03/10/2017 08:00 AM House EDUCATION
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): || University of Alaska Board of Regents | |
| HB64 | |
| HB135 | |
| HB137 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 64 | TELECONFERENCED | |
| *+ | HB 135 | TELECONFERENCED | |
| *+ | HB 137 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE EDUCATION STANDING COMMITTEE
March 10, 2017
8:03 a.m.
MEMBERS PRESENT
Representative Harriet Drummond, Chair
Representative Justin Parish, Vice Chair
Representative Zach Fansler
Representative Ivy Spohnholz
Representative Jennifer Johnston
Representative Chuck Kopp
Representative David Talerico
MEMBERS ABSENT
Representative Lora Reinbold (alternate)
Representative Geran Tarr (alternate)
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
University of Alaska Board of Regents
Mary Katherine Hughes - Anchorage
- CONFIRMATION(S) ADVANCED
HOUSE BILL NO. 64
"An Act relating to the establishment of the Task Force on
Reading Proficiency and Reading Instruction for All Students and
on the Effects of Dyslexia on Some Students."
- MOVED CSHB 64(EDC) OUT OF COMMITTEE
HOUSE BILL NO. 135
"An Act relating to school district participation in the school
construction grant program."
- HEARD & HELD
HOUSE BILL NO. 137
"An Act re-designating the Alaska State Council on the Arts as a
public corporation and governmental instrumentality of the
state; defining the powers and duties of the Alaska State
Council on the Arts; providing exemptions from certain statutes
for the Alaska State Council on the Arts; making conforming
amendments; and providing for an effective date."
- MOVED HB 137 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 64
SHORT TITLE: READING PROFICIENCY TASK FORCE; DYSLEXIA
SPONSOR(s): REPRESENTATIVE(s) DRUMMOND
01/20/17 (H) READ THE FIRST TIME - REFERRALS
01/20/17 (H) EDC
01/30/17 (H) EDC AT 9:00 AM CAPITOL 106
01/30/17 (H) Heard & Held
01/30/17 (H) MINUTE(EDC)
03/10/17 (H) EDC AT 8:00 AM CAPITOL 106
BILL: HB 135
SHORT TITLE: SCHOOL CONSTRUCTION GRANT PROGRAM
SPONSOR(s): REPRESENTATIVE(s) WESTLAKE
02/20/17 (H) READ THE FIRST TIME - REFERRALS
02/20/17 (H) EDC
03/10/17 (H) EDC AT 8:00 AM CAPITOL 106
BILL: HB 137
SHORT TITLE: ST. COUNCIL ON THE ARTS: PUBLIC CORP.
SPONSOR(s): EDUCATION
02/20/17 (H) READ THE FIRST TIME - REFERRALS
02/20/17 (H) EDC, FIN
03/10/17 (H) EDC AT 8:00 AM CAPITOL 106
WITNESS REGISTER
MARY KATHERINE HUGHES, Appointee
University of Alaska Board of Regents
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the University of
Alaska Board of Regents.
KRISTIN KRANENDONK, Staff
Representative Harriet Drummond
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the committee substitute (CS) for
HB 64, on behalf of the House Education Standing Committee,
sponsor by request, chaired by Representative Drummond.
REPRESENTATIVE DEAN WESTLAKE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 135, as prime sponsor, and
answered questions.
ANNMARIE O'BRIEN, PhD, Superintendent
Northwest Arctic Borough School Board
Kotzebue, Alaska
POSITION STATEMENT: Testified in support of HB 135 and answered
questions.
MIKE NAVARRE, Mayor
Kenai Peninsula Borough
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 135 and answered
questions.
KRISTIN KRANENDONK, Staff
Representative Harriet Drummond
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 137, on behalf of the House
Education Standing Committee, sponsor by request, chaired by
Representative Drummond.
BENJAMIN BROWN, Chair, Board of Trustees
Alaska State Council on the Arts
Department of Education and Early Development
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 137.
ANDREA NOBLE-PELANT, Executive Director
Alaska State Council on the Arts
Department of Education and Early Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 137.
ALICE TUNUUNATAQ BIOFF, Member, Board of Trustees
Alaska State Council on the Arts; Business Planning Specialist
Kawerak, Inc.
Nome, Alaska
POSITION STATEMENT: Testified in support of HB 137.
ACTION NARRATIVE
8:03:18 AM
CHAIR HARRIET DRUMMOND called the House Education Standing
Committee meeting to order at 8:03 a.m. Representatives
Drummond, Kopp, Parish, Johnston, and Talerico were present at
the call to order. Representatives Fansler and Spohnholz
arrived as the meeting was in progress.
^CONFIRMATION HEARING(S):
^University of Alaska Board of Regents
CONFIRMATION HEARING(S):
University of Alaska Board of Regents
8:04:06 AM
CHAIR DRUMMOND announced that the first order of business would
be a confirmation hearing for Mary Hughes, appointee to the
University of Alaska (UA) Board of Regents.
