Legislature(2023 - 2024)BELTZ 105 (TSBldg)

02/01/2023 03:30 PM Senate EDUCATION

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Audio Topic
03:31:28 PM Start
03:32:25 PM Presentation Impact of Inflation on K-12 Funding and Cost Estimates of a Potential Bsa Increase
05:01:24 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Presentation: Cost Estimates for a Base Student
Allocation Increase by
Alexei Painter, Director of the Legislative
Finance Division
-- Public Testimony --
Public testimony on the issue of education
funding in Alaska.
*+ SB 52 INCREASE BASE STUDENT ALLOCATION TELECONFERENCED
Scheduled but Not Heard
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE EDUCATION STANDING COMMITTEE                                                                             
                        February 1, 2023                                                                                        
                           3:31 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Löki Tobin, Chair                                                                                                       
Senator Jesse Bjorkman                                                                                                          
Senator Jesse Kiehl                                                                                                             
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Stevens, Vice Chair                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: IMPACT OF INFLATION ON K-12 FUNDING AND COST                                                                      
ESTIMATES OF A POTENTIAL BSA INCREASE                                                                                           
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
SENATE BILL NO. 52                                                                                                              
"An Act relating to education; increasing the base student                                                                      
allocation; and providing for an effective date."                                                                               
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to report.                                                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ALEXEI PAINTER, Director                                                                                                        
Legislative Finance Division                                                                                                    
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Offered the presentation Impact of Inflation                                                              
on K-12 Funding and Cost Estimates of a Potential BSA Increase.                                                                 
                                                                                                                                
RODNEY DIAL, Mayor                                                                                                              
Ketchikan Gateway Borough                                                                                                       
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
THOMAS KENNEDY, representing self                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
MICHAEL BUCY, representing self                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of teacher funding.                                                                  
                                                                                                                                
JESSICA PARIS, representing self                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
TANYA ROUST, representing self                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
HANNIBAL GRUBIS, representing self                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
VALERIE BROOKS, representing self                                                                                               
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
BRIDGET WEISS, Superintendent                                                                                                   
Juneau School District                                                                                                          
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
DANIELLE LOGAN, representing self                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
CAROLINE STORM, representing self                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
POLLY CARR, representing self                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
CHRIS BYE, representing self                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified with concerns about school                                                                      
funding.                                                                                                                        
                                                                                                                                
SUSANNA LITWINIAK, representing self                                                                                            
Moose Pass, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
DAVID BOYLE, representing self                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding with                                                               
concerns.                                                                                                                       
                                                                                                                                
CAREY CARPENTER, representing self                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
CALLIE CONERTON, representing self                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
SARA DYKSTRA, representing self                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
KELLY LESSENS, Member                                                                                                           
Anchorage School Board                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
LOY THURMAN, representing self                                                                                                  
Big Lake, Alaska                                                                                                                
POSITION STATEMENT: Testified with concerns about school                                                                      
funding.                                                                                                                        
                                                                                                                                
DANIELLE SPECHT, representing self                                                                                              
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
SCOTT BALLARD, Superintendent                                                                                                   
Yupiit School District                                                                                                          
Bethel, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding with                                                               
concerns.                                                                                                                       
                                                                                                                                
CAROLE BOOKLESS, representing self                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of school funding.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:31:28 PM                                                                                                                    
CHAIR LÖKI  TOBIN called the Senate  Education Standing Committee                                                             
meeting to order  at 3:31 p.m. Present at the  call to order were                                                               
Senators Kiehl, Bjorkman, Gray-Jackson, and Chair Tobin.                                                                        
                                                                                                                                
                                                                                                                                
^PRESENTATION  IMPACT  OF  INFLATION  ON K-12  FUNDING  AND  COST                                                               
ESTIMATES OF A POTENTIAL BSA INCREASE                                                                                           
                          PRESENTATION                                                                                      
            IMPACT OF INFLATION ON K-12 FUNDING AND                                                                         
           COST ESTIMATES OF A POTENTIAL BSA INCREASE                                                                       
                                                                                                                                
3:32:25 PM                                                                                                                    
CHAIR TOBIN announced the consideration  of a presentation on the                                                               
Impact  of Inflation  on K-12  Funding  and Cost  Estimates of  a                                                               
Potential BSA Increase.                                                                                                         
                                                                                                                                
3:34:01 PM                                                                                                                    
ALEXEI   PAINTER,   Director,   Legislative   Finance   Division,                                                               
Legislative   Affairs  Agency,   Juneau,   Alaska,  offered   the                                                               
presentation  Impact  of  Inflation  on  K-12  Funding  and  Cost                                                               
Estimates of a Potential BSA Increase as follows:                                                                               
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     You asked for a  comparison of Alaska's K-12 foundation                                                                    
     formula funding  to inflation over the  past decade, as                                                                    
     well  as for  cost estimates  of various  potential BSA                                                                    
     changes.                                                                                                                   
                                                                                                                              
