Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/21/2011 08:00 AM Senate EDUCATION


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08:04:27 AM Start
08:06:10 AM SB84
08:57:10 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 84 VOC ED FUNDING/BASE STUDENT ALLOCATION TELECONFERENCED
Moved CSSB 84(EDC) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
         SB  84-VOC ED FUNDING/BASE STUDENT ALLOCATION                                                                      
                                                                                                                                
CO-CHAIR THOMAS  announced the consideration  of SB 84  [CSSB 84(                                                               
), version D was before the committee].                                                                                         
                                                                                                                                
8:06:10 AM                                                                                                                    
DAVE  REES, Private  Sector Member,  Alaska Workforce  Investment                                                               
Board  and President,  Business Education  Compact, testified  in                                                               
support of SB  84. He said that it is  important to have students                                                               
prepared to  make the  step from high  school into  the workforce                                                               
and postsecondary schools. The vocational  aspect of this bill is                                                               
very  relative  to  many  different  careers  including:  health,                                                               
construction, engineering  and more. The Department  of Labor and                                                               
Workforce Development  (DOLWD), the  Department of  Education and                                                               
Early  Development (DEED)  and the  University  of Alaska,  along                                                               
with  the help  of  industry organizations  have  put together  a                                                               
career  and  technical  education  (CTE) plan,  which  will  help                                                               
attain the  goals of  the state  in educating  Alaskans. However,                                                               
the CTE plan  needs to have funding support; this  bill will help                                                               
do so.                                                                                                                          
                                                                                                                                
8:09:40 AM                                                                                                                    
LADAWN  DRUCE, President,  Kenai  Peninsula Teachers  Association                                                               
(KPEA),  testified  in  support  of   SB  84.  The  base  student                                                               
allocation (BSA) increase of $100  will mean $1.7 million for the                                                               
Kenai School District. She explained  that over 64 percent of the                                                               
local  district's  budget comes  from  state  revenues. With  the                                                               
current level  of funding the  district is facing a  $3.5 million                                                               
deficit. She noted that the  vocational funding provided in SB 84                                                               
is  also a  positive aspect  of the  bill. To  move this  funding                                                               
outside  of the  funding formula  means vocational  programs will                                                               
get the  attention that it  deserves. She explained  that because                                                               
of the lack of funding not  all students have had access to these                                                               
programs. The funding included in SB  84 will not add programs or                                                               
hire  more teachers  in  the district;  rather,  the district  is                                                               
trying to recoup  programs that have been cut over  the years and                                                               
remain at a status-quo level.                                                                                                   
                                                                                                                                
8:12:28 AM                                                                                                                    
SAMMIE  CRAWFORD, Vice-President,  Kenai Peninsula  School Board,                                                               
testified in support  of SB 84. She reiterated  that the district                                                               
will  not  be  adding  programs  or hiring  new  teachers  if  it                                                               
receives  this  funding, but  rather  try  to maintain  and  save                                                               
programs. A large cost to the  district is the cost of utilities.                                                               
She explained that for three  years the district had an incentive                                                               
program for  schools and  students in order  to be  cautious with                                                               
utility costs. This program has  worked and the cost of utilities                                                               
was  cut back  in every  single  building. As  an incentive,  the                                                               
individual schools  got back part  of the savings.  She explained                                                               
that while this year the district  saved a lot of money, the cost                                                               
of utilities has risen and they  are behind once again. She noted                                                               
that vocational education is very important to many students.                                                                   
                                                                                                                                
8:15:08 AM                                                                                                                    
SUE  HULL, Member,  Fairbanks North  Star  Borough School  Board,                                                               
testified  in  support of  SB  84.  She  clarified that  the  BSA                                                               
increase is  very important to  the district. She  explained that                                                               
the district  has had  to cut  funding back in  order to  keep up                                                               
with  the inflationary  pressures.  These  costs cannibalize  the                                                               
work the district  has done to improve the  outcome for students.                                                               
She said  that all three components  of SB 84 are  important: the                                                               
ability to  plan, the inflationary  increase, and  the vocational                                                               
education component.                                                                                                            
                                                                                                                                