8:04:18 AM
MARY KATHERINE HUGHES, Appointee, University of Alaska (UA)
Board of Regents, directed attention to the committee packet and
reviewed the highlights of her resume. Ms. Hughes informed the
committee she is a lifelong Alaskan and practiced law in
Anchorage for 20 years, with a focus on telecommunications. Ms.
Hughes also served as the municipal attorney for Anchorage and
worked for U.S. Senator Lisa Murkowski as her chief
administrative officer and as her state director for Alaska.
She said she was first appointed to the UA Board of Regents in
2002 and was reappointed in 2008. Ms. Hughes also serves on the
Willamette University [Salem, Oregon] board of trustees, is a
life trustee at Willamette University, and has served for the
last four years on the board of directors of the Association of
Governing Boards of Universities and Colleges, which is like a
trade association for regents and trustees. She added that
several members of her family have served as teachers, on school
boards, and in support of institutions of higher learning for
many years, and she is honored to continue to do so. During her
time serving on the Board of Regents, UA has undergone many
changes, and the university is very dear to her family. She
said she is especially pleased to assist the university at this
time as the university faces a loss of state general funds and a
decline in the school population in Alaska, noting high schools
are the major source of students for the university. Ms. Hughes
said the Board of Regents will continue to provide "college
knowledge" for students throughout Alaska. One of her goals for
UA has not been met: The university has the capability and the
teaching excellence to be the university for all Alaskans.
Service on the board is a big job and each member needs to be
very committed to the university and its president and programs.
8:10:04 AM
REPRESENTATIVE JOHNSTON referred to the seat the appointee holds
on the board of trustees at Willamette University, and asked
whether the position includes governance.
MS. HUGHES replied yes, just as the Board of Regents selects the
president of UA, the board of trustees selects the president of
Willamette University.
REPRESENTATIVE JOHNSTON opined serving a private university such
as Willamette University, and a public university such as UA,
could provide an interesting perspective. She asked whether the
appointee's experience provides institutional knowledge on how
to approach declining enrollment.
MS. HUGHES agreed, noting that her longstanding service to both
institutions has been recognized by the Association of Governing
Boards. She advised private schools, due to their high tuition,
were affected by the depression felt strongly in the Lower 48,
and thus are very interested in knowing from where their
students originate. For example, Willamette University has
discovered that many of their students no longer originate in
Oregon, other Pacific Northwest states, and Hawai'i, but are
coming from California. However, California wants students to
remain in California, and provides financial [incentives],
affecting Willamette University's ability to attract students.
She said at Willamette University and UA, every student counts.
Further, many UA students are returning to education on a part-
time basis, thus UA is educating all Alaskans - at some point -
through programs such as mining certificates and fisheries
programs. Ms. Hughes opined each institution needs to develop
its own plan from a matriculation standpoint, so the institution
ensures it has the students it needs to remain healthy.
8:14:31 AM
REPRESENTATIVE PARISH pointed out the cost of tuition has
increased at more than twice the rate of inflation. He asked
what approach might be taken to remedy the situation of student
debt which, on a national level, exceeds $1 trillion.
MS. HUGHES responded that increases in tuition at UA typically
result from the university's financial circumstances, which are
based on income from general funds (GF), tuition, and research,
in fact, every dollar of research [funding] has a compounding
affect within the community. The regents believe UA tuition is
still quite good, and increases in tuition are considered
carefully. She expressed her preference to not raise tuition,
but UA does not receive GF at a level consistent with past
appropriations, and concluded UA provides a good quality of
education for the cost paid.
REPRESENTATIVE KOPP inquired about her role as a regent to
resolve the divide between UA leadership and faculty staff who
recently took a vote of no confidence in the president of the
university.
MS. HUGHES said change is difficult for all and opined the
situation with Strategic Pathways [a multi-part, multi-year
process to reconfigure UA administrative and academic programs
to address funding cuts] has led to fears on the part of faculty
members. At a March [2017], public meeting regents met with
representatives - which was very helpful - and she said she
thought there would be similar meetings. The regents and the
president value and respect the faculty, and the circumstances
that UA faces today are unprecedented, with the possibility of
"cutting lines of education ... the lines of what are we going
to teach, at what campuses, and what is going to be closed down
...." She stressed UA must face major issues, although all
parties are in the process together. Ms. Hughes stated faculty,
students, and the administrative staff will present ideas; not
all the ideas will come from Strategic Pathways, the regents,
and UA executive staff. The response from the faculty was due
to faculty members feeling threatened by how UA will seek
funding, and she expressed her hope that including
representatives from faculty, students, and the administration,
at every future meeting, will be helpful.
8:20:57 AM
REPRESENTATIVE PARISH referred to UA's large, statewide staff
and noted Dr. Abel Bult-Ito [University of Alaska (UAF)
Department of Biology and Wildlife] has proposed a staff
reduction in order to increase the level of scholarships and to
increase the research staff, thereby increasing UA attendance.
