Legislature(1999 - 2000)

04/10/2000 01:50 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HB 191-CHARTER SCHOOLS                                                                                 
                                                                                                                                
SENATOR WILKEN moved  to adopt Version X of HB 191  as the working                                                              
draft of the committee.                                                                                                         
                                                                                                                                
CHAIRMAN MILLER objected for the purpose of discussion.                                                                         
                                                                                                                                
SENATOR WILKEN explained  the changes made in Version  X.  On page                                                              
2,  lines 11  and 12,  of  the previous  version  (Version W)  the                                                              
words, "including  the itemized cost  of administrative  and other                                                              
services to be  provided" were deleted. Also, on  lines 27 through                                                              
31, the following provision was deleted:                                                                                        
     a clause providing that the  charter school's budget shall be                                                              
     increased to  reflect operating cost savings  achieved by the                                                              
     charter school;  in this paragraph, "operating  cost savings"                                                              
     means the estimated value of  educational or related services                                                              
     provided by the district to  all schools in the district that                                                              
     are not provided to the charter school;                                                                                    
                                                                                                                                
The effect  of that  removal is  to minimize  the discussion  that                                                              
will occur  on an annual basis  among the local school  boards and                                                              
the charter  school advocates.   He believes that  discussion will                                                              
create  a  conflict.     Requiring  school  districts  to  reflect                                                              
operating  cost  savings  means  they  will have  to  set  up  new                                                              
accounting  systems  for  a relatively  few  amount  of  students.                                                              
Senator  Wilken  said  that  provision  will  set  up  an  ongoing                                                              
conflict  between charter  school advocates  and the local  school                                                              
boards  because  those  terms  are   nebulous.    Version  X  will                                                              
eliminate that conflict.                                                                                                        
                                                                                                                                
SENATOR WILKEN noted  the third change occurred on  page 3.  Lines                                                              
8 through 13 of  Version W was deleted.  Local  school boards were                                                              
mandated by law in 1995, and in the  education rewrite in 1998, to                                                              
fund charter schools  at a minimum level.  The  provision that was                                                              
removed tells the  school board what it shall  allocate to charter                                                              
schools - a decision  that is a function of  the elected community                                                              
officials  and  a  function  of   the  contract  negotiated  under                                                              
statute.    It sets  charter  schools  apart from  other  schools,                                                              
including alternative schools.  Senator  Wilken said he objects to                                                              
the  legislature  telling school  districts  how  to fund  charter                                                              
schools.                                                                                                                        
                                                                                                                                
SENATOR WILKEN noted  the charter school issue was  set forth with                                                              
a set  of agreements  about how  they would  be operated  in 1995.                                                              
The funding level  was also agreed to.  HB 191  attempts to change                                                              
those agreements.   Version  X contains  some provisions  that are                                                              
important to  the sponsor:  it increases  the allowable  number of                                                              
charter schools  to 60; it  removes the geographical  restriction;                                                              
and it allows charter schools to  operate in public buildings that                                                              
do not  meet fire  codes for public  schools as  long as  the fire                                                              
marshal's approval is obtained.                                                                                                 
                                                                                                                                
SENATOR  WILKEN repeated  his  motion  to move  Version  X as  the                                                              
working document of the committee.                                                                                              
                                                                                                                                
SENATOR  PETE KELLY  asked  Senator  Wilken for  a  recap of  what                                                              
Version X will do.                                                                                                              
                                                                                                                                
SENATOR  WILKEN said  two  provisions bother  him  most and  those                                                              
provisions revolve  around the fact  that school boards  in Alaska                                                              
are  made up  of elected  officials  who are  responsible for  the                                                              
education of K-12 in their local  areas.  School board members are                                                              
the voice  of the people.   The charter school experiment  was set                                                              
forth in  statute in 1995 but,  now, because some  charter schools                                                              
feel  they've   been  slighted,  they   are  now  coming   to  the                                                              
legislature to change the charter  school system rather than going                                                              
to their  local elected  officials  to make the  changes. In  this                                                              
time of tight funds, the legislature  is being asked to spend more                                                              
money  on a  fewer amount  of children.    He believes  that is  a                                                              
decision to be  made by the local elected officials.   The funding                                                              
component requires  school districts to  give a certain  amount of                                                              
money to charter schools.  That amount  should be decided by local                                                              
school boards.   The second  bothersome component is  the nebulous                                                              
accounting  method that  is  required as  it  will create  tension                                                              
every year  between charter  school advocates  and the  people who                                                              
are  responsible for  all K-12  students  in the  district.   That                                                              
tension will not be productive for the district.                                                                                
                                                                                                                                
SENATOR PETE  KELLY asked  if Version X  eliminates, and  does not                                                              
make  adjustments to,  the funding  and  accounting provisions  in                                                              
Version W.                                                                                                                      
                                                                                                                                
SENATOR  WILKEN replied  yes, but  Version  X contains  everything                                                              
else.                                                                                                                           
                                                                                                                                