8:17:49 AM                                                                                                                    
RANDY LANTIEGNE,  Member, Petersburg  School Board,  testified in                                                               
support of  SB 84. He  said that  Petersburg has a  strong school                                                               
system  with   a  stable  staff,  competent   administrators  and                                                               
involved parents. This bill would  provide stable and predictable                                                               
funding for  the next  three years along  with much  needed funds                                                               
for vocational education. He noted  that the district has managed                                                               
its  funding  frugally  and has  been  educationally  innovative.                                                               
However, if education  is flat funded for FY2012,  even with wise                                                               
spending,  cooperative labor  relations,  and generous  community                                                               
support the district  faces a deficit of $177,000.  SB 84 ensures                                                               
continuation  and expansion  of  vocational education  offerings.                                                               
The rising  costs of utilities  and health  insurance jeopardizes                                                               
their ability to fund programs currently in place in Petersburg.                                                                
                                                                                                                                
8:20:52 AM                                                                                                                    
JILL    SHOWMAN,     President,    Matanuska-Susitna    Education                                                               
Association,  testified  in  support  of SB  84.  She  said  that                                                               
separating vocational  education from  the special  needs funding                                                               
formula is  important and  it is vital  that students  have these                                                               
various opportunities  and skills. She emphasized  the importance                                                               
of the BSA increase for three  years and that the forward funding                                                               
allows  the district  to better  prepare for  the upcoming  year.                                                               
This  includes  having consistent  teaching  staff  who make  the                                                               
available programs more solid and  provide a better education for                                                               
students. She noted  that the increase in the BSA  does not quite                                                               
keep  up with  inflation.  She asked  the  committee to  consider                                                               
inching the  BSA amount up  slightly each year so  that districts                                                               
can keep up with rising costs.                                                                                                  
                                                                                                                                
She said that one of  the suggestions from the administration has                                                               
been to cut current programs. She  said that this means a loss of                                                               
specialists  throughout  the  district. She  explained  that  the                                                               
obesity rates in the state and  in the nation are horrendous. The                                                               
cuts that the district is looking  to make are with nurses and PE                                                               
teachers  who  work hand-in-hand  to  address  health and  weight                                                               
issues.  She  reiterated that  the  district  is not  asking  for                                                               
funding to start  new programs, only to maintain  what it already                                                               
has.                                                                                                                            
                                                                                                                                
8:25:36 AM                                                                                                                    
STEWART  MCDONALD, Superintendent,  Kodiak Island  Borough School                                                               
District,  testified in  support of  SB 84.  He said  that multi-                                                               
year funding  allows school districts  to think forward  in order                                                               
to  try and  accomplish  things  that make  a  lasting impact  on                                                               
students.  As a  district, with  regard to  graduation rates  and                                                               
dropout rates, it  is important to provide  classes that students                                                               
need, when they  need them. Because of HB 273  [passed during the                                                               
Alaska State  25th Legislature]  the district  was able  to offer                                                               
course work (through  distance education) in rural  areas when it                                                               
was  needed. He  explained that  in past  years the  district has                                                               
only been able  to offer math through algebra I  to many of these                                                               
rural school  sites, however this  year the district was  able to                                                               
offer  through  pre-calculus.  He  said  that,  like  many  other                                                               
districts,  they are  facing inevitable  cuts  to education  this                                                               
year.  He noted  that the  issue with  special education  is that                                                               
students  who qualify  are already  behind. In  order to  keep up                                                               
with  the   demand  of  students'   needs,  there  needs   to  be                                                               
intervention in  place before they qualify  for special education                                                               
services. HB  273 allowed them  to employ a  math interventionist                                                               
position, which  has been  working. SB 84  promises to  keep this                                                               
position going and continue to enhance similar programs.                                                                        
                                                                                                                                
8:30:49 AM                                                                                                                    
BETTY MACTAVISH, grandparent, testified in  support of SB 84. She                                                               
said that  she has been able  to watch the math  program that was                                                               
put  into  place in  the  district  and see  her  granddaughter's                                                               
success. She explained that her  concern is that the math program                                                               
will not continue.                                                                                                              
                                                                                                                                
