Legislature(2003 - 2004)

04/14/2004 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 425                                                                                                            
                                                                                                                                
     An  Act   relating  to  funding  for   school  districts                                                                   
     operating   secondary  school   boarding  programs,   to                                                                   
     funding  for   school  districts  from   which  boarding                                                                   
     students come, and to inoperative  school districts; and                                                                   
     providing for an effective date.                                                                                           
                                                                                                                                
REPRESENTATIVE   JOHN   COGHILL    explained   that   current                                                                   
provisions are expanded  under HB 425 allowing  a district to                                                                   
receive  a  stipend for  a  student  to  travel to  attend  a                                                                   
secondary boarding school that  began before January 1, 2004.                                                                   
He  noted that  Sitka's Mt.  Edgecumbe is  a boarding  school                                                                   
under a different statute.  Galena,  Nenana and Bethel have a                                                                   
broad  range  of  boarding  school  options.  HB  425  allows                                                                   
students to  choose between a  school in their district  or a                                                                   
boarding school option. Representative  Coghill noted that it                                                                   
is a change  in policy, which  the fiscal note  reflects. The                                                                   
bill  adds  a  sunset  date  of  2009  and  protects  smaller                                                                   
districts  from being  dropped from  the critical  10-student                                                                   
Average Daily Membership (ADM)  count if students leave to go                                                                   
to boarding  school. The boarding  schools in  Nenana, Bethel                                                                   
and  Galena offer  cultural, social  and educational  changes                                                                   
and possibilities for students.                                                                                                 
                                                                                                                                
Representative Coghill explained  that Section 1 requires the                                                                   
secondary school  boarding program to have been  operating by                                                                   
January  1, 2004.  Section  2 relates  to  the student  count                                                                   
being less  than the  minimum of  ten, and  Section 3  is the                                                                   
repealer.                                                                                                                       
                                                                                                                                
Representative   Coghill  pointed   out  that  Nenana's   and                                                                   
Galena's actual  capacities are lower than the  figures shown                                                                   
on the  second page of  fiscal note Component  No. 148.   The                                                                   
Bethel school students  are not all within a  single boarding                                                                   
home.                                                                                                                           
                                                                                                                                
He  concluded  that HB  425  would expand  the  circumstances                                                                   
allowing  the  boarding  school to  receive  a  reimbursement                                                                   
stipend. Under  the bill,  a student would  not have  to pass                                                                   
the current entrance  standards, which require  that his home                                                                   
district does not include a boarding school.                                                                                    
                                                                                                                                
EDDY JEANS,  MANAGER, SCHOOL FINANCE AND  FACILITIES SECTION,                                                                   
DEPARTMENT OF  EDUCATION AND  EARLY DEVELOPMENT,  stated that                                                                   
the fiscal note totals $1,179,000  and he explained that page                                                                   
2 shows how  the figure was derived. Galena  has the capacity                                                                   
to serve  100 kids, but 8  already qualify for  boarding home                                                                   
stipends  because they  come from  the  Pribilof Islands  and                                                                   
don't  have  daily  access  to a  secondary  program  on  St.                                                                   
George. He discussed the stipend  and costs for the remaining                                                                   
92 kids  at Galena.  Mr.  Jeans pointed out that  these three                                                                   
programs are 180-day, or full term programs.                                                                                    
                                                                                                                                
Mr.  Jeans  noted  that  all  three  programs  are  currently                                                                   
operating at  capacity and the  Department would  not recruit                                                                   
additional  students from  schools.   He  favored the  bill's                                                                   
safety net of not penalizing districts  for falling below the                                                                   
10-student ADM minimum while the pilot program is in place.                                                                     
                                                                                                                                
Co-Chair  Harris  asked  if  a  school  would  close  if  its                                                                   
enrollment  dropped below  ten  students.  Mr. Jeans  replied                                                                   
that  the current  Foundation  Formula  statute provides  for                                                                   
adding fewer than 10 students  in a community to the smallest                                                                   
community in  the district because  the revenue drops  so low                                                                   
that it forces the district to close the school.                                                                                
                                                                                                                                