He asked whether Dr. Bult-Ito has presented his proposal to the
regents.
MS. HUGHES acknowledged that many of the university's statewide
functions have positions - such as payroll and accounting - that
would need to be discontinued, and she said Dr. Bult-Ito's plan
is available to all of the regents and has been discussed. In
looking at statewide functions, the regents have considered
transferring some positions to Fairbanks and Anchorage; however,
these positions are not limited to the president's executive
staff.
CHAIR DRUMMOND noted that faculty and students have been
weighing in on the statewide staffing situation and the high
salaries that these mostly non-teaching positions represent.
She questioned whether the regents are considering dismantling
the UA statewide department in the same manner as was
implemented by the state university in Oregon.
MS. HUGHES said that consolidation of statewide positions to
accomplish administrative operations is a concern in many
states, and the regents are looking at "any and all
opportunities to provide Alaskans [with a] better education."
In further response to Chair Drummond, she said she is the
longest serving member presently on the Board of Regents.
CHAIR DRUMMOND expressed support for the appointee.
8:26:25 AM
REPRESENTATIVE PARISH moved to advance the confirmation of the
appointee to a joint session of the House and Senate for
consideration. He noted that each member's signature on the
committee's report in no way reflects the member's vote during
the joint floor session. There being no objection, the
confirmation was advanced.
8:27:03 AM
The committee took an at-ease from 8:27 a.m. to 8:29 a.m.
HB 64-READING PROFICIENCY TASK FORCE; DYSLEXIA
8:29:27 AM
CHAIR DRUMMOND announced that the next order of business would
be HOUSE BILL NO. 64, "An Act relating to the establishment of
the Task Force on Reading Proficiency and Reading Instruction
for All Students and on the Effects of Dyslexia on Some
Students."
CHAIR DRUMMOND asked Representative Parish to withdraw his
motion to report HB 64 out of committee with individual
recommendations and forthcoming fiscal notes. [The motion by
Representative Parish and the objection to the motion stated by
Representative Talerico were made and left pending on 1/30/17.]
8:29:58 AM
REPRESENTATIVE PARISH withdrew his motion.
8:30:08 AM
REPRESENTATIVE PARISH moved to adopt the proposed committee
substitute (CS) for HB 64, labeled 30-LS0345\J, Glover, 3/2/17,
as the working document. [Without objection, Version J was
before the committee.]
8:30:39 AM
KRISTIN KRANENDONK, Staff, Representative Harriet Drummond,
Alaska State Legislature, presented the changes made by the CS,
which are offered to address concerns voiced during a previous
hearing. She directed attention to the bill on page 1, lines
11-12, and explained language was changed to recognize the work
the state is doing for students, while still acknowledging there
is room for improvement. Continuing to page 2, line 27,
[subparagraph] (C) was added to examine what education reforms
are currently being implemented in the state and to provide an
effectiveness evaluation. On page 2, beginning on line 27,
through page 3, line 2, language was changed to clarify the
scope of the task force and language related to funding was
removed. On page 4, lines 1-3, language was changed to allow
one member to represent either the Association of Alaska School
Boards or the Alaska Council of School Administrators. On page
4, lines 4-5, language was removed regarding a seated member of
the task force being a non-voting judge and replaced that member
with a person representing the Alaska Association of Elementary
School Principals. On page 4, line 13, language was changed to
recognize all non-profit organizations focused on reading and
education issues and to include that at least one of those
members is a parent of a child with a reading disability.
Finally, on page 4, line 31, language was added to define the
term "dyslexia," using the most universally accepted definition.
REPRESENTATIVE FANSLER referred to the removal of the judicial
member and asked if there is any concern that the removal will
be detrimental in any way.
MS. KRANENDONK said the judicial member was removed at the
request of the court system as judges are not permitted to be
partisan and serve on a task force.
8:34:17 AM
REPRESENTATIVE PARISH moved to report CSHB 64, Version 30-
LS0345\J, Glover, 3/2/17, out of committee with individual
recommendations and the accompanying zero fiscal note. There
being no objection, CSHB 64(EDC) was reported from the House
Education Standing Committee.
8:34:50 AM
The committee took an at-ease from 8:34 a.m. to 8:36 a.m.
HB 135-SCHOOL CONSTRUCTION GRANT PROGRAM
8:36:58 AM
CHAIR DRUMMOND announced that the next order of business would
be HOUSE BILL NO. 135, "An Act relating to school district
participation in the school construction grant program."
8:37:17 AM
REPRESENTATIVE DEAN WESTLAKE, Alaska State Legislature,
introduced HB 135 paraphrasing from a prepared statement, which
read as follows [original punctuation provided]:
HB 135 will allow the Commissioner of the Department
of Education to grant time extensions to school
districts raising their percentage share of project
costs appropriated through the "Educational facilities
maintenance and construction fund" (as outlined under
AS 14.11.008 "School district participation in grant
program" for appropriations made under AS 37.05.560).
