Legislature(2021 - 2022)ANCH LIO DENALI Rm

10/28/2021 01:30 PM House WAYS & MEANS

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01:31:06 PM Start
01:32:01 PM HB4003
02:59:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconference <Listen Only> --
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
          HB4003-PERMANENT FUND DIVIDEND; 25/75 POMV SPLIT                                                                  
1:32:01 PM                                                                                                                    
CHAIR  SPOHNHOLZ  announced  that the  only  order of  business  would                                                          
be HOUSE  BILL NO.  4003, "An  Act relating  to use  of income of  the                                                          
Alaska  permanent  fund;  relating  to the  amount  of  the permanent                                                           
fund  dividend;  relating   to the  duties   of the  commissioner   of                                                          
revenue; and providing for an effective date."                                                                                  
1:32:57 PM                                                                                                                    
CHAIR  SPOHNHOLZ  provided  introductory  remarks  on  HB  4003.   She                                                          
directed  attention   to  a PowerPoint   presentation,  titled   "CSHB
4003:   Updated   Permanent   Fund   POMV   Funding   for  Dividends,                                                           
Education,   and   other  Essential   State   Services"   [hard   copy                                                          
included  in  the  committee  packet].   Beginning   on slide  2,  she                                                          
reviewed the impacts of various dividend formula rewrite bills.                                                                 
1:33:32 PM                                                                                                                    
REPRESENTATIVE  PRAX  expressed  his  opposition  to  the forthcoming                                                           
committee  substitute  (CS)  for  HB 4003,  noting  that  he would  be                                                          
leaving the committee early today for a prior engagement.                                                                       
CHAIR  SPOHNHOLZ  resumed  the presentation  on  slide  3, which  used                                                          
assumptions  from  the  Fiscal  Policy  Working   Group  to highlight                                                           
elements  from   the  various  fiscal  plans.    She  explained   that                                                          
presentations   from  the  Legislative  Finance  Division   (LFD)  had                                                          
made  it  clear that  a  75/25  split,  which  was the  basis  for  HB
4003,  would  come  closest  to  balancing   the budget   while  still                                                          
providing  for   a meaningful   [dividend].    She  stated   that  the                                                          
purpose  of the  plan was  to create  stable  fiscal footing  for  the                                                          
state  and  to  stabilize   and  grow  both  the  PFD  and  education                                                           
1:36:17 PM                                                                                                                    
CHAIR  SPOHNHOLZ  turned to  slide  4, which  outlined  the impact  on                                                          
the  dividend.   She pointed  out  that under  HB 4003,  the dividend                                                           
would  grow  to $1,575  by  FY 28.   She  addressed  the  increase  in                                                          
outmigration   due   to  the   state's   fiscal  instability.      She                                                          
proceeded  to slide  5, which  highlighted  Article 7,  Section  1, of                                                          
the  Alaska  State   Constitution   and  read  as  follows  [original                                                           
punctuation provided]:                                                                                                          
         The legislature shall by general law establish and                                                                     
           maintain a system of public schools open to all                                                                      
     children of the state?                                                                                                     
CHAIR  SPOHNHOLZ  said the  legislature's  inability  to  resolve  the                                                          
state's  fiscal  situation   had placed  downward   pressure  on  K-12                                                          
funding  for years.   While  other  states  made investments  in  K-12                                                          
education,  Alaska's   education  funding  remained  largely  static.                                                           
Proceeding   to   slide  6,   she   noted  that   the   base  student                                                           
allocation    (BSA)    had   not    been   increased    since    2015.                                                          
Additionally,   when  adjusted  for  inflation,  Alaska's  investment                                                           
in K-12  education  decreased  in each of  the last  four years.   She                                                          
emphasized  the impacts  of unstable  education  funding  on slide  7,                                                          
adding  that  sustainable  funding  helped  drive  reform,  outcomes,                                                           
and performance.                                                                                                                
1:40:01 PM                                                                                                                    
CHAIR  SPOHNHOLZ   advanced  to   slide  8,  which  read  as  follows                                                           
[original punctuation provided]:                                                                                                
     CSHB 4003: Updates the Dividend Formula                                                                                    
     Rewrites the dividend formula as follows:                                                                                  
        The 5% Percent of Market Draw from the Permanent Fund                                                                   
     will be split as follows:                                                                                                  
        • 25% to dividends                                                                                                      
        • 75% UGF available for essential government                                                                            
           o 50%* to the public education fund for                                                                              
             foundation formula and pupil transportation                                                                        
                o If the percentage allocated to education                                                                      
                   does not fully fund the foundation                                                                           
                   formula, the remaining need will be met                                                                      
                   with UGF                                                                                                     
                o If the percentage allocated to education                                                                      
                   exceeds   the   amount    required   by   the                                                                
                   foundation   formula,  the   excess  will  be                                                                
                   distributed  directly   to  school  districts                                                                
                   according to the foundation formula.                                                                         
             • 50% to general fund                                                                                              
1:41:12 PM                                                                                                                    
MEGAN  HOLLAND, Staff,  Representative  Ivy  Spohnholz,  Alaska  State                                                          
Legislature,   co-presented    a  PowerPoint   presentation,    titled                                                          
"CSHB  4003:  Updated  Permanent  Fund  POMV Funding   for Dividends,                                                           
Education  and  other Essential  State  Services,"  on  behalf of  the                                                          
House  Special  Committee  on Ways  and  Means,  prime sponsor  of  HB
4003.   She  continued  to slide  9,  which  illustrated  the revised                                                           
POMV  split  proposed  in the  CS.   She  turned  to slide  10,  which                                                          
provided  projections  from LFD  through FY  30.  She  indicated  that                                                          
HB  4003 would  create  a  stable  fund  source  for Alaskan  schools                                                           
that would grow into the future.                                                                                                
1:44:24 PM                                                                                                                    
MS.  HOLLAND   provided  a  sectional   analysis  of  CSHB  4003(W&M)                                                           
[included   in  the   committee  packet],   which   read  as  follows                                                           
[original punctuation provided]:                                                                                                
     Section   1:  Amends  AS  14.17.300   adding  new  language                                                                
     allowing   the foundation   formula  for  public  education                                                                
     to  be  funded  through  a  percentage  of  the POMV  draw.                                                                
     Clarifies  that  in the  case  that the  percentage  of the                                                                
     POMV   is  not  sufficient,   foundation   funding  may  be                                                                
     provided by the general fund.                                                                                              
     Section   2: Amends   AS 37.13.140,   clarifying  that  the                                                                
     amount  available  for  appropriation  may  not  exceed the                                                                
     balance of the earnings reserve account.                                                                                   
     Repeals the old formula for calculating PFDs.                                                                              
     Section    3:    Amends    AS   37.13.145(b)     to   allow                                                                
     appropriations   from  the  earnings   reserve  account  in                                                                
     accordance   with  AS 37.13.140(b),   (the  POMV  statute),                                                                
     as   follows:   25%   to  the   dividend   fund   under  AS                                                                
     43.23.045 and 75% to the general fund.                                                                                     
