Legislature(1999 - 2000)

04/14/2000 06:22 PM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE                                                                            
FOR HOUSE BILL NO. 191(HES)                                                                                                     
"An Act relating to charter schools."                                                                                           
                                                                                                                                
                                                                                                                                
REPRESENTATIVE FRED DYSON recounted legislation passed in                                                                       
1995 that established Alaska's first charter school                                                                             
statutes. He told of a wide movement across the country to                                                                      
allow parents to participate in creating a school that fits                                                                     
their needs.                                                                                                                    
                                                                                                                                
Representative Dyson relayed conversations he had with                                                                          
Representative Bettye Davis shortly after he was first                                                                          
elected in which he was told he needed to revisit the                                                                           
charter school statutes. Representative Davis asserted to                                                                       
him that the existing statutes would not work. He added                                                                         
that national experts on the subject have stated that                                                                           
Alaska's laws are amongst the weakest in the nation.                                                                            
                                                                                                                                
Representative Dyson stressed that the charter schools in                                                                       
the state are struggling and that his office along with the                                                                     
Anchorage School District have been working with charter                                                                        
schools to craft legislation to allow charter schools to                                                                        
survive an possibly to prosper.                                                                                                 
                                                                                                                                
Representative Dyson highlighted some minor points of the                                                                       
bill that he said everyone could agree on. These, he said                                                                       
include provisions to double the number of charter schools                                                                      
allowed to operate and the elimination of the geographical                                                                      
distribution of the school's locations. He added the bill                                                                       
also extends the sunset provision of the exiting statute                                                                        
and allows occupation of public buildings by charter                                                                            
schools.                                                                                                                        
                                                                                                                                
Representative Dyson then shared that the most substantial                                                                      
portion of the legislation addresses funding. Most charter                                                                      
schools elsewhere in the country, he said are provided                                                                          
start-up funds, which he said Alaska does not provide. He                                                                       
did note that the Fairbanks school district has made                                                                            
attempts to secure funding for a charter school located in                                                                      
that community.                                                                                                                 
                                                                                                                                
Representative Dyson next talked about changes made to the                                                                      
bill in the committee process in attempt to meet criticisms                                                                     
of the Anchorage and Fairbanks school districts. He stated                                                                      
that the Senate Health, Education and Social Services                                                                           
Committee deleted two paragraphs of the original bill                                                                           
addressing financial requirements plus another provision                                                                        
stipulating that charter schools receive a share of the                                                                         
local contribution as well as state funding.                                                                                    
                                                                                                                                
Representative Dyson allowed that the resulting committee                                                                       
substitute addresses the necessary technical changes but                                                                        
does not provide additional funding for charter schools.                                                                        
                                                                                                                                
Representative Dyson spoke of the accounting procedures                                                                         
necessary to show how the charter school's funding is                                                                           
expended.                                                                                                                       
                                                                                                                                
Representative Dyson cautioned that Alaska's charter                                                                            
schools would not survive without much more help. He                                                                            
expressed, "I think it's cruel to string them along." He                                                                        
stated that the current version of the bill gives the                                                                           
schools no hope since it no longer contains the funding                                                                         
provisions.                                                                                                                     
                                                                                                                                
GAIL MCCANN testified via teleconference from Fairbanks                                                                         
asking the sponsor to not give up on charter schools. She                                                                       
wanted all public schools to secure more funding as the                                                                         
University of Alaska has in recent years.                                                                                       
                                                                                                                                
KITTY MATHERS testified via teleconference from Fairbanks                                                                       
to request the Committee vote in favor of the original                                                                          
version of the bill. She stressed that the current                                                                              
committee substitute allows the charter schools to exist,                                                                       
but not to survive.                                                                                                             
                                                                                                                                
JOHN TIEMESSEN, attorney and father of charter school                                                                           
student, testified via teleconference from Fairbanks about                                                                      
the need for work on the charter school structure and to                                                                        
fully fund schools.                                                                                                             
                                                                                                                                
MISSY LIEBERMAN, parent of a child in Chinook Charter                                                                           
School testified via teleconference from Fairbanks in                                                                           
support of the bill and the idea behind it to help charter                                                                      
schools get equal funding and not have to compete with                                                                          
other schools.                                                                                                                  
                                                                                                                                
