Legislature(2011 - 2012)HOUSE FINANCE 519
04/14/2012 09:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB182 | |
| SB23 | |
| SB160 | |
| SB66 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 182 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 23 | TELECONFERENCED | |
| += | SB 160 | TELECONFERENCED | |
| += | SB 66 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 182(EDC)
"An Act amending the amount of state funding provided
to school districts for pupil transportation."
Vice-chair Fairclough MOVED to ADOPT Work Draft HCS CSSB182
(FIN) 27-LS1283\O, (4/13/12, Mischel).
Co-Chair Stoltze OBJECTED for purpose of discussion.
PETER ECKLUND, STAFF, REPRESENTATIVE BILL THOMAS, explained
the changes in the current version of the legislation. He
noted that several new provisions were added. The bill
maintained the supplemental payment of slightly over $8
million to cover increased costs for pupil transportation.
He remarked that the supplemental payment for the Kenai
Borough was increased by $1.2 million in FY 13. He reported
that the Senate version contained a provision that made the
FY 2013 pupil transportation expenditure adjusted for
inflation according to the Consumer Price Index (CPI) the
base amount to determine future funding. The new CS uses
the FY 13 expenditure as the base and adds 1.5 percent for
FY 2014 and FY 2015 and does not provide the inflation
factor in FY 2016; intended as a measure to negotiate for
cost containment in future contract negotiations. He
elaborated that most school districts will renegotiate its
contracts in 2016. The CS retained the provision that
required the school districts to adopt standardized
regulations for safe and cost efficient pupil
transportation which included standardized contract
conditions.
Mr. Ecklund furthered that SB 199 (SB 199-Vocational
Education Funding Factor) was rolled into the legislation.
The legislation expanded vocational education funding for
the middle school level; grades 7 through 12. The CS
increased vocational funding by 50 percent. In addition a
"mill rate disparity" on the full value of the required
local contribution was remedied. Some city or borough school
districts were contributing a mill rate of 2.7 and others
were paying a rate of 3.7. Over time $530 million of the
local contribution shifted from the local communities to
the state. The legislation proposed to equalize the mill
rate to 2.65 percent on the full value [of the taxable real
and personal property in the district]. The provision
repealed a section of law that authorized the calculation
of only 50 percent of the mill rate increase since 1999.
Municipalities would receive an approximately $21 million
increase in state aid under the proposed changes. The
municipalities have the option of using the additional
money to fully fund education to the "local education cap."
He added that current law required a new city or borough
school district to phase in the mill rate calculation at
zero, two, and four percent consecutively over 3 years. The
provision in the committee substitute (CS) reduced the
phase-in rates to zero, one, and two percent to provide
relief from the immediate impact of the full local
contribution.
Mr. Ecklund expounded that the CS incorporated HB 49 [HB
49-Early Childhood Ed: Parents As Teachers.] The
legislation proposed the establishment of a Parent As
Teachers Program. The three year pilot program was designed
to boost a child's readiness for school. The sunset date
was adjusted to 2015 to allow for the full three years of
the pilot program. The original bill required that the
Department of Education and Early Development (DEED)
compare performance of participants and non-participants in
the program. The CS required a report on the "efficiency
and effectiveness measures that demonstrated the results of
the program relating to child school readiness." He noted
that the cost of the program reflected on the fiscal note
was $3.9 million.
Co-Chair Stoltze offered that $25 million was deducted from
"local discretionary (individual districts) funding" in the
capital budget and added to education spending.
10:34:42 AM
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION the committee substitute was adopted.
Representative Gara applauded the compromises in the
legislation. He understood that the CS corrected the
provision in law that allowed a community to only
contribute 50 percent of its mill rate increases as its
local contribution for school funding. When property values
increased the local contribution only increased half as
much in relative value. He asked what the impact of the
change was on future state and local contributions. Mr.
