Legislature(2013 - 2014)BELTZ 105 (TSBldg)

02/28/2014 08:00 AM Senate EDUCATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 139 EDUCATION: FUNDING/TAX CREDITS/PROGRAMS TELECONFERENCED
Heard & Held
Base Student Allocation
*+ SB 147 BASE STUDENT ALLOCATION TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
= SCR 12 FEBRUARY PUBLIC EDUCATION MONTH
Moved CSSCR 12(EDC) Out of Committee
         SB 139-EDUCATION: FUNDING/TAX CREDITS/PROGRAMS                                                                     
                                                                                                                                
8:16:16 AM                                                                                                                    
CHAIR STEVENS announced that the  next order of business would be                                                               
SB 139. He said the committee  would take up Sections 14, 15, and                                                               
16, which relate to the Base Student Allocation.                                                                                
                                                                                                                                
8:16:43 AM                                                                                                                    
LES  MORSE,  Deputy  Commissioner, Department  of  Education  and                                                               
Early Development  (DEED), Juneau, Alaska,  presented information                                                               
on SB 139.                                                                                                                      
                                                                                                                                
ELIZABETH  NUDELMAN,  Director,  School  Finance,  Department  of                                                               
Education   and  Early   Development   (DEED),  Juneau,   Alaska,                                                               
presented information related to SB 139.                                                                                        
                                                                                                                                
8:17:22 AM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
8:17:56 AM                                                                                                                    
MR. MORSE  said Sections 14,  15, and 16 begin  on page 9  of the                                                               
bill.  These  sections provide  a  modest  increase in  the  Base                                                               
Student  Allocation  (BSA)  the  first   year  for  $85  and  the                                                               
following  two years,  $58 each.  That works  out to  1.5 percent                                                               
increase the first  year and 1 percent each of  the two following                                                               
years. The increase  was put forward to begin  a dialogue around,                                                               
not  only  the  funding  of education,  but  greater  educational                                                               
issues. He  said it  is an  appropriate increase  considering the                                                               
fiscal climate and it is a piece of a larger package.                                                                           
                                                                                                                                
SENATOR GARDNER  noted in Section  13 an increase in  the stipend                                                               
for room  and board expenses.  She requested a comparison  of the                                                               
1.5 percent increase and the almost 50 percent stipend increase.                                                                
                                                                                                                                
MR.  MORSE  explained  that  they   are  looked  at  differently.                                                               
Boarding  school  students also  receive  the  BSA. The  boarding                                                               
school stipend reflects true costs that go beyond the BSA.                                                                      
                                                                                                                                
SENATOR GARDNER  concluded that for the  boarding school stipend,                                                               
true cost numbers are used; for the BSA they are not used.                                                                      
                                                                                                                                
MR. MORSE clarified that the BSA  was brought forward as a modest                                                               
increase  and  the administration  is  interested  in a  dialogue                                                               
continuing within  the legislative process. The  stipend is based                                                               
on true costs.                                                                                                                  
                                                                                                                                
8:21:21 AM                                                                                                                    
SENATOR  DUNLEAVY  asked  how  much   money  has  been  put  into                                                               
education over  the last 10 years.  He said the BSA  gets lost in                                                               
the discussion.  He asked if  the BSA  is the only  component for                                                               
funding schools.                                                                                                                
                                                                                                                                
MR.  MORSE  offered  to provide  further  information  about  the                                                               
amount spent on education. He said  there are other pieces of the                                                               
formula  besides  the BSA,  such  as  the cost  differential  and                                                               
intensive student funding.  The funding during the  past 10 years                                                               
has increased. There  are those who would argue  that other thing                                                               
should  be  included as  education  funding,  such as  retirement                                                               
costs.                                                                                                                          
                                                                                                                                
8:23:05 AM                                                                                                                    
MS. NUDELMAN concurred.                                                                                                         
                                                                                                                                
CHAIR  STEVENS suggested  including the  cost of  transportation,                                                               
fuel, and energy.                                                                                                               
                                                                                                                                
SENATOR DUNLEAVY  said there  is a narrative  being spun  that no                                                               
money is going  to education. He understood that  upwards of $100                                                               
million additional  per year has  been going to  education, which                                                               
includes  retirement costs  and  school  construction, while  the                                                               
student population has declined. He asked if that was correct.                                                                  
                                                                                                                                
MR. MORSE  said that  sounds correct.  Some feel  that retirement                                                               
and debt should not be counted as part of education funding.                                                                    
                                                                                                                                