Co-Chair Harris  asked if this  was part of the  Molly Hootch                                                                   
case.  Mr.  Jeans clarified that  it was actually part  of SB
36 in  which the Legislature set  a new threshold  minimum of                                                                   
10 students for a separate site.                                                                                                
                                                                                                                                
Co-Chair Harris  asked if  the boarding  schools such  as Mt.                                                                   
Edgecumbe  are  funded  by  the  ADM  like  the  other  State                                                                   
schools. Mr.  Jeans affirmed.   Co-Chair Harris asked  if the                                                                   
boarding schools  would receive  funding from the  Department                                                                   
of   Education.  Mr.   Jeans   replied   that  they   receive                                                                   
educational  dollars  for  the  children  enrolled  in  their                                                                   
school.                                                                                                                         
                                                                                                                                
Co-Chair  Harris asked  if a boarding  school receives  extra                                                                   
money  for the  residence. Mr.  Jeans reiterated  that it  is                                                                   
only  in the  instance  of serving  children  who lack  daily                                                                   
access to a secondary school in their community.                                                                                
                                                                                                                                
In  response to  a  question by  Co-Chair  Harris, Mr.  Jeans                                                                   
affirmed that Nenana  has a school with a  current enrollment                                                                   
of 138 students, but the enrollment  is declining.  The space                                                                   
could handle up  to 400 students. Mr. Jeans  said that Nenana                                                                   
would not  qualify for  the boarding  home stipend  under the                                                                   
current  regulation because  it  provides daily  access to  a                                                                   
secondary school.  He clarified  that this bill  would expand                                                                   
the boarding  home program for  a five-year pilot,  and allow                                                                   
the Department  to reimburse  the boarding  home stipend  for                                                                   
all of the kids attending the Nenana boarding school.                                                                           
                                                                                                                                
In  response to  a  question by  Co-Chair  Harris, Mr.  Jeans                                                                   
clarified  that the  round-trip  transportation  costs and  a                                                                   
monthly  stipend  would  be  paid  for  the  boarding  school                                                                   
students.                                                                                                                       
                                                                                                                                
Co-Chair Harris questioned  if the bill's purpose  is to gain                                                                   
more  support for  independent boarding  schools or  regional                                                                   
schools. Mr.  Jeans did  not regard it  as the Department  of                                                                   
Education   advocating  for   additional  boarding   schools;                                                                   
instead, it would offer students  choices that they currently                                                                   
don't have in  their own communities.  Unlike  Mt. Edgecumbe,                                                                   
the State does  not operate the schools in  Bethel, Nenana or                                                                   
Galena,  which   are  operated  by  the   independent  school                                                                   
districts.                                                                                                                      
                                                                                                                                
Representative  Chenault  asked  about  the analysis  by  the                                                                   
Nenana  Student  Living  Center  (copy on  file).  Mr.  Jeans                                                                   
explained that  if it is a  smaller school, the State  pays a                                                                   
higher  instructional   cost  per  child,  so   the  analysis                                                                   
attempts  to  show  the  savings to  the  State  through  the                                                                   
foundation  program  of  including  these kids  in  a  larger                                                                   
population.                                                                                                                     
                                                                                                                                
In  response   to  a  question  by  Representative   Chenault                                                                   
regarding  the figures  used in the  student allocation,  Mr.                                                                   
Jeans clarified that the Nenana  number includes the boarding                                                                   
school  kids rather  than  the district  that  the kids  came                                                                   
from.                                                                                                                           
                                                                                                                                
Mr.  Jeans  pointed  out  that  the  current  program  is  in                                                                   
regulation  and this legislation  would expand  opportunities                                                                   
for  the kids.  The  Nenana program  has  an academic  focus,                                                                   
while  the Galena  program is  more vocational  in focus  and                                                                   
kids can  gain certification  and enter  the workforce  later                                                                   
on.                                                                                                                             
                                                                                                                                
