Legislature(2019 - 2020)ADAMS ROOM 519
05/20/2019 05:00 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB1001 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB1001 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
FIRST SPECIAL SESSION
May 20, 2019
5:00 p.m.
5:00:06 PM
CALL TO ORDER
Co-Chair Wilson called the House Finance Committee meeting
to order at 5:00 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Tammie Wilson, Co-Chair
Representative Jennifer Johnston, Vice-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Gary Knopp
Representative Bart LeBon
Representative Ben Carpenter
Representative Kelly Merrick
Representative Colleen Sullivan-Leonard
Representative Cathy Tilton
MEMBERS ABSENT
NONE
ALSO PRESENT
Vikki Jo Kennedy, Gramma Brigade, Juneau; Norm Wooten,
Executive Director, Association of Alaska School Boards,
Juneau; Chris Cairns, Information Technology Staff, Juneau
School District; Paul Kelly, Self, Juneau; Dr. Lisa Parady,
Alaska Council of School Administration, Juneau.
PRESENT VIA TELECONFERENCE
Howard Tricky, Coalition For Education Equity, Anchorage;
Matt Singer, Coalition For Education Equity, Anchorage;
Marilyn Menish-Meucci, Self, Petersburg; Chris Reitan,
Craig School District, Craig; Dave Jones, Assistant
Superintendent, Kenai Peninsula Borough School District,
Kenai; Shawn Arnold, Valdez City Schools, Valdez; Katie
Botz, Self, Juneau; Patrick Mayer, Superintendent, Yakutat
School District, President, Alaska Council of School
Administrators, Yakutat; Laura Bonner, Self, Anchorage;
Mary Fulp, Superintendent, Mat-Su School District; Melissa
Linton, Self, Soldotna; Gary McDonald, Self, Anchorage.
SUMMARY
HB 1001 APPROP: 2020 EDUCATION FUNDING/REPEAL
HB 1001 was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 1001
"An Act making appropriations for public education and
transportation of students; repealing appropriations;
and providing for an effective date."
5:00:40 PM
^PUBLIC TESTIMONY
Co-Chair Wilson OPENED Public Testimony
5:00:43 PM
HOWARD TRICKY, COALITION FOR EDUCATION EQUITY, ANCHORAGE
(via teleconference), had represented school districts for
several years. In his testimony he would address the
attorney general's opinion dated, May 8, 2019, that
contended the appropriation to forward fund education was
unconstitutional. He had three points to convey to members.
He characterized what the legislature had done with the
appropriation as a forward funding appropriation or an
appropriation with a delayed effective date. He argued that
the forward funding of education was different from the
dedicated fund cases that had been struck down cited by the
attorney general in his opinion. In the prior cases
considered by the Supreme Court, the court had considered a
situation where the legislature created a dedicated revenue
stream or source, such as a special tax or assessment, and
assigning those funds to a specific purpose. The Alaska
Supreme Court considered the mix of special revenues and
dedicated expenditures to determine, in those particular
cases based on specific revenues identified and dedicated
to a specific purpose with a commitment of future revenues,
that they were inappropriate dedicated funds. He continued
that the action of the legislature with regard to the
forward funding of education was not the same as violating
the dedicated funds clause in the Alaska Constitution. In
contrast to the cases cited, forward funding of education
was subject to the normal appropriation process. Forward
funding was a routine appropriation approved by the
legislature and the former governor, Governor Walker. The
only difference between the appropriation for forward fund
education and other appropriations passed in the prior year
was that it applied to FY 20 rather than FY 19. A one-year
delayed appropriation seemed very different to him, from a
constitutional perspective, than a dedicated fund where the
legislature earmarked certain revenue from specific sources
and dedicated those funds to be used for a specific purpose
indefinitely.
Mr. Tricky continued that the forward funding appropriation
for education did not tie the hands of the current
legislature. One of the concerns in the cases by the
Supreme Court was that there was a lack of legislative
flexibility in the future regarding appropriating funds.