8:24:42 AM                                                                                                                    
SENATOR   DUNLEAVY  pointed   out   that   the  legislature   has                                                               
constructed an  education system  over the  past 50  years, along                                                               
with some  help from the  federal government. When  educators are                                                               
asking for resources,  they are requesting funds  for the program                                                               
the  legislature has  developed. They  are not  greedy or  out of                                                               
line.  He suggested  the legislature  either fund  education with                                                               
the  funding  level  it  needs   to  operate  under  the  current                                                               
construct,  or   change  the   construct.  Keeping   the  current                                                               
construct  and  not  funding  it  is  a  disservice  to  Alaska's                                                               
children.                                                                                                                       
                                                                                                                                
8:26:14 AM                                                                                                                    
SENATOR  GARDNER addressed  the issue  of inflation-proofing  the                                                               
BSA in statute.                                                                                                                 
                                                                                                                                
MR. MORSE said  the administration is supporting SB  139 in light                                                               
of the current fiscal climate.                                                                                                  
                                                                                                                                
SENATOR STEDMAN also requested  the financial information Senator                                                               
Dunleavy requested  about the following costs:  PERS/TRS, energy,                                                               
major maintenance,  new construction.  That would provide  a wide                                                               
view of the total cost to the state.                                                                                            
                                                                                                                                
CHAIR STEVENS  asked for the  information in a  reasonable amount                                                               
of time.                                                                                                                        
                                                                                                                                
MR. MORSE agreed to provide the  requested data. He said there is                                                               
information from previous hearings available.                                                                                   
                                                                                                                                
8:28:20 AM                                                                                                                    
SENATOR GARDNER asked Mr. Morse if  he could do a projection into                                                               
the next  year or two and  include the per pupil  monthly stipend                                                               
for  boarding schools.  She thought  that  information should  be                                                               
reflected on the fiscal note.                                                                                                   
                                                                                                                                
MR.  MORSE said  the information  is found  in a  separate fiscal                                                               
note.  The  analysis  breaks  out the  number  of  students  that                                                               
receive the stipend.                                                                                                            
                                                                                                                                
CHAIR  STEVENS  commented  that  there are  a  number  of  pieces                                                               
involved; the committee's focus is on the BSA today.                                                                            
                                                                                                                                
SENATOR  HUGGINS pointed  out that  stipends are  weighted toward                                                               
Native populations.                                                                                                             
                                                                                                                                
MR.  MORSE  said  that  is   generally  true.  For  example,  Mt.                                                               
Edgecombe serves mostly Alaska Native  students from rural areas,                                                               
as do most boarding schools.                                                                                                    
                                                                                                                                
8:30:03 AM                                                                                                                    
SENATOR   HUGGINS   said   he    is   very   uncomfortable   with                                                               
distinguishing  between funding  Native  students versus  funding                                                               
urban students.                                                                                                                 
                                                                                                                                
CHAIR STEVENS said the committee would  get to that issue in more                                                               
detail later.                                                                                                                   
                                                                                                                                
SENATOR  STEDMAN  noted  the  difficulty  of  projecting  student                                                               
enrollment.  He  said  he  has  a hard  time  with  the  idea  of                                                               
embedding inflation indexes into budgetary processes.                                                                           
                                                                                                                                
SENATOR  DUNLEAVY stated  that  education  is a  constitutionally                                                               
mandated program. He  said the state funds  adult education which                                                               
is not  mandated. He maintained  that public education  should be                                                               
funded first, before other programs, up front.                                                                                  
                                                                                                                                
8:34:07 AM                                                                                                                    
SENATOR  STEDMAN said  he takes  a broader  view. He  pointed out                                                               
that  there  is  a  gas  line  pending,  and  due  to  the  small                                                               
population in Alaska, he wished  to enhance training programs for                                                               
Alaska gas line workers.                                                                                                        
                                                                                                                                
CHAIR STEVENS said they are all good points.                                                                                    
                                                                                                                                
SENATOR HUGGINS returned  to the topic of  inflation proofing and                                                               
maintained  that the  federal government  is out  of control.  He                                                               
agreed that education is the  number one issue. He suggested that                                                               
inflation proofing does bind future legislatures.                                                                               
                                                                                                                                
CHAIR STEVENS held SB 139 in committee.                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
12_SB147_Resolution_NonProfits_Support_Inflation_Proofing_BSA.pdf SEDC 2/28/2014 8:00:00 AM
SB 147
13_SB147_WestHigh_PTSA_Resolution_BSA_Increase.PDF SEDC 2/28/2014 8:00:00 AM
SB 147
14_SB139_Resolution_NonProfits_Support_Inflation_Proofing_BSA.pdf SEDC 2/28/2014 8:00:00 AM
SB 139
15_SB139_WestHigh_PTSA_Resolution_BSA_Increase.PDF SEDC 2/28/2014 8:00:00 AM
SB 139