     Background on Foundation Formula                                                                                         
                                                                                                                                
     Alaska's  K-12 foundation  formula  (AS  14.17) is  the                                                                    
     largest   source  of   funding   for  Alaska's   school                                                                    
     districts.  The formula  is  based  on multiplying  the                                                                    
     actual student count on Alaska's  schools (known as the                                                                    
     Average  Daily  Membership,  or ADM)  by  a  series  of                                                                    
     factors  to adjust  for differences  between districts,                                                                    
     including  a  school  size  factor  and  district  cost                                                                    
     factors, as well as block  grants for special education                                                                    
     and  career and  technical education,  to arrive  at an                                                                    
     adjusted   student   count  (Adjusted   Average   Daily                                                                    
     Membership, or  AADM). The AADM  is then  multiplied by                                                                    
     the Base  Student Allocation (BSA)  to arrive  at Basic                                                                    
     Need,  the  total amount  of  funding  provided by  the                                                                    
     formula. Basic  Need is then  paid by a  combination of                                                                    
     required local funding  for municipal school districts,                                                                    
     deductible federal impact aid, and State funds.                                                                            
                                                                                                                                
MR. PAINTER added  that 128,000 students was  the projected count                                                               
for  FY 24,  and  the adjusted  average  daily membership  (AADM)                                                               
projection  was  257,000.  He returned  to  his  presentation  as                                                               
follows:                                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     In  addition  to  funding   inside  this  formula,  the                                                                    
     legislature  has frequently  included one-time  funding                                                                    
     outside the  foundation formula but distributed  in the                                                                    
     same  way  as the  formula.  This  outside the  formula                                                                    
     funding makes  comparisons across  years that  only use                                                                    
     the  BSA   somewhat  incomplete.  This   analysis  will                                                                    
     provide both comparisons to provide a fuller picture.                                                                      
                                                                                                                              
MR. PAINTER mentioned  that as an example of  funding outside the                                                               
BSA formula,  the legislature distributed  $57 million in  FY 23.                                                               
He said  he would discuss  the impact  of inflation in  two ways.                                                               
First,  he  would  consider  just   the  statutory  base  student                                                               
allocation  and formula,  and second,  he  would include  funding                                                               
outside the formula  because it is state money.  He continued the                                                               
presentation as follows:                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                              
     Impact of Inflation from FY14 through FY24                                                                               
                                                                                                                                
     This  analysis  equalizes  funding   to  the  level  in                                                                    
     calendar year  2022, the most recently  completed year,                                                                    
     and  applies  that  to  FY23.   It  then  assumes  2.5%                                                                    
     inflation  in FY24  (based  on  Callan and  Associates'                                                                    
     assumptions  that  are  used by  the  Alaska  Permanent                                                                    
     Fund).  The inflation  data is  the  federal Bureau  of                                                                    
     Labor Statistics data for all urban Alaska consumers.                                                                      
                                                                                                                                
MR. PAINTER  noted that the  Division of Legislative  Finance had                                                               
done  BSA  inflation analysis  many  times  with varying  results                                                               
depending  on   the  methodology  chosen  to   best  address  the                                                               
question.                                                                                                                       
                                                                                                                                
3:37:54 PM                                                                                                                    
MR. PAINTER  stated that the  table at the  top of slide  2 shows                                                               
the  inflation rates  that  accompany each  year.  There was  low                                                               
inflation until  FY 22 and  FY 23, where it  rose to 4.9  and 8.1                                                               
percent.                                                                                                                        
                                                                                                                                
3:38:30 PM                                                                                                                    
MR. PAINTER said one dollar appropriated  in FY 14 would have the                                                               
same buying  power as $1.21 appropriated  in FY 23, based  on the                                                               
Alaska Consumer  Price Index (CPI). The  Base Student Allocation,                                                               
FY 14 -  FY 24 Projection graph shows the  statutory base student                                                               
allocation (BSA) in blue and the  BSA in FY 23 dollars in orange.                                                               
He provided the following description:                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The BSA was $5,930 from  FY17-23 and is $5,960 in FY24.                                                                    
     The  peak  year  over  the past  decade,  adjusted  for                                                                    
     inflation,  is  FY17, which  would  be  $6,981 in  FY23                                                                    
     dollars,  while  the  FY24 figure  is  $5,815  in  FY23                                                                    
     dollars. Adjusting  that FY17 figure to  projected FY24                                                                    
     dollars would  total $7,155. To match  the buying power                                                                    
     of the FY17  BSA in FY24, the BSA  would therefore need                                                                    
     to increase by the $1,195, from $5,960 to $7,155.                                                                          
                                                                                                                                
     Depending  on  which  year is  selected  as  the  base,                                                                    
     "inflation  proofing" the  BSA would  require different                                                                    
     amounts: $611 (to match the  BSA in FY22 in real terms)                                                                    
     to the  above calculation  of $1,195.  Therefore, which                                                                    
     year is  selected as the "base"  for inflation-proofing                                                                    
     makes a substantial difference in  how much the formula                                                                    
     would need to be adjusted in FY24.                                                                                         
                                                                                                                              
     Incorporating Outside-the Formula                                                                                        
                                                                                                                                
     Funding  In Fiscal  Years 2014,  2015, 2019,  2020, and                                                                    
     2023, the  legislature appropriated  additional funding                                                                    
     outside  the formula  ranging from  $20 million  to $57                                                                    
     million. This  funding is distributed according  to the                                                                    
     formula, and so the following  graph converts it into a                                                                    
     BSA equivalent.                                                                                                            
                                                                                                                                