     Of  the  75%  distributed  to  the  general  fund,  no less                                                                
     than  50% may  go to the  public education  fund  for state                                                                
     aid   to  school  districts   to  satisfy   the  foundation                                                                
     Section  4:  Amends  AS  37.13.145(c)  to  clarify  that an                                                                
     appropriation    is  required   to  move  funds   from  the                                                                
     earnings   reserve   account   to  the  principal   of  the                                                                
     permanent fund for purposes of inflation proofing.                                                                         
     Section  5:  Amends  AS  37.13.145(d)  to  stipulate  funds                                                                
     associated   with  the  Amerada  Hess  settlement  are  not                                                                
     included  in  the  calculation  of  the percent   of market                                                                
     value under AS 37.13.140(b).                                                                                               
     Section  6:  Adds  a new  subsection  that  states,  of the                                                                
     75%  distributed  to  the general  fund,  no less  than 50%                                                                
     may  go  to the  public  education  fund for  state  aid to                                                                
     school districts to satisfy the foundation formula.                                                                        
     Additionally,    this  section   provides   that   if  this                                                                
     percentage   of  the   POMV  draw  does   not  satisfy  the                                                                
     foundation   formula,  the remaining  funds  may  come from                                                                
     the  general  fund. And,  if  it exceeds  the formula,  the                                                                
     excess  may  be distributed   according  to the  foundation                                                                
     Section   7:  Amends   AS  37.13.300(c)   to  specify  that                                                                
     income   from  the   mental  health   trust   fund  is  not                                                                
     included  in  the  calculation  of  the percent   of market                                                                
     value under AS 37.13.140(b).                                                                                               
     Section   8:  Amends   AS  37.14.031(c)   to   require  the                                                                
     Alaska   Permanent  Fund  Corporation   calculate  the  net                                                                
     income  of the  mental health  trust  fund annually  on the                                                                
     last  day  of the  fiscal  year, excluding  any  unrealized                                                                
     gains or losses.                                                                                                           
     Section   9:  Amends   AS  43.23.025(a)   to  clarify  that                                                                
     funds   must  be   appropriated   to  the  dividend   fund,                                                                
     rather than transferred as current statute provides.                                                                       
     Section   10:  Repeals  AS  37.13.145(e)   and  (f).  These                                                                
     sections    restricted    to   appropriations    from   the                                                                
     earnings   reserve  account  to  the  general  fund  to not                                                                
     more   than  was  available   for  appropriation.   Similar                                                                
     language is now found in Section 2 of this bill.                                                                           
          Section 11: Provides an effective date of July 1,                                                                     
1:47:38 PM                                                                                                                    
REPRESENTATIVE  JOSEPHSON,  referring  to  slide 10,  highlighted  the                                                          
total  anticipated  foundation  funding  of $1.26  billion  in FY  23.                                                          
He asked  what that  number would  be if  there had  been a 2 percent                                                           
growth  in  the  BSA since  FY  15.   Additionally,   he  pointed  out                                                          
that  in FY 30,  LFD projected  a  $240 million  increase  in funding                                                           
beyond  the BSA formula.   He  asked what  the $240  million would  be                                                          
used  for  and whether   school  districts  had  indicated  that  they                                                          
needed that much in additional funding.                                                                                         
CHAIR SPOHNHOLZ deferred to Ms. O'Sullivan.                                                                                     
1:50:30 PM                                                                                                                    
KELLY  O'SULLIVAN,  Fiscal  Analyst,  Legislative  Finance  Division,                                                           
offered to follow up with the requested information.                                                                            
CHAIR   SPOHNHOLZ,   regarding   the  inquiry   from   Representative                                                           
Josephson  about  the additional  $240  million  in FY  30, explained                                                           
that  the bill  did not  specifically  propose  an update  to the  BSA                                                          
formula.   She  explained  that the  funds could  be used  in various                                                           
ways,  such  as  capital   expenses,  pre-kindergarten,   or  reading                                                           
1:52:57 PM                                                                                                                    
REPRESENTATIVE   JOSEPHSON  moved  to adopt  the  proposed  committee                                                           
substitute   (CS)   for  HB   4003,  labeled   32-LS1209\B,   Nauman,                                                           
10/27/21,  as  the  working  document.    There  being  no objection,                                                           
Version B was before the committee.                                                                                             
CHAIR SPOHNHOLZ welcomed invited testimony.                                                                                     
1:54:34 PM                                                                                                                    
NILS ANDREASSEN, Executive Director, Alaska Municipal League,                                                                   
read the following prepared remarks [original punctuation                                                                       
     Thank  you  for  the invitation   to provide  testimony  on                                                                
     HB  4003.   As you're   aware,  AML  has  presented   a few                                                                
     times  to  this  committee  and offered  to  be a  resource                                                                
     as necessary.                                                                                                              
     The    Alaska    Municipal   League    is    a   membership                                                                
     organization   comprised   of   Alaska's  165   cities  and                                                                
     boroughs.  Our  role is  to strengthen  local  governments,                                                                
     including   to  provide  a  variety   of  services  and  to                                                                
     coalesce   municipal   perspectives  on   issues  affecting                                                                
     local governments.                                                                                                         
     As   you've    heard   from   me   before,   that   diverse                                                                
     membership   means  that  we may  not  be  able  to  take  a                                                               
     position   on  specific  bills  but  offer   considerations                                                                
     for  you instead,  so that  you may  include these  in your                                                                
     deliberations.   Today's  approach   will  be  similar     I                                                               
     will  review   a  number  of  aspects  of  this  bill  that                                                                
     relate   back  to  local  government   and  intersect  with                                                                
     resolutions or a position taken by AML's membership.                                                                       
     First,  AML  members  adopted  a  resolution  (2021-08)  in                                                                
     support   of  a   balanced  approach   to  addressing   the                                                                
     State's deficit and continuing fiscal challenges.                                                                          
     Second,  AML  members  have  adopted  a  resolution  (2021-                                                                
     03)   in   support   of  a   sustainable   draw   from  the                                                                
     Permanent   Fund.  The  resolution  notes  that  this  is  a                                                               
     component  of  a sustainable  fiscal  policy that  includes                                                                
     revenues  and  expenditures  that are  balanced,  emergency                                                                
     reserves   that   have   been  replenished,   and   a  fund                                                                
     balance established.                                                                                                       
     Third,   AML   members   have  adopted   a  resolution   in                                                                
     support  of  a  broad-based  tax  (2019-06).  HB  4003 does                                                                
     not  address   new  revenues,  which  we  believe  will  be                                                                
     necessary    to  adequately    account   for  the   State's                                                                
     responsibilities.   This  is not  within  the remit  of the                                                                
     bill,  from  our understanding,   as it  is limited  to how                                                                
     the  State may  appropriate  available  funds and  to which                                                                
     purposes.   Thus,  we  haven't   evaluated   distributional                                                                
