Legislature(2023 - 2024)SENATE FINANCE 532

05/08/2023 01:30 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 52 INCREASE BASE STUDENT ALLOCATION TELECONFERENCED
Moved CSSB 52(FIN) Out of Committee
+= SB 48 CARBON OFFSET PROGRAM ON STATE LAND TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
SENATE BILL NO. 52                                                                                                            
                                                                                                                                
     "An  Act relating  to  education;  increasing the  base                                                                    
     student  allocation;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:13:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the committee substitute                                                                        
for SB 52, Work Draft 33-LS0369\R (Marx, 5/5/23).                                                                               
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
2:13:50 PM                                                                                                                    
                                                                                                                                
KEN ALPER, STAFF, SENATOR DONNY OLSON, explained the                                                                            
committee substitute:                                                                                                           
                                                                                                                                
     Two main changes:                                                                                                          
     1)  Page   8,  line  7.  Increases   the  Base  Student                                                                    
     Allocation by  $680, from $5,960 to  $6,640, for FY2024                                                                    
     (effective July 1, 2023).                                                                                                  
     2) Removed  subsequent year increases  to the  BSA that                                                                    
     were in the Education Committee version.                                                                                   
                                                                                                                                
     What the bill still does:                                                                                                  
     1) Retains  the changes  made in Senate  Education that                                                                    
     add  new  reporting  and  "dashboard   requirements  to                                                                    
     better track  academic performance and the  progress of                                                                    
     each high  school graduating  class. These  are amended                                                                    
     into the  existing requirements  created by  the Alaska                                                                    
     Reads Act in 2022.                                                                                                         
                                                                                                                                
Co-Chair  Olson  WITHDREW  the  OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:15:04 PM                                                                                                                    
                                                                                                                                
SENATOR LOKI TOBIN, SPONSOR, introduced herself.                                                                                
                                                                                                                                
MIKE MASON, STAFF, SENATOR LOKI TOBIN, introduced himself.                                                                      
                                                                                                                                
Senator   Tobin  explained   that  the   proposed  committee                                                                    
substitute  met the  policy  goal set  forth  by the  Senate                                                                    
Education  Committee  to  significantly  increase  the  Base                                                                    
Student Allocation (BSA).  She stated that there  was a hope                                                                    
to  do  what  was  needed  to  ensure  the  passage  of  the                                                                    
legislation  in the  current year.  She stated  that it  was                                                                    
clear   that  the   Alaska  public   education  system   was                                                                    
struggling. She stressed that the  bill would be a permanent                                                                    
increase to  the BSA to  help children and young  adults who                                                                    
received a public education in the state.                                                                                       
                                                                                                                                
Senator  Bishop MOVED  to ADOPT  Amendment 1,  33-LS0369\R.3                                                                    
(Marx, 5/6/23).                                                                                                                 
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
Senator Bishop  explained the amendment. He  stated that the                                                                    
amendment   would   raise   the  residential   stipend   for                                                                    
residential  schools.  He  stated   that  it  was  for  $4.2                                                                    
million.                                                                                                                        
                                                                                                                                
Senator Wilson  asked which  boarding schools  the amendment                                                                    
would apply to.                                                                                                                 
                                                                                                                                
Senator  Bishop  replied  that the  amendment  was  for  the                                                                    
Southeast  Region,  Southcentral   Region,  Nenana,  Galena,                                                                    
Southwest, Northern  Remote, Nome,  and Kotzebue.  He stated                                                                    
that it covered all residential schools.                                                                                        
                                                                                                                                
Co-Chair  Olson  REMOVED  the   OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Senator Tobin spoke in support of the amendment.                                                                                
                                                                                                                                
Senator  Bishop MOVED  to ADOPT  Amendment 2,  33-LS0369\R.4                                                                    
(Marx, 5/6/23).                                                                                                                 
                                                                                                                                
Co-Chair Olson OBJECTED for discussion.                                                                                         
                                                                                                                                