3:40:58 PM                                                                                                                    
MR.  PAINTER turned  to  slide 3,  Base  Student Allocation  Plus                                                               
Outside the Formula  Funding FY 14 - FY 24  Projection. The graph                                                               
included  the legislature  appropriated  additional funding  that                                                               
was  outside  the  formula.  School  districts  received  outside                                                               
funding  in FY  2014, 2015,  2019,  2020, and  2023. The  amounts                                                               
received  ranged  from $20  -  $57  million. The  graph  converts                                                               
funding into  a BSA equivalent. He  noted that the peak  year was                                                               
FY 15 because the legislature took back  funds in FY 16 and FY 17                                                               
when oil  prices fell. The BSA  equivalent for FY 15  was $7,130.                                                               
The BSA would  need to increase by  $1,348 for FY 24  to match FY                                                               
15's funding  level in  real terms; the  $860 increase  quoted in                                                               
some meetings only considers the last three years.                                                                              
                                                                                                                                
3:42:37 PM                                                                                                                    
MR. PAINTER  moved to  slide 4,  Cost of  Increasing the  BSA. He                                                               
said  the  table  is  a   linear  calculation  showing  how  $100                                                               
incremental  increases  to  the  BSA multiplied  by  an  AADM  of                                                               
257,000  affects  state  funding.   He  noted  that  four  school                                                               
districts pay  a local  contribution based on  45 percent  of the                                                               
prior year's  basic need. These  four districts  would experience                                                               
an increase in  their required local contribution.  The effect is                                                               
under $400,000 for every $100  increase to the BSA; therefore, he                                                               
did not include it in the table.                                                                                                
                                                                                                                                
3:44:10 PM                                                                                                                    
SENATOR KIEHL said the Consumer  Price Index (CPI) is supposed to                                                               
be a market  basket of goods. He opined that  the basket is light                                                               
on health  care expenses  at seven  percent compared  to district                                                               
budgets that tend  to be 14 - 19 percent.  He asked whether being                                                               
detailed makes  a significant difference  in determining  the BSA                                                               
or is rounding errors accurate enough.                                                                                          
                                                                                                                                
3:44:57 PM                                                                                                                    
MR.  PAINTER replied  that  nationally over  the  past 70  years,                                                               
school  and  service-based  costs   have  increased  faster  than                                                               
inflation.  He  said  he  did  know  whether  there  would  be  a                                                               
significant  difference even  if  there were  market baskets  for                                                               
schools  in Alaska.  Alaska is  a semi-closed  economy, so  there                                                               
could be  interaction effects. Providing increased  funding could                                                               
go towards increasing certain costs.                                                                                            
                                                                                                                                
3:46:05 PM                                                                                                                    
SENATOR KIEHL asked  whether it would be wise to  use state money                                                               
to investigate detailed costs.                                                                                                  
                                                                                                                                
3:46:29 PM                                                                                                                    
MR. PAINTER  said that rather than  finding a CPI for  an Alaska-                                                               
specific  school,  looking at  broad  changes  to school  funding                                                               
nationwide and  comparing how inflation  has grown over  the past                                                               
decade  would be  better. He  said he  wanted to  avoid promising                                                               
that detailed data would be useful.                                                                                             
                                                                                                                                
3:47:11 PM                                                                                                                    
CHAIR  TOBIN asked  whether any  of the  amounts provided  in the                                                               
presentation   address   pupil   transport,   retirement   plans,                                                               
recruitment,  retention,  health  care  costs,  or  major  school                                                               
maintenance.                                                                                                                    
                                                                                                                                
3:47:36 PM                                                                                                                    
MR.  PAINTER  replied that  pupil  transportation  is a  separate                                                               
formula adjusted  in FY 14.  Expenditures for  school maintenance                                                               
can  come  from school  funds  and  municipal funds  through  the                                                               
school  bond  debt  reimbursement  program or  through  the  REAA                                                               
program. However,  he said this  presentation is specific  to the                                                               
foundation funding formula.                                                                                                     
                                                                                                                                
CHAIR  TOBIN commented  that the  BSA is  just one  mechanism the                                                               
legislature can  utilize to fund education  adequately. Providing                                                               
other mechanisms with funding would  help schools avoid using BSA                                                               
funds to cover expenditures.                                                                                                    
                                                                                                                                
3:48:54 PM                                                                                                                    
SENATOR  GRAY-JACKSON   asked  if  the  BSA   and  transportation                                                               
formulas are  the only formulas  used to calculate the  amount of                                                               
money schools receive.                                                                                                          
                                                                                                                                
3:49:14 PM                                                                                                                    
MR.  PAINTER  answered that  those  are  the only  two  operating                                                               
formulas.  However,  school  debt  reimbursement  and  REAA  fund                                                               
capitalization are  formula-driven programs, although there  is a                                                               
current  moratorium on  new school  debt through  2025. The  REAA                                                               
fund is  only for certain  school districts. There is  no formula                                                               
for  non-REAA schools'  major maintenance.  Instead,  there is  a                                                               
program that is subject to appropriation.                                                                                       
                                                                                                                                
3:50:16 PM                                                                                                                    
CHAIR TOBIN opened public testimony on school funding.                                                                          
                                                                                                                                
