Legislature(2001 - 2002)

05/11/2002 10:52 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
     SENATE CS FOR HOUSE BILL NO. 239(HES)                                                                                      
     "An Act establishing a pilot program for a regional learning                                                               
     center."                                                                                                                   
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
DR.  LARRY   LABOLLE,  Staff  to   Representative  Richard   Foster,                                                            
testified to a letter to  the Committee dated May 10, 2002 co-signed                                                            
by Dr. John A. Davis, Superintendent,  Bering Strait School District                                                            
and  Dr. Stan  Lujan, Superintendent,  Nome  City  Schools [copy  on                                                            
file]  which identifies  various  project  funding  sources such  as                                                            
training  grants  through Kawerak,  Inc,  a consortium  of  regional                                                            
social  services  agencies.  He  noted  that this  letter  does  not                                                            
provide  a financial  plan although  other letters  supporting  this                                                            
project  have been received;  including  one from  the City of  Nome                                                            
[copy not provided]  that assures the City's support  of the project                                                            
and specifies  that Kawerak, Inc.  would commit up to $2,300,000  in                                                            
State and federal training  money to the project, and another letter                                                            
addressed  to  the  superintendents  of  the  Bering  Strait  School                                                            
District  and Nome City  Schools District  from Kawerak, Inc.  [copy                                                            
not provided]  that specifies  that $2,300,000  in grant funding  is                                                            
available  to support  this program.  He continued  that the  Norton                                                            
Sound Development  Corporation  has additionally  supplied a  letter                                                            
[copy not provided] citing their support of the program.                                                                        
                                                                                                                                
Dr. LaBolle stressed  the importance for project planning;  however,                                                            
he pointed  out "nobody  is able  to put together  a financial  plan                                                            
until  they have  some  idea of  what the  program  looks like."  He                                                            
continued  that  in  order  to "shape  the  program,"  it  would  be                                                            
necessary for  the Bering Straits  School and Nome School  Districts                                                            
to work  with other "major  players," such  as the Northwest  Campus                                                            
and Kawerak,  Inc. "to meet and develop  a consensus" as  to how the                                                            
program would operate.                                                                                                          
                                                                                                                                
Senator  Wilken attested  that a  business plan  has been  requested                                                            
numerous times, and the  fact that none of the recent correspondence                                                            
addressed the  issue "shocked" him.  He reviewed the known  elements                                                            
of the  project including  the utilization  of an existing  building                                                            
for which operational  costs are available,  and the identification                                                             
of the number  of students and corresponding staffing  requirements.                                                            
He surmised  that  the affected  school  districts' superintendents                                                             
each manage  large school  district  budgets and  should be able  to                                                            
develop a business  plan for this project. He stated  that in return                                                            
for the State,  acting as "the project banker" by  providing funding                                                            
for the project,  the districts should be able to  provide a project                                                            
business  plan. He  voiced  two suggestions:  one;  "stop this  bill                                                            
right here"  until a business plan  is presented; or two;  "zero out                                                            
the fiscal note" which  would allow the project to begin and develop                                                            
a funding needs plan as it progresses.                                                                                          
                                                                                                                                
Senator Wilken opined that  this bill should not be considered until                                                            
a viable business plan is presented.                                                                                            
                                                                                                                                
JOHN HANDELAND,  Employee, and former Mayor, City  of Nome, informed                                                            
the Committee  that the City of Nome  has been exploring  methods to                                                            
utilize the  existing Nome  Beltz School complex  and to provide  an                                                            
innovation educational  experience for both rural and urban students                                                            
in the  City of Nome  and the  Bering Straits  School Districts.  He                                                            
stated  that  this  project  is the  result  of  that  endeavor.  He                                                            
informed the Committee  that the City of Nome has  approached Alaska                                                            
US  Senator  Ted Stevens,  who  asked  the City  to  identify  local                                                            
support for the project.                                                                                                        
                                                                                                                                
Mr. Handeland  confirmed that  the City of  Nome, Kawarek,  Inc, and                                                            
the  Bering Straits  and  Nome  School Districts  are  committed  to                                                            
supporting this project.  He further expressed that the City of Nome                                                            
has  responsibly   and  continually  demonstrated   its  support  of                                                            
education,  and that there  is widespread support  in the region  to                                                            
support this bill as presented.                                                                                                 
                                                                                                                                