Currently, school districts are required to raise the
percentage share of the total project cost within 3-
years of appropriation approval.
However, since the adoption of the 3-year time
constraint in 1993, multiple projects have required
more time to raise their required percentage share.
The more recent examples of projects that have
required more time include, but not limited to,
projects within the Yukon Flats School District,
Northwest Arctic Borough School District, Yupiit
School District and the Kenai Peninsula Borough School
District.
According to the Department of Education & Early
Development, the 3-year time lapse is appropriate for
about 95% of approved projects. However, there's
about 5% of the projects that could utilize a time
extension when faced with extenuating circumstances
outside of the school districts' control.
The Kivalina Replacement School project is one example
of why a provision for extensions is needed.
In FY2015 the State appropriated $48,958,120 for the
project State Share funding, and the participating
share amounted to $12,239,530, for a total EED
Recommended amount to $61,197,650.
However, the grant agreement has not yet been executed
for reasons beyond the control of both the Borough and
District.
First, for FY 2016 a moratorium was placed on approval
of the grant pending legislative consideration of the
balance of funding [does it need further explanation
on the moratorium?].
Secondarily, the project cannot begin until the access
road is constructed as a separate project. The road
development is proceeding in conjunction with DOT/PF,
but it is not scheduled to be completed before the
three-year deadline expires.
Without an approved grant agreement, it is difficult
to apply for other grant funds that could be used
towards the local share.
Furthermore, if the Borough and School District cannot
apply for an extension, there is potential that a
critically needed school project might be forced to
forfeit the previously appropriated State funds when
all that is needed is more time to secure additional
matching sources.
In this case, if HB 135 is passed, the Northwest
Arctic Borough could apply in writing to the
Commissioner to request an extension. If the
Commissioner decided that the project demonstrated
good cause to for the requested extension, then the
Commissioner could grant one.
REPRESENTATIVE WESTLAKE named projects that fall within the 5
percent category, which are: Tuluksak School improvement,
Hoonah major maintenance, Arctic Village soil remediation,
Kivalina replacement school, and Kachemak Selo new K-12 school
facility.
8:41:18 AM
REPRESENTATIVE JOHNSTON asked what the current balance is for
the outstanding 5 percent, and how many of the schools were part
of a judicial decision [Kasayulie v. State of Alaska].
REPRESENTATIVE WESTLAKE said he could provide further
information regarding the outstanding 5 percent, and he
clarified Kivalina School was part of a lawsuit settlement.
REPRESENTATIVE JOHNSTON inquired as to whether the Kivalina
School project includes infrastructure [access] to the school as
well as the school building.
REPRESENTATIVE WESTLAKE advised a separate project is the
infrastructure road being handled by the Department of
Transportation & Public Facilities (DOT&PF).
REPRESENTATIVE KOPP surmised that the access road that is needed
has delayed the replacement of Kivalina School.
REPRESENTATIVE WESTLAKE concurred and said the road must be
completed prior to the school being rebuilt, and the road
project is outside of the school district's control.
CHAIR DRUMMOND questioned whether construction can begin on a
school prior to having the local share in hand.
REPRESENTATIVE WESTLAKE deferred comment to the mayor of the
Northwest Arctic Borough.
8:43:56 AM
ANNMARIE O'BRIEN, PhD, Superintendent, Northwest Arctic Borough
School Board (NWABSD), stated support for HB 135, paraphrasing
from a prepared statement, which read as follows [original
punctuation provided]:
The Northwest Arctic Borough School District
wholeheartedly endorses House Bill 135, a bill
addressing the participation in the school
construction grant program allowing the Commissioner
of Education to grant an extension of the time
limitation for the identification of the required
local participating share of grant funding.
Currently, the statutes require that the local match
be identified within three years of the approval of
the legislative appropriation of grant funding. There
is no provision for the consideration of exceptional
circumstances that warrant additional time to secure
the match. This bill recognizes that such situations
may occur from time to time and allows Boroughs and
Districts to justify and petition the Commissioner for
an extension. Without such an extension, there is a
potential that a critically needed school project
might be forced to forfeit the State appropriation
when all that is needed is more time to secure
additional local funding sources.
The existing State regulations for administration of
the school construction grant program protect the
State's interests and assure the local match is
provided. The Department releases grant funding to
recipients only after specific milestone conditions
are met. The payments are a percentage of only the
State share of the project amount and in addition, 5%
of the state share is withheld until the source of the
local match is identified. There is not a danger of
the State over reimbursing a project.
Not only is the State facing restricted funding, so
are local governments. Incorporating some flexibility
into the provision for local match will allow local
governments more time to fund their share of the cost
of a greatly needed school facility upgrade.