3:51:16 PM                                                                                                                    
RODNEY  DIAL,   Mayor,  Ketchikan  Gateway   Borough,  Ketchikan,                                                               
Alaska, testified  in support  of school  funding. He  stated his                                                               
desire for  the legislature to inflation-proof  education funding                                                               
and increase  the BSA.  The Ketchikan  Gateway Borough  is facing                                                               
many  funding challenges.  Ketchikan funds  education as  much as                                                               
legally  possible. One  hundred percent  of borough  property tax                                                               
goes to  education, but  a funding shortfall  of over  $3 million                                                               
remains. Fifty  employees face being laid  off without assistance                                                               
from  the  state. Every  year  the  legislature finds  funds  for                                                               
inflation-proofing  and  covering  the  expenses  of  unorganized                                                               
boroughs. Organized boroughs contribute  to education and see the                                                               
state shifting  costs. It  is reasonable  for organized  areas to                                                               
expect  state  funds to  be  adjusted  yearly for  inflation.  He                                                               
encouraged the legislature to find  ways to promote the formation                                                               
of boroughs.  He requested that  the legislature  adequately fund                                                               
education  in organized  areas just  as it  does for  unorganized                                                               
areas.                                                                                                                          
                                                                                                                                
3:53:26 PM                                                                                                                    
SENATOR KIEHL asked whether the  Ketchikan Gateway Borough School                                                               
District is  putting additional  funds into  education facilities                                                               
separate from operations.                                                                                                       
                                                                                                                                
3:53:41 PM                                                                                                                    
MR.  DIAL  responded that  Ketchikan  spends  about $3.5  million                                                               
annually  towards   school  maintenance  issues  and   bond  debt                                                               
reimbursement, on top of cap funding.                                                                                           
                                                                                                                                
3:54:33 PM                                                                                                                    
THOMAS  KENNEDY, representing  self, Fairbanks,  Alaska, said  he                                                               
had been a teacher for 27  years and supports funding schools. He                                                               
has  taught  in  rural  areas  and now  teaches  high  school  in                                                               
Fairbanks. He stated he would like  to share what is happening in                                                               
Alaska's  schools. Class  sizes are  reportedly 29  students, but                                                               
generally, there  are 34 to  35 students  per class. He  has sold                                                               
prep time  to help the school  district. He stated $600  is taken                                                               
from his paycheck  every two weeks for health  care insurance. He                                                               
is a co-director  of a school food pantry program,  and this year                                                               
was his  first-time witnessing teachers needing  food assistance.                                                               
Districts  are  doing what  they  can  to provide  teachers  with                                                               
equitable wages,  and the  education committee  values education.                                                               
Still, new teacher wages are the  lowest he has ever seen, and it                                                               
affects morale.  Young teachers are switching  careers to higher-                                                               
paying jobs. A  young teacher recently left the  profession to be                                                               
a truck driver and earns $20,000 more yearly.                                                                                   
                                                                                                                                
3:59:10 PM                                                                                                                    
MICHAEL  BUCY, representing  self, Juneau,  Alaska, testified  in                                                               
support of  teacher funding. He  asked what Alaska would  need to                                                               
do to have a world-class school  system and then quoted Don Young                                                               
as saying  teaching was the  hardest job, and teachers  should be                                                               
given a  paid sabbatical  every five years.  He opined  that some                                                               
legislators  speak about  accountability as  though teachers  and                                                               
school districts are not working  hard enough, which is not true.                                                               
It  is  the  legislature's   responsibility  to  maintain  public                                                               
schools. Alaska's  students tested  higher thirty years  ago than                                                               
they do  today. Alaska has  the least number of  people attending                                                               
college,  unions are  at an  impasse with  school districts,  and                                                               
Alaska is  not attracting new  teachers because the pay  needs to                                                               
be higher.  He opined that  underfunding schools is  driving away                                                               
young skilled,  and professional families. The  minimum suggested                                                               
increase to  the BSA is  $860. The BSA  needs to be  increased by                                                               
$1300  to adjust  for inflation.  He opined  that Alaska  and the                                                               
children in Alaska are worth more than the minimum.                                                                             
                                                                                                                                
4:02:38 PM                                                                                                                    
JESSICA PARIS,  representing self,  Juneau, Alaska,  testified in                                                               
support of  school funding.  She stated that  as a  teacher class                                                               
sizes  20 years  ago were  typically 20  - 30  students. Positive                                                               
impacts occur when  class sizes are reduced by as  little as five                                                               
students because  there is more  time for talking,  feedback, and                                                               
individual  attention.  Students  and teachers  know  each  other                                                               
better.  She recollected  picking up  on various  risky behaviors                                                               
that students engaged in and  students feeling comfortable enough                                                               
to  talk with  her about  those behaviors.  Her children's  class                                                               
sizes are 30  in elementary school, 43 in  middle school English,                                                               
40  in  high school  History  and  English,  and 50  in  Physical                                                               
Education. Their  cousins in the Lower  48 are in class  sizes of                                                               
25,  counselors meet  regularly with  students, and  schools have                                                               
activity buses.  The quality  of schools  is a  key consideration                                                               
for people when  deciding where to live.  Underfunded schools are                                                               
a reason  not to live  in Alaska when  it could be  swelling with                                                               
economic  opportunities  through  telework. She  asked  that  the                                                               
legislature  radically  update  the  BSA for  Alaska's  kids  and                                                               
economy.                                                                                                                        
                                                                                                                                