     impact in relation to other revenue sources.                                                                               
     Fourth,  AML  members  have  adopted  a  resolution  (2020-                                                                
     12)   that   encourages   the   Legislature   to   come  to                                                                
     consensus  on  the Permanent  Fund  Dividend.  Essentially,                                                                
     AML  has  not taken  a  position  on  how or  what  the PFD                                                                
     should  be,  only that  we hope  the  Legislature  can come                                                                
     to  agreement  on  this  issue.  To  the extent  that  this                                                                
     bill    similar  to other  PFD legislation    can  do that,                                                                
     we are hopeful.                                                                                                            
     Finally,  AML  members adopted  a  resolution  (2019-01) in                                                                
     support   of a  Community  Dividend.   The addition   in HB
     4003   of   what  is   essentially   a   fund   source  for                                                                
     education,   a Constitutional   obligation   of the  State,                                                                
     feels very similar to that.                                                                                                
     Adequately   funding  this  public  education   has  been  a                                                               
     policy   statement  of  AML's  for  a long  time,  and  AML                                                                
     members  passed  a  resolution  (2021-05)  that  encourages                                                                
     collaboration   that  fosters   new  approaches  to  public                                                                
     education,   and  sufficient  and  consistent  funding.  To                                                                
     that  end,  allocating   a  portion  of  the POMV  draw  to                                                                
     meet   this   responsibility    of   the   State's   is  an                                                                
     important  and  even critical  assurance  that this  can be                                                                
     done sustainably.                                                                                                          
     It  promises   the  potential,   at  some  point,  to  meet                                                                
     other   goals   identified    by   AML  members       early                                                                
     childhood   education,  for  instance,  inflation-proofing                                                                 
     the  BSA,   overcoming  barriers  to  teacher   recruitment                                                                
     and   retention,    and   ensuring   funding   for   school                                                                
     construction   and major  maintenance.  The inclusion  here                                                                
     of  funding  to meet  a primary  function  of the  State is                                                                
     AML  continues  to advocate  for a State  able  to meet its                                                                
     obligations,    with  multiple   resolutions    adopted  by                                                                
     members   arguing  for  full  and  sufficient  funding  for                                                                
     any  number  of  programs  that  are directly  relevant  to                                                                
     local   governments.   We  appreciate   the  attention  and                                                                
     diligence   of   this  Committee   as  you   work  to  find                                                                
     solutions that do that.                                                                                                    
     Thank you.                                                                                                                 
1:58:23 PM                                                                                                                    
REPRESENTATIVE  JOSEPHSON  asked  whether  AML  would support  a  bill                                                          
that designated  50  percent of  the draw  not spent  on dividends  to                                                          
MR.  ANDREASSEN   declined  to  take  a  position  on  that  question                                                           
without   a  formal  proposal   in  front   of  the  committee.     He                                                          
reiterated  that  fully funding  education  was  a priority  for  AML,                                                          
adding  that  many  components  of  this  bill  would meet  important                                                           
criteria for AML members.                                                                                                       
1:59:40 PM                                                                                                                    
TOM   KLAAMEYER,   President,   NEA   Alaska,   read   the  following                                                           
prepared remarks [original punctuation provided]:                                                                               
     Good   afternoon,  Chair  Spohnholz   and  members  of  the                                                                
     House Ways and Means Committee.                                                                                            
     For  the record,  my  name is  Tom Klaameyer,  and  I serve                                                                
     as  the President  of NEA-Alaska.  I  am here on  behalf of                                                                
     the   over  11,000   educators   who  represent   the  vast                                                                
     majority   of classroom   teachers  and  education  support                                                                
     professionals in Alaska.                                                                                                   
     Thank  you  for  the opportunity  to  testify  today  on HB
     I  would  like  to  thank  the  Chair  and members   of the                                                                
     legislature   who have  made  public education   and Alaska                                                                
     students  a priority.  Of  course,  it is a  Constitutional                                                                
     mandate,    but  it   doesn't   always   feel   that   way,                                                                
     considering   the  public  school  funding  roller  coaster                                                                
     ride  we've  been  on  over the  last  decade  or  so. It's                                                                
     quite   refreshing  to  read   HB  4003,  actually,  as  it                                                                
     attempts  to  replace that  volatility  with stability  for                                                                
     the   institution  of   public  education   in  our  state,                                                                
     which  is  the  cornerstone   of  democracy  and  addresses                                                                
     the   critical   need  for  the   future  development   and                                                                
     economic  development   of our  state by  investing  in our                                                                
     As   you  may  know,   this  has  been   one  of  the  most                                                                
     difficult  years  for educators  in  memory. Not  only have                                                                
     educators   been  dealing  with  the  chronic  underfunding                                                                
     of  our  schools  and  the  lack of  student  resources  it                                                                
     causes,   but  for  the   last  (almost)   two  years,  the                                                                
     impacts  of a  global pandemic  in  their workplace  and on                                                                
     their   students.  Teaching   is  difficult;   it's  gotten                                                                
     harder.   And teaching   in Alaska  can  be  uniquely  more                                                                
     A   2020    report   from   the   All    Alaska   Pediatric                                                                
     Partnership   documented  that  even before  the  pandemic,                                                                
     36%   of  Alaska  students   ages  0-8   live  in  poverty.                                                                
     Alaska  has  the  highest  rate  of child  maltreatment  in                                                                
     the  nation.  The  report   goes  on to  detail  that  only                                                                
     one-third    of   Alaska   children    start   kindergarten                                                                
     "ready",  and  low-income  children  are  even less  likely                                                                
     to be well equipped to start their education.                                                                              
     The   simple  fact  is   that  many  Alaska   students  are                                                                
     coming  from  some challenging  backgrounds  and  arrive at                                                                
     school   unprepared.   Furthermore,  our   state  currently                                                                
     invests   less   than  1%   of  general   funds   in  early                                                                
     childhood   education,  and  another  bill,  introduced  to                                                                
     help  rectify  that,  has stalled  in  the legislature  for                                                                
     the last two years.                                                                                                        
     Add  to this  mix the  fact  that Alaska  offers  the worst                                                                
     retirement   system in  the  country for  teachers.  Alaska                                                                
     teachers   (hired  since   2006)  do  not   receive  Social                                                                
     Security  and  do not earn  a pension.  A 2019  analysis by                                                                
     the  Chief  Investment   Officer  of  the State  of  Alaska                                                                
     demonstrated   that   after  a  30-year  teaching   career,                                                                
     only  about 31%  of teachers  hired  after 2006  would have                                                                
     sufficient  assets  to  support themselves  in  retirement.                                                                
     With  no Social  Security,  this is  a very scary  prospect                                                                
     for  many and  the reason  so many  leave after  five years                                                                