Admittedly, the Northwest Arctic has a project that
would benefit from this bill and the Kivalina
Replacement School project is a perfect example of why
a provision for exceptions is needed. In April 2015,
the legislature appropriated partial grant funding for
the Kivalina Replacement School. At that time the
clock started ticking to secure the local share.
However, the grant agreement has not yet been executed
for several reasons beyond the control of the Borough
and District. For FY 2016 a moratorium was placed on
approval of the grant pending legislative
consideration of the balance of funding.
Another complication is construction of the project
cannot begin until an access road is constructed as a
separate project. The road development is proceeding
in conjunction with DOT/PF [Department of
Transportation & Public Facilities], but it is not
scheduled to be complete before the three-year
deadline for the match expires. Without an approved
grant agreement, it is difficult to apply for other
grant funds that could be used as part of the local
share.
House Bill 135 will delegate to the Department
discretion in extraordinary circumstances to allow
projects such as Kivalina Replacement School to move
forward without the potential of having to forfeit
appropriated funding, and to continue managing risk to
the State and local entities and support the
improvement of educational conditions for the children
of Alaska.
8:48:42 AM
REPRESENTATIVE JOHNSTON noted Northwest Arctic Borough School
District (NWABSD) has been undergoing a methodical rebuilding of
the school facilities begun in the 1990s or 2000, and asked if
this is the final rebuild project.
DR. O'BRIEN replied yes.
REPRESENTATIVE JOHNSTON asked for the percentage of the average
local participation match funding.
DR. O'BRIEN replied the borough-required match is 20 percent.
CHAIR DRUMMOND expressed concern that because of the delay, the
project will cost significantly more, and thus the school
project, as well as school programs, may suffer.
DR. O'BRIEN said it's hard to consider the full effect of
inflation on a project that has been delayed. However, the
needs of the students attending Kivalina School are paramount to
funding issues. The school is in poor condition and the
district makes the best effort with the existing facility. She
pointed out as the delay continues, energy efficiencies and new
construction methods are becoming available.
REPRESENTATIVE JOHNSTON asked for the student population at
Kivalina School, and for the number of students who graduated in
2016.
DR. O'BRIEN answered 160 students are enrolled in grades K-12,
and deferred response on the number of graduates.
CHAIR DRUMMOND said the legislature has been concerned about
Kivalina School for at least five years and asked for an update
on the current project schedule.
DR. O'BRIEN said the completion of the road is indeterminate,
but once construction of the road is complete, school
construction can begin, and that is expected to be completed
within two years; with the road construction estimated at three
years, a five-year timeframe is anticipated in the best
circumstances.
8:53:55 AM
MIKE NAVARRE, Mayor, Kenai Peninsula Borough, said as currently
drafted, HB 135 doesn't directly affect the Kenai Peninsula
Borough at this time, but he expressed support for the bill's
intent. Mayor Navarre recalled last year the borough received a
legislative grant in the amount of $10 million to build a school
in Kachemak Selo, which is a small community located at the
terminus of East End Road. Access to the school is not legal
access because of switchbacks and the steep grade of the road,
thus the borough is exploring options on where to build the
school. The bill would allow the commissioner, for good cause,
to provide some flexibility [in the school construction grant
program] for issues such as looking at school population trends.
Mayor Navarre said additional flexibility for good cause makes
good sense. Regarding the percentage of the match, which is 35
percent for the Kenai Peninsula Borough, he cautioned that due
to the economic contraction and the fiscal situation in Alaska,
the amount of the match is a challenge for local governments to
achieve. He noted the borough seeks to find a successful model
that can be applied for all local governments with remote
schools throughout the state. Mayor Navarre related in 1991
there was a recommendation to relocate Kivalina because the
village was being eroded by the ocean and the river; Kivalina is
the best demonstrated case that HB 135 may prevent a local
government from rushing to find the funds to preserve a grant,
instead of finding the most rational and fiscally responsible
solutions.
8:57:39 AM
REPRESENTATIVE JOHNSTON asked the mayor if, given a choice, the
borough would prefer the $10 million designated for the school,
for education, or for other capital projects.
MR. NAVARRE responded that the reality of budget priorities must
be faced. He described the existing student housing in Kachemak
Selo as deficient and inadequate, and reluctantly suggested that
for this community, correspondence education may be the best
option, or perhaps a change to the grant in order to build a
multi-purpose building to also serve as a school. He
acknowledged funding education is a dilemma for the borough and
the state and expressed his support for education.
CHAIR DRUMMOND asked if Kachemak Selo is located at the head of
Kachemak Bay.
MR. NAVARRE said yes, adding the village is situated at the end
of East End Road and across tidal flats. The village was built
in a difficult area due to its topography and soil conditions;
in fact, to build a road would cost about $15 million.
CHAIR DRUMMOND surmised that busing is not an option.
MR. NAVARRE concurred and said a gondola was considered but that
option was also ruled out - there are no easy options.
