Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/26/2014 08:00 AM Senate EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| SB185 | |
| SB107 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 185 | TELECONFERENCED | |
| = | SB 107 | ||
SB 185-CHARTER SCHOOLS: FUNDING, FACILITIES
8:00:24 AM
CHAIR STEVENS announced the consideration of SB 185. He said
version U was before the committee.
8:00:56 AM
SENATOR BERTA GARDNER, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 185, noted that school choice is a popular topic
this session. She said people in the Anchorage area love
optional schools, especially charter schools. She provided an
update on the status of charter schools in Anchorage. She
described some of the problems of current charter schools and
said the bill will address some of the impediments to charter
schools and inequities in funding.
She gave examples of configurations of charter schools, such as
Winterberry, which contracted with a private developer to build
the school on privately owned land. Some charter schools are in
abandoned school district buildings. She noted, in cases where
charter schools pay rent, they use up their budget. She
maintained that the bill's solution is not perfect, but it's a
start. She requested feedback from the committee and the public.
8:04:34 AM
NOAH HANSON, Staff, Senator Berta Gardner, Alaska State
Legislature, Juneau, Alaska, presented SB 185 on behalf of the
sponsor. He explained that the bill has three main components,
an application for converting a neighborhood school into a
charter school, it reestablishes the state start-up grant fund,
and it adds a 10 percent increase to the BSA for charter
schools.
CHAIR STEVENS asked Mr. Hanson to repeat the items.
MR. HANSON did so.
MR. HANSON addressed the sectional:
Section 1 amends AS 14.032.50, the establishment of
charter school statute, to require a school board to
adopt a process for conversion of existing schools for
conversion into charter schools.
Section 2 adds a new subsection to have a school
district assist a charter school applicant in
converting an existing neighborhood school, in whole
or in part, to a charter school. The school board can
approve an applicant if a majority of parents of
students in the attendance service area for the
existing school meet all requirements for establishing
a charter school. Once approved, the school board
shall transfer the operations, furnishings, materials,
and fixtures, to the governing body of the charter
school. The district shall continue to pay costs
associated with operating a school from the district
budget and may not charge rent to the charter school.
Section 3 reestablishes the charter school state grant
program. A charter school will be able to receive a
one-time grant from the Department of Education and
Early Development (DEED) equal to the amount of $500
per child enrolled in the school as of October 1 of
the first year the school applies for the grant. The
grant is to be used for educational services such as
curriculum, program development, and special education
services. The department will develop regulations for
the application and expenditures of the grant. If the
fund lacks sufficient funding, the charter school has
the ability to come back and apply for the rest of the
grant the following years until the $500 per student
allocation is met.
8:07:07 AM
Section 4 adds conforming language to say a charter
school may be designed to serve students who attend a
public school that was converted into a charter
school.
Section 5 adds a new subsection to prioritize
enrollment for converted charter schools. The first
priority would be students that were enrolled in the
school before conversion, then, students who reside in
the attendance service area, and, finally, all other
applicants.
Sections 6 and 7 add a 10 percent increase to the BSA
for students that attend a charter school.
Section 8 removes the sunset for the federal charter
school grant program.
8:07:57 AM
MR. HANSON said, after drafting the bill, the sponsor realized
there was an unintended consequence. Students who are in the
attendance service area of the neighborhood school, but attend a
converted charter school, may not be accounted for
transportation funds. He said Senator Gardner has an amendment
that will address that issue.
8:08:31 AM
CHAIR STEVENS said he does not have any charter schools in his
district. He asked if there is opposition to converting a
neighborhood school to a charter school.
MR. HANSON said he has not heard of any opposition.
SENATOR GARDNER said this has not been done before. If the
majority wishes, the whole school could become a charter school.
She noted that charter schools are populated by lottery. The
bill ensures priority of enrollment for neighborhood kids.
8:09:57 AM
CHAIR STEVENS requested that the committee members visit a
charter school.
SENATOR STEDMAN thought it was a good idea. He said he has two
charter schools in his district.