Number 598                                                                                                                      
                                                                                                                                
REPRESENTATIVE  DYSON, sponsor of  HB 191,  noted the same  issues                                                              
were  discussed  on the  House  side.   He  stated  that when  the                                                              
charter school  legislation was passed  in 1995, it was  viewed by                                                              
some of  the experts in  this area as  the weakest  charter school                                                              
bill in the nation.   Several legislators said, at  the time, that                                                              
it would need to be revisited because  charter schools would never                                                              
survive with that  legislation.  Some considered  that legislation                                                              
to  be a  cruel  hoax  because it  gave  false hope  that  parent-                                                              
directed schools could make it.   The charter school issue is at a                                                              
nexus: charter  schools either need  more assistance or  they will                                                              
fold.                                                                                                                           
                                                                                                                                
REPRESENTATIVE DYSON  said nothing in  Version W changes  the fact                                                              
that school  boards will  remain in control.   The process  is not                                                              
one of negotiation;  Version W only  "opens up the books"  so that                                                              
discussions  can go  forward.   The charter  school advocates  are                                                              
coming to  the local government with  nothing to negotiate.   They                                                              
are supplicants  only.   The issue of  the local contribution  has                                                              
been  controversial.   His reading  of the  1995 law  is that  the                                                              
legislature  intended that  each  charter school  would get  their                                                              
fair share  of all of the  allocations - federal, state  and local                                                              
money.  There  is some evidence that some school  districts do not                                                              
feel they  need to  give the  charter schools  any portion  of the                                                              
local contribution  over four  mils.  Version  W makes  clear that                                                              
charter  school  students  should   get  treated  like  any  other                                                              
students and  that they receive the  same allocation of  the local                                                              
contribution over four mils.                                                                                                    
                                                                                                                                
REPRESENTATIVE DYSON  noted the section that deals  with estimated                                                              
cost only  says if the  charter school  saves the school  district                                                              
money because  the district does not  have to provide it  with the                                                              
same  services, then  the charter  school  will have  a chance  to                                                              
receive that money.   For example, if the charter  school does not                                                              
require snow plowing  services and saves the district  money, then                                                              
the charter  school can get that  money.  The language  on page 2,                                                              
lines 11 and  12, does not really require anything  different than                                                              
what the  law already says.   It only  asks for some  itemization.                                                              
Some  school   districts  claim  that   they  do  not   have  that                                                              
information but Commissioner Cross  of the Department of Education                                                              
believes they  do, and that if they  do not, they should  have it.                                                              
He repeated that Version W does not change local control.                                                                       
                                                                                                                                
SENATOR ELTON stated support for  Version X because it liberalizes                                                              
some   provisions,   such   as  contract   duration,   lifts   the                                                              
geographical  component,  and  lifts  the  cap on  the  number  of                                                              
schools.   He, like Senator Wilken,  is bothered by  the provision                                                              
that tells local school districts  how they must deal with charter                                                              
schools.   What he finds  particularly offensive is  the provision                                                              
that allocates  the specific local  contribution.  He  agrees with                                                              
Senator Wilken that that provision  sets a floor and a ceiling and                                                              
gives the local  districts no latitude at all.   He believes those                                                              
kinds of  decisions are best made  at the local level  rather than                                                              
at  the  legislative  level.   That  will  put  in law  a  special                                                              
provision for  charter schools  that is  not available  for public                                                              
schools.                                                                                                                        
                                                                                                                                
CHAIRMAN  MILLER  noted  that  objection  was  maintained  to  the                                                              
adoption of Version  X so a roll call vote was  taken.  The motion                                                              
to adopt  Version X failed with  Senators Pete Kelly,  Pearce, and                                                              
Miller voting "nay," and Senators Wilken and Elton voting "yea."                                                                
                                                                                                                                
CHAIRMAN MILLER stated that Version W was before the committee.                                                                 
                                                                                                                                
SENATOR ELTON  moved to amend Version  W by deleting Section  4 on                                                              
page 3 which reads as follows.                                                                                                  
Sec. 4.   AS 14.03.260  is amended by  adding a new  subsection to                                                            
read:                                                                                                                           
                                                                                                                                
     (e) In addition to the amount provided to an approved                                                                      
     charter   school  in the annual  program budget under  (a) of                                                              
     this  section,  a  charter  school  budget  must  include  an                                                              
     allocation  equal to  the amount determined  by dividing  the                                                              
     amount of  local revenues  contributed under AS  14.17.410(c)                                                              
     by  the  average   daily  membership  of  the   district  and                                                              
     multiplying that number by the average daily membership of                                                                 
     the charter school.                                                                                                        
                                                                                                                                
The  motion  to delete  Section  4  carried with  Senators  Elton,                                                              
Wilken,  and Pete  Kelly  voting "yea,"  and  Senators Pearce  and                                                              
Miller voting "nay."                                                                                                            
                                                                                                                                
SENATOR   PEARCE  moved   SCSHB  191(HES)   from  committee   with                                                              
individual recommendations.                                                                                                     
                                                                                                                                
SENATOR WILKEN  objected.  The motion  to move SCSHB  191(HES) out                                                              
of committee carried with Senators  Elton and Wilken voting "nay,"                                                              
and Senators Pearce, Pete Kelly, and Miller voting "yea."                                                                       

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