9:02:28 AM
CHAIR DRUMMOND, after ascertaining no one else wished to
testify, closed public testimony on HB 135.
[HB 135 was held over.]
HB 137-ST. COUNCIL ON THE ARTS: PUBLIC CORP.
9:03:35 AM
CHAIR DRUMMOND announced that the final order of business would
be HOUSE BILL NO. 137, "An Act re-designating the Alaska State
Council on the Arts as a public corporation and governmental
instrumentality of the state; defining the powers and duties of
the Alaska State Council on the Arts; providing exemptions from
certain statutes for the Alaska State Council on the Arts;
making conforming amendments; and providing for an effective
date."
9:03:54 AM
KRISTIN KRANENDONK, Staff, Representative Harriet Drummond,
Alaska State Legislature, introduced HB 137 on behalf of the
House Education Standing Committee, sponsor by request. She
informed the committee the bill would [quasi] privatize the
Alaska State Council on the Arts (ASCA) by restructuring the
council as a public corporation, thereby allowing ASCA to
continue its work with Alaskan artists and art businesses. The
bill would improve the ability of the council to leverage
nonstate funding and remain within the Department of Education
and Early Development. Also, HB 137 would exempt ASCA from
state procurement code, but would provide formal and appropriate
procurement protocols. Restructuring would keep ASCA's
operating budget under the Executive Budget Act for openness and
transparency, and transition language would allow its advisory
committee public processes and public participation to remain in
place as ASCA administers grants programs and services.
Further, the bill would allow ASCA to grow and develop a funding
base and reduce its reliance on state funds. Ms. Kranendonk
presented a sectional review, paraphrasing from a prepared
statement, which read as follows [original punctuation
provided]:
Section 1 (Pages 1-4): Amends AS 39.25.110 concerning
exempt state employees to add all employees of the
Alaska State Council on the Arts (ASCA), thus making
employees of ASCA exempt from the State Personnel Act.
Section 2 (Pages 5-7): Adds artists' submissions made
in response to an inquiry or solicitation initiated by
the Alaska State Council on the Arts, to the list of
records that are exempt from public inspection under
AS 40.25.120.
Section 3 (Page 7): Repeals and re-enacts AS 44.27.040
regarding the creation of ASCA, to establish the
Council as a separate and independent public
corporation of the state of Alaska within the
Department of Education and Early Development (DEED).
Section 4 (Page 7): Amends AS 44.27.041 to charge ASCA
to be governed by an 11 member board of trustees, adds
literary arts as a field represented within the board,
and a member's expertise, rather than interest, as a
factor for consideration for board membership.
Section 5 (Page 7): Amends AS 44.27.042 to replace the
term "members" with the term "trustees" and "council"
with "board of trustees".
Section 6 (Page 8): Amends AS 44.27.043 to replace the
term "member" with "trustee".
Section 7 (Page 8): Replaces the term "members" with
the term "trustees" in AS 44.27.044 and replaces
language that entitles trustees to be reimbursed for
travel expenses at the same rate of members of state
boards under AS 39.20.180.
Section 8 (Page 8): Amends AS 44.27.045 to use gender-
neutral terms for board members.
Section 9 (Page 8-9): Amends AS 44.27.050 to require
the council to encourage literary arts as well as
other disciplines, invest in arts throughout the
state, and conduct research into artistic and cultural
activities throughout the state.
Section 10 (Page 9): Amends AS 44.27.052(a) to replace
"educational" objectives with "strategic" objectives
as it relates to the council's ability enter into
contracts and accept gifts, contributions, and
bequests.
Section 11 (Page 9-10): Amends AS 44.27.054 to replace
language with the proper terms "chair" and "trustees"
previously established and makes a conforming
amendment to Section 1.
Section 12 (Page 10): Adds a new section to AS 44.27
detailing the administration of affairs of the board
of trustees. The board of trustees shall manage the
assets of the council, establish and amend bylaws
governing the business of the corporation, and employ
an executive director to supervise the administration
of ASCA. This section also exempts ASCA from the State
Procurement Code (AS 36.30), instructs the board of
trustees to establish procedures for procurement, and
requires consistency with the Alaska Veterans
preference established in AS 36.30.32(f). The
operating budget of ASCA is subject to the provisions
established in the Executive Budget Act (AS 37.07).
Section 13 (Page 10): Amends AS 44.27.058 to require
that ASCA comply with the 20 U.S.C 951 960 (National
Foundation on the Arts and the Humanities Act of 1965)
as it relates to the receipt and disbursement of funds
from the National Endowment for the Arts.
Section 14 (Page 10-11): Amends AS 44.27.060 to add
new subsections (e) and (f) regarding confidentiality
of artist submissions and adds a provision for public
disclosure to submissions when the artist is awarded a
commission for said submission. However, under
subsection (g), subsections (e) and (f) do not apply
if the submission was created as a work for hire under
17 U.S.C. 101 or if the artist's copyright has been
transferred under 17 U.S.C. 204.
