Legislature(2009 - 2010)SENATE FINANCE 532
04/01/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB57 | |
| HB109 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 57 | TELECONFERENCED | |
| + | HB 109 | TELECONFERENCED | |
| + | HB 172 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 57
"An Act relating to charter school funding."
9:05:36 AM
Senator Joe Thomas, Sponsor, explained that the legislation
corrects a flaw in school funding law as it applies to
charter schools with fewer than 150 students, which he
called the "charter school penalty." He read parts of the
Sponsor Statement (Copy on File):
Current law results in these charter schools receiving
30 to 45 percent less state funding than neighborhood
schools of their same size. SB 57 funds these charter
schools at a per-child rate closer to that of average,
urban elementary schools.
Charter schools are public schools that provide
valuable education options to Alaska families. They
increase learning opportunities and encourage parent
and community involvement in our schools. Charter
schools are designed and managed by parent-elected
boards, under contracts with local school districts.
They create school choice within the public school
system. The process of choosing engages parents and
gives them a feeling of ownership, which encourages
student achievement.
In 1995, the legislature passed Alaska's initial
charter school law. SB 57 solves the funding problem in
an equitable, fiscally responsible manner. It will
support our schools and districts as they carry out the
legislature's intent in creating the charter school
law.
The root of the problem is the way the foundation
formula calculates the "adjusted student count" for
charter schools versus neighborhood schools.
Charter schools with an enrollment of less than 150
students are not treated as separate schools for the
purpose of the adjusted student count calculations. The
impact of this system on charter schools is shown in
the attached graph. The consequences are that the law
provides an inadequate amount of money for charter
schools with fewer than 150 students to survive, and
there is dramatic decrease in funding when a charter
school's enrollment drops from 150 to 149 students.
School districts can be penalized for allowing school
choice.
SB 57 states that charter schools with fewer than 150
students will have their student count adjusted by the
same per-student rate as neighborhood schools with 400
students. It also contains a one-year, hold-harmless
provision for charter schools that are either in their
first year of operation or who had more than 150
students the previous year. These schools will receive
95 percent of the per-student rate of neighborhood
schools with 150 students.
9:09:04 AM
Senator Huggins MOVED to ADOPT Amendment 1, 26-LS0238\E.2,
Mischel, 4/1/09:
Page 1, line 1, following "charter":
Insert "and alternative"
Page 2, following line 6:
Insert a new subsection to read:
"(e) If an alternative school has a student count
of more than 120 but less than 175 for the current year
and is in the first year of operation, or had a student
count of 175 or more in the previous year of operation,
the adjusted student count for the school shall be
calculated by multiplying the student count by 95
percent of the student rate for a school that has a
student count of 175."
Reletter the following subsection accordingly.
Page 2, line 7:
Delete "(c) and (d)"
Insert "(c) - (e)"
Page 2, line 10:
Delete "AS 14.17.905(b)"
Insert "AS 14.17.905"
Page 2, following line 10:
Insert new material to read:
"Sec. 14.17.905. Facilities constituting a school.
(a) For purposes of this chapter, the determination of
the number of schools in a district is subject to the
following:
(1) a community with an ADM of at least 10,
but not more than 100, shall be counted as one school;
(2) a community with an ADM of at least 101,
but not more than 425, shall be counted as
(A) one elementary school, which
includes those students in grades kindergarten
through six; and
(B) one secondary school, which
includes students in grades seven through 12;
(3) in a community with an ADM of greater than
425, each facility that is administered as a separate
school shall be counted as one school, except that each
alternative school with an ADM of less than 175 [200]
shall be counted as a part of the school in the
district with the highest ADM."
Co-Chair Stedman OBJECTED for discussion.
Senator Huggins described past experience with charter
schools in the Matanuska-Susitna (Mat-Su) Valley. He
commented that the original charter school law was put in
place in a different era and the provisions can cause
schools to lose significant funding when the loss of one
student changes the count from 150 to 149. He has been
supportive in the past of financial correction to the
situation and he wanted the change to be put into statute.
Senator Huggins described similar issues for alternative
schools and noted a resolution from the Mat-Su Borough
School District ("Resolution No. 09-002," Copy on File). In
the same way charter schools must have a minimum of 150
students, alternative schools must have a minimum of 200.
Alternative schools suffer from the same funding problems if
they lose a single student below the minimum. The amendment
would address the issue for alternative schools.
