Legislature(2003 - 2004)

04/05/2004 03:04 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 289                                                                                                           
                                                                                                                                
     An Act extending the termination date of the special                                                                       
     education service agency; and providing for an                                                                             
     effective date.                                                                                                            
                                                                                                                                
JACQUELINE TUPOU, STAFF TO SENATOR  GREEN, explained that the                                                                   
Legislature established the Special  Education Service Agency                                                                   
in 1986. Its function is to help  school districts and infant                                                                   
learning  programs  provide  required  services  to  children                                                                   
where there  is no  local expertise.   The Agency  provides a                                                                   
tremendous cost savings  to the State for children  who would                                                                   
otherwise have  to go into expensive residential  programs to                                                                   
receive the services.   Many resources are available  for the                                                                   
school  districts  throughout  the  State.    She  referenced                                                                   
letters  of support  from  the  school districts  (copies  on                                                                   
file.)  stating   that  the  Agency  performs   an  excellent                                                                   
function for  the State.   The  bill reauthorizes the  Agency                                                                   
for another nine years, until June 30, 2013.                                                                                    
                                                                                                                                
Co-Chair Williams questioned the  9-year extension. Ms. Tupou                                                                   
replied that the language parallels  previous legislation for                                                                   
the Agency.                                                                                                                     
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION, explained that their  most recent audit recommended                                                                   
a four-year extension.  The prior  audit recommended, and the                                                                   
Legislature adopted,  either an 8- or 9-year  extension.  The                                                                   
Division  recommended  the  4-year extension  in  the  recent                                                                   
audit for  a couple of reasons.  The board members  providing                                                                   
most of the State oversight were  not attending the meetings,                                                                   
and the Division  didn't think that State involvement  in the                                                                   
organization  was as strong  as it  had been previously.  One                                                                   
recommendation   relates    to   the   additional    use   of                                                                   
teleconferencing to  provide services to the  districts.  She                                                                   
remarked  that this  would be  a definite change  in how  the                                                                   
Agency  delivers service.  The Division  thought it would  be                                                                   
prudent  for  the  Legislature   to  reevaluate  the  Special                                                                   
Education  Service  Agency  through the  sunset  process  and                                                                   
receive comments  regarding how well the service  delivery is                                                                   
working.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  CROFT questioned  how the  fiscal note  saves                                                                   
money,  and asked  if these  students  are taken  out of  the                                                                   
foundation  formula   into  direct  delivery,   or  would  be                                                                   
included  in the  foundation  formula  for the  districts  as                                                                   
well.                                                                                                                           
                                                                                                                                
CHRIS   ROBINSON,  EXECUTIVE   DIRECTOR,  SPECIAL   EDUCATION                                                                   
SERVICE  AGENCY,  replied  that students  remain  within  the                                                                   
school  system   as  part  of  the  school's   Average  Daily                                                                   
Membership  (ADM)  within  the  foundation  program  for  the                                                                   
school.  He  explained  that the  Special  Education  Service                                                                   
Agency (SESA) provides a combination  of on-site and distance                                                                   
supports, to advise  a local program for a  severely disabled                                                                   
student.  The model  utilizes  staff already  in the  school,                                                                   
keeps the child  at home, and avoids residential  costs.  The                                                                   
funding to the  SESA parallels the foundation  funding to the                                                                   
schools.  It's   a  legislative  appropriation   through  the                                                                   
Department of Education & Early  Development line item budget                                                                   
now called Special Schools.                                                                                                     
                                                                                                                                
Representative Croft asked why  the reauthorization extension                                                                   
is for 9 rather than 4 years.   Mr. Robinson replied that the                                                                   
1995 reauthorization  was a 9-yr  authorization.   He pointed                                                                   
out  that  the  tenure of  education  specialists  in  severe                                                                   
disabilities as of  FY 04 is 9.8 years, and  he believes that                                                                   
it is  not coincidental. The  longer period of  authorization                                                                   
has  given  stability to  the  model  to attract  and  retain                                                                   
specialists.   There are  not enough specialists  nationally,                                                                   
and it  is difficult to recruit  to Alaska. The  Agency feels                                                                   
that nine years  would acknowledge it as an  integral part of                                                                   
the special  education service  system in Alaska.  The Agency                                                                   
must be able to fill the funded  positions, and it cannot get                                                                   
specialists to invest in a move  to Alaska with an indefinite                                                                   
and, under statute, short-term future.                                                                                          
                                                                                                                                