     (they   can  take  what   they  earned   and  to  teach  in                                                                
     another state).                                                                                                            
     Finally,  consider   what it  has  been  like for  teachers                                                                
     over  the  last 10  years as  the state  budget  crisis and                                                                
     legislative    gridlock   have    created   almost   annual                                                                
     uncertainty    for  jobs   and   impacts   to  the   school                                                                
     Imagine  being  a first-year  teacher  with student  loans,                                                                
     or  an early  career  teacher  who has  just bought  a home                                                                
     and  receiving  a "pink  slip" from  your employer  because                                                                
     of  the  inability  of the  Legislature  to  pass  a budget                                                                
     on   time.  A  2020   study  by   the  Regional   Education                                                                
     Laboratory   showed that  22 percent  of  teachers  and 25%                                                                
     of  principals  leave their  schools  and their  roles each                                                                
     year.   Imagine  how  dangerous   the  oil  production  and                                                                
     exploration   on the  North  Slope  would  be if  employers                                                                
     there experienced that kind of turnover.                                                                                   
     And   this  turnover   costs  the  state   of  Alaska  real                                                                
     money.  A  2017 study  by ISER  detailed  costs  of $20,000                                                                
     per  teacher to  the tune  of $20 million  per  year. It is                                                                
     estimated   that  Principals   cost  $75,000  per  year  in                                                                
     recruitment  and  retention  costs. And  it's not  just the                                                                
     state   and  school  districts   that  pay   for  educators                                                                
     coming   and  going  from  our  schools   and  communities,                                                                
     unfortunately, it is our students.                                                                                         
     Educators   grow and  develop  with  experience.   They get                                                                
     to  know families  and students.  They  become  part of the                                                                
     community    and  build   long-term    relationships   that                                                                
     support    student    learning    and   connected    school                                                                
     communities.   This doesn't  just make  common  sense, it's                                                                
     supported  by  the data.  ISER has shown  that  in the five                                                                
     school   districts  in  Alaska  with  the  lowest  turnover                                                                
     rates  (average  of 8.7%)  student  reading proficiency  is                                                                
     an  impressive   85.8%.  Conversely,  in  the  five  Alaska                                                                
     school   districts   with   the  highest   turnover   rates                                                                
     (churning   out  an  average  of  37.9%  of  teachers  each                                                                
     year)    their   student   reading   proficiency    dropped                                                                
     dramatically to only 46.9%.                                                                                                
     I  am here  today before  you  because  I am excited  about                                                                
     the  potential  impact  of HB  4003. It  represents  a real                                                                
     acknowledgment   that we  need to  do better  and  more for                                                                
     our  students   and  educators.  It  builds  a  sustainable                                                                
     stream  of  investment  for  our  students  and schools  so                                                                
     we  can chart  a  strategic  and productive  course  moving                                                                
     forward.  It  starts  to resolve  the  state fiscal  crisis                                                                
     which has been so damaging to public education.                                                                            
     In   very  recent   history,   and  almost   annually,  the                                                                
     entire  apparatus  related  to  public  education  has been                                                                
     mobilized    to  make   the   case  against   massive   and                                                                
     damaging   cuts  to  education.  In  2015  we  saw  a  very                                                                
     serious  proposal  from  the  Senate Finance  Committee  to                                                                
     make  a 5%  cut to  education  funding.  More recently,  we                                                                
     saw  a proposal  to  cut education  funding  by 23%  in the                                                                
     Governor's   budget,   followed  by  vetoes   of  education                                                                
     funding   -   including   funding   for   early   childhood                                                                
     Fortunately,   helping  students  who need  it the  most is                                                                
     exactly  why  many  educators  joined  the  profession,  to                                                                
     begin   with,  but   unfortunately,   however,   fewer  and                                                                
     fewer   educators  are   choosing  to  make   Alaska  their                                                                
     home.   In  fact,  there   are  1,000  fewer   certificated                                                                
     teachers  working  in Alaska  than a  decade ago.  Years of                                                                
     flat   funding,   further   eroded   by   inflation,   have                                                                
     strained our system.                                                                                                       
     Sometimes   I think  about  the  energy  and human  capital                                                                
     that  educators,   parents,  and  administrators  have  had                                                                
     to  invest  over  the  last  decade  to  make  the  case to                                                                
     just  hold  students  and  schools  harmless  from  funding                                                                
     cuts.  What  if the  adults  involved  in public  education                                                                
     had  been  able to  spend  100% of  their  time  focused on                                                                
     students?   What if  they  didn't have  to  worry  about an                                                                
     insufficient    retirement,   pink   slip,   or   a  school                                                                
     closure, or a funding cut.                                                                                                 
     Even  the idea  of "forward  funding",  a modest,  no-cost,                                                                
     signal   to school   districts  that  there  will  be  some                                                                
     stability   in   education   funding   turned  out   to  be                                                                
     controversial.    Though,  I   hope  legislators   who  are                                                                
     interested   in a no-cost  way  to instill  confidence  and                                                                
     support    stability   will   continue   to   propose   and                                                                
     advocate for forward funding.                                                                                              
     HB  4003  represents  a real  opportunity  for  Alaskans to                                                                
     come  together,  to put  a big  part of  the fiscal  crisis                                                                
     behind   us  and   to  make  an   enduring   investment  in                                                                
     Alaska's kids and our state's future.                                                                                      
     We  are   still  carefully  studying   the  details  of  HB
     4003,   but  after  an   initial  review   I  am  eager  to                                                                
     continue    this   conversation   as   it   represents   an                                                                
     acknowledgement   of   our  Constitutional   obligation  to                                                                
     public  education,  it  is an  innovative  idea  that shows                                                                
     we   can  and  must  do   better,  and  it   puts  Alaska's                                                                
     students   and   young  people   at   the  center   of  the                                                                
     conversation about moving forward.                                                                                         
     Thank  you,  Chair  Spohnholz  for bringing  this  proposal                                                                
     forward,  and  thank  you  all for  your  time,  attention,                                                                
     and consideration.                                                                                                         
2:09:05 PM                                                                                                                    
REPRESENTATIVE   JOSEPHSON  asked  what  more the  legislature   could                                                          
do to ensure a stream of funding for K-12 education.                                                                            
MR. KLAAMEYER  said  he was excited  by the prospect of HB 4003, which                                                          
would provide  stability and allow  funding to continue  to grow.   He                                                          
emphasized the importance of installing  best practices in schools and                                                          
catering to unique needs in  individual communities.  He expressed the                                                          
need for  high quality  educators and reducing  the student-to-teacher                                                          