4:05:05 PM                                                                                                                    
TANYA  ROUST, representing  self,  Juneau,  Alaska, testified  in                                                               
support of school funding. She  stated that her passion and hobby                                                               
for the  past 10 years  has been  teaching. She works  far beyond                                                               
her  contract hours,  providing students  with academic,  social,                                                               
emotional,  and  family needs.  She  opined  that there  are  not                                                               
enough  teachers,  which  is overwhelming.  Teacher  and  student                                                               
stress is  increasing. Raising the  BSA to $1,086 is  crucial for                                                               
students  and educators.  Flat funding  is a  budget cut.  Alaska                                                               
must  do  better  for  its   students.  She  requested  that  the                                                               
legislature make this the education session.                                                                                    
                                                                                                                                
4:07:37 PM                                                                                                                    
HANNIBAL GRUBIS, representing  self, Fairbanks, Alaska, testified                                                               
in support of school funding. He  stated he is a 25-year teacher,                                                               
coach, and nationally  certified math teacher. He  said Alaska is                                                               
no longer competitive for students  or teachers. The BSA needs to                                                               
be increased in the short term  because Alaska is ranked 44th out                                                               
of  50  states  for  teacher  pay. In  the  long  term,  Alaska's                                                               
teachers  need a  pension to  stay in  the state.  He noted  that                                                               
teachers could not afford to take extra duty contracts.                                                                         
                                                                                                                                
4:09:51 PM                                                                                                                    
VALERIE BROOKS,  representing self, Ketchikan,  Alaska, testified                                                               
in  support  of school  funding.  She  stated  she is  a  retired                                                               
schoolteacher  and  reading   specialist.  Support  for  Alaska's                                                               
public  schools requires  a sizable  increase  to the  BSA and  a                                                               
focus  on  adequately  funded public  education.  She  quoted  an                                                               
article in the Anchorage Daily  News from January 23, 2023, which                                                               
provided statistics  regarding the  BSA in  Alaska. She  said the                                                               
BSA needs to increase by $1,195  to match the buying power of the                                                               
BSA in  FY 17. She  opined that an  increased BSA and  an updated                                                               
funding  formula   could  beneficially  impact   Alaska's  public                                                               
education budgets  and activities.  Smaller class  sizes, quality                                                               
PreK  programs, stipulations  of the  Alaska Reads  Act, and  the                                                               
ability of school districts to  attract and retain great teachers                                                               
positively  impact  education.  Alaska  schools  need  funds  for                                                               
intense  instruction  to  occur.  She urged  the  legislature  to                                                               
increase public  education funding because Alaska's  students and                                                               
future depend on it.                                                                                                            
                                                                                                                                
4:12:20 PM                                                                                                                    
BRIDGET  WEISS, Superintendent,  Juneau School  District, Juneau,                                                               
Alaska,  testified in  support of  school  funding and  described                                                               
what the  lack of school  funding has  meant for Juneau  and what                                                               
adequate funding would  mean. She stated that in 1984  she took a                                                               
first-year teaching  position in  Spokane, Washington,  that paid                                                               
$14,600. She  would have been paid  $27,000 if she had  worked in                                                               
Juneau. Today,  the starting  salary of  both locations  is about                                                               
the  same.  Teachers need  to  be  supported, and  students  need                                                               
quality  teachers. Budgets  are inadequate,  and costs  are going                                                               
up.  For example,  Juneau  School  District's property  liability                                                               
insurance policy went  from $200,000 in FY 21 to  $1.2 million in                                                               
FY 23.  Next year's BSA increase  of $30 means the  Juneau school                                                               
district budget  will increase by  $243,000. Juneau  teachers are                                                               
negotiating  increased  salaries.  If the  district  applies  the                                                               
$243,000 to teacher salaries, they  will receive a 0.0025 percent                                                               
wage increase for three years. She opined that is not enough.                                                                   
                                                                                                                                
4:16:06 PM                                                                                                                    
DANIELLE LOGAN,  representing self, Fairbanks,  Alaska, testified                                                               
in  support of  school  funding.  She said  she  is a  seven-year                                                               
educator and  the Education Support Staff  Association president.                                                               
She opined that the Fairbanks  North Star Borough needs help with                                                               
support staff turnover.  Support staff receives the  short end of                                                               
the   stick   regarding   budget  cuts.   Custodial   staff   are                                                               
shorthanded, paraprofessionals  do more  with less,  and teaching                                                               
assistants work  outside their job classification.  Educators are                                                               
leaving the  profession, and students  suffer. She  described the                                                               
various duties  of support staff  and how closely they  work with                                                               
students. She  asked that the  legislature consider the  needs of                                                               
support staff when addressing education funding.                                                                                
                                                                                                                                
