01/29/1998 03:07 PM House HES

SSHB 148 - SCHOOL FUNDING ETC./ CHILD CARE GRANTS                              
                                                                               
Number 543                                                                     
                                                                               
CHAIRMAN BUNDE announced the next bill to be discussed was SSHB 148            
"An Act relating to the public school funding program; relating to             
the definition of a school district, to the transportation of                  
students, to school district layoff plans, to the special education            
service agency, to the child care grant program, and to compulsory             
attendance in public schools; and providing for an effective date."            
He said the committee had adopted a proposed committee substitute              
at the last meeting.  It was not his intention to move the bill out            
of committee today as they are still awaiting the cost differential            
study, which will be incorporated into the bill.  He announced that            
Jack Sherman was standing by to testify via teleconference from                
Barrow.                                                                        
                                                                               
Number 0591                                                                    
                                                                               
JACK SHERMAN, Director, Business Affairs, North Slope School                   
District, testified via teleconference from Barrow in opposition to            
the proposed CSSSHB 148 because of the escalation clause.  He                  
stated a tax rate of 7 mills would be devastating to the North                 
Slope Borough.                                                                 
                                                                               
CHAIRMAN BUNDE asked Mr. Sherman if he knew if the North Slope                 
Borough, Valdez, and Dutch Harbor were still the three wealthiest              
communities in the state?                                                      
                                                                               
MR. SHERMAN believed that was correct.                                         
                                                                               
CHAIRMAN BUNDE announced that Eddy Jeans from the Department of                
Education was available to address the proposed CSSSHB 148 which               
changed the foundation formula from a per unit to a per student.               
He anticipated the cost differential study would point out some                
interesting changes relating to how money is distributed throughout            
Alaska.  He referred to the concerns of the North Slope Borough                
regarding their local contribution of up to 7 mills and asked Mr.              
Jeans if he knew what the millage rate was in Juneau for education             
support.                                                                       
                                                                               
Number 0678                                                                    
                                                                               
EDDY JEANS, Manager, School Finance Section, Education Support                 
Services, Department of Education, said he didn't have that                    
information with him.                                                          
                                                                               
CHAIRMAN BUNDE asked if anyone was aware of what the millage rate              
was in Fairbanks?                                                              
                                                                               
REPRESENTATIVE AL VEZEY believed it was 9 mills.                               
                                                                               
Number 0724                                                                    
                                                                               
CHAIRMAN BUNDE asked Mr. Jeans for his comments on the proposed                
CSSSHB 148 and the cost differential study.                                    
                                                                               
MR. JEANS indicated he would refrain from commenting until the cost            
differential study was released.  He informed the committee that               
contrary to what he had indicated at the previous meeting, the                 
side-by-side comparison of funding formulas would not be completed             
until the cost differential study has been released.                           
                                                                               
CHAIRMAN BUNDE encouraged committee members to solicit comments on             
the proposed CSSSHB 148 from their local school board, particularly            
once the cost differential study is available.                                 
                                                                               
Number 0819                                                                    
                                                                               
REPRESENTATIVE PORTER expressed interest in receiving a written                
summary of the proposed CSSSHB 148, including the cost differential            
study.                                                                         
                                                                               
Number 0847                                                                    
                                                                               
REPRESENTATIVE BRICE commented that it was his understanding the               
Department of Education, through the judicial process and after                
much expense, had reached a settlement with Mr. Gilley,                        
Superintendent of the Adak School.  In light of that situation, he             
questioned whether the language on page 8, line 24 and page 9, line            
4, needed to be strengthened.                                                  
                                                                               
MR. JEANS said the proposed language actually strengthens the                  
department's position.  He noted the current statute basically                 
refers to "shall maintain the monies and complete financial records            
in the disbursement of those funds."                                           
                                                                               
REPRESENTATIVE BRICE inquired if the committee should consider                 
adding language that would provide direction to the department in              
the event a problem does arise.                                                
                                                                               
CHAIRMAN BUNDE indicated he would entertain an amendment if                    
Representative Brice thought the additional language was necessary.            
He noted, however, the Department of Education had not indicated               
that additional language was necessary, but asked Mr. Jeans to                 
verify that.                                                                   
                                                                               
CHAIRMAN BUNDE pointed out for the information of committee                    
members, the counting period for funding is currently in October               
with a second counting period in February which has never been                 
enforced.  Schools who thought they would get additional students              
and consequently more money, would count in February. Conversely,              
schools that thought they had lost students, wouldn't count.  He               
pointed out that double counting is an expense to the districts and            
may not be supported by the school districts.  He encouraged                   
committee members to get feedback from their local school districts            
because double counting is required under the proposed CSSSHB 148.             
                                                                               
Number 1060                                                                    
                                                                               
REPRESENTATIVE BRICE referred to page 9, line 20 - 21, and asked               
for Chairman Bunde's thoughts on expanding local contribution to               
include a Native corporation for example, that might provide                   
training on certain academic issues to a school district or a                  
single site school.                                                            
                                                                               
CHAIRMAN BUNDE conjectured that question should be directed to the             
Department of Education and/or the Department of Law.                          
                                                                               
REPRESENTATIVE PORTER asked if in-kind services were defined?                  
                                                                               
MR. JEANS stated currently, there is no specific definition.  He               
added that in-kind services include janitorial, accounting, and                
other services; normally, services that a district would have to               
purchase.  For example, much of the maintenance in the Kenai School            
District is provided by the borough.  He noted that in-kind                    
services are subject to an annual review by the independent audit              
firms.                                                                         
                                                                               
Number 1174                                                                    
                                                                               
REPRESENTATIVE BRICE referred to page 10, lines 22 - 25, and                   
expressed concern that, by omission, wage and hour considerations              
for school bus drivers who have a higher minimum wage are not being            
overlooked.                                                                    
                                                                               
MR. JEANS pointed out the wages are set in statute, so the                     
department did not feel it was necessary to readdress it.                      
                                                                               
Number 1242                                                                    
                                                                               
CHAIRMAN BUNDE announced the proposed CSSSHB 148 would be heard                
again on Thursday, February 5.