Legislature(2003 - 2004)
03/29/2004 09:04 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 328
"An Act relating to the national forest income program in the
Department of Community and Economic Development and to the
authority of the department to adopt regulations; making
conforming amendments; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, "provides the Department of
Community and Economic Development with the necessary authority to
adopt regulations necessary to implement a federal program commonly
known as national forest receipts."
Co-Chair Wilkin referenced an amendment made to the bill when last
heard by the Senate Finance Committee. Amendment #1 adjusted the
average daily membership requirement to apply only to children
physically residing in the school districts receiving a share of
the national forest income program.
SENATOR BERT STEDMAN testified that he has been in contact with
representatives of the City of Craig and the Craig School Board and
received their financial calculations. The representatives
expressed concerns about the funding cuts, especially concerning
the Craig City School District and the limited amount of time it
would have to adjust to the reduced funding.
Co-Chair Wilken stated that an effective date, if agreed upon,
should be specified for the provisions of Amendment #1.
Senator Stedman informed that his earlier intention was to suggest
an effective date of July 1, 2005, but recent input from the
Department of Community and Economic Development indicates that an
immediate effective date would not change funding.
BILL ROLFZEN, State Revenue Sharing, Municipal Assistance, National
Forest Receipts, Fish Tax, PILT, Division of Community Advocacy,
Department of Community and Economic Development, testified that
Section 1(m), added to the bill in the amendment, would impact the
Craig City School District's funding for the FY 05 school year were
it given a July 1, 2004 effective date. Similarly, a July 1, 2005
effective date would affect the District's funding for the FY 06
school year.
Co-Chair Wilken asserted that an effective date of July 1, 2005
would be appropriate.
Mr. Rolfzen affirmed.
Senator Stedman agreed.
Amendment #2: This conceptual amendment provides that AS
41.15.180(m) has an effective date of July 1, 2005.
Co-Chair Wilken moved for adoption.
There was no objection and the amendment was ADOPTED.
Co-Chair Wilken referred a document titled "Department of Education
and Early Development, Prepared on 3/24/04: Forest Receipt/Altered
Statewide Correspondence ADM" [copy on file] which informs that six
of 381.75 correspondence students in the Craig City School District
reside within the District. He then referenced a second spreadsheet
titled, "Department of Education and Early Development, Prepared
3/11/04, Correspondence History FY99-FY05 Projected" [copy on file]
which shows considerable growth in the Craig City School District's
PACE correspondence program.
Senator Dyson requested a repeat of Mr. Rolfzen's earlier testimony
Mr. Rolfzen presented his earlier testimony.
Senator Dyson communicated that this legislation would ensure that
the City of Craig would receive forest receipts for the
correspondence students who reside within the Craig City School
District.
Mr. Rolfzen confirmed.
Senator Dyson clarified that under Amendment #1 the City of Craig
would not receive forest receipts for correspondence students who
do not reside within the District.
Mr. Rolfzen affirmed.
JOHN BOLLING, City Administrator, City of Craig, testified via
teleconference from an offnet location in Craig to express
appreciation for the adoption of the effective date. He requested
that any correspondent student residing within the Tongass National
Forest be eligible for forest receipts.
Senator Stedman interpreted Mr. Bolling's request to amend
Amendment #1 to include all students living within the Tongass and
Chugiak National Forests.
Senator Dyson understood that the request asked that all students
residing within the national forest be eligible for the forest
receipt funding even if enrolled in a correspondence school
headquartered outside the boundaries of the national forest.
Senator Stedman explained that a school must be located within a
national forest to receive forest receipts.
Senator Dyson clarified that Mr. Bolling's request does not
encompass students receiving their education from an institution
located outside the national forest.
Senator Stedman affirmed.
RON ERICKSON, School Superintendent, Craig School Board, testified
via teleconference from an offnet location in Craig about recent
impacts of budget reductions and the "devastation" that additional
reductions would have on the district without the adoption of
Amendment #2. He also reiterated Mr. Bolling's request and urged
the consideration of providing forest receipts for those students
residing within the Tongass National Forest.
Co-Chair Wilken asked if the correspondence students actually
reside in the Craig City School District.
Mr. Erickson answered no, that many correspondence students reside
in other communities in the Tongass National Forest such as
Ketchikan and would not otherwise be eligible for timber receipts
because they are not enrolled in the Ketchikan School District, or
any other school system.
Co-Chair Wilken requested further clarification.
EDDIE JEANS, Manager, School Finance and Facilities Section,
Education Support Services, Department of Education and Early
Development, explained that the City of Craig is serving 215.9
students who reside in the Ketchikan Gateway Borough. Mr. Bolling
and Mr. Erickson are asking that the City of Craig receive forest
receipts for those 215.9 students because they reside within the
Tongass National Forest.
Co-Chair Wilken expressed his understanding of the request.
Senator Dyson understood Mr. Bolling and Mr. Erickson are
requesting timber receipt funding for students enrolled in the
Craig City School District and who also reside in the Tongass
National Forest.
Mr. Jeans affirmed this assessment.
Senator Dyson asked the amount of forest receipts received per
student.
Mr. Jeans was unsure and deferred to Mr. Rolfzen.
Senator Dyson asked how the 0.9 per student figure is calculated.
Mr. Jeans explained the fraction represents a student who was
enrolled for a portion of the school year.
Mr. Rolfzen informed that in FY 04 the forest receipt amount per
student is approximately $1,000.
DOC WATERMAN, School Board President, Craig City School District,
testified via teleconference from an offnet location in Craig that
the purpose of the federal forest receipts program is to provide
education to students residing in the Tongass National Forest. If
the Craig City School District is the only district providing
education to a student living in the Tongass National Forest, Craig
should be eligible to receive the receipts allocated to that
student.
DOUG RHODES, Principal, Craig High School, testified via
teleconference from an offnet location in Craig to support earlier
testimony from the City of Craig and the Craig City School
District.
Senator Dyson offered a motion to report SS SB 328, 23-LS1620\H
from Committee, as amended, with accompanying fiscal note and
individual recommendations.
There was no objection and CS SS SB 328 (FIN) MOVED from Committee
with zero fiscal note #1 from the Department of Community and
Economic Development.
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