ratio, as well as improving the retirement system.                                                                              
2:12:40 PM                                                                                                                    
REPRESENTATIVE   SCHRAGE   returned   to   slide  6   and  asked   Mr.                                                          
Klaameyer  to  contextualize  the  reductions  in  funding  and  speak                                                          
to  the  challenges  that  school  districts  are  facing  in today's                                                           
MR.  KLAAMEYER   highlighted  the   impact  on  students;   access  to                                                          
medical  care,  school  counselors,  and  social  workers;  retaining                                                           
high  quality educators;  maintaining  enough  paraprofessionals   and                                                          
fully  funding   special  education.     He  characterized   Alaska's                                                           
retention  issues  as "creating  a class  of education  tourists"  who                                                          
after five years, leave Alaska after becoming fully vested.                                                                     
2:16:07 PM                                                                                                                    
REPRESENTATIVE    STORY   sought   clarification    on   the  funding                                                           
components in HB 4003.                                                                                                          
CHAIR  SPOHNHOLZ   stated  that  she   had  specifically  excluded   a                                                          
specific  description  of  what  would  be  funded.   She  added  that                                                          
nothing  in  the  bill  would  preclude   a policy   bill  that  would                                                          
rewrite  the  formula  in some  way  to allow  for  growth  over  time                                                          
consistent with the legislation as drafted.                                                                                     
MS. HOLLAND  asked  Ms. O'Sullivan  to list  what  foundation formula                                                           
direct  aide  to  school  district   funding  could  be  used  for  by                                                          
2:19:57 PM                                                                                                                    
MS.   O'SULLIVAAN   offered   to  follow   up   with   the  requested                                                           
2:21:07 PM                                                                                                                    
NORM WOOTEN, Director of Advocacy, Association of Alaska School                                                                 
Boards (AASB), read the following prepared remarks [original                                                                    
punctuation provided]:                                                                                                          
     Good   afternoon  members   of  the  House   Ways  &  Means                                                                
     Special  Committee.  My  name is  Norm  Wooten and  I serve                                                                
     as  the  Director   of  Advocacy  for  the  Association  of                                                                
     Alaska   School  Boards.  Also,  on-line  today  is  AASB's                                                                
     Executive   Director,  Lon  Garrison.  Thank   you for  the                                                                
     opportunity to testify today.                                                                                              
     We  are  supportive  of  the  language  of  CS HB  4003(W&)                                                                
     and    its   intent   is   in   alignment    with   several                                                                
     resolutions approved by the AASB Delegate Assembly.                                                                        
     We   watched    with   interest   the   meetings   of   the                                                                
     Legislative   Fiscal Work  Group  and  were gratified  with                                                                
     the   recommendations     of   the   Work   Group.   AASB's                                                                
     Resolution   2.1   -  SUSTAINED,   RELIABLE   AND  ADEQUATE                                                                
     STATE  FISCAL  PLAN AND  EDUCATIONAL  FUNDING  FOR ALASKA'S                                                                
     STUDENTS    THROUGH    A   NON-VOLATILE    FUNDING   SOURCE                                                                
     directly  supports  the  Work  Group's  recommendations  as                                                                
     well  as  the  proposed   use  of the  POMV  draw  and  the                                                                
     division  of  the revenue  from the  Permanent  Fund. CS HB
     4003(W&M)  meets  the  recommendations  of  the  Work Group                                                                
     by  putting  into  place a  step  toward a  fiscal  plan as                                                                
     well   as  revising   the  PFD   statute.  The   future  of                                                                
     Alaska,   as  well  as  the future   of  public  education,                                                                
     depend on a workable fiscal plan.                                                                                          
     Creating  in  statute a  sustainable  use of the  POMV draw                                                                
     puts   to  rest   what  has  become   the  focus   of  many                                                                
     discussions   in  the  legislature.  The  debate  over  the                                                                
     question,   "How   much  is  the   PFD  this   year"  is   a                                                               
     distraction   to the  business  of the  legislature    that                                                                
     business  is  policy  decisions  that  affect every  sector                                                                
     of  Alaska's   population,   including  our   public-school                                                                
     students.  I'm  not  here this  afternoon  to advocate  for                                                                
     an  amount  of the  PFD. There  are many  thoughts  on that                                                                
     topic  both  within  the  Capitol as  well  as the  general                                                                
     population.   I commend  you  for considering   legislation                                                                
     that  creates  a  stable  funding  source  for  the  PFD so                                                                
     that    legislators     can    concentrate    on    greater                                                                
     responsibilities and move this debate off the table.                                                                       
     Each  year school  board  members  and education  advocates                                                                
     plead  for  education  funding.  And you  routinely  remind                                                                
     yourselves   and   the   public  of   your   constitutional                                                                
     responsibility     that    is   contained    in    Alaska's                                                                
     constitution.    Article   7,  Section   1  requires   your                                                                
     support  and  funding of  a public  school system.  And you                                                                
     have  never failed  to  fund education,  however,  the Base                                                                
     Student   Allocation  has  not   been  increased  from  the                                                                
     current  $5,930  since FY  17. Six  years with  no increase                                                                
     seems  disingenuous   to  expect  constant  improvement  in                                                                
     instruction   and  increasing  standardized   test  scores.                                                                
     Utilities,   supplies,   transportation,   fuel,  salaries,                                                                
     maintenance,   freight,   food,  instructional   materials,                                                                
     communications,    internet,   and   a   myriad   of  other                                                                
     supplies  and  services  necessary for  operating  a school                                                                
     system  have  all increased.  It seems  as if the  cost for                                                                
     everything   has  increased.  About  the  only  thing  that                                                                
     hasn't  increased  is the  BSA. The  proposed  new language                                                                
     in  CS  HB 4003(W&M)  has  provisions  that  address  those                                                                
     times  when  the formula  draw  does not  meet the  BSA and                                                                
     also  when  the  formula  draw goes  beyond  the  BSA need.                                                                
     This  seems to  be a responsible   solution. It  also meets                                                                
     the  request  of  AASB's  Resolution  2.2  - URGING  EARLY,                                                                
     ADEQUATE,  EQUITABLE,  AND  PREDICTABLE  FUNDING  OF PUBLIC                                                                
     The  proposed  language  in CS  HB 4003(W&M)  would  remove                                                                
     education     from     competition     with    all    other                                                                
     appropriations    and   fulfill   the   responsibility   of                                                                
     Article   7,  Section  1  of  Alaska's   Constitution.  The                                                                
     legislature  could  then  concentrate  on the  remainder of                                                                
     other  services  that  provide  for Alaska's  citizens  and                                                                
     make  our   state  such  a  wonderful  place  to  live  and                                                                
     raise families.                                                                                                            
     My   own   daughters   and   granddaughters   received   an                                                                
     outstanding    public-school   education   that   laid  the                                                                
     foundation   for them  to lead  successful  adult  lives.  I                                                               
     want  my  great  granddaughters   to  also have  that  same                                                                
     opportunity.    CS  HB   4003(W&M)   will  undoubtedly   go                                                                