BARBARA GERARD testified via teleconference from Mat-Su                                                                         
about a recent evaluation showing the positive impacts of                                                                       
charter schools. She stated that this bill strengthens the                                                                      
charter school process.                                                                                                         
                                                                                                                                
JIM POSEY testified via teleconference from Anchorage about                                                                     
the growth of the local charter school. He expressed the                                                                        
reduced assistance provided in the committee substitute                                                                         
"puts an dagger into the hearts" of those who work for                                                                          
public education.                                                                                                               
                                                                                                                                
ANTHONY HUSSY, Chair, Academic Policy Council, Walden Pond                                                                      
Charter School testified via teleconference from Anchorage                                                                      
about the school and some of the special needs of their                                                                         
students.                                                                                                                       
                                                                                                                                
MARY CARTER, mother and board member of Walden Pond Charter                                                                     
School, testified via teleconference from Anchorage about                                                                       
the growth she has seen in her daughter since attending                                                                         
this school.                                                                                                                    
                                                                                                                                
LORNA REECE, parent of student of Walden Pond Charter                                                                           
School, testified via teleconference from Anchorage. She                                                                        
spoke of her experiences in Anchorage schools and why she                                                                       
chose to send her son to a charter school.                                                                                      
                                                                                                                                
MIKE FISHER, Assistant Superintendent, Fairbanks North Star                                                                     
School District, testified via teleconference from                                                                              
Fairbanks about his concerns with Section 2 of the bill in                                                                      
subparagraph 5, requiring itemization of administrative                                                                         
costs, and subparagraph 14, stipulating that the charter                                                                        
school budget must be increased to reflect operating cost                                                                       
savings.                                                                                                                        
                                                                                                                                
KATHY GELLISPY, Legislative Co-Chair, Anchorage School                                                                          
Board testified in Juneau that the district could not                                                                           
support the bill. She suggested changing the provision                                                                          
dictating accounting methods for charter school related                                                                         
expenditures.                                                                                                                   
                                                                                                                                
Ms. Gellispy also requested deletion of subparagraph 14                                                                         
from page 2, lines 27-31 of the committee substitute. She                                                                       
argued that no school receives funding for services that                                                                        
are not provided.                                                                                                               
                                                                                                                                
Ms. Gellispy went into great detail of the various                                                                              
expenditures incurred by both charter schools and regular                                                                       
schools and the hardship the district would incur if the                                                                        
accounting and funding requirements of this legislation                                                                         
were imposed.                                                                                                                   
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #90, Side A    7:56 PM                                                                                           
                                                                                                                                
                                                                                                                                
Ms. Gellispy offered that the Anchorage School District                                                                         
wants to work with the legislature to make the charter                                                                          
school statutes stronger than they currently are.                                                                               
                                                                                                                                
Ms. Gellispy detailed the handout accompanying the                                                                              
district's April 14, 2000 memo to the Senate Finance                                                                            
Committee. [Copy on file] She explained how this list shows                                                                     
the budgeted cost per student for each of the district's                                                                        
schools. She pointed out that the average spent per charter                                                                     
school student is $4,264 compared to the average of $3,732                                                                      
spent for all other elementary students. She attested that                                                                      
the district is funding its charter schools in a fair and                                                                       
equitable manner.                                                                                                               
                                                                                                                                
CARL ROSE, Executive Director, Association of Alaska School                                                                     
Boards, testified in Juneau saying the organization is on                                                                       
record in support of charter schools.  He said the                                                                              
difficulty with this legislation is the inability to come                                                                       
to agreement on the appropriation. He surmised that by                                                                          
attaching charter schools to an already struggling system                                                                       
is not the way to ensure success for charter schools. He                                                                        
cautioned of the potential for charter schools to operate                                                                       
without any oversight of the local school boards, and thus                                                                      
being funded without requiring any accountability. He                                                                           
thought the possibility existed that some new charter                                                                           
schools would not get approval because of these funding                                                                         
issues. He suggested the legislature adequately fund all                                                                        
schools.                                                                                                                        
                                                                                                                                
Amendment #1: This amendment adds a new bill section on                                                                         
page 3, following line 7 of the committee substitute to                                                                         
read as follows.                                                                                                                
                                                                                                                                