4:18:34 PM                                                                                                                    
CAROLINE STORM,  representing self, Anchorage,  Alaska, testified                                                               
in support of school funding. She  said she is an architect and a                                                               
school  volunteer.  She asked  that  children  be placed  at  the                                                               
center  of Alaska's  decision-making because  there is  no future                                                               
without investing in children. Investments  do not show immediate                                                               
returns. Investing in  children is a question  of priority rather                                                               
than  dollars. The  legislature  is striking  a  hopeful tone  by                                                               
putting the  BSA at  the center of  the legislative  session. She                                                               
implored  the legislature  to consider  the  BSA contribution  as                                                               
part of  being a civilized,  creative, and  humanitarian society.                                                               
Children are human beings with  a host of potential and sometimes                                                               
traumas. Alaska is  a wealthy state that can spend  its riches on                                                               
corporate profit  or its children.  She asked that  the committee                                                               
lobby the  House of Representatives  and the governor  to restore                                                               
the BSA to  the FY 15 level per the  Legislative Budget and Audit                                                               
Committee memo of January 30th.                                                                                                 
                                                                                                                                
4:21:21 PM                                                                                                                    
POLLY CARR,  representing self,  Anchorage, Alaska,  testified in                                                               
support of school funding. She  stated she has lived in Anchorage                                                               
for 25 years,  has a 12-year-old child, and has  worked with high                                                               
school  students throughout  Alaska.  She helped  launch a  small                                                               
business in  2008. She  opined that  the state's  underfunding of                                                               
schools  has been  detrimental to  students,  the workforce,  and                                                               
economic  and  social morale.  A  presentation  by the  Anchorage                                                               
Economic Development Corporation described  Anchorage as having a                                                               
talent crisis.  It proposed solutions  such as  the establishment                                                               
of  youth entrepreneurship  and information  technology education                                                               
programs.  However, districts  can only  consider these  programs                                                               
when schools  have funds to operate.  Classrooms are overflowing.                                                               
People who  believe spending has been  misguided are misinformed.                                                               
The  resourceful scrappiness  of Alaska's  schools is  incredible                                                               
but  unsustainable. She  encouraged the  legislature to  increase                                                               
the BSA and return to a defined benefit plan.                                                                                   
                                                                                                                                
4:23:54 PM                                                                                                                    
CHRIS BYE,  representing self, Fairbanks, Alaska,  testified with                                                               
concerns  on  school  funding.   He  stated  he  appreciated  the                                                               
testimonies  of   parents  and   teachers  and   the  information                                                               
published  by  the Department  of  Education.  However, the  only                                                               
solution  they suggest  for fixing  education is  money. Alaska's                                                               
student population  has decreased by 3,000.  Scholastics have not                                                               
improved  since  2010.  He  recollected that  a  few  years  ago,                                                               
Fairbanks  schools received  additional  funding. Some  employees                                                               
received  pay  increases  while  class  sizes  remained  crowded,                                                               
opportunities  were lost,  and the  district  laid teachers  off.                                                               
Inflation affects all  Alaskans. Taking money from  the PFD hurts                                                               
both  students  and families.  The  cost  of  living is  high  in                                                               
Alaska, and the PFD helps offset  those costs. He opined that the                                                               
construct  of Alaska's  traditional  public  school system  needs                                                               
more  diversity and  flexibility.  Capable  teachers could  teach                                                               
outside of  the time-restricted  curriculum of  the public-school                                                               
format. Diversity in the public-school  format would provide more                                                               
opportunities  for  students.  A  free-market  approach  funds  a                                                               
cottage industry  that rises  the tide  for every  boat. Teachers                                                               
enjoy  a better  instructor-to-student  ratio.  Pathways must  be                                                               
flexible if  the end goal  is for  every student to  be educated.                                                               
Money  should follow  students. He  mentioned being  in favor  of                                                               
teacher retirement plans.                                                                                                       
                                                                                                                                
4:27:27 PM                                                                                                                    
SUSANNA  LITWINIAK,   representing  self,  Moose   Pass,  Alaska,                                                               
testified in  support of school  funding. She stated that  it was                                                               
ideal when her  daughter started attending Seward  high school in                                                               
2014 because the schools  afforded students opportunities without                                                               
being   too  big.   The  school   district  has   cut  electives,                                                               
extracurricular  activities,  and  counseling   at  a  time  when                                                               
teenage  anxiety  and  depression   are  at  record-high  levels.                                                               
Students  deserve  to  have  access  to  art,  music,  and  other                                                               
curriculums.  She  requested  that   the  legislature  invest  in                                                               
student education.                                                                                                              
                                                                                                                                