Regarding the forward funding of education, the current
legislature was free to amend or repeal the forward funding
appropriation from the previous year. The legislature
decided not to do so. The attorney general's opinion was
critical of the forward funding measure as having cut the
governor out of the annual appropriation process and had
violated the governor's right to veto on an annual basis.
He argued that the attorney general's opinion was not
accurate, as it did not cut out the governor, Governor
Walker (not Governor Dunleavy). The appropriation had been
subject to the normal appropriation process involving the
legislature and the governor. He did not think attorney
general's opinion was correct as a matter of law. He
asserted that the opinion was erroneous, and the forward
funding measure would be upheld by the courts if
challenged.
Mr. Tricky wanted to point out to the committee that while
the attorney general's opinion cited in footnote 8 the 2016
case, State versus Ketchikan Gateway Borough School
District, it did not analyze the effects of the case. If
the matter went to court, while he thought that the
dedicated fund cases that the court had decided could be
distinguished and that the forward funding did not violate
any of the decided cases, the Ketchikan case carved out an
exception for education which the attorney general did not
analyze in his opinion letter. He thought it was a
significant oversight because it was controlling authority.
5:07:31 PM
MATT SINGER, COALITION FOR EDUCATION EQUITY, ANCHORAGE (via
teleconference), argued that HB 1001 was not necessary
because the legislature had already made the appropriation.
He discussed the Ketchikan Gateway School District court
case in which the anti-dedication clause was found to have
no standing regarding education funding. He believed the
current governor was obligated to distribute funding.
5:09:19 PM
MARILYN MENISH-MEUCCI, SELF, PETERSBURG (via
teleconference), strongly opposed HB 1001. She spoke of the
benefits resulting from forward funding.
5:10:06 PM
CHRIS REITAN, CRAIG SCHOOL DISTRICT, CRAIG (via
teleconference), spoke in favor of forward funding
education and noted that it allowed sound financial
management. He thanked legislators for their past efforts
to ensure forward funding.
5:11:00 PM
DAVE JONES, ASSISTANT SUPERINTENDENT, KENAI PENINSULA
BOROUGH SCHOOL DISTRICT (KPBSD), KENAI (via
teleconference), spoke in favor of forward funding
education. He spoke of a previous discussion in an earlier
meeting about fund balances at the end of the year. He
thought it was believed that the size of the cuts proposed
by the governor were because the districts had unassigned
fund balances that could make up for the proposed
reductions. He had sent members a chart showing the KPBSD
FY 18 ending fund balance. It was important for people to
understand that the school district ended the year with a
little over $14 million. However, only a portion of the
balance could be used - a large portion of the amount was
already dedicated. He further explained that the school
district had a minimum fund balance policy committing
$4,289,271. The school district had an unassigned fund
balance of $1,600,218. At the end of FY 18 it had a large
sum [Note: the audio cut out the number] in fund balance
that his board could use to address the problems discussed
in the district's fund balance policy.
Mr. Jones asserted that when looking at the governor's
proposed cuts to KPBSD it was targeted with $20,957,000 in
cuts - far exceeding the amount of fund balance the school
district had. He also noted that districts needed to have
some minimum fund balance to address revenue volatility
that they faced. Some of the revenue volatility included
governor vetoes, mayor vetoes, and student enrollment dips.
It was imperative for school districts to maintain a fund
balance to address their fiscal responsibilities. He
thanked the committee for its intention to forward fund
education.
5:14:23 PM
SHAWN ARNOLD, VALDEZ CITY SCHOOLS, VALDEZ (via
teleconference), did not support or oppose HB 1001, but
supported forward funding education. He spoke of the
importance or predictability in order to operate
efficiently and effectively. Unstable environments created
chaos. He asked members to ensure forward funding to
enhance predictability and financial soundness.
5:16:34 PM
KATIE BOTZ, SELF, JUNEAU (via teleconference), thought the
legislature should be done with its work including forward
funding education. She wanted to sure her nieces and
nephews were receiving a proper education.
5:18:25 PM
VIKKI JO KENNEDY, GRAMMA BRIGADE, JUNEAU, had attended the
previous hearing. She asserted that the governor was
playing a game. She relayed talking to a Senator who told
her she was buying into the governor's lie. She wondered
what was true. She thought she had heard previous testimony
by employees from the Office of Management and Government
that the governor wanted to fully fund education.
