Legislature(2001 - 2002)

04/17/2002 01:45 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
        HB 312-SUPP. PUBLIC SCHOOL FUNDING/YOUTH ACADEMY                                                                    
                                                                                                                                
RANDY  RUARO,  legislative  staff  to  Representative  William  K.                                                              
William, introduced  the legislation. Eddy Jeans  was available to                                                              
answer questions  on the fiscal notes and  Representative Gretchen                                                              
Guess was available to answer questions  on funding for the Alaska                                                              
Challenge Youth Academy.                                                                                                        
                                                                                                                                
He said he  would address Sections 1  and 3 of the bill  that have                                                              
the affect of  suspending, for the fiscal year FY  03, the erosion                                                              
of the supplemental  funding floor that was created  by SB 36. The                                                              
reason for the one year suspension is that by next January, the                                                                 
                                                                                                                                
Legislature should  have received a  new study of  school district                                                              
cost  factors. It  is  anticipated that  the  study would  provide                                                              
Legislators  with  a  base  of  information  upon  which  to  make                                                              
decisions on school funding for FY 04.                                                                                          
                                                                                                                                
Section 3  makes it clear that  the suspension of the  erosion for                                                              
FY 03  does not affect  the funding  reductions that  have already                                                              
been made in FY 00, FY 01 and FY 02.                                                                                            
                                                                                                                                
SENATOR  LINCOLN wanted  to hear from  Representative Guess  about                                                              
the Alaska Youth Academy Challenge Program.                                                                                     
                                                                                                                                
REPRESENTATIVE GRETCHEN GUESS said  she helped create Section 2 of                                                              
the bill.  The Youth Academy Challenge  Program is run out  of the                                                              
Division of Military and Veteran's  Affairs and is a joint program                                                              
with the federal government to provide  educational and vocational                                                              
services to  at-risk youth.  These are youths  over the age  of 16                                                              
who have dropped out of school. Their  mornings are spent learning                                                              
basic reading, writing and computing  skills to prepare the youths                                                              
for  their  GED  testing.  Afternoons   are  spent  on  vocational                                                              
activities. It  is basically a boot  camp for youths and  has been                                                              
very successful.                                                                                                                
                                                                                                                                
This part  of the  bill sets up  a funding  structure. They  get a                                                              
certain number  of dollars per  student; the federal  funding that                                                              
they receive  is subtracted and what  is left is the  general fund                                                              
dollar amount  that would need to  be authorized. They  have never                                                              
been funded per cadet and this sets  up the structure based on the                                                              
number of cadets in the program.                                                                                                
                                                                                                                                
SENATOR  LINCOLN referred  to the  fiscal  note and  asked if  the                                                              
$334,000.00  was general  fund dollars.  Her  second question  was                                                              
whether  the   Department  of  Education  and   Early  Development                                                              
supported that portion of the legislation.                                                                                      
                                                                                                                                
REPRESENTATIVE GUESS replied that  Nico Bus from the Department of                                                              
Military  and  Veteran's Affairs  was  available  to go  over  the                                                              
fiscal  note, but  she thought  $349,000.00 would  be required  in                                                              
addition  to the  federal allocation.  In response  to the  second                                                              
question,  she   said  the  Department  of  Education   and  Early                                                              
Development is very  supportive of the program  and recognizes the                                                              
importance of providing  the program stable funding.  This isn't a                                                              
school, it's a program and therefore  belongs in the Department of                                                              
Military and Veteran's Affairs but  the school is very supportive.                                                              
                                                                                                                                
SENATOR KELLY  noted that this is  a $65,000.00 increase  over the                                                              
budget because  there were some general  funds "taken out  of both                                                              
sides."                                                                                                                         
                                                                                                                                
SENATOR LINCOLN said, "65?"                                                                                                     
                                                                                                                                
SENATOR KELLY replied,  "If this budget were to pass.  As it sits,                                                              
the fiscal  note is correct,  but if the  budget were to  pass, as                                                              
is, it would represent about a $65,000.00 increase."                                                                            
                                                                                                                                
SENATOR AUSTERMAN said there were  two different fiscal notes from                                                              
the Department of Education and Early  Development, both dated the                                                              
same day,  and he wondered  whether Mr.  Jeans would  come forward                                                              
and briefly explain them.                                                                                                       
                                                                                                                                
EDDY  JEANS, Finance  Manager  for  the Department  of  Education,                                                              
explained  there were  two  fiscal notes  because  there were  two                                                              
budget components  that are  affected by  the legislation.  One is                                                              
the foundation  program that has  the $334,000.00 fiscal  note and                                                              
the second component is the schools  for the handicapped where the                                                              
allocation  for  the  Challenge  Youth  Program will  sit  in  the                                                              
department's budget.                                                                                                            
                                                                                                                                
SENATOR AUSTERMAN comment inaudible.                                                                                            
                                                                                                                                
SENATOR KELLY question inaudible.                                                                                               
                                                                                                                                
MR.  JEANS  said  he  wasn't sure  what  Senator  Kelly  meant  by                                                              
"reducing the federal  funds" but on the cover of  the fiscal note                                                              
for the  Challenge Program you could  see the calculation  for the                                                              
entitlement  for them and  from that  they subtracted the  dollars                                                              
that are  currently allocated to  the federal government  for that                                                              
program to come up with the additional state allocation.                                                                        
                                                                                                                                
SENATOR KELLY said you're not actually  taking away federal funds;                                                              
you're using that as your formula.                                                                                              
                                                                                                                                
MR.  JEANS replied  that was  correct,  it's very  similar to  the                                                              
foundation program.  They calculate an entitlement  then they make                                                              
adjustments for federal dollars.                                                                                                
                                                                                                                                
CHAIRMAN TORGERSON  commented this bill was a  finance measure and                                                              
although  he didn't  think it  had  much chance  for survival,  he                                                              
didn't think it was appropriate to hold it in this committee.                                                                   
                                                                                                                                
He asked for a motion.                                                                                                          
                                                                                                                                
SENATOR  AUSTERMAN made  a  motion  to move  HB  312 and  attached                                                              
fiscal notes from committee with individual recommendations.                                                                    
                                                                                                                                
There being no objection, it was so ordered.                                                                                    

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