Legislature(1995 - 1996)

02/03/1995 09:10 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 SHES - 2/3/95                                                                 
                                                                               
         SB  22 APPROP: K-12 SUPPORT; DEBT RETIREMENT                        
                                                                               
 Number 254                                                                    
 CHAIRMAN GREEN introduced  SB 22  as the next order of business               
 before the committee.                                                         
                                                                               
 SENATOR HALFORD, Prime Sponsor, expressed the need for a decision             
 on the funding of education by March, before the budget rush.  He             
 pointed out that SB 22 lists Mental Health Trust Income as one of             
 the funding sources.  He offered an amendment which would change              
 the amount of funding in regards to the student load increase.                
 This change would bring the funding level per unit to that of last            
 year while increasing the cost.                                               
                                                                               
 Number 292                                                                    
                                                                               
 SENATOR LEMAN asked how education funding, which is the largest               
 portion of the budget, could be increased while other areas absorb            
 budget cuts.  All areas of the budget should face the same                    
 constraints.  The state faces a $300 million to $500 million budget           
 deficit; it would not be fiscally responsible to consider total               
 cost increases even if the cost per unit remains the same.                    
                                                                               
 SENATOR HALFORD stated that he wanted to put the question of the              
 foundation formula before the legislature.  He expressed                      
 frustration in that SB 22 would be adding to the least equitable              
 and understandable formula.  The formula should be rewritten.  He             
 emphasized the need to deal with the formula soon in order that the           
 municipalities can set their tax rates.                                       
                                                                               
 SENATOR HALFORD explained that his amendment would correct the                
 Mental Health question.  The amendment would be necessary if the              
 committee desired to proceed with the total amount in SB 22. The              
 amendment does not change the total amount; there is only a change            
 in the fund source.                                                           
                                                                               
 Number 340                                                                    
                                                                               
 SENATOR MILLER moved Amendment 1.  Without objection, it was so               
 ordered.                                                                      
                                                                               
 SENATOR HALFORD clarified that the amendment would change the                 
 funding source from the Mental Health Trust to the General Fund.              
                                                                               
 DEBRA GERRISH, a concerned parent, pointed out that there was a               
 paper available which explained the foundation formula.  She gave             
 examples of the decline in education in her district:  students               
 without books for six weeks, lack of desks, and elementary classes            
 with 28 and 30 students.  She urged the committee to increase the             
 foundation formula because inflation decreases the formula when the           
 units of the children are considered.  She suggested instituting a            
 school tax and an income tax.                                                 
                                                                               
 SENATOR LEMAN understood Ms. Gerrish's request to increase the                
 amount of the foundation formula.  He asked what the fund source              
 should be.  DEBRA GERRISH reiterated two possible funding sources:            
 a school tax and an income tax.  She informed the committee that              
 the high school parent group would be writing a letter suggesting             
 that the local Board of Education freeze the step in column in the            
 district.                                                                     
                                                                               
 SENATOR LEMAN asked Ms. Gerrish if she were willing to pay a                  
 portion of the cost of the education of her children.  DEBRA                  
 GERRISH stated that she would be willing to contribute directly               
 only if there was a sliding scale fee instituted so that parents              
 would contribute only as much as they could afford.                           
                                                                               
 WANDA COOKSEY, Small Single Site School District, asked the                   
 committee to include the small single site school district in SB 22           
 in the amount of $3.2 million, as it did last year.                           
                                                                               
 SENATOR LEMAN inquired as to the correctness of the amount for the            
 single site schools.  SENATOR HALFORD explained that the amount was           
 $3.2 million last year, but the single site amount and list has               
 changed throughout the years.                                                 
                                                                               
 Number 438                                                                    
                                                                               
 WANDA COOKSEY offered the committee a proposed legislative                    
 correction which would put single sites into statutes so they would           
 not have to be added every year.  She informed the committee that             
 in the previous three years the amount for single sites and the               
 list of single site schools has stabilized.                                   
                                                                               
 VERNON MARSHALL, Executive Director of the National Education                 
 Association of Alaska, thanked Senator Halford for bringing this              
 funding issue before the committee so early.  He expressed concern            
 with the contents of the bill.  The growth of the student                     
 population, school violence, and student respect all need to be               
 addressed.  He pointed out that the instructional unit has been               
 increased only once since 1987; there is a need for inflation-                
 proofing in education.  He stated that omitting the single site               
 school district does not solve the problem and those children need            
 to be addressed.  He urged the committee to address all the                   
 problems he cited and increase the area of technology.  In                    
 conclusion, he said that he was committed to rewriting the formula.           
                                                                               
                                                                               
 Number 504                                                                    
                                                                               
 SENATOR HALFORD clarified that single site schools were not present           
 in SB 22 because the formula does not call for single site schools,           
 they are essentially an addition to the formula.  VERNON MARSHALL             
 felt that this issue could be addressed in the rewrite of the                 
 formula.                                                                      
                                                                               
 SENATOR LEMAN informed the committee that SB 22 is a $800 million             
 General Fund investment plus the $120 million of the other                    
 resolution which is a considerable investment.  In Alaska, $10,000            
 to $11,000 is spent per student per year on average which includes            
 local matches for K-12.  He suggested that the total cost of                  
 education be decreased without hurting the services provided.  He             
 related his own good experience in the Alaska school system before            
 there was even oil money.  How can the best services be provided in           
 an atmosphere of decreasing revenues?                                         
                                                                               
 VERNON MARSHALL explained that he felt education should be                    
 structured so that student competition can occur in the new                   
 century.  The world has changed and so should the schools and the             
 instruction of the children.  He suggested creating incentives for            
 local school districts to contribute their share to educate their             
 own children.  He pointed out that many states have fifty percent             
 or more of their General Fund going towards education, while Alaska           
 contributes thirty-two percent of the General Fund.  He explained             
 that Alaska has a unique position; the bush has an increased                  
 delivery expense per child which should be addressed in the                   
 formula.                                                                      
                                                                               
 Mr. Marshall discussed the need to set a goal and then review the             
 approaches and the money needed to achieve the objectives.  He                
 stated that educational money should be spent in a manner to allow            
 students the best possibility of becoming viable citizens.                    
                                                                               
 TAPE 95-1, SIDE B                                                             
                                                                               
 Number 583                                                                    
                                                                               
 SENATOR LEMAN asked if competition were applied could educational             
 services be better with decreased cost.  VERNON MARSHALL felt that            
 the educational system could do better, but it is trying to do its            
 best now.  Mr. Marshall felt that public education already faces              
 competition with correspondence courses, private schools, and home            
 schooling.  Mr. Marshall explained that parents want development of           
 their children, but increased class sizes creates difficulty in               
 achieving this development for all children.                                  
                                                                               
 STEVE McPHETRES, Executive Director of the Alaska Council of School           
 Administrators, pointed out that the committee had the Council's              
 paper which expresses their desire to increase the foundation                 
 portion of SB 22.  He appreciated the sponsor's prompt timing with            
 this legislation.  He informed the committee that after attending             
 a parent meeting, the parents' desire to have a safe, healthy                 
 environment with acceptable class sizes was apparent.  These                  
 objectives cannot be achieved with continual cuts in state funding.           
 For example, Fairbanks, Juneau, Kenai, and Kodiak all face $2                 
 million reductions in order to maintain current levels of programs.           
 The reserves have been used, these areas cannot contribute any                
 more.  He urged the committee to realize that the cost of                     
 maintaining the status quo has increased while cuts continue.                 
 SENATOR MILLER moved that SB 22 as amended be moved out of                    
 committee with individual recommendations.  Without objection, it             
 was so ordered.                                                               

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