Section 15 (Page 11): Amends AS 44.27 to add
definitions for "board of trustees" and "council".
Section 16 (Page 11-12): Creates transition language
for ASCA to allow council members to remain on the
board of trustees until their term is over, allows
current employees to remain with ASCA, allows
regulations, contracts, rights, liabilities, and
obligations created under current law to remain in
effect, and allows ASCA to retain all records,
equipment, appropriations, and other property.
Section 17 (Page 12): Creates an effective date for
this legislation as July 1, 2017.
9:11:13 AM
BENJAMIN BROWN, Chair, Board of Trustees, Alaska State Council
on the Arts (ASCA), Department of Education and Early
Development (DEED), stated the ASCA Board of Trustees
("council") has spent the last year searching for ways to
address challenges facing the state's art agency, which are
similar to those facing all parts of state government. The bill
would allow ASCA to perform well for the next 50 years, and he
related HB 137 is the result of a lengthy and considered process
involving all of the volunteer council members, staff, and
stakeholders, such as the Rasmuson Foundation.
REPRESENTATIVE KOPP asked how HB 137 would enable the arts
council to more effectively partner with nonprofits that wish to
make donations to ASCA.
MR. BROWN said ASCA has a long-standing working relationship
with the Rasmuson Foundation, which provides the majority of
funds supporting arts education programs. Recently, ASCA has
embarked on a multi-year partnership with the Margaret A.
Cargill Foundation, and its funds are supporting meaningful and
transformative work with the Copper River and Kodiak school
districts through the new visions initiative partnerships. Mr.
Brown pointed out the bill does not exempt ASCA from oversight
by the governor or the legislature in the receipt and
expenditure of private foundation funds; however, the state
procurement code brought out the need for the bill because when
ASCA receives funds from a private foundation, spending the
funds as it would undesignated general funds by a state agency
is unnecessarily cumbersome, and he provided an example. In
fact, the procurement code creates time-consuming hoops to be
negotiated, while affording few benefits. Being a state agency
impedes ASCA's desire to be nimble in its actions, to seek out
private foundation partner funding, and to best serve its
constituency of arts educators, individual artists, or arts
organizations. He offered further examples of how state
procedures and bureaucratic red tape impede the council's
mission.
9:16:39 AM
REPRESENTATIVE SPOHNHOLZ recalled other state programs that have
gone private to obtain additional flexibility, such as the
Alaska Children's Trust, and asked whether the arts council
considered all of its options before selecting the model defined
by the bill.
MR. BROWN pointed out ASCA could not become fully private
without losing matching funds from the National Endowment for
the Arts (NEA); the National Foundation on the Arts and the
Humanities Act provides that state arts agencies must be part of
state government with one exception, and the funds to match NEA
money must be a state appropriation: money from the Rasmuson
Foundation or the Cargill Foundation could not supplant the
appropriation received from the state legislature. Therefore,
the bill directs for quasi-privatization. He cautioned in
Kansas, the state arts organization lost all its NEA funding by
privatizing, so ASCA sought a compromise, and will remain housed
within DEED and retain its enabling statute. Mr. Brown
explained the current council is comprised of eleven active
members, and the bill would allow the council to be nimble but
still accountable to the public. He restated ASCA, in a similar
situation as The Children's Trust, faced difficulties granting
funds in the best manner, and encountered obstacles created by
the procurement code when sponsoring events. Further, regarding
staffing, ASCA is down from six to four fulltime positions and
having employees in the exempt service, rather than the
classified service, and using contractors when necessary, are
ways ASCA can meet the realities of its new budget environment.
The council seeks to continue to meet its mission to encourage
all Alaskans to create and enjoy art for all of its benefits;
however, the current system will not serve the council into the
future.
9:20:50 AM
REPRESENTATIVE JOHNSTON asked whether the council would still be
subject to the personnel rules of the state.
MR. BROWN clarified ASCA employees would be reclassified from
classified into exempt service; the rules would be less
constraining. He related ASCA staff is aware of the proposed
changes to their status.
REPRESENTATIVE JOHNSTON asked if the council is assigned a
vacancy factor from the Department of Administration (DOA).
MR. BROWN responded six employees and one part-time position are
currently on the books, and only four positions are currently
filled. One of the positions is the Visual and Literary Arts
Program Director and is a maintained vacancy. The other
position was moved to shared services. Mr. Brown noted ASCA
staff members accept duties outside their job descriptions to
ensure all the work is done in a collaborative environment. He
was unsure whether ASCA has an assigned vacancy factor.
CHAIR DRUMMOND asked whether ASCA receives services from shared
services.
MR. BROWN deferred comment to the executive director and noted
ASCA is in need of accounting services.
9:24:25 AM
CHAIR DRUMMOND opened public testimony on HB 137.