8:33:20 AM                                                                                                                    
RICK  RIOS, Coordinator,  Career and  Technical Education  (CTE),                                                               
Anchorage  School District,  testified in  support of  SB 84.  He                                                               
explained that both  of his sons left Alaska in  order to get the                                                               
training  and  education  they  needed for  the  jobs  that  they                                                               
currently hold.  CTE funding on  the state and federal  level has                                                               
been  flat-funded for  nearly 20  years. He  reiterated that  the                                                               
Anchorage School  District has been  moving towards  investing in                                                               
CTE  on  a  local  level.  The  district  has  engaged  with  the                                                               
Department of  Labor and Workforce  Development in order  to have                                                               
career guides in their school. He  said that "education is not an                                                               
employment institution,  and therefore  sometimes loses  track of                                                               
one of  their obligations: to  make the students  employable." He                                                               
stressed  that  the  district is  committed  to  moving  forward,                                                               
however, it does not have any  more funding. SB 84 will allow the                                                               
district  to rebuild  some of  the infrastructure  for vocational                                                               
education and hire teachers.                                                                                                    
                                                                                                                                
8:39:17 AM                                                                                                                    
CO-CHAIR THOMAS noted that it is  his intention to move this bill                                                               
out of committee.                                                                                                               
                                                                                                                                
8:39:56 AM                                                                                                                    
PEGGY   COWAN,  Superintendent,   North   Slope  Borough   School                                                               
District,  testified in  support  of  SB 84.  She  said that  the                                                               
district's base budget requires $2.5  million in revenue in order                                                               
to sustain  its current  efforts. She noted  that, as  with other                                                               
districts, the district  will not be expanding  programs and will                                                               
still have  to make difficult  decisions regarding  funding cuts.                                                               
She explained  that last year  the district cut 17  positions and                                                               
approximately  five percent  of each  school's budget.  She noted                                                               
that the  vocational education  factor is  a welcome  addition to                                                               
the funding as well.                                                                                                            
                                                                                                                                
8:42:07 AM                                                                                                                    
CHAD STITELER, Chief Finance  Officer, Anchorage School District,                                                               
testified in support of SB 84.  He explained that the increase in                                                               
the BSA in  the past has allowed the district's  revenues to more                                                               
closely match  the natural inflationary increases.  He noted that                                                               
the three-year  funding package created a  dramatically different                                                               
environment both  in the  central office and  in the  schools. It                                                               
also  made employees  more effective  in their  jobs rather  than                                                               
having  to  focus on  concern  over  losing  their job.  The  BSA                                                               
increase in  SB 84 will  continue to provide the  same protection                                                               
from  inflation and  allow the  district to  forecast ahead.  The                                                               
planning  results for  the next  six years  are discouraging  for                                                               
education   in   Anchorage.   He  explained   that   assuming   a                                                               
conservative rate  of inflation  in the plan  and other  costs of                                                               
business,  with  no  increase  to  state  or  local  funding  the                                                               
district will face over a $100  million deficit in the sixth year                                                               
of the plan.                                                                                                                    
                                                                                                                                
8:45:57 AM                                                                                                                    
ANN MARIE  PALMIERI, Member, Haines School  Board, stated support                                                               
for SB 84.                                                                                                                      
                                                                                                                                
8:46:40 AM                                                                                                                    
RICH CARLSON,  Superintendent, Klawock School  District testified                                                               
in support of  SB 84. He noted that he  included his testimony in                                                               
writing.                                                                                                                        
                                                                                                                                
8:47:27 AM                                                                                                                    
STEVE LAROE,  President, Fairbanks Education  Association, stated                                                               
support for the committee substitute for  SB 84. He said that the                                                               
forward funding has  worked and provided stability  over the past                                                               
years and he would appreciate seeing that continue.                                                                             
                                                                                                                                
8:48:50 AM                                                                                                                    
CO-CHAIR THOMAS closed public testimony.                                                                                        
                                                                                                                                
8:48:59 AM                                                                                                                    
SENATOR FRENCH  commented that  there is  an impressive  array of                                                               
individuals  reaching out  to testify  this  morning who  support                                                               
education.                                                                                                                      
                                                                                                                                
SENATOR DAVIS thanked  the individuals who called  in to testify.                                                               
She said that she is concerned  that the BSA has not been brought                                                               
up to  the inflation rate.  She asked  if the committee  would be                                                               
accepting any amendments to the bill today.                                                                                     
                                                                                                                                