     through  many  iterations   as it  progresses  through  the                                                                
     committee   process   in  both  bodies.   AASB  commits  to                                                                
     weighing  in  at  every opportunity   and to  help  make it                                                                
     the   best  possible   support  for  every   public  school                                                                
     student in Alaska.                                                                                                         
     AASB  has  several  other resolutions  that  support  CS HB
     4003(W&M)   and  they are  included   in the  written  copy                                                                
     provided to the committee.                                                                                                 
     Thank  you for  the opportunity  to  testify in  support of                                                                
     CSHB   4003(W&M).   Both   AASB  Executive   Director   Lon                                                                
     Garrison   and  I  are  available  for  any  questions  you                                                                
     might have.                                                                                                                
                 AASB Resolutions Supporting HB 4003                                                                          
     B.7 EDUCATIONAL PROGRAMS AND FUNDING AS TOP PRIORITY                                                                       
     Article  VII,  Sec.  1  of the  Alaska  State  Constitution                                                                
     states   that   the   Legislature   shall   establish   and                                                                
     maintain  a system  of public  schools  open to  all school                                                                
     age   children.   Public   education   is  fundamental   to                                                                
     democracy   and  economic  advancement   of the  state  and                                                                
     tribes.   AASB calls  upon  the  Governor  and  the  Alaska                                                                
     Legislature   to  make  early,  sustainable,  adequate  and                                                                
     equitable   funding  a  top  priority   for  the  exemplary                                                                
     education of our youth.                                                                                                    
     2.1  SUSTAINED,  RELIABLE  AND ADEQUATE  STATE  FISCAL PLAN                                                                
     AND  EDUCATIONAL  FUNDING  FOR  ALASKA'S  STUDENTS  THROUGH                                                                
     A NONVOLATILE FUNDING SOURCE                                                                                               
     The   sustainability,    reliability    and   adequacy   of                                                                
     Alaska's   funding  for public  education   are of  highest                                                                
     concern   to the  Association   of  Alaska  School  Boards.                                                                
     AASB  urges  the  Legislature  to  develop  a state  fiscal                                                                
     plan.   This  fiscal   plan  would   provide   a  long-term                                                                
     approach  to  funding  the costs  of  public education  and                                                                
     other  services  upon  which  Alaska's  students  and their                                                                
     families    depend.   The   plan   should   be   strategic,                                                                
     sustainable   and  realistic,  providing  a  framework  for                                                                
     balancing   budgets   while   adequately   funding   public                                                                
     2.2  URGING  EARLY, ADEQUATE,  EQUITABLE,  AND  PREDICTABLE                                                                
     FUNDING OF PUBLIC EDUCATION                                                                                                
     AASB   urges  the  State   of  Alaska  to   provide  early,                                                                
     adequate,  equitable,  and  predictable  funding  of public                                                                
     education.   AASB believes  that  adequate  funding  should                                                                
     include the following:                                                                                                     
     ?  State  funding  of the  TRS-PERS  retirement  liability;                                                                
     ?   An  increase   to  the  Base   Student   Allocation  to                                                                
     account  for  both  inflation  and adequate  pre-K  through                                                                
     12th grade education;                                                                                                      
     ?  Recognition  of the  need to keep  pupil-teacher  ratios                                                                
     to  a level  in line  with research-based  best  practices;                                                                
     ? Career and technical education.                                                                                          
     ?  An early  adoption timeline  that  allows school  boards                                                                
     and   district    administration    to   effectively   plan                                                                
     instruction  and  staffing  for the  upcoming  school year.                                                                
     ?  Programs  and  Initiatives  focusing  on  Alaska  Native                                                                
     languages and cultures.                                                                                                    
     AASB   urges   that   in   the   years   when  the   Alaska                                                                
     Legislature   has  not  approved  an  education  budget  by                                                                
     April  1,  the  budget  from  the  previous  year  shall be                                                                
     the legal minimum funding for the next fiscal year.                                                                        
     AASB   urges  the  Legislature   to  review  and  recommend                                                                
     appropriate   adjustments  to AS.14.17.460,  District  Cost                                                                
     Factors, to ensure equity in school funding.                                                                               
     AASB  urges  the  Legislature  to  provide  stable  forward                                                                
     funding  that  addresses  inflation,  including  the use of                                                                
     an     education    endowment,     to     ensure    funding                                                                
     2.10 EDUCATION ENDOWMENT                                                                                                   
     AASB  lends its  full support  to  the establishment  of an                                                                
     adequately     funded    and   well-managed     educational                                                                
     endowment   to help  secure  stable  and  full funding  for                                                                
     education    to  be   used   for  public   elementary   and                                                                
     secondary education.                                                                                                       
     2.14 PUPIL TRANSPORTATION                                                                                                  
     AASB   urges  the  State  of  Alaska   to  adequately  fund                                                                
     pupil  transportation   by  increasing  the  transportation                                                                
     allocation   to accurately  reflect  true  costs,  to avoid                                                                
     the   use  of  operating  fund  dollars,   and  to  provide                                                                
     funding   for  districts   with  increased   transportation                                                                
     needs   due  to  state  legislated   labor  costs,  special                                                                
     circumstances   and/or  student  growth.  Getting  students                                                                
     safely  to  and  from  school  is a  vital  part of  public                                                                
     2.23   FUNDING  FOR  SCHOOLS   BY  ESTABLISHING   THE  BASE                                                                
     STUDENT ALLOCATION IN ADVANCE                                                                                              
     AASB  supports   funding  for  schools  in  advance.   At  a                                                               
     minimum,   the Base  Student  Allocation   (BSA) should  be                                                                
     established   at least  one,  and preferably  three,  years                                                                
     ahead  to  provide  sufficient  time for  school  districts                                                                
     to  prepare and  submit  their budgets  in a  timely manner                                                                
     without    spending   unnecessary    time   and   resources                                                                
     revising  budgets  based  on legislative  action  after the                                                                
       local budget process has begun. The Education Fund, AS                                                                   
        14.17.300, must also be maintained and increased for                                                                    
     this purpose.                                                                                                              
        2.50 INFLATION-PROOFED BASE STUDENT ALLOCATION (BSA)                                                                    
          AASB urges the State of Alaska to make inflation-                                                                     
        proofed incremental investments to the BSA to make up                                                                   
     for flat funding since FY 2011.                                                                                            
2:26:56 PM                                                                                                                    
REPRESENTATIVE  STORY  asked Mr.  Wooten to  share what  had been  cut                                                          
from the education budget due to flat funding.                                                                                  
MR.  WOOTEN  conveyed   that  many  things  had  been   cut,  such  as                                                          
counseling  in rural  districts  and school  nurses.   He pointed  out                                                          
that  increased  class  sizes  were  also  a  direct  result  of  flat                                                          
funding.  He deferred to Mr. Garrison to elaborate.                                                                             