Mr.  Alper  explained  Amendment   2.  He  stated  that  the                                                                    
amendment would amend  the statute that was  the base number                                                                    
for  the people  transportation formula.  He stated  that it                                                                    
would be the  input for calculating the line  in the budget,                                                                    
which  would cover  the cost  of  school transportation.  He                                                                    
stated that the current number  was based on 2016. He stated                                                                    
that  it was  a rewrite  of the  list of  the transportation                                                                    
costs. He stated that the  2016 number was increased by half                                                                    
the  amount of  inflation,  which was  about  $8 million  of                                                                    
increased funding for that need.                                                                                                
                                                                                                                                
Senator Tobin spoke in support of the amendment.                                                                                
                                                                                                                                
Senator  Wilson  surmised that  it  was  an increase  of  50                                                                    
percent based on the inflationary rate.                                                                                         
                                                                                                                                
Mr.  Alper replied  that the  accumulated inflation  for the                                                                    
years was approximately  22 percent, so the  increase was 11                                                                    
percent.                                                                                                                        
                                                                                                                                
2:20:57 PM                                                                                                                    
                                                                                                                                
Senator Wilson  stated that  it was an  $8 million  per year                                                                    
increase.                                                                                                                       
                                                                                                                                
Mr. Alper agreed.                                                                                                               
                                                                                                                                
Co-Chair Olson wondered  whether $8 million was  the cost of                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
Mr.  Alper replied  that  the cost  of  the amendment  would                                                                    
bring the total cost of the transportation to $80 million.                                                                      
                                                                                                                                
Senator Bishop  stated that even  with the  amendment, there                                                                    
will still  be districts that  do not have enough  money for                                                                    
transportation.                                                                                                                 
                                                                                                                                
2:22:36 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:23:40 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Bishop, Kiehl, Merrick, Hoffman, Olson, Stedman                                                                       
OPPOSED: Wilson                                                                                                                 
                                                                                                                                
The motion PASSED (6/1).                                                                                                        
                                                                                                                                
2:24:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:24:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:25:14 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:25:21 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:25:31 PM                                                                                                                    
                                                                                                                                
Senator Merrick wondered how  the committee substitute would                                                                    
affect the operating budget.                                                                                                    
                                                                                                                                
Co-Chair  Stedman replied  that the  bill would  have to  be                                                                    
signed  and passed  by the  governor. He  remarked that  the                                                                    
number would match  the operating budget of the  BSA, but it                                                                    
would make it permanent.                                                                                                        
                                                                                                                                
Co-Chair  Hoffman  furthered that  there  would  need to  be                                                                    
additional language in  order to ensure that  there were not                                                                    
two appropriations for the same thing.                                                                                          
                                                                                                                                
Co-Chair  Stedman stated  that it  was already  removed from                                                                    
the budget.                                                                                                                     
                                                                                                                                
Senator  Merrick surmised  that the  passage and  signing of                                                                    
the  bill would  put the  money  into the  formula, and  not                                                                    
passing  the  bill  would  put  the  money  outside  of  the                                                                    
formula.                                                                                                                        
                                                                                                                                
Co-Chair Stedman agreed.                                                                                                        
                                                                                                                                
Co-Chair  Stedman   MOVED  to   REPORT  CSSB   52(RIN)  from                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal notes. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
2:27:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:29:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CSSB 52 was REPORTED out of  committee with a four "do pass"                                                                    
recommendations, one  "do not pass" recommendation,  and two                                                                    
"no  recommendations"; and  with two  new zero  fiscal notes                                                                    
and three  new fiscal  impact notes  from the  Department of                                                                    
Education and Early Development.                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 52 Amenemdents 1 and 2 Bishop.pdf SFIN 5/8/2023 1:30:00 PM
SB 52
SB 52 CS in SFin summary of changes 5-8-23.pdf SFIN 5/8/2023 1:30:00 PM
SB 52
SB 52 work draft version R.pdf SFIN 5/8/2023 1:30:00 PM
SB 52
SB 52 Public Testimony rec'd 050823.pdf SFIN 5/8/2023 1:30:00 PM
SB 52