9:11:24 AM
JODY SIMPSON, STAFF, SENATOR CHARLIE HUGGINS, SPONSOR,
addressed the mechanics of Amendment 1. She explained that
the threshold for alternative schools would be lowered from
200 to 175 students. Alternative schools that consistently
have fewer than 175 students will continue to be funded as
if their students attended the largest in the district, and
will not get the 1.18 rate that SB 57 gives to charter
schools. The amendment also puts in place the one-year hold-
harmless provision for alternative schools with more than
175 students the previous year or schools in the first year
of operation. Alternative schools will receive 95 percent of
the per-student rate for the 175 count. Alternative schools
will have to submit a plan for the hold-harmless year and
work with their school board to determine a course of action
if enrollment projections are not met and the school no
longer qualifies for the hold-harmless provision. She
stressed that the measure is a legislative priority for the
Mat-Su School Board.
EDDY JEANS, DIRECTOR, SCHOOL FINANCE AND FACILITIES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, expressed
support for the amendment. He pointed out that the amendment
addresses the problem that occurs when an alternative school
falls below the 200 student mark.
9:14:16 AM
Co-Chair Hoffman asked how many schools would be covered by
the bill before the amendment and how many schools had
between 175 and 200 students. Mr. Jeans answered that the
original bill addressed four charter schools with student
counts below 150. The amendment would address one
alternative school. A total of five schools would be
affected.
Senator Olson requested the Sponsor's opinion of the
amendment. Senator Thomas replied that he was supportive of
the amendment.
Co-Chair Stedman WITHDREW his OBJECTION to Amendment 1.
There being NO further OBJECTION, Amendment 1 was adopted.
9:15:43 AM
Mr. Jeans referred to the fiscal note and emphasized that
page 2 lists the four charter schools that would qualify for
the additional funding for small schools. The schools with
enrollment under 150 would be funded at the 1.18 rate. Page
3 of the note shows the fiscal impact of the amendment. One
school would generate an additional $600,000. The total
fiscal note is $1,314,300.
Co-Chair Stedman asked if the fiscal note would change from
the draft version. Mr. Jeans did not expect a change.
Co-Chair Stedman opened public testimony.
KIKI ABRAHAMSON, TEACHER, FIREWEED ACADEMY and ALASKA
CHARTER SCHOOL ASSOCIATION, HOMER (testified via
teleconference), testified in support of the legislation.
She emphasized the importance of providing equitable funding
for educational alternatives.
9:18:22 AM
Senator Ellis thought the legislation addressed unfinished
business and stated support for the improvements to the
bill.
Senator Huggins informed the committee that his wife was
employed by the Mat-Su school district.
Senator Olson spoke for constituents in his district who
support the bill, particularly the Nome Charter School.
Senator Ellis noted the presence of Juneau charter school
students in the audience.
9:19:52 AM AT EASE
9:20:31 AM RECONVENED
BRENDA TAYLOR, PRESIDENT, ACADEMIC POLICY COMMITTEE, JUNEAU
COMMUNITY CHARTER SCHOOL, introduced four students who were
present in the room. The group supported the legislation.
Co-Chair Stedman commended the students for taking part in
the legislative process. Ms. Taylor told the committee that
the students were representing other students who wanted to
be there but were unable to attend.
Co-Chair Stedman closed public testimony.
Senator Thomas MOVED to report SB 57 out of Committee with
individual recommendations and the accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CS SB 57(FIN) was REPORTED out of Committee with a "do pass"
recommendation and with attached fiscal note by the
Department of Education and Early Development.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Amendment 1 Version E 2.pdf |
SFIN 4/1/2009 9:00:00 AM |
SB 57 |
| articles and back-up.pdf |
SFIN 4/1/2009 9:00:00 AM |
HB 109 |
| Letters of Support SB57.pdf |
SFIN 4/1/2009 9:00:00 AM |
SB 57 |
| SB57-EED-ESS-amendment_3-31-09Fiscal NoteDraft.pdf |
SFIN 4/1/2009 9:00:00 AM |
SB 57 |
| HB172 DOR GeFONSI.pdf |
SFIN 4/1/2009 9:00:00 AM |
HB 172 |
| Briefing on ASLC Liquidity Issues and Proposed Paln of Action.pdf |
SFIN 4/1/2009 9:00:00 AM |
HB 109 |
| Chart from ACPE website explaining loans that are affected by Hb 109.pdf |
SFIN 4/1/2009 9:00:00 AM |
HB 109 |
| HB 109 sponsor statment.pdf |
SFIN 4/1/2009 9:00:00 AM |
HB 109 |