CO-CHAIR THOMAS replied he had not expected to.                                                                                 
                                                                                                                                
SENATOR DAVIS  said that she  had not prepared an  amendment. She                                                               
explained that  based upon  the testimony  heard today  there are                                                               
concerns that the BSA does  not match the inflationary increases.                                                               
She  noted  that the  highest  amount  for  the BSA  increase  is                                                               
located in the  third year. She asked if it  would be possible to                                                               
reverse  this,  so  that  the first  year  receives  the  highest                                                               
amount.                                                                                                                         
                                                                                                                                
CO-CHAIR  THOMAS  replied  that  this would  probably  mean  more                                                               
comment from the public.                                                                                                        
                                                                                                                                
SENATOR DAVIS noted that if the  amount in the first year is more                                                               
than inflation, then it could be changed to the adjusted rate.                                                                  
                                                                                                                                
CO-CHAIR THOMAS said that everyone  is concerned about inflation,                                                               
especially with fuel  costs. He commented that he is  not sure if                                                               
reversing the  amounts would  do anything  other than  reduce the                                                               
amount  on  the  far  end  versus now.  He  noted  that  he  does                                                               
understand her concern.                                                                                                         
                                                                                                                                
8:51:46 AM                                                                                                                    
SENATOR FRENCH pointed out that  according to the fiscal note for                                                               
CSSB  84, for  this year  it means  $38 million  more for  school                                                               
districts and less  in FY2013 and 2014 because  of the vocational                                                               
education breakout.  He said that  there is an extra  $10 million                                                               
being put  into education statewide  this year. He noted  that he                                                               
shares Senator Davis'  concerns. However, on the  other hand, the                                                               
governor  proposed no  funding increases  for education  and this                                                               
bill is a step in the right direction.                                                                                          
                                                                                                                                
CO-CHAIR MEYER concurred  that the bill is a good  start. He said                                                               
the additional amount being factored  in for vocational education                                                               
will save more  for the BSA and the classroom.  He noted that now                                                               
that the lunch  and breakfast program has been  fully funded this                                                               
also  frees up  money  to  go to  the  classroom.  He added  that                                                               
additionally, Senator  Hoffman's bill focuses on  fuel costs, and                                                               
would aid with school utility costs.  He said that this is a good                                                               
start when all of these  factors are taken into consideration and                                                               
blended together.  He stressed that  it is important to  get this                                                               
bill up to Finance.                                                                                                             
                                                                                                                                
CO-CHAIR THOMAS concurred.                                                                                                      
                                                                                                                                
SENATOR DAVIS said  she supports all of the  comments being made.                                                               
She concurred that this is a good  start, but it is not where the                                                               
state  needs  to be  and  if  the changes  are  not  made in  the                                                               
Education Committee,  it will not  happen at all. She  noted that                                                               
she  is  not going  to  stop  the bill  from  moving  out of  the                                                               
committee but the  BSA increase needs to at least  come up to the                                                               
inflation rate.                                                                                                                 
                                                                                                                                
8:56:35 AM                                                                                                                    
CO-CHAIR MEYER  moved to  report [CS]SB 84(  ), [version  D] from                                                               
the  committee  with   individual  recommendations  and  attached                                                               
fiscal note(s).  There being no  objections, CSSB 84  (EDC) moved                                                               
from the committee.                                                                                                             

Document Name Date/Time Subjects
SB 84 Supporting Docs 3.14.11.pdf SEDC 3/21/2011 8:00:00 AM
SB 84
Fiscal Notes.pdf SEDC 3/21/2011 8:00:00 AM
01-2007.pdf SEDC 3/21/2011 8:00:00 AM
SB 84 Sea Level B&B.doc SEDC 3/21/2011 8:00:00 AM
SB 84
SB 84 Community Response.pdf SEDC 3/21/2011 8:00:00 AM
SB 84
JEDC Resolution 04-11 SB 84.pdf SEDC 3/21/2011 8:00:00 AM
SB 84
JEDC Support Letter SB84.pdf SEDC 3/21/2011 8:00:00 AM
SB 84