" section as recommended by                                                                            
Legislative Legal.                                                                                                              
                                                                                                                                
Representative Austerman spoke to the library funds coming                                                                      
to the charter school.  Mr. Keller stated that the sponsor                                                                      
assumes that the school district and the charter school                                                                         
would be negotiating and that the final decision would be                                                                       
decided at the local level between the charter school and                                                                       
the school district.                                                                                                            
                                                                                                                                
Mr. Tibbles reiterated the suggestion provided made by                                                                          
Legislative Legal Services which would place the information                                                                    
either under the "exceptions" or on Page #3, Line 12,                                                                           
following the word "itemized".                                                                                                  
                                                                                                                                
Co-Chair Therriault MOVED a conceptual amendment which would                                                                    
add to the list of exceptions that the itemization not be so                                                                    
specific that it would run counter to the federal                                                                               
guidelines.  Mr. Keller replied that Representative Dyson                                                                       
would support that change.  There being NO OBJECTION, a                                                                         
conceptual Amendment #5 was adopted.                                                                                            
                                                                                                                                
Co-Chair Mulder MOVED to report CS HB 191 (FIN) out of                                                                          
Committee with individual recommendations and with the                                                                          
accompanying fiscal note.  Representative Austerman                                                                             
OBJECTED.  He stated that his understanding of charter                                                                          
schools was that they were not suppose to cost the State any                                                                    
more money than that based on the student count.  He warned                                                                     
that he was additionally, "nervous" about the Section #4                                                                        
allocation.                                                                                                                     
                                                                                                                                
Representative Williams OBJECTED to the amount of money                                                                         
proposed to be spent.  He added that the sunset clause                                                                          
should have remained in the bill.  Representative Williams                                                                      
voiced concern that charter school students might not be                                                                        
adequately educated, while at the same time spending more                                                                       
money per student.                                                                                                              
                                                                                                                                
Co-Chair Therriault advised that he had indicated to the                                                                        
Department that they should not begin spending the money as                                                                     
proposed in the fiscal note.  He foresaw a reduced fiscal                                                                       
note.  Co-Chair Therriault invited Representative Williams                                                                      
to propose a reduction to the fiscal note at this time.                                                                         
                                                                                                                                
Representative Williams asked how that action would affect                                                                      
the charter school system and how it could be tracked.  He                                                                      
recommended that the existing charter schools be more                                                                           
closely watched for the next year or two to see how well                                                                        
they are performing.                                                                                                            
                                                                                                                                
Representative Grussendorf stated that he did not know why a                                                                    
school board would find any incentive to expand the charter                                                                     
school system with the inclusion of Section #4.                                                                                 
Additionally, he warned of the repercussions of not giving                                                                      
the Department adequate funding to cover the fiscal notes to                                                                    
determine accountability. He stated that he could not                                                                           
support the proposed legislation given these concerns.                                                                          
                                                                                                                                
Ms. Thompson echoed Representative Grussendorf's concern in                                                                     
not funding the fiscal note to provide for the evaluation                                                                       
effectiveness study.  She emphasized that there are more                                                                        
charter schools "coming on board" each year.  The school                                                                        
district must be providing more evaluation on the                                                                               
effectiveness with the proposed increases to charter                                                                            
schools.  She stressed that it is important to have                                                                             
expertise and evaluation at the State level.                                                                                    
                                                                                                                                
A roll call vote was taken on the motion to move the bill                                                                       
from Committee.                                                                                                                 
                                                                                                                                
IN FAVOR: Williams, Bunde, G. Davis, Foster, Mulder,                                                                            
Therriault                                                                                                                      
OPPOSED:  Grussendorf, Moses, Austerman                                                                                         
                                                                                                                                
Representative Phillips and Representative J. Davies were                                                                       
not present for the vote.                                                                                                       
                                                                                                                                
The MOTION PASSED (6-3).                                                                                                        
                                                                                                                                
CS HB 191 (FIN) was reported out of Committee with a "do not                                                                    
pass" recommendation and with a fiscal note by the                                                                              
Department of Education and Early Development.                                                                                  

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