Legislature(2001 - 2002)

04/24/2001 10:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     SENATE BILL NO. 174                                                                                                        
     "An Act relating to education funding; and providing for an                                                                
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
Co-Chair  Kelly requested  a reconsideration  motion be taken  on SB
174 so that the Committee could consider a technical amendment.                                                                 
                                                                                                                                
Senator Wilken  moved to rescind action  taken on moving  SB 174 out                                                            
of Committee.                                                                                                                   
                                                                                                                                
Co-Chair  Kelly  noted  that the  version  of  the bill  before  the                                                            
Committee  was version "C".   There being  no objection, action  was                                                            
RESCINDED.                                                                                                                      
                                                                                                                                
Senator Wilken  moved to adopt  Amendment #6.   [Copy on File].   He                                                            
stated that the amendment  would clarify the intent of the change in                                                            
the local  requirement  for organized  Alaska.   The  affect of  the                                                            
amendment  would  pass on  half of  the amount,  in  order that  the                                                            
taxpayer  and the general  fund would  each carry  half the  funding                                                            
load.  He  pointed out that  on Page 2,  Line 30, the word  "annual"                                                            
would be  inserted,  which would clarify  that it  would affect  the                                                            
prior  year and  would be  an annual  calculation.   Also, it  would                                                            
establish a local assessed value calculation.                                                                                   
                                                                                                                                
Senator Hoffman  objected for the  purpose of discussion.   He asked                                                            
if there had been a comparison for the 1999 date.                                                                               
                                                                                                                                
Senator  Wilken noted  that he did  not have that  information.   He                                                            
believed  that would be included  in the  fiscal note received  from                                                            
the Department.   He added that the 1999 were the  figures which had                                                            
been used.                                                                                                                      
                                                                                                                                
Co-Chair Kelly  asked if the objection was maintained.   There being                                                            
no further objection, Amendment #6 was ADOPTED.                                                                                 
                                                                                                                                
Senator  Olson moved  to rescind action  taken on  failure to  adopt                                                            
Amendment #4  which would delete Section  #1.  [Copy on File].    He                                                            
advised  that none  of the  school districts  in his  area or  rural                                                            
Alaska were in support of the bill.                                                                                             
                                                                                                                                
Co-Chair  Kelly objected.   He argued  that the  bill would  provide                                                            
more  money  to  his district  and  also  the  North  Slope  Borough                                                            
District.                                                                                                                       
                                                                                                                                
CARL ROSE,  Executive  Director, Association  of  the Alaska  School                                                            
Boards, Juneau,  voiced concern with passage of the  bill because of                                                            
issues  with  fairness  and  district  redistribution.     Mr.  Rose                                                            
commented  that the  Association is  concerned about  the future  of                                                            
education  in the State  of Alaska.   He asked  what will happen  to                                                            
children  moving forward  and  their success  with  the high  school                                                            
qualifying exams.   He requested that members take  a long-term view                                                            
and create a real fiscal plan.                                                                                                  
                                                                                                                                
Mr.  Rose stressed  that  SB  174  was a  "regressive"  approach  in                                                            
addressing  the  future.    The  issue  of  adequacy  is  not  being                                                            
addressed.    He added  that  the  Association  is  in favor  of  an                                                            
increase in  the foundation formula  and redistributing money  in an                                                            
adjusted method.   He claimed that  there should not be any  changes                                                            
made  to  SB  36  until  there  is  further  and  more  appropriate                                                             
information  available. He voiced  strong objection to the  proposed                                                            
legislation.                                                                                                                    
                                                                                                                                
AT EASE 10:19 AM/10:21 AM                                                                                                       
                                                                                                                                
A roll  call was  taken on  the motion  to rescind  action taken  on                                                            
Amendment #4.                                                                                                                   
                                                                                                                                
IN FAVOR:       Austerman, Hoffman, Olson                                                                                       
OPPOSED:        Wilken, Green, Leman, Donley, Kelly                                                                             
                                                                                                                                
Senator Ward was not present for the vote.                                                                                      
                                                                                                                                
The MOTION FAILED (3-5).                                                                                                        
                                                                                                                                
Senator Wilken  moved to report the  amended CS SB 174 (FIN)  out of                                                            
Committee  with  individual  recommendations  and  the accompanying                                                             
fiscal notes.                                                                                                                   
                                                                                                                                
Senator Hoffman asked if the title would change.                                                                                
                                                                                                                                
Co-Chair Kelly replied it would not.                                                                                            
                                                                                                                                
Senator  Olson objected  to  moving  the bill  from  Committee.   He                                                            
explained  that the bill  will have a dramatic  affect on the  North                                                            
Slope Borough.                                                                                                                  
                                                                                                                                
FREIDA  ARNHEIGHT,   Superintendent,  North  Slope  Borough   School                                                            
District,  stated that  SB 174  would be  devastating  to the  North                                                            
Slope Borough  School District.  It will remove State  funding which                                                            
amounts to $9  million dollars.  Taking away the State  funding also                                                            
removes the effort  to have grants, which accounts  to a little over                                                            
$10   million  dollars.      She  urged   reconsideration   of   the                                                            
implementation of the legislation.                                                                                              
                                                                                                                                
Senator Olson maintained his objection.                                                                                         
                                                                                                                                
A roll call was taken on the motion to move the bill.                                                                           
                                                                                                                                
IN FAVOR:       Green, Leman, Wilken, Donley, Kelly                                                                             
OPPOSED:        Austerman, Hoffman, Olson                                                                                       
                                                                                                                                
Senator Ward was not present for the vote.                                                                                      
                                                                                                                                
The motion PASSED (5-3).                                                                                                        
                                                                                                                                
CS   SB  174   (FIN)   MOVED   from   Committee   with  "individual                                                             
recommendations"  and with  a new fiscal note  by the Department  of                                                            
Education & Early Development.                                                                                                  
                                                                                                                                

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