Legislature(2001 - 2002)

03/15/2002 09:20 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 312                                                                                                            
                                                                                                                                
     An Act relating to the delay of the reduction of                                                                           
     supplementary public school funding; and providing for                                                                     
     an effective date.                                                                                                         
                                                                                                                                
Co-Chair Mulder  spoke to Amendment #1,  22-LS1257\A.2, Ford,                                                                   
3/04/02, noting  a technical change  which needed to  be made                                                                   
on  Page 1,  Line  13,  deleting  "each" and  inserting  "the                                                                   
prior".    Co-Chair  Mulder  MOVED  to  ADOPT  the  corrected                                                                   
Amendment #1.                                                                                                                   
                                                                                                                                
Co-Chair Williams OBJECTED.                                                                                                     
                                                                                                                                
Co-Chair Mulder  explained that  the amendment would  include                                                                   
the Alaska Challenge Program which  is currently administered                                                                   
by  the National  Guard.   It  would  be included  under  the                                                                   
foundation formula.                                                                                                             
                                                                                                                                
REPRESENTATIVE  GRETCHEN GUESS  explained that the  amendment                                                                   
would tie it  to the base student allocation  rather than the                                                                   
foundation  formula.  She  pointed out  that the program  was                                                                   
designated  for  "at-risk"  youth  who are  dropping  out  of                                                                   
school.   She  claimed that  it was  a volunteer  "boot-camp"                                                                   
type program  for individuals  working on academics  in order                                                                   
to get  their General  Education Requirement  (GED)  and some                                                                   
vocational skills.  Representative  Guess stressed that it is                                                                   
a rigorous program for a non-military type person.                                                                              
                                                                                                                                
Representative  Guess  explained that,  unfortunately,  there                                                                   
has never  been a funding  system established.   It is  not a                                                                   
school  and it  should  not be  under  the  regulations as  a                                                                   
school. There needs  to be a separate funding  stream for the                                                                   
program.   What the amendment  attempts to do is  establish a                                                                   
funding stream.    The formula determines how  much the Youth                                                                   
Academy will receive  and then removes the federal  grant and                                                                   
then the State matches the rest.                                                                                                
                                                                                                                                
Co-Chair Williams questioned if  the amendment would move the                                                                   
Challenge  Program  from  the   existing  foundation  formula                                                                   
program.                                                                                                                        
                                                                                                                                
Representative Guess explained  that the bill would remove it                                                                   
from  being  tied  to  the  Alyeska   Central  correspondence                                                                   
program.  They  could choose to purchase their  services from                                                                   
Alyeska Central, but that would their choice.                                                                                   
                                                                                                                                
Co-Chair Mulder explained that  the program was being changed                                                                   
from  Department  of  Military  &  Veterans  Affairs  to  the                                                                   
Department  of Education  & Early  Development because  these                                                                   
kids have  dropped out of school  and they are  at-risk kids.                                                                   
It is  important that they  accomplish getting their  GED and                                                                   
are in  the funding stream.   He added  that it is  a program                                                                   
for kids  and it is not  a National Guard component  and that                                                                   
it would  be more appropriate  to have it located  within the                                                                   
Department of Education & Early Development.                                                                                    
                                                                                                                                
Vice-Chair  Bunde acknowledged  the success  of the  program.                                                                   
He inquired about the fiscal note.                                                                                              
                                                                                                                                
Co-Chair  Williams  advised  that the  departments  would  be                                                                   
forthcoming with two new fiscal notes.                                                                                          
                                                                                                                                
Co-Chair  Mulder  stated  that  the  intent  was  to  have  a                                                                   
negative  fiscal  note  from the  Department  of  Military  &                                                                   
Veterans Affairs.  He reiterated  the success of the program.                                                                   
He  mentioned  the  expected notes  from  the  Department  of                                                                   
Education & Early  Development and the Department  of Natural                                                                   
Resources.                                                                                                                      
                                                                                                                                
Representative  Guess explained that  the fiscal  note amount                                                                   
would depend on  the federal funds.  If those  funds decline,                                                                   
there  is  already  $400  thousand   dollars  that  would  be                                                                   
transferred to the program from existing funds.                                                                                 
                                                                                                                                
Vice-Chair Bunde concurred that  the program is good but that                                                                   
the  House  Finance  Committee  cannot  pass a  bill  out  of                                                                   
Committee without the appropriate fiscal note attached.                                                                         
                                                                                                                                
Representative  Davies  agreed  with Vice-Chair  Bunde.    He                                                                   
asked  for clarification  regarding  the  maximum impact  for                                                                   
positive federal  funds and if  that impact would  exceed $20                                                                   
thousand State dollars.                                                                                                         
                                                                                                                                
Representative  Guess  responded  that  if the  federal  $2.5                                                                   
million dollars holds,  then the net impact  would be between                                                                   
$17 and $400 thousand dollars.   She acknowledged that if the                                                                   
federal  government spends  their money  elsewhere, then  the                                                                   
State would be taking on that responsibility.                                                                                   
                                                                                                                                
Co-Chair Williams  interjected that the Committee  would wait                                                                   
for the  fiscal note  before action was  taken on  moving the                                                                   
bill from Committee.  He added  that action could be taken on                                                                   
adopting the amendment.                                                                                                         
                                                                                                                                
Representative  Lancaster  asked  the location  and  ages  of                                                                   
participants.                                                                                                                   
                                                                                                                                
Co-Chair Mulder  commented that  the program  is done  at the                                                                   
National  Guard   facilities  with  the  age   group  of  the                                                                   
individuals  is  from  16  to  20 years  old.    The  program                                                                   
requires  that  the  person  be a  high  school  dropout  and                                                                   
voluntarily  commits to  the program.  He reiterated  that it                                                                   
has an 82% success rate.                                                                                                        
                                                                                                                                
Representative  Guess interjected  that the population  comes                                                                   
from 50% in Anchorage, 25% from  the Rail system and 25% from                                                                   
Rural Alaska.  The program is open to all Alaskans.                                                                             
                                                                                                                                
Representative Hudson  commented that the  amendment provides                                                                   
for the moving  away from a simple extension  to an inclusion                                                                   
for the Challenge Youth Academy  programs.  He asked if there                                                                   
were other  programs in the State  that could "fit"  into the                                                                   
same venue  such as Juneau's  SAGA program.   He acknowledged                                                                   
that  he did  support the  original  intent of  the bill  and                                                                   
asked if  there are  other programs that  would end  up being                                                                   
placed as another amendment to the bill.                                                                                        
                                                                                                                                
Representative  Guess   did  not  know  of   other  potential                                                                   
amendments  to the  bill.  She  commented that  would be  the                                                                   
will of  the Body and added  that it would be  appropriate to                                                                   
put these programs with the others.   She did not know of any                                                                   
other programs  which could  show the  success of the  Alaska                                                                   
Challenge  Youth  Academy  program.   She  stressed  that  it                                                                   
should not be  thought of as a correspondence  school.  There                                                                   
needs to be a separate funding entity put on it.                                                                                
                                                                                                                                
Co-Chair Williams  WITHDREW his  OBJECTION to the  amendment.                                                                   
Amendment #1 was adopted.                                                                                                       
                                                                                                                                
HB 312 was HELD in Committee for further consideration.                                                                         

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