Mr. Handeland avowed that  the approval of the accompanying $150,000                                                            
Department  Education  and  Early  Development   fiscal  note  would                                                            
provide the  project with  the required State  support necessary  to                                                            
further  the  opportunity  to  receive  federal  and  other  funding                                                            
support.                                                                                                                        
                                                                                                                                
Senator Green  asked why the two school districts  could not provide                                                            
the required  support for  this project, without  the need  for this                                                            
legislation.                                                                                                                    
                                                                                                                                
Dr.  LaBolle explained  that  US Senator  Stevens  has specifically                                                             
requested  a demonstration  of  support for  this  project from  the                                                            
State. He  continued that  as the concept  of the project  expanded,                                                            
the Department  of Education and Early  Development became  involved                                                            
in the process  of coordinating the  two affected school  districts.                                                            
                                                                                                                                
Senator  Green questioned  whether a letter  of recommendation  from                                                            
the  Department   of  Education  and  Early  Development   would  be                                                            
sufficient to demonstrate  the State's support. She voiced that this                                                            
appears to  be a request for money,  and that every school  district                                                            
would  like to  have a comparable  amount  of money  to further  the                                                            
development of innovation  teaching programs. She stated that she is                                                            
very concerned about the long-term impact of this legislation.                                                                  
                                                                                                                                
Senator  Wilken asked  the testifier  whether  a five-year  business                                                            
plan could be developed.                                                                                                        
                                                                                                                                
Mr. Handeland responded  that a business plan should be and could be                                                            
developed,  and  he  mentioned  that US  Senator  Stevens  has  also                                                            
requested  a  business  plan  to be  developed  by  the  two  school                                                            
districts.  He contended that  perhaps a  business plan should  have                                                            
been  established  first;  however,   the  emphasis  was  placed  on                                                            
cementing  the necessary  support  and cooperation  for the  project                                                            
from the various regional entities.                                                                                             
                                                                                                                                
Mr. Handeland  responded to Senator Green's comment  about providing                                                            
innovative  education funding to all  districts, by qualifying  that                                                            
the  City  of  Nome  School  District,  unlike  other  State  school                                                            
districts,  has an  existing,  but unused,  teaching  facility  that                                                            
would provide the required infrastructure for this project.                                                                     
                                                                                                                                
Senator Olson reiterated  that having an existing facility does make                                                            
this project unique.                                                                                                            
                                                                                                                                
Senator Olson  offered a motion to move from Committee,  "House Bill                                                            
239 with individual  recommendations and accompanying  fiscal note."                                                            
                                                                                                                                
Senator Wilken  objected and  asked that  consideration be  given to                                                            
zero out the accompanying fiscal note.                                                                                          
                                                                                                                                
Vice  Chair Ward  inquired  whether Senator  Wilken  would offer  an                                                            
amendment to that effect.                                                                                                       
                                                                                                                                
Senator Wilken  stated that  if the fiscal  note were zeroed  out he                                                            
could support  the legislation; however,  he did not offer  a formal                                                            
amendment.                                                                                                                      
                                                                                                                                
A  roll call  was  taken  on the  motion  to  report the  bill  from                                                            
Committee.                                                                                                                      
                                                                                                                                
IN FAVOR:  Senator  Hoffman, Senator  Olson,  Senator Ward,  Senator                                                            
Austerman                                                                                                                       
                                                                                                                                
OPPOSED: Senator Green, Senator Wilken                                                                                          
                                                                                                                                
ABSENT: Co-Chair Donley, Co-Chair Kelly, Senator Leman                                                                          
                                                                                                                                
The motion PASSED(4-2-3)                                                                                                        
                                                                                                                                
SCS CS  HB 239(HES)  was  REPORTED from  Committee  with a  previous                                                            
$150,000 fiscal  note, dated April  16, 2002 from the Department  of                                                            
Education and Early Development.                                                                                                
                                                                                                                                
RECESSED TO THE CALL OF THE CHAIR 8:40 PM / 9:11 PM                                                                             

Document Name Date/Time Subjects