"Sec. 4. AS 14.03.260 is amended by adding a new                                                                                
subsection to read:                                                                                                             
 (e) In addition to the amount provided to an                                                                                   
approved charter school in the annual program budget                                                                            
under (a) of this section, a charter school budget                                                                              
must include an allocation equal to the amount                                                                                  
determined by dividing the amount of local revenues                                                                             
contributed under AS 14.17.410(c) by the average daily                                                                          
membership of the district and multiplying that number                                                                          
by the average daily membership of the charter                                                                                  
school."                                                                                                                        
                                                                                                                                
Co-Chair Parnell moved for adoption. Senator Wilken                                                                             
objected.                                                                                                                       
                                                                                                                                
Co-Chair Parnell explained this amendment requires the                                                                          
local school districts to share excess local contributions                                                                      
with the charter schools. He asserted that parents of                                                                           
charter school students pay property taxes that are used to                                                                     
fund all public schools except their child's. He said that                                                                      
this is an issue of equity.                                                                                                     
                                                                                                                                
Representative Dyson agreed with Co-Chair Parnell's                                                                             
statements.                                                                                                                     
                                                                                                                                
Co-Chair Parnell stated that all public schools should be                                                                       
funded.                                                                                                                         
                                                                                                                                
Senator Phillips referred to the Anchorage School                                                                               
District's list of budgeted funds spent per student of                                                                          
various schools in the district. He noted how more funds                                                                        
are spent for charter school students.                                                                                          
                                                                                                                                
Co-Chair Parnell responded that three of the listed charter                                                                     
schools included special needs students. Secondly, he said                                                                      
the issue was not about the amount of money spent per                                                                           
student, which is a red herring. Instead he asserted the                                                                        
issue is about getting equitable funding at the on-set with                                                                     
the ability for the school board to make adjustments later.                                                                     
                                                                                                                                
Senator Phillips thought all of the schools include the                                                                         
special needs expenditures in their budgets.                                                                                    
                                                                                                                                
[Ms. Gellispy affirmed, but out of range of the recording                                                                       
system.]                                                                                                                        
                                                                                                                                
Senator Green noted there may well be a comparability in                                                                        
the amount allotted to the per student calculation. She                                                                         
wanted to know if there is a difference in the expenditure                                                                      
allotted to the charter schools.                                                                                                
                                                                                                                                
Representative Dyson replied that several of those schools                                                                      
have to pay the costs to occupy a facility, whereas other                                                                       
schools don't have to pay rent.                                                                                                 
                                                                                                                                
Senator Wilken stated that in 1995, the funding for charter                                                                     
schools was clearly set forth. He quoted, "the amount                                                                           
generated by students enrolled in charter schools to be                                                                         
determined in the same manner as would be for a student                                                                         
enrolled in another public school in that school district."                                                                     
He stressed this agreement was reached with the intent that                                                                     
it would be adhered to for ten years.                                                                                           
                                                                                                                                
Senator Wilken noted the amount of money the Anchorage                                                                          
School District spends for charter school students. He                                                                          
thought the matter of paying leasing costs for charter                                                                          
schools is already addressed the organization and operation                                                                     
of a charter school chapter of state statute.                                                                                   
                                                                                                                                
Senator Wilken understood that the charter school laws were                                                                     
to allow parents to organize to provide an educational                                                                          
opportunity that they could not receive in a normal public                                                                      
school in that district. He stressed that these parents can                                                                     
negotiate a contract to define their school, which includes                                                                     
the facility the school will occupy. He added that while                                                                        
the charter school may have to address disabilities, there                                                                      
is no library, no band, no athletic program, transportation                                                                     
requirements, and are not required to have open enrollment,                                                                     
as a public school must.                                                                                                        
                                                                                                                                
Senator Wilken attested that although charter schools have                                                                      
approached the Fairbanks and Anchorage school districts                                                                         
with complaints that they don't receive enough money, they                                                                      
are getting more money than required in the 1995                                                                                
legislation.                                                                                                                    
                                                                                                                                
Senator Wilken stressed that this amendment, along with                                                                         
other proposed changes, "cements in place a 'must do' and a                                                                     
confrontation between the charter school proponents and the                                                                     
school board every budget season." He stated that the                                                                           
message this legislation sends to the school districts is                                                                       
that they don't know what they are doing and regardless of                                                                      
the needs of most students, the district must spend a                                                                           
specific amount on charter school students.                                                                                     
                                                                                                                                