2:31:22 PM                                                                                                                    
LON  GARRISON,  Association  of  Alaska  School  Boards  (AASB),  said                                                          
AASB  tried to  instill  a notion  of  focusing  on student  outcomes                                                           
and  strategic   planning  for  school   districts  in  school   board                                                          
members,  as  opposed  to  solely  focusing  on  cutting  the budget.                                                           
He emphasized  that  educational  plans  needed to  reflect community                                                           
values  and  needs,   which  varied  from  district  to  district   in                                                          
Alaska.     He  acknowledged   the   importance   of  local  control;                                                           
however,  he pointed  out  that decisions  couldn't  be  made without                                                           
adequate  resources.   He  stated that  the  opportunity  to offer  an                                                          
excellent  education  for  every  student  every  day  was diminished                                                           
in  those districts  with  exceptionally  high  turnover  rates  among                                                          
educators.     He  continued   to  note  that   AASB  offered   robust                                                          
training   to  help  public  officials   understand  their   role  and                                                          
commitment to working with their communities.                                                                                   
2:33:28 PM                                                                                                                    
CHAIR   SPOHNHOLZ   asked  whether   increases   to   the  foundation                                                           
formula  should   be used  on  recruitment   and  retention  efforts,                                                           
including  increases   to salary  and  benefits,   to help  alleviate                                                           
the high rates of turnover among educators.                                                                                     
2:33:57 PM                                                                                                                    
MR. GARRISON answered yes, adding that salary and benefits were                                                                 
one of the largest expenses for school districts.                                                                               
CHAIR SPOHNHOLZ acknowledged the challenge faced by school                                                                      
districts across the state, as they tried to stretch the same                                                                   
amount of dollars with inflation at a record high.                                                                              
2:35:29 PM                                                                                                                    
CAROLINE STORM, Great Alaska Schools, read the following                                                                        
prepared remarks [original punctuation provided]:                                                                               
     Alaska    has   long    needed   a   stable,    consistent,                                                                
     predictable,     and   adequate    funding    source    for                                                                
     education.   Great  Alaska  Schools  supports  those  bills                                                                
     that   move  us  closer  to  such  a  stable,   consistent,                                                                
     predictable,   and adequate  funding  for  education.  This                                                                
     Committee Substitute for HB 4003 is such a bill.                                                                           
     Throughout   or   advocacy  efforts   we've   learned  that                                                                
     Alaskan   families   really   want   our  children   to  be                                                                
     prepared   for  the  workforce   or  for  further  learning                                                                
     when   they  leave   Alaska's   public  schools   as  young                                                                
     adults.  A  strong  education  system  is  really  the only                                                                
     means  for  the  majority  of students   to succeed.  There                                                                
     is   plenty  of  research   showing  that   a  high-quality                                                                
     teacher   leads   to  the  greatest   education   outcomes.                                                                
     However,   there   is  a  national   shortage   of  quality                                                                
     educators,   and  Alaska  is  losing   those  educators  to                                                                
     other   states.   Alaska   must  prioritize    creating  an                                                                
     attractive  work  environment  to retain  the  educators we                                                                
     have and attract future impassioned educators.                                                                             
     When  we  ask  our  education  leaders   why there   are so                                                                
     many  vacant   positions,  we  hear  time  and  again  that                                                                
     recruitment  and  retention  are the  greatest  challenges.                                                                
     Other  states  have shown  that by  prioritizing  education                                                                
     with  consistent  funding  they can  draw quality  teachers                                                                
     through     solid    retirement    benefits,     attractive                                                                
     healthcare     options,    and    by    incentivizing    or                                                                
     compensating for higher learning in the profession.                                                                        
     The   teacher  turnover   rate   in  Alaska   is  high  and                                                                
     getting   higher.   This  is   incredibly  costly   to  all                                                                
     districts,    both   financially    and   emotionally   for                                                                
     students.   Per Jim  Anderson,  CFO  of ASD,  it  costs ASD                                                                
     approx.  $108,000   to onboard  a  single  teacher.  That's                                                                
     money  that does  not make  it to  the classroom.  The lack                                                                
     of  consistency  for students  has a  bigger and  impact on                                                                
     students   than  we  can  fully  outline,   but  especially                                                                
     during   this   pandemic,   during   a  time   of  dramatic                                                                
     uncertainty   for  children,  the  relationships   students                                                                
     have  with  their  educator   is  all too  often  the  only                                                                
     solid   relationship   that   they   have  with   an  adult                                                                
     outside   their  home.   When  that  adult   is  forced  to                                                                
     relocate, it can be very destabilizing for a student.                                                                      
     Furthermore,   since the  BSA has  been  flat and  the cost                                                                
     of  operations  have  compounded  over  the  last  6 years,                                                                
     ASD  has  worked carefully   to equally  allocate  teachers                                                                
     in   their  schools,   so  when  budgets   are  continually                                                                
     squeezed,   it  has  led  to  a  teachers  being  moved  to                                                                
     other  schools,  the result  of those  moves are  losses of                                                                
     continuity   and colleague   relationships  for  educators,                                                                
     and significant disruption for students.                                                                                   
     This   pandemic   has   certainly   underscored   just  how                                                                
     critical  it  is to  have a  safe and  nurturing  place for                                                                
     our  kids  to  go  in  order  for  parents  to  be  able to                                                                
     continue  to  work. I personally  believe  that  there is  a                                                               
     greater  appreciation   for  our educators   now,  so let's                                                                
     take   this  opportunity   to  show  them   that  they  are                                                                
     valued by enacting legislation to support them.                                                                            
     Great  Alaska  Schools   sees  this CS  for  HB  4003  as  a                                                               
     sincere   effort   by  legislators    to  set   up  stable,                                                                
     consistent,    predictable,   and  adequate   funding   for                                                                
     public  education.  We fully  support  this Bill  and the  %                                                               
     of  the  POMV  being  specifically   allocated  for  public                                                                
2:40:15 PM                                                                                                                    
REPRESENTATIVE    STORY    questioned    how   families    prioritize                                                           
education.  She pondered whether it influenced their reasoning                                                                  
for living in a certain area.                                                                                                   
MS. STORM conveyed that many of her architectural colleagues had                                                                
left the state, in part due to the education system in Alaska.                                                                  
CHAIR SPOHNHOLZ recalled that quality public schools were                                                                       
critical to military members as well.                                                                                           
2:42:42 PM                                                                                                                    
DR. LISA PARADY, Executive Director, Alaska Council of School                                                                   
Administrators, read the following prepared remarks [original                                                                   