Representative  Chenault  asked if  this  program applies  to                                                                   
every school  district in the  state except the  five largest                                                                   
districts.  Mr.  Robinson  said  that  is  correct  regarding                                                                   
student-specific services  with the Low Incidence  Disability                                                                   
Outreach   Program.  The  largest   five  districts   receive                                                                   
student-specific  services  in  other grant  areas  including                                                                   
birth  to  three,   the  infant  learning   program,  vision,                                                                   
deafness, and the federally funded deaf/blind program.                                                                          
                                                                                                                                
Mr. Robinson explained that the  state allocation for general                                                                   
revenue is prioritized to those  districts where the critical                                                                   
number  of kids  is insufficient  to  warrant the  district's                                                                   
expense for  a specialist. Representative  Chenault responded                                                                   
that he  comes from Kenai  School District with  schools that                                                                   
are accessible  by boat or airplane.   He expressed  that his                                                                   
district feels snubbed  by these programs at  times. The bill                                                                   
seems to apply to more rural than urban areas.                                                                                  
                                                                                                                                
Ms.  Topou  replied  that  the   Agency  has  many  resources                                                                   
available  statewide  including  workshops, a  newsletter,  a                                                                   
website  and  a  library.    Student-specific   services  are                                                                   
targeted    to   rural    communities   with    low-incidence                                                                   
disabilities.                                                                                                                   
                                                                                                                                
Representative  Hawker asked  how  much of  the roughly  $2.1                                                                   
million annual budget is administrative  and how much goes to                                                                   
delivery  of classroom  services. Mr.  Robinson replied  that                                                                   
the  student-specific services  are the  most expensive,  and                                                                   
the Agency uses a variety of other  mechanisms to support the                                                                   
local schools in a less costly  way. A lot of its work is not                                                                   
at a student-specific or classroom-specific  level, but it is                                                                   
topical and  generic to  provide severe disability  education                                                                   
and intervention training.  Using  FY 03 as the most recently                                                                   
audited  year,   of  the   $2.089  million  general   revenue                                                                   
allocation, the administration line item was $202 thousand.                                                                     
                                                                                                                                
Representative  Hawker  commented   that  the  Department  of                                                                   
Education  has changed  since the Agency  was established  in                                                                   
1986. He  asked why there is  a need to maintain  a separate,                                                                   
discrete agency. Mr. Robinson  replied that last fall's audit                                                                   
was the fifth conducted since  1986.  He said the reasons for                                                                   
maintaining  a separate  agency are  to avoid  adding to  the                                                                   
state employee ranks,  and to position the Agency  to be more                                                                   
responsive to school  district needs in a timely  manner than                                                                   
arguably might  be the case  if the  Agency were part  of the                                                                   
state administration.                                                                                                           
                                                                                                                                
Representative  Hawker asked if  the Department  of Education                                                                   
would  agree  that  it  is  not  efficiently  effective.  Mr.                                                                   
Robinson replied  that the Department agrees  that the Agency                                                                   
is best positioned outside of it.                                                                                               
                                                                                                                                
Representative   Hawker  stated   that  he   would  be   more                                                                   
comfortable  with a shorter  rather than  a longer  sunset as                                                                   
originally suggested by the LB & A Committee.                                                                                   
                                                                                                                                
Co-Chair  Williams  expressed agreement  with  Representative                                                                   
Hawker, but said  that he would leave the decision  up to the                                                                   
Committee.                                                                                                                      
                                                                                                                                
Ms.  Davidson  offered  that  the  other  alternative  is  to                                                                   
request  an audit  of the  Special  Education Service  Agency                                                                   
outside the sunset  period. If the sunset date  were set, the                                                                   
audit would automatically come up.                                                                                              
                                                                                                                                
Representative  Croft pointed out  that if the  9-year sunset                                                                   
date was retained  but an audit was requested  in four years,                                                                   
it would allow  an opportunity to look at the  Agency in four                                                                   
years and to decide whether to terminate it early.                                                                              
                                                                                                                                
Representative  Hawker  expressed  that  he'd  rather  see  a                                                                   
shorter window, from an administrative standpoint.                                                                              
                                                                                                                                
Representative Hawker  MOVED to ADOPT a  conceptual Amendment                                                                   
changing   the   termination   date  from   2013   to   2008.                                                                   
Representative Croft OBJECTED.                                                                                                  
                                                                                                                                