Senator Phillips asked about the location of the Walden                                                                         
Pond Charter School in the Diamond Mall and other charter                                                                       
schools' lease agreements.                                                                                                      
                                                                                                                                
PEGGY ROBINSON, President, Anchorage School Board, talked                                                                       
about the charter school's five year lease. It was                                                                              
established that Walden Pond is the only charter school                                                                         
that pays rent. The others pay some combination of                                                                              
utilities.                                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator Donley, Senator Leman, Senator Green, Co-                                                                     
Chair Parnell and Co-Chair Torgerson                                                                                            
                                                                                                                                
OPPOSED: Senator Adams, Senator Wilken and Senator Phillips                                                                     
                                                                                                                                
ABSENT: Senator P. Kelly                                                                                                        
                                                                                                                                
The motion PASSED (5-3-1)                                                                                                       
                                                                                                                                
The amendment was ADOPTED.                                                                                                      
                                                                                                                                
Amendment #2: This amendment makes the following changes to                                                                     
page 2, lines 10 through 13 of the committee substitute as                                                                      
follows.                                                                                                                        
                                                                                                                                
Delete                                                                                                                          
  "(5) a statement of the charter school's                                                                                      
funding allocation from the local school board,                                                                                 
including the itemized costs of administrative or                                                                               
other services to be provided [AND COSTS ASSIGNABLE]                                                                            
to the charter school [PROGRAM BUDGET];"                                                                                        
                                                                                                                                
Insert                                                                                                                          
  "(5) a statement of the charter school's                                                                                      
funding allocation from the local school board and                                                                              
costs assignable to the charter school program                                                                                  
budget."                                                                                                                        
                                                                                                                                
New text underlined [DELETED TEXT BRACKETED]                                                                                    
                                                                                                                                
Senator Wilken moved for adoption. Senator Green objected.                                                                      
                                                                                                                                
Senator Wilken noted this amendment is connected to                                                                             
Amendment #3. He expressed that it would be difficult and                                                                       
expensive for school districts to account for these                                                                             
expenditures as required in the legislation. He thought                                                                         
that to require a separate accounting system for under 200                                                                      
students to keep track of itemized costs was unreasonable.                                                                      
He pointed out, for example, that the charter schools in                                                                        
Fairbanks uses the district's discipline system but the                                                                         
district does not charge the charter school for that                                                                            
service. He suspected there would be great difficulty in                                                                        
trying to establish an accounting method to itemize that                                                                        
particular service in addition to the multiple other                                                                            
similar services that are interrelated between the district                                                                     
and the charter schools.                                                                                                        
                                                                                                                                
Representative Dyson had no objection to the amendment                                                                          
since he thought the premise of the language would not                                                                          
change. He stated that the belief that the bill would                                                                           
require establishment of a separate accounting system was                                                                       
"either grossly misunderstood or a red herring." He noted                                                                       
that the district would still be responsible for showing an                                                                     
accounting of all expenditures.                                                                                                 
                                                                                                                                
Co-Chair Torgerson thought the word "itemize" was the                                                                           
difficulty.                                                                                                                     
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
Amendment #3: This amendment deletes subparagraph (14) on                                                                       
page 2, line 27, through page 3, line 1 of the committee                                                                        
substitute.                                                                                                                     
                                                                                                                                
"a clause providing that the charter                                                                                            
school's budget shall be increased to reflect                                                                                   
operating cost savings achieved by the charter school;                                                                          
in this paragraph, "operating cost savings" means the                                                                           
estimated value of educational or related services                                                                              
provided by the district to all schools in the                                                                                  
district that are not provided to the charter school;                                                                           
(15)"                                                                                                                           
                                                                                                                                
Senator Wilken moved for adoption. Co-Chair Torgerson                                                                           
objected for an explanation.                                                                                                    
                                                                                                                                
Senator Wilken stressed that this language was a troubling                                                                      
inclusion in the bill. He predicted this would foster                                                                           
tensions each year between the charter schools and the                                                                          
school board. He suggested that this is giving credit for                                                                       
not doing something, which he remarked, is backward                                                                             
thinking.                                                                                                                       
                                                                                                                                
Co-Chair Torgerson removed his objection.                                                                                       
                                                                                                                                
