Legislature(2011 - 2012)SENATE FINANCE 532
03/29/2012 01:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB25 | |
| HB250 | |
| SB182 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 25 | TELECONFERENCED | |
| + | HB 250 | TELECONFERENCED | |
| + | SB 182 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 182
"An Act amending the amount of state funding provided
to school districts for pupil transportation."
Co-Chair Stedman relayed that SB 182 had not previously
been heard by the committee. The intent was to introduce
the legislation, hear public testimony, and set the bill
aside for further review.
2:10:55 PM
SENATOR KEVIN MEYER, SPONSOR, introduced SB 182. He
discussed that education and addressing complex issues
related to its delivery to students was a top priority of
the Senate. He shared that as co-chairs of the Senate
Education Committee both he and Senator Joe Thomas had been
looking for ways to improve the system, including the
passage of SB 171, which would increase the Base Student
Allocation. Another important and costly item was pupil
transportation that totaled approximately $62 million
annually. He elaborated that up to 2003 the state provided
funding for pupil transportation based on actual costs
(derived from annual financial audits) that were reported
to the Department of Education and Early Development
(DEED). Subsequent to 2003 reimbursement had been
determined on a per pupil basis; it had been determined
that the method was underfunding pupil transportation
costs, which had forced districts to take money out of
classrooms to fund transportation. Additionally, there was
no consistency between districts because they dealt with
the issue in different ways (e.g. newer versus older school
buses and other).
Senator Meyer communicated that SB 182 would recalibrate
the existing per pupil amount received by districts under
the current grant program up to more realistic levels. The
bill would change the per pupil program to an actual cost
or reimbursable program similar to the system that was in
place prior to 2003; the program would be based on annual
financial audits reported to DEED. Additionally, the bill
would give DEED oversight to control costs; the goal was
for the department to line up all school districts that
would allow a Request for Proposal (RFP) process to obtain
competitive bids on the busing system (currently school
districts were responsible for their own RFPs and rates
were high in some areas).
2:14:39 PM
Co-Chair Stedman noted the one fiscal note from DEED in the
following estimates: an FY 12 supplemental in the amount of
$8,103,300; an FY 13 appropriation for $10,450,300, which
was in addition to the $62,202,700 in the governor's
proposed FY 13 operating budget; and one additional full-
time position.
2:15:32 PM
DAVE JONES, ASSISTANT SUPERINTENDENT, KENAI PENINSULA
SCHOOL DISTRICT, KENAI (via teleconference), testified in
support of SB 182. He thanked the committee for addressing
the issue. He stated that transportation costs had risen
substantially and districts were forced to pull money from
classrooms if the costs were not met within the
transportation funding. He shared that the Kenai district
had attempted many strategies to entice additional vendors
to bid, but attempts had been unsuccessful. He stressed
that without the legislature's help there would be a
substantial deficit in the transportation fund. He urged
the passage of the bill.
2:16:48 PM
MIKE FISHER, CHIEF FINANCIAL OFFICER, FAIRBANKS NORTHSTAR
SCHOOL DISTRICT, FAIRBANKS (via teleconference), voiced
support for SB 182. He thanked the committee and sponsor
for the work done on the transportation issue. He shared
that the district bused over 7,000 students per day and
covered over 1 million miles annually. He emphasized that
the bill would help the district keep other critical
operating dollars in the classroom.
2:17:29 PM
STEVEN KALMES, DIRECTOR OF TRANSPORTATION, ANCHORAGE SCHOOL
DISTRICT, ANCHORAGE (via teleconference), testified in
support of SB 182. He communicated that the district had
seen significant increases in pupil transportation costs
that surpassed the amount provided under the grant system.
He pointed to steep fuel increases in recent years and
shared that in 2006 the district had a fuel cap of $2.50
per gallon in its contract; prices were currently over
$4.00 per gallon. Significant increases had occurred due to
rising fuel and school bus costs; bus cost increases were a
result of escalating costs for raw materials (3 percent to
5 percent annually). Additionally, bus costs had increased
7 percent to 10 percent in order to meet the 2010 federal
mandate on diesel emissions. He relayed that federal
requirements were growing; in the upcoming year the
district would spend almost $500,000 on the transportation
of homeless students. He stressed that due to the increased
costs and lack of funding, the district was eating into the
classroom funding; the shortfall was expected to be
approximately $2.2 million. He reiterated the district's
support of the legislation.
2:19:28 PM
KEN FOREST, MAT-SU BOROUGH SCHOOL DISTRICT, PALMER (via
teleconference), vocalized support for SB 182. The Mat-Su
district was experiencing notable increases in expenses
related to pupil transportation. He relayed that the
district had conducted a competitive bid the prior year
that had resulted in two bids; the low bid had been
selected and approximately $11 million had been saved over
the life of the contract; however, costs had still risen
substantially. He communicated that the district would be
eating into its general operating fund for about $3.4
million in the upcoming year. He thanked the committee for
its efforts to move the bill forward.
2:20:38 PM
BRUCE JOHNSON, EXECUTIVE DIRECTOR, ALASKA COUNCIL OF SCHOOL
ADMINISTRATORS, JUNEAU, spoke in support of SB 182. He
recognized the school business officials that worked to
determine accurate per student amounts included in the CS.
He emphasized that the bill would help ensure that dollars
destined for the classroom would not be diverted to
transportation.
Senator Meyer provided closing remarks. He stated that when
the system moved from an actual cost basis to a per pupil
basis in 2003 the legislature thought the change would save
money; however, costs had increased and money had not been
saved. He opined that the system had created
inconsistencies between school districts related to busing
standards.
SB 182 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the schedule for the following
day.