punctuation provided]:                                                                                                          
     Good Afternoon                                                                                                             
     For  the  record   my  name  is  Dr.  Lisa  Skiles  Parady,                                                                
     Executive     Director    Alaska    Council    of    School                                                                
     Administrators or ACSA                                                                                                     
     Established   in  1973,   the  Alaska  Council   of  School                                                                
     Administrators    (ACSA)  was   created  to   serve  as  an                                                                
     umbrella   for   some  of  Alaska's   premier   educational                                                                
     leadership     organizations    including    the:    Alaska                                                                
     Superintendents   Association,  the  Alaska Association  of                                                                
     Secondary  School  Principals,  the  Alaska Association  of                                                                
     Elementary    School   Principals,    the   Alaska   School                                                                
     Business   Officials   and  all  the  hard-working   school                                                                
     administrators across Alaska                                                                                               
     Thank  you for  inviting  me to speak  to the CS  for House                                                                
     bill   Number  4003,   thank  you  to  the   committee  for                                                                
     introducing it.                                                                                                            
     ACSA's   unifying   purpose  is   to  support   educational                                                                
     leaders   through   providing   a  collective   voice  that                                                                
     champions     possibilities    for    all   students    and                                                                
     purposeful advocacy for public education.                                                                                  
     Each  year  our  members  work  together  to  develop  what                                                                
     are  called  the  Joint  Position   Statements.  The  Joint                                                                
     Position  Statements  envelop  the  highest priorities  for                                                                
     education   policy  positions.  While  student  achievement                                                                
     is  our  number  one  priority,  Adequate  funding  remains                                                                
     our most critical need.                                                                                                    
     Specifically,   we are supportive  that  the CS  for HB4003                                                                
     recognizes   that   the  state   of  Alaska   must  provide                                                                
     timely,  reliable  and  predictable  revenue  for  schools,                                                                
     funding  the  actual  cost of  education  in all  districts                                                                
     and   providing   full  and  equitable   funding   for  all                                                                
     initiatives,   laws  that  require  additional   resources.                                                                
     We  are  also  excited  to  see the  seeds  planted  within                                                                
     the bill for future investment in public education.                                                                        
     Early  notification   of  funding  and  stable  funding  is                                                                
     crucial  to  school  district  sound  financial  management                                                                
     as   well  as   recruitment   and   retention   of  quality                                                                
     We   are  in  the  greatest   period  of   education  staff                                                                
     shortage  in  the history  of  Alaska    this crisis  is at                                                                
     every  level  of our K-12  system,  teachers,  substitutes,                                                                
     mechanics,      bus     drivers,     paras,     principals,                                                                
     superintendent   and education  professionals  such  as our                                                                
     business managers are feeling it too.                                                                                      
     We  have been  in a Groundhog  Day  cycle of  uncertainty                                                                  
     unpredictable   funding,  leads   to district   uncertainty                                                                
     (hiring,  services  and  retention  of quality  educators),                                                                
     which   leads  to  district   instability   and  ultimately                                                                
     impacts instruction negatively                                                                                             
     Implementation   of  a  long-term,   multi  revenue  fiscal                                                                
     plan  remains  imperative  to maximize  districts'  ability                                                                
     to meet student needs.                                                                                                     
     We    are    very   encouraged    by    this    committee's                                                                
     consideration   of  a  new  structure  to  provide  stable,                                                                
     predictable   funding.   We  look  forward   to  partnering                                                                
     with  all  stakeholders  and  the  committee  as  this bill                                                                
     moves   forward   in   the   process.   It  is   especially                                                                
     noteworthy   to see  such substantive   ideas come  forward                                                                
     from this fourth special session.                                                                                          
     Thank  you for  the opportunity  to  testify in  support.  I                                                               
     am happy to answer any questions.                                                                                          
2:49:59 PM                                                                                                                    
REPRESENTATIVE JOSEPHSON inquired about the number of type A                                                                    
certificates that had been lost in the last decade.                                                                             
DR. PARADY believed that Mr. Klaameyer had testified to that.                                                                   
She offered to follow up with the requested information.                                                                        
REPRESENTATIVE JOSEPHSON recalled that the number was 1,000;                                                                    
however, he wanted to be sure.                                                                                                  
2:50:57 PM                                                                                                                    
REPRESENTATIVE   STORY  questioned   how  Alaska  compared   to  other                                                          
states in terms of education funding.                                                                                           
DR.  PARADY explained  that  Alaska  relied heavily  on  the Lower  48                                                          
to   recruit   educators.     She   pointed   out  that   recruitment                                                           
difficulties  were  heightened  by  a  severe  staff shortage   across                                                          
the country in addition to poor salary and benefits.                                                                            
REPRESENTATIVE   STORY   asked   whether   any  states   were   making                                                          
education a top priority.                                                                                                       
DR.   PARADY   believed    that   some   states   were   prioritizing                                                           
education.  She offered to follow up with that information.                                                                     
2:54:05 PM                                                                                                                    
CHAIR   SPOHNHOLZ,   in  response   to   Representative   Josephson's                                                           
question,  confirmed   that  1,000  [type  A certificates]   had  been                                                          
lost.   She  provided  closing  remarks,  noting  that  this  was  the                                                          
last  committee  hearing  planned for  the  current  special session.                                                           
She acknowledged   the frustration  felt my  many over  the fact  that                                                          
a fiscal  plan had  not been  passed; however,  she  pointed out  that                                                          
passing  a  "grand  bargain"  would  take  a  lot  of time,  thought,                                                           
collaboration,   and   compromise.     She  addressed   the  cost   of                                                          
inaction  and  the impact  of  cuts  to government,   as well  as  the                                                          
impact  of instability  on the  entire state  of Alaska.   She  shared                                                          
her  belief  that  the  people  of  Alaska  were  its most  important                                                           
resource,   emphasizing   the  importance   of  a   robust  education                                                           
system.   In  closing,  she commended  the  governor  for recognizing                                                           
the  need  to pass  a  comprehensive  fiscal   plan, as  well  as  the                                                          
Fiscal  Policy  Working   Group  for  identifying  several  consensus                                                           
points in a seemingly divided legislature.                                                                                      

Document Name Date/Time Subjects
HB 4003 Fiscal Note, OMB.pdf HW&M 10/28/2021 1:30:00 PM
CSHB4003 (W&M) v.B.pdf HW&M 10/28/2021 1:30:00 PM
CSHB 4003 Presentation, 10.28.21.pdf HW&M 10/28/2021 1:30:00 PM
CSHB4003 Sectional v. B.pdf HW&M 10/28/2021 1:30:00 PM
CSHB4003 Invited Testimony, 10.28.21.pdf HW&M 10/28/2021 1:30:00 PM
Education Funding Behind Inflation Leg Research Report.pdf HW&M 10/28/2021 1:30:00 PM
2021 Kids Count Alaska Profile.pdf HW&M 10/28/2021 1:30:00 PM
HB4003 Invited Testimony, ACSA.pdf HW&M 10/28/2021 1:30:00 PM
HWM Responses to 10.29.21 Hearing (HB 4003).pdf HW&M 10/28/2021 1:30:00 PM