Representative Dyson emphasized that this language is also                                                                      
misunderstood. He stressed that there would be no                                                                               
negotiations involved in this process. The school board is                                                                      
an advisory seat and the charter school can make no threats                                                                     
but must do what the board instructs. He shared that if a                                                                       
charter school can ease expenditures for the other schools,                                                                     
for example, by removing students from an over-crowded high                                                                     
school, the district can share a portion of the net savings                                                                     
with the charter school. He restated that if a district                                                                         
identifies savings as a result of the existence of a                                                                            
charter school, the savings could be passed along to the                                                                        
charter school.                                                                                                                 
                                                                                                                                
Senator Leman said Representative Dyson's comments make                                                                         
sense if the intent is interpreted to pass along some, but                                                                      
not all of the net savings.                                                                                                     
                                                                                                                                
Representative Dyson responded that "the school district is                                                                     
in the driver's seat" and could pass along all, none, or a                                                                      
portion, of the savings to the charter school.                                                                                  
                                                                                                                                
Co-Chair Torgerson noted the language "shall be increased"                                                                      
is not optional.                                                                                                                
                                                                                                                                
Senator Leman countered that the language does not                                                                              
stipulate what factor of the savings. He thought the                                                                            
language was poorly worded but that some of the money                                                                           
should be passed along to encourage further savings. He                                                                         
stressed that the legislature needs to provide a better                                                                         
incentive to quell the formula funding cost increases.                                                                          
                                                                                                                                
Representative Dyson offered to change "shall" to "may".                                                                        
                                                                                                                                
Senator Wilken commented that Amendment #1 set the baseline                                                                     
and this subparagraph increases that base by considering                                                                        
whether the charter school has a band, library and/or a                                                                         
transportation system.                                                                                                          
                                                                                                                                
Senator Green noted Representative Dyson's example did                                                                          
happen in the Mat-Su school district. She shared that the                                                                       
district's charter school does have a band and has a                                                                            
variety of students, but has also eased overcrowding in the                                                                     
other schools. She noted that most charter schools are                                                                          
filling a need, have a big waiting list and should be                                                                           
supported.                                                                                                                      
                                                                                                                                
Senator Green supported extending the sunset date of the                                                                        
existing charter school statute at the very least.                                                                              
                                                                                                                                
Senator Wilken moved to withdraw his motion to adopt                                                                            
Amendment #3.                                                                                                                   
                                                                                                                                
The amendment was WITHDRAWN without objection.                                                                                  
                                                                                                                                
Amendment #4: This amendment deletes "shall" and inserts                                                                        
"may" on page 2, line 27, of the committee substitute. The                                                                      
amended language reads as follows.                                                                                              
                                                                                                                                
(14) a clause providing that the charter                                                                                        
school's budget may be increased to reflect operating                                                                           
cost savings achieved by the charter school; in this                                                                            
paragraph, "operating cost savings" means the                                                                                   
estimated value of educational or related services                                                                              
provided by the district to all schools in the                                                                                  
district that are not provided to the charter school;                                                                           
                                                                                                                                
Co-Chair Parnell moved for adoption.                                                                                            
                                                                                                                                
There was no objection and the amendment was ADOPTED.                                                                           
                                                                                                                                
Senator Wilken commented that this is an important issue                                                                        
and that while he supports charter schools, he does not                                                                         
want their interest to be championed at the expense of the                                                                      
other 129,000 students in the public K-12 education system.                                                                     
He stressed that the original legislation was an experiment                                                                     
but that the agreement was to wait ten years to review its                                                                      
success before making changes.                                                                                                  
                                                                                                                                
Co-Chair Torgerson asked if the sponsor had reviewed the                                                                        
fiscal note.                                                                                                                    
                                                                                                                                
Representative Dyson had.                                                                                                       
                                                                                                                                
Co-Chair Torgerson asked if the sponsor believed it takes                                                                       
one to two people to run the program. He thought the                                                                            
estimated cost of the legislation was too high.                                                                                 
                                                                                                                                
Co-Chair Parnell offered a motion to move CS HB 191 (FIN)                                                                       
as amended from Committee with accompanying $161,300 fiscal                                                                     
note from the Department of Education and Early                                                                                 
Development.                                                                                                                    
                                                                                                                                
The bill was MOVED from Committee.                                                                                              
                                                                                                                                

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