He asked for clarification of Section 8.
8:11:09 AM
MR. HANSON said the sunset currently set for June 2015 is
removed in case there is an opportunity to receive federal
funds.
SENATOR STEDMAN asked what the federal grant program is.
MR. HANSON offered to provide that information.
SENATOR GARDNER explained that the federal government had an
interest in supporting the formation of charter schools and they
anticipated providing grants, such as the one proposed in the
bill. However, it has been years since there has been any
federal funding. The sunset provision was added just in case the
federal government provides the funding again.
8:12:43 AM
CHAIR STEVENS said the threshold is changed from 100 to 75
students.
He asked if there is any other testimony.
SENATOR GARDNER referred to written testimony in members'
packets.
CHAIR STEVENS requested the department come forward.
8:13:45 AM
ELIZABETH NUDELMAN, Director, School Finance and Facilities,
Department of Education and Early Development (DEED), Juneau,
Alaska, answered questions related to SB 185.
CHAIR STEVENS recognized that charter schools have been
underfunded in the past. He asked if this bill remedies that or
goes overboard.
MS. NUDELMAN said she does not have a complete analysis of the
bill. There are some items in the bill that need further
understanding, such as increasing the BSA 10 percent for only
one category of Average Daily Membership (ADM), which might be
problematic just by the methodology of the foundation formula.
The foundation formula is kept equitable through a weighted,
adjusted ADM. The policy of looking at charter school funding
would need to be separated from that calculation; it may not fit
into the foundation formula.
She explained that the facility items depend on the
implementation. School districts receive funding from the state
and it goes to teachers, maintenance, fuel costs, and non-
classroom items. The details in appropriating funds need to be
worked out regarding charter schools.
8:17:57 AM
SENATOR GARDNER provided an example of a situation where a
district retains 20 percent of the BSA for overhead and
management fees, leaving the charter school with less funding
and extra costs. She asked if there is a mechanism to keep a
charter school afloat if increasing the BSA by 10 percent is not
the best way to do so.
MS. NUDELMAN replied that statute requires an agreement and a
federally established indirect cost rate to stay with districts
and the remaining money to go to the charter school. She
estimated that the indirect cost rate in larger districts is
between 4.5 percent and 6.5 percent. She suggested the best
method of funding might be in the Governor's proposal, HB 278,
which drops the ADM requirement to 75 for charter schools to
provide more funding.
CHAIR STEVENS thought it was a complex issue. It is good to
encourage opportunities and choice for parents, but he cautioned
not to go overboard with funding one program over another. He
asked Ms. Nudelman to further examine the bill to see how the
elements impact charter schools, as well as other schools in the
district.
SENATOR GARDNER said the intention of the bill is not to have
charter schools better funded than public schools. She wanted
them to have an equal playing field so they don't have financial
pressures to a higher degree than other schools have.
CHAIR STEVENS thought the committee felt the same.
8:21:32 AM
SENATOR STEDMAN asked about the cost comparison issue. He gave a
hypothetical example of a small community with 100 kids total
deciding to have a charter school instead of a neighborhood
school. He asked if it would be more cost effective to have a
charter school. He added that many communities are below the 75
head count.
MS. NUDELMAN said it depends on how large the school is. If a
school of 100 becomes a charter school, the funding would be
through the foundation formula - similar.
CHAIR STEVENS asked if the department is neutral on charter
schools versus neighborhood schools.
MS. NUDELMAN said the department embraces all avenues that
provide education. Some charter schools reduce barriers for
students. The department supports both.
8:24:34 AM
CHAIR STEVENS asked how the vote to change to a charter school
takes place.
PAUL PRUSSING, Director, Teaching and Learning Support,
Department of Education and Early Development (DEED), Juneau,
Alaska, answered questions related to SB 185. He said that
applying to become a charter schools varies by district. Each
district has a local application process.
CHAIR STEVENS said there are no statewide rules about the
charter school application process that require a percentage of
parents to be in favor.
MR. PRUESSING agreed.