4:29:49 PM                                                                                                                    
DAVID BOYLE,  representing self, Anchorage, Alaska,  testified in                                                               
support of  school funding  with concerns.  He said  his children                                                               
had  attended  schools in  five  different  states. He  has  been                                                               
researching  Alaska's education  system for  15 years  and little                                                               
has   changed   regarding    student   achievement.   Alaska   is                                                               
consistently last in fourth-grade  reading. The solution has been                                                               
to throw more  money at the education  system without considering                                                               
the  improvement   of  student  outcomes.  He   opined  that  the                                                               
legislature must  be at the  table when union contracts  are made                                                               
because  they  are responsible  for  funding  them. He  described                                                               
areas  where  he  believes excessive  funding  exists  and  where                                                               
auditing should be required. He  stated that the Anchorage School                                                               
District has  41,000 students but enough  infrastructure to house                                                               
51,000 students, yet  the legislature plans to  bail the district                                                               
out to  avoid school closures.  He stated that  educators cherry-                                                               
picked the base year 2017  for inflation-proofing the BSA because                                                               
it  was the  last year  the BSA  was substantially  increased. He                                                               
opined  that it  would  be more  accurate to  use  the year  2000                                                               
because  it  would  ensure  a smoother  funding  curve  and  more                                                               
accurate  inflation   numbers.  The  BSA  was   $3,940  in  2000.                                                               
Adjusting for  inflation using 2000  as the base year  would make                                                               
the BSA amount  in 2022 $6,528. These figures  were derived using                                                               
the  Department   of  Labor's   CPI  calculator.   The  Anchorage                                                               
Comprehensive  Financial  Report  for   2022  shows  $19,250  per                                                               
student  and  29   students  per  teacher  in   the  high  school                                                               
classroom.  The problem  with the  student-teacher count  is that                                                               
many teachers are  part of the management  bureaucracy. He stated                                                               
that  the  legislature needs  to  ensure  more accountability  of                                                               
expenditures  and   that  funds  go  to   the  classroom  because                                                               
increasing K-12  funding does not  mean student  achievement will                                                               
increase.                                                                                                                       
                                                                                                                                
4:33:13 PM                                                                                                                    
CAREY CARPENTER, representing  self, Anchorage, Alaska, testified                                                               
in support of school funding. She  stated she has lived in Alaska                                                               
for 23 years  and is the mother of two  children. She opined that                                                               
people  want to  raise their  children in  locations with  a good                                                               
education system.  It is  why she stayed  in Anchorage.  She said                                                               
her children  are in  the Japanese  immersion program,  which the                                                               
district may cut if additional  funding is not provided. Low test                                                               
scores  are  directly  proportional  to how  much  parents  earn.                                                               
Children with  fewer resources  tend to  have lower  test scores.                                                               
Education cannot work as it should without proper funding.                                                                      
                                                                                                                                
4:36:34 PM                                                                                                                    
CALLIE CONERTON, representing self,  Juneau, Alaska, testified in                                                               
support of  school funding.  She said  she had  taught Montessori                                                               
school for six  years and knows that flat  funding decreases what                                                               
districts can  provide for students  and schools. She  stated she                                                               
was a product of the  legislature's investment when education was                                                               
well funded and  educators fought to have a  teaching position in                                                               
Alaska.  She grew  up in  Juneau, received  her degrees  from the                                                               
University  of  Alaska,  and  joined  Alaska's  workforce  as  an                                                               
educator.  Many  of her  colleagues  are  leaving the  state  for                                                               
better  teaching  opportunities.  Every  year  that  teaching  in                                                               
Alaska  is  underfunded  makes   it  more  difficult  to  justify                                                               
staying. All  other states  have a  defined benefit  for teachers                                                               
and  allow  them  to  collect  Social  Security.  Recruiting  new                                                               
teachers is  expensive. She  said she  loves teaching  in Alaska,                                                               
but the  BSA must be fully  funded, or teachers will  continue to                                                               
leave the state or the profession.                                                                                              
                                                                                                                                
4:39:36 PM                                                                                                                    
SARA DYKSTRA, representing self,  Anchorage, Alaska, testified in                                                               
support  of school  funding. She  stated she  is a  mother and  a                                                               
volunteer with  Great Alaska Schools.  She said she  worries that                                                               
Alaska will  not be a place  where her children will  continue to                                                               
thrive.  Battles  over clear  financial  plans  have left  public                                                               
schools with  instability, scarcity,  and the inability  to think                                                               
big and  plan. The  programs that  make Anchorage  schools unique                                                               
are being cut.  Investment in public schools is  an investment in                                                               
Alaska's  future. Funding  is crucial  to Alaska's  workforce, so                                                               
Alaska's schools  need comprehensive, sustainable,  reliable, and                                                               
inflation-proof budgets.  Projected cuts traumatize  teachers and                                                               
communities.  She urged  the legislature  to  invest in  Alaska's                                                               
children,  teachers, and  communities  by inflation-proofing  the                                                               
BSA and providing a defined benefit.                                                                                            
                                                                                                                                
4:42:08 PM                                                                                                                    
KELLY  LESSENS,   Anchorage  School  Board,   Anchorage,  Alaska,                                                               
testified in support  of school funding. She  said that according                                                               
to  Georgetown  University's   Edunomics  Lab,  Anchorage  School                                                               
District's students  lost an average  of 17 weeks of  math growth                                                               
and 11 weeks  of reading growth due to disruptions  caused by the                                                               
pandemic. To  remedy the losses  through tutoring would  cost $57                                                               
million  for math  and  $25 million  for  reading. The  Anchorage                                                               
School District (ASD) would like to be able to implement long-                                                                  
term  student   improvement  strategies.  However,  it   has  not                                                               
guaranteed  data-driven funding  streams for  seven years,  which                                                               
makes establishing  successful long-term  strategies challenging.                                                               
She  stated  that  ASD  has  had to  rely  on  piecemeal  funding                                                               
efficiencies to hold the school  district together. She described                                                               
how the  district used federal  relief funds to  backfill funding                                                               
shortfalls and how class sizes  exceeded the evidence-based model                                                               
recommendations. ASD  experienced over 400  job vacancies  in the                                                               
same  month  that  the  administration  recommended  closing  six                                                               
elementary schools and various programs.  She opined that a data-                                                               
driven BSA  adjustment would mean  ASD could align  staffing with                                                               
the evidence-based model,  continue offering outstanding programs                                                               
of choice, and hire essential support staff.                                                                                    
                                                                                                                                