5:20:55 PM
NORM WOOTEN, EXECUTIVE DIRECTOR, ASSOCIATION OF ALASKA
SCHOOL BOARDS, JUNEAU, thanked the legislature for its work
and the challenges members faced. He reported that AASB had
passed a resolution urging the legislature to forward fund
education for the sake of planning and predictable.
5:23:09 PM
CHRIS CAIRNS, INFORMATION TECHNOLOGY STAFF, JUNEAU SCHOOL
DISTRICT, thought it was important for members to hear from
school district employees. He noted that when the
governor's budget first came out, it was very difficult to
hear about. He talked about the flexibility he had
experienced resulting from forward funding. He thought the
school district had been diminished due to inflation. He
thought the teachers educating Alaska's children should be
paid fairly. He urged the committee to forward fund
education.
5:25:55 PM
PATRICK MAYER, SUPERINTENDENT OF YAKUTAT SCHOOL DISTRICT,
PRESIDENT, ALASKA COUNCIL OF SCHOOL ADMINISTRATORS, YAKUTAT
(via teleconference), thanked members for their willingness
to steer the course for forward funding education. He spoke
of a study that had been commissioned showing that the
majority of people thought education was underfunded. He
spoke of the planning issues school districts would
encounter with budget decisions being made late.
5:27:59 PM
LAURA BONNER, SELF, ANCHORAGE (via teleconference), talked
about her daughter being a special education student. She
mentioned the difficulty of education being funded at the
last minute. She opposed any repeal of forward funding for
education. She also argued against the governor pursuing a
lawsuit. She asked for members to forward fund education.
5:29:29 PM
MARY FULP, SUPERINTENDENT, MAT-SU SCHOOL DISTRICT (via
teleconference), talked about her experience attracting and
retaining educators. She asked the legislature to put
Alaska kids first. She thought what was currently happening
was negatively affecting young people. She thought the
state needed to do more and to do better.
5:31:22 PM
MELISSA LINTON, SELF, SOLDOTNA (via teleconference), was an
educator for the Kenai Peninsula School District. She and
her husband loved Alaska. They had previously had
confidence in education in Alaska. She spoke of the
negative effects of not passing a budget and not forward
funding education. She talked about educators leaving the
state and taking their children with them. She asked
members to invest in the future of Alaska's kids. She asked
the committee to do the right thing.
5:34:19 PM
PAUL KELLY, SELF, JUNEAU, asked members to oppose HB 1001.
5:35:08 PM
DR. LISA PARADY, ALASKA COUNCIL OF SCHOOL ADMINISTRATION,
JUNEAU, thanked members for their service and attention to
public education. She also thanked members for forward
funding education. Alaska was in the worst educator
shortage in Alaska and in the nation. Uncertainty was the
enemy to stability and that pink slips would cause an
uproar. She spoke of Article 7, Section 1 of the Alaska
Constitution. She noted the governor's position and a veto
override. Educators supported education and forward funding
education. She noted all of the previous testifiers who
talked about the importance of predictability within
education. She spoke of the importance of retaining good
educators. She wanted to see educators committed and
contracted to provide the following year's education.
5:39:22 PM
AT EASE
5:39:38 PM
RECONVENED
GARY MCDONALD, SELF, ANCHORAGE (via teleconference), opined
that there was a significant amount of whining and believed
school districts were getting the money they needed.
Co-Chair Wilson CLOSED Public Testimony.
ADJOURNMENT
5:41:03 PM
The meeting was adjourned at 5:41 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 1001 Testimony KPBSD Fund Balance Information.pdf |
HFIN 5/20/2019 5:00:00 PM |
HB1001 |
| HB 1001 Denali B. SD Dan Polta Testimony - Supporting Forward Funding for Education.pdf |
HFIN 5/20/2019 5:00:00 PM |
HB1001 |
| HB1001 BBBSD Testimony.pdf |
HFIN 5/20/2019 5:00:00 PM |
HB1001 |