Vice-Chair  Meyer asked  if boarding  schools are similar  to                                                                   
charter  schools.  Mr.  Jeans   stated  that  charter  school                                                                   
legislation  doesn't  allow  for   spending  State  money  on                                                                   
boarding  home  programs.  Vice-Chair   Meyer  asked  if  the                                                                   
boarding schools are  required to do exit exams  and meet the                                                                   
No Child Left Behind requirements.  Mr. Jeans affirmed.                                                                         
                                                                                                                                
Representative Foster asked who  currently pays the students'                                                                   
transportation  costs.  Representative Coghill  replied  that                                                                   
the parents do.                                                                                                                 
                                                                                                                                
RALPH  LINDQUIST, DEAN  OF  STUDENTS, NENANA  STUDENT  LIVING                                                                   
CENTER  (NSLC),  VIA  TELECONFERENCE,   NENANA,  stated  that                                                                   
passage of  HB 425 is essential  to the survival of  the NSLC                                                                   
next year. The  NSLC is processing over 150  applications for                                                                   
the 30-35 beds that will be available next year.                                                                                
                                                                                                                                
MORGAN DUGGERT,  STUDENT, NENANA  STUDENT LIVING  CENTER, VIA                                                                   
TELECONFERENCE,  NENANA, stated  that the  Living Center  has                                                                   
improved the number and quality  of classes that are offered.                                                                   
She has received scholarship money for college.                                                                                 
                                                                                                                                
AFTON BRINKMAN,  STUDENT, NENANA  STUDENT LIVING  CENTER, VIA                                                                   
TELECONFERENCE,  NENANA, explained that  he moved  from Eagle                                                                   
to Nenana  two years  ago, which  has improved  his life.  He                                                                   
will be  graduating in  May. He expressed  that he  would not                                                                   
have  the range  of class  choices or  the opportunities  for                                                                   
scholarships back in Eagle.                                                                                                     
                                                                                                                                
Mr. Lindquist clarified that kids  live at the NSLC but go to                                                                   
school in Nenana.                                                                                                               
                                                                                                                                
JIM SMITH, SUPERINTENDENT,  GALENA CITY SCHOOLS,  stated that                                                                   
he'd been in Galena five years  and the school is seven years                                                                   
old.  He discussed  the  residential school  program,  noting                                                                   
that the boarding  school provides 27 jobs for  the community                                                                   
with the  potential  for 100 kids,  and it  operated with  85                                                                   
students  this year.  The scholastic  program is  successful,                                                                   
with  72%  of  seniors  passing all  three  portions  of  the                                                                   
graduation test. Alaska Natives  comprise ninety-four percent                                                                   
of the  student body. He  felt that the  strong point  is the                                                                   
provision of vocational training.  He described the programs,                                                                   
which are voluntary.                                                                                                            
                                                                                                                                
Representative Joule commented  on the evolution of education                                                                   
in the  state, from  Native and  Non-Native after the  eighth                                                                   
grade to  the current  integration of  schools. The  State is                                                                   
looking for solutions to its challenges  in education, and he                                                                   
anticipates an integrated K-14.                                                                                                 
                                                                                                                                
Co-Chair  Harris  referred  to  the large  fiscal  note,  and                                                                   
stated that the Co-Chair would like to hold the bill over.                                                                      
                                                                                                                                
Representative  Joule asked  if  the Administration  supports                                                                   
the  legislation.   Mr. Jeans  replied that  the State  Board                                                                   
hasn't reviewed it yet.                                                                                                         
                                                                                                                                
Representative Coghill  spoke in support of  the fiscal note,                                                                   
and the  impact of  the funding  on "these three  communities                                                                   
that  have  been carrying  the  weight."  He argued  for  the                                                                   
significant college preparatory  work that the three boarding                                                                   
schools offer to students.                                                                                                      
                                                                                                                                
HB  425  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  

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