9:24:36 AM
ANDREA NOBLE-PELANT, Executive Director, Alaska State Council on
the Arts (ASCA), stated support for HB 137, and offered an
example of a current project - involving several partners - that
has a planning timeframe of three months. [ASCA] turned over
the administration of the logistics of the project to Americans
for the Arts because ASCA could not complete its tasks quickly
due to its present structure. Further, she paraphrased from a
prepared statement, which read as follows [original punctuation
provided]:
The Alaska State Council on the Arts, now in its 51st
year, is ready for organizational change. The timing
of HB137 is opportune as Alaska's creative industry is
currently growing and expanding due to a decade of
targeted public and private investment and focus on
the arts and culture sector as an economic player. As
a result, the Alaska State Council on the Arts has
experienced rapid growth in grants, programs and
public/private partnerships.
We wish to continue this effort, and with the
provisions in HB137, the Alaska State Council on the
Arts is poised to continue grant-making as a public
corporation that will also allow new and existing
programs to reach more Alaskans with increased impact
and efficiency.
As staff of four, we work on local, national and
international levels to oversee projects and
initiatives that build capacity for arts
organizations, provide practical professional
development for individual artists and boost students'
chances for success through arts in education. Through
mutually beneficial alliances with public/private
sector partners, our reach extends to military service
members and their families who experience PTSD,
incarcerated individuals, pre-service teachers from
rural communities, Alaskan children and youth who want
opportunities to learn through arts and culture, and
parents who want to raise their families in safe,
sustainable communities.
Keeping with our mission, revenue from funders and
services goes back to Alaskan residents and
communities as grants, programs and resources.
Longstanding partnerships are in place with The
Rasmuson Foundation, The Alaska Arts and Culture
Foundation, and The Atwood Foundation. New partners
include Margaret A. Cargill Philanthropies, The CIRI
Foundation, and Sealaska Heritage Institute. Other
partners include the Alaska Humanities Forum and The
Western States Arts Federation who contribute in-kind
support, resources and funding.
HB137 provides flexibility for staff to manage fast
flow projects in a timely manner and to work statewide
across sectors such as health, economic development,
tourism, and transportation. HB137 allows for
responsive project execution that is necessary for
desired collaborative outcomes which affect
performance evaluations and our ability to secure
future funding.
9:29:40 AM
ALICE BIOFF, Business Planning Specialist, Kawerak, Inc.;
Member, [Board of Trustees], Alaska State Council on the Arts,
Department of Education and Early Development, stated support
for HB 137, paraphrasing from a prepared statement, which read
as follows [original punctuation provided]:
I am testifying today in my capacity as an ASCA
council member. I am a tribal member of the Native
Village of Koyuk and grew up there and in Nome. My
family and I have lived in Nome for the last 17 years.
For much of that time, I have been employed by
Kawerak, Inc., the regional Native non-profit
consortium of tribes for the Bering Strait region, as
a business planning Specialist.
Through our work here at Kawerak, I am honored and
privileged to work with artist entrepreneurs within
our communities. We provide direct technical
assistance offering tools and resources to assist
artists continue their work so that they can sustain
themselves, their families and their communities. It
is through this work that I have seen firsthand how
important it is for these artists who live in
communities with very few resources and
infrastructure, to grow their businesses through
opportunities such as those that become available
through ASCA and others.
Artist Entrepreneurs are economic development drivers
in their communities and the Alaska State Council on
the Arts supports these communities through their work
and advocacy. With their partnerships, resources and
programs, we see a bright future and growth
opportunity to support all artists across the State.
Through the restructuring initiative, we see ASCA
services continued and strengthened to support the
artists through improved ability to react to funding
opportunities and better represent, support and
advance the artists by offering the tools and services
needed to strengthen an already existing and important
economy. This is critical to strengthening and
sustaining our rural communities in this fiscally
challenging time.
HB 137 streamlines the process ASCA will use to
present opportunities to artists all over Alaska,
including those artists we have worked with for years
here in the Bering Strait region. From my
perspective, this will be a great benefit for all
artists including those in rural Alaska.
CHAIR DRUMMOND, after ascertaining no one else wished to
testify, closed public testimony on HB 137.
9:33:02 AM
REPRESENTATIVE PARISH moved to report HB 137 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 137 was reported from the
House Education Standing Committee.
9:33:42 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 9:33 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS HB64.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB64 Fiscal Note LEG-COU-O2-23-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB64 Letter of Support Council on Disabilities.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 64 |
| HB135A.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB135 Sponsor Statement.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Fiscal Note EED 3-03-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Support Letter NWAB 2.24.17.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Support Letter NWABSD 2.24.17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB 135 Participating Share Issue Examples.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 135 |
| HB137A.PDF |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Sponsor.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Supporting Document Brown.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Supporting Document Alaska Public Media.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB 137 Fiscal Note EED 3-03-17.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |
| HB137 Letter of Support Kawerak.pdf |
HEDC 3/10/2017 8:00:00 AM |
HB 137 |