In  response  to  a question  by  Representative  Croft,  Ms.                                                                   
Davidson clarified  that a four-year  audit would  be ensured                                                                   
by the  House Finance Committee  submitting a  specific audit                                                                   
request  to  the  LB&A  Committee, to  audit  the  Agency  in                                                                   
accordance  with  the  sunset  provisions in  Title  466  and                                                                   
submit it to the Legislature for its review in 2008.                                                                            
                                                                                                                                
Ms. Davidson explained that the  LB&A does statutory deadline                                                                   
audits first,  and then committee  requests on a  first come,                                                                   
first  serve basis.  She noted  that by putting  in an  audit                                                                   
request with  a date, the  LB&A Committee would  complete and                                                                   
submit the audit to the Legislature.                                                                                            
                                                                                                                                
Representative Croft  asked if the procedure  would involve a                                                                   
letter of  intent asking for a  sunset audit four  years from                                                                   
now even though  the Agency is not sun setting  at that time.                                                                   
Ms. Davidson  agreed,  and recommended  following up  with an                                                                   
audit request to the LB&A Committee.                                                                                            
                                                                                                                                
Representative Croft informed Representative Hawker that                                                                        
he felt  this would be a  better approach than  the amendment                                                                   
for a  shorter sunset.   If  the amendment  failed, he  would                                                                   
still offer  a letter of intent  to have a sunset  audit done                                                                   
while the valuable program continued.                                                                                           
                                                                                                                                
In  response to  a question  by  Representative Stoltze,  Ms.                                                                   
Tupou  maintained that  it would  be unfortunate  to cut  the                                                                   
Agency to  a four-year sunset.  Mr. Robinson had  pointed out                                                                   
the  difficulty of  recruiting specialists  for the  required                                                                   
services.   Additionally, Mr.  Robinson identified  long-term                                                                   
goals including  video teleconferencing that would  take time                                                                   
to implement.                                                                                                                   
                                                                                                                                
Representative Joule brought up  the four-year recommendation                                                                   
that showed less involvement with  the state board, and asked                                                                   
how  the Agency  has  taken  corrective measures  since  that                                                                   
time.  Mr. Robinson  replied  that both  the  Agency and  the                                                                   
Department of  Education and  Early Development concurred  in                                                                   
response  to  the report  that  the  Department needs  to  be                                                                   
active in attending  board meetings. Two board  meetings have                                                                   
been held since then, and a department  designee and a backup                                                                   
designee  have been appointed.  The Agency  will present  by-                                                                   
laws and  recommendations to the  Board at its  June meeting.                                                                   
The    recommendations    will   clarify    the    attendance                                                                   
contingencies and policies in the event of non-                                                                                 
participation.                                                                                                                  
                                                                                                                                
In response  to a question  by Vice-Chair Meyer,  Ms Davidson                                                                   
replied that  she recommended  a four-year extension  because                                                                   
it is  the period of time  established in statute  for boards                                                                   
and  commissions.   Audits  look  for  positive,  extenuating                                                                   
circumstances that warrant a recommendation for extension.                                                                      
                                                                                                                                
Representative  Hawker felt that  there was a  solid argument                                                                   
by  all  that  the standard  shorter  sunset  is  better.  He                                                                   
maintained his amendment.                                                                                                       
                                                                                                                                
A roll call vote  was taken on the motion to  adopt Amendment                                                                   
#1.                                                                                                                             
                                                                                                                                
IN FAVOR:  Moses, Hawker, Williams                                                                                              
OPPOSED:  Stoltze, Croft, Foster, Joule, Meyer                                                                                  
                                                                                                                                
Representatives Chenault, Fate, and Harris were absent.                                                                         
The MOTION FAILED (3-5).  Amendment #1 was not adopted.                                                                         
                                                                                                                                
Representative  Croft  MOVED  an attached  letter  of  intent                                                                   
asking LB&A  to do a sunset  audit in four years  even though                                                                   
there is a 9-year  sunset period.  There being  NO OBJECTION,                                                                   
it  was  so  ordered.  [Note:    The  Letter  of  Intent  was                                                                   
rescinded on 4-6-04]                                                                                                            
                                                                                                                                
Representative  Stoltze thought  it  more appropriate  intent                                                                   
language   would  state   that   this  Legislature   supports                                                                   
revisiting through  an audit.   He pointed out that  it's the                                                                   
prerogative of  a future Legislature to actually  request the                                                                   
audit.                                                                                                                          
                                                                                                                                
Representative Foster MOVED to report SB 289 out of                                                                             
Committee with the accompanying fiscal note.  There being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SB 289 was REPORTED out of Committee with individual                                                                            
recommendations and with one fiscal impact note.                                                                                

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