4:45:48 PM                                                                                                                    
LOY THURMAN, representing self,  Big Lake, Alaska, testified with                                                               
concerns on school funding because  the only solution he hears to                                                               
problems with education  is money. He said he  homeschooled a son                                                               
with dyslexia  because qualified  special needs teachers  did not                                                               
understand the  basics. The school  curriculum was  appalling. He                                                               
opined that  the whole system  needed to  be changed to  help his                                                               
son.  Many  people  in  Alaska's  workforce  have  dyslexia,  but                                                               
everyone can learn to read with  Hooked on Phonics. He said he is                                                               
further   frustrated   by   the   amount  of   money   spent   on                                                               
administration. Hawaii only has one  "head dog," while Alaska has                                                               
many. Administrators should reduce their  pay by five percent and                                                               
use the money where it is needed.                                                                                               
                                                                                                                                
4:49:33 PM                                                                                                                    
DANIELLE SPECHT, representing self,  Kodiak, Alaska, testified in                                                               
support  of  school  funding.  She said  she  has  been  teaching                                                               
special education for  15 years and has a  tier three retirement.                                                               
She  said  flat  funding  is affecting  teacher  recruitment  and                                                               
retention. Teacher  salaries in Alaska are  no longer competitive                                                               
with other  states. She  said base teacher  pay is  $10,000 below                                                               
the low-income level of many  Alaskan communities, and classified                                                               
staff  pay  is below  the  poverty  line.  Alaska should  not  be                                                               
recruiting  teachers and  simultaneously  have them  sign up  for                                                               
subsidized housing. Alaska is losing  teachers and support staff.                                                               
It  costs  Alaska  $20,000  to recruit  and  train  teachers.  To                                                               
improve student  outcomes, Alaska  needs to slow  staff turnover.                                                               
She said that 15 years ago,  more than half of the teachers where                                                               
she works  had been there for  more than 15 years;  now, there is                                                               
only one.  Teachers often leave  the state after five  years when                                                               
they  can receive  100  percent of  the  state's contribution  to                                                               
their retirement savings.                                                                                                       
                                                                                                                                
4:54:11 PM                                                                                                                    
SCOTT  BALLARD, Superintendent,  Yupiit School  District, Bethel,                                                               
Alaska, testified in support of  school funding with concerns. He                                                               
is a graduate  of UAA and has  taught in Alaska for  25 years. He                                                               
stated  he agreed  with other  testifiers  regarding the  funding                                                               
shortfall.  In  his district,  students  and  teachers have  been                                                               
using  honey  buckets  for  a   week,  and  several  schools  are                                                               
dangerously  dilapidated. An  increase to  the BSA  of more  than                                                               
$1,200 and a defined benefit  plan for teachers are essential. He                                                               
said the READS Act is the  wrong program for his school district.                                                               
He opined  that the  school board believes  it has  local control                                                               
over  its education  system,  but it  doesn't  because the  state                                                               
places unfunded  mandates on it.  The mandates direct  the school                                                               
district's  instructional program.  He opined  that his  district                                                               
has a  good vision  and plan  for its  students. Students  in his                                                               
district  are becoming  more successful  because the  district is                                                               
creating  opportunities that  interest  students. The  district's                                                               
program  is based  on the  Yupiit education  system, values,  and                                                               
language.  The READS  Act is  a rebooting  of the  No Child  Left                                                               
Behind Act, which did not  work to improve learning outcomes, and                                                               
neither   will  the   READS  Act   because  it   creates  complex                                                               
requirements  for testing  and monitoring  students that  are not                                                               
necessary or helpful.                                                                                                           
                                                                                                                                
4:57:46 PM                                                                                                                    
CAROLE BOOKLESS, representing self,  Juneau, Alaska, testified in                                                               
support of school  funding. She agreed that  school districts are                                                               
administration  heavy but  can understand  why  when schools  are                                                               
regulation heavy.  Cuts are  happening at  all levels  within the                                                               
school.  Students' breakfast  consisted of  a carton  of milk,  a                                                               
granola  bar, and  an apple.  The  district consolidated  special                                                               
needs programs, which  removed some students from  the school and                                                               
peers  they  had grown  up  with.  Bugs  fall from  the  ceiling,                                                               
toilets  do not  work, and  the carpet  is 50  years old.  Due to                                                               
budget shortfalls,  reading curriculums will not  be updated. She                                                               
said this is  a snapshot of what schools look  like due to budget                                                               
cuts.                                                                                                                           
                                                                                                                                
5:01:24 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Tobin adjourned  the Senate  Education Standing  Committee                                                               
meeting at 5:01 p.m.                                                                                                            

Document Name Date/Time Subjects
Legislative Finance Memo on BSA and Inflation 01.30.2023.pdf SEDC 2/1/2023 3:30:00 PM