Ecklund agreed that the CS repealed the law that allowed
only 50 percent of the mill rate increase calculated into
the local contribution as property values grow. The change
to a standard contribution for all municipalities equalized
the disparity in local contributions. He referred to a new
DEED fiscal note. He cited Page 3, which showed the
increased state aid for each district that totaled
$21,296,396. He exemplified that Anchorage would receive
$8,159,847 more in state aid, which signified a savings to
the municipality. The city could contribute the savings to
fund education to the allowable local contribution maximum
limit. Anchorage currently contributed a 2.9 mill rate at
full value. The legislation would reduce the contribution
to a rate of 2.65. In the future, if assessed values
continue to grow that outcome could change.
Representative Gara understood that over time the change
might require some localities to pay more. He asked if the
$21 million increase in state aid for FY 13 was in addition
to the $51 million increase in education funding. Mr.
Ecklund replied that the $21 million was additional
funding. He reported that the CS contained an additional
approximately $50 million in increased state aid to school
districts in FY 2012 and FY 2013.
10:39:35 AM
Representative Neuman relayed that the Matanuska-Susitna
Borough school population was growing at a rate of 432
pupils per year. The growth represented a new school every
year. The borough cannot keep up with school construction
at the present assessment of property values. The borough
supported taxes in order to build new schools. He asked how
the change to the local contribution could benefit the
borough. Mr. Ecklund replied that the legislation was
intended to balance the different components to educational
spending. He noted that the borough benefited the most with
the transportation funding. The Matanuska-Susitna Borough
was currently paying a mill rate of 2.7. He commented that
the change was due to a "policy call" by the legislature.
The choice was to either equalize local contributions or
continue with disparity on the full value.
Representative Neuman voiced that the additional
transportation funding was appropriated from the capital
budget and could not be counted on in the future. The mill
rate changes were embedded in the foundation formula for
education. Mr. Ecklund clarified that the pupil
transportation was a "formula change" and was permanent
until contracts were renegotiated in 4 or 5 years.
Co-Chair Stoltze OPENED public testimony.
Co-Chair Stoltze CLOSED public testimony.
10:43:06 AM
Co-Chair Stoltze acknowledged Senator Meyer and Senator
Thomas who laid the ground work for the legislation.
Vice-chair Fairclough highlighted the fiscal notes. She
referred to the new fiscal note affecting fund transfers
(4/10/2012) into the Public Education Fund (PEF). She
pointed out that the FY 2013 appropriation requested column
should read FY 2012. The appropriation in FY 2012 was
$86,811 million. For the out-years $41,031.3 million was
projected in FY 2015 through FY 2018. She moved to the new
zero (DEED) fiscal note (4/13/2012) allocated to Pupil
Transportation. She cited the new DEED fiscal note
(4/13/2012) allocated to School Finance and Facilities in
the amount of $95.3 thousand from FY 2013 to FY 2018 for a
full time School Finance Specialist II position. She turned
to the new zero DEED fiscal note (4/13/2012) allocated to
the Foundation Program. She noted the new DEED fiscal note
(4/13/2012) allocated to Early Learning Coordination in the
amount of $3,902.5 million in FY 2013 through FY 15.
Co-Chair Thomas MOVED to report HCS CSSB 182(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
HCS CSSB 182(FIN) was REPORTED out of committee with a "do
pass" recommendation and with three new fiscal impact notes
from Department of Education and Early Development and two
new zero notes from Department of Education and Early
Development.
10:47:08 AM
AT EASE
10:49:45 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB182 CS WORKDRAFT 27-LS1283-O.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB160 CS WORKDRAFT 27-GS2600-T.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB182CS(FIN)-EED-TLS-4-13-12.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB182CS(FIN)-EED-PEF-4-10-12.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB182CS(FIN)-EED-K12-4-13-12.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB182CS(FIN)-EED-ESS-4-13-12.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB182CS(FIN)-EED-ESS-4-10-12(MillRate).pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB182CS(FIN)-EED-PEF-4-13-12-Corrected.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 182 |
| SB160 House District Summary.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB160 CS WORKDRAFT O version.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB160 Amendment 1- Stoltze-Thomas.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB 160 AMENDMENT 2- THOMAS.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB160 Amendment 3 -Wilson.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |
| SB160 Support.pdf |
HFIN 4/14/2012 9:30:00 AM |
SB 160 |