8:25:34 AM
SENATOR GARDNER pointed out that Section 1 tells school boards
to adopt an application process. She did not know of an example
of a neighborhood school converting to a charter school.
CHAIR STEVENS recalled a charter school in Homer that is part of
the neighborhood school building. He said it makes sense to
allow a charter school to use an underutilized school building.
8:26:42 AM
SENATOR DUNLEAVY asked about a proposed amendment. He read, "A
school district shall provide transportation services." He asked
if that included transportation funding.
SENATOR GARDNER explained said she realized that if a
neighborhood school currently has students that are "zoned" for
the school, and the school converts to a charter school, the
charter school would lose transportation funds for students that
are already being bussed to the neighborhood school. The
amendment would ensure that would not happen.
SENATOR DUNLEAVY asked if it was the sponsor's intention to
provide transportation funds for students off the bus route.
SENATOR GARDNER said no.
SENATOR DUNLEAVY asked if the sponsor has a conversion model in
mind. He inquired what would happen if 51 percent of the parents
vote to convert to a charter school and 49 percent are against
it.
SENATOR GARDNER thought it was possible to have both schools in
the same building. She noted there were models of that
situation, such as a school within a school.
8:29:59 AM
SENATOR DUNLEAVY asked how it could be managed if there was a K-
6 school in that situation.
SENATOR GARDNER said she does not have any schools like that in
her district. She realized the bill might have limited
application. She suggested the one-room school house model. She
did not envision any very small schools using this model.
SENATOR DUNLEAVY said he is trying to envision it.
SENATOR GARDNER said that's why the intention is that the
conversion is in whole, or in part; it doesn't have to be the
whole school.
SENATOR DUNLEAVY reiterated that he is trying to visualize the
model.
SENATOR GARDNER presented a scenario of a school with 200 kids,
half optional and half regular.
SENATOR DUNLEAVY brought up problems in an elementary school
where half the kids do; half don't.
SENATOR GARDNER suggested mixed classes. She said schools
already have to adapt to circumstances when students' enrollment
is unbalanced.
SENATOR DUNLEAVY pointed out that a charter school would be
freed from curriculum mandates in the class.
SENATOR GARDNER suggested two first/second combos; one charter
school, one regular.
SENATOR DUNLEAVY requested that the sponsor define a charter
school.
SENATOR GARDNER said it is already defined.
SENATOR DUNLEAVY asked how Senator Gardner defines it.
SENATOR GARDNER said a charter school is a program where the
parents and teachers are the governing board, they don't have to
follow district curriculum, they have hiring distinctions, and
there is usually a focus.
8:34:14 AM
CHAIR STEVENS addressed Senator Dunleavy's comment that parents
may be against the philosophy of a charter school. He inquired
what is so different about the philosophy of a charter school.
SENATOR DUNLEAVY responded that parents may want to convert to a
Montessori approach to education or to another approach. He
brought up the practicality of having two concepts within a
classroom.
CHAIR STEVENS read an article about catholic schools converting
to charter schools for financial reasons, resulting in
curriculum changes.
8:35:53 AM
CHAIR STEVENS asked about the wait list for charter schools in
Anchorage.
MR. HANSON estimated that Polaris K-12 has about a 700-student
waitlist. He offered to provide those numbers for the committee.
SENATOR GARDNER said it is important to understand that while
parents might wish to enroll their children in a charter school,
they may not wish to found a charter school. She stressed that
one of the greatest benefits of a charter school is parent
involvement; the philosophy is not the most important element.
8:38:05 AM
CHAIR STEVENS asked if kids can move back and forth between a
charter school program and a regular program in the same
building.
SENATOR GARDNER said her vision is that if part of the school
converts, it will stand or fail based on what they do. It
depends on what people want for their children. If buildings are
used to maximum capacity, charter schools would not have to
struggle with facility issues and expenses. Rather than changing
school boundaries, options can increase within districts.
8:40:13 AM
CHAIR STEVENS wished to hear more from the department at a later
date; therefore, SB 185 was held in committee.