Legislature(1999 - 2000)
05/12/1999 08:50 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 12, 1999
8:50 A.M.
TAPE HFC 99 - 129, Side 1
TAPE HFC 99 - 129, Side 2
CALL TO ORDER
Vice Chair Bunde called the House Finance Committee meeting
to order at 8:50 a.m.
PRESENT
Co-Chair Mulder Representative Grussendorf
Vice Chair Bunde Representative Kohring
Representative Austerman Representative Moses
Representative J. Davies Representative Williams
Representative Foster
Co-Chair Therriault and Representative G. Davis were absent
from the meeting.
ALSO PRESENT
Representative Fred Dyson; Carl Rose, Executive Director,
Alaska Association of School Boards, Juneau; Eddy Jeans,
Manager, School Finance Section, Department of Education;
Wes Keller, Staff, Representative Dyson;
TESTIFIED VIA TELECONFERENCE
Bob Shefchik, Fairbanks North Star Borough School District,
Fairbanks; Royce Chapman, Fairbanks North Star Borough
School District, Fairbanks; Carol Comeau, Anchorage School
District, Anchorage; Kathi Gillespie, Anchorage School
District, Anchorage; Greg Miller, Chair, Policy Committee,
Aquarium Charter School, Anchorage; Debbie Rothermel,
Academy Charter School, Matsu; Claire McConnell Academy
Charter School, Matsu; Cheryl Turner, Matsu; Ann Riggs,
Academy Charter School, Matsu; Barbara Gerard, Matsu;
SUMMARY
HB 191 "An Act relating to charter schools; and providing
for an effective date."
HOUSE BILL NO. 191
"An Act relating to charter schools; and providing for
an effective date."
SENATOR FRED DYSON, SPONSOR testified in support of HB 191.
He provided members with a proposed committee substitute, 1-
LS0598\M, 5/11/99(copy on file).
Representative Dyson observed that legislation was passed
authorizing charter schools (in 1995). House Bill 191 would
aid charter schools in dealing with some of the difficulties
they have experienced. The legislation extends the length of
a charter school's contract. The current five-year contract
has inhibited some schools from acquiring facility leases.
The legislation also requires charter schools to implement
exit exams, raise funds, and addresses funding levels. He
observed that larger schools receive more money than smaller
schools. He acknowledged that school financing is complex.
The pupil funding level for children in school districts is
$7,500 thousand dollars per child, while charter schools
receive $3,500 per child. He observed the difficulty of
acquiring start-up funding for charter schools.
Representative Dyson noted that affordable space is another
issue facing charter schools. The proposed committee
substitute requires that school districts give charter
schools some facilities funding on a pro rata basis equal to
the cheapest facility cost in the district. There would be
no associated cost to the state of Alaska. The only fiscal
cost to the state would be the additional staff needed by
the Department of Education. Federal grant money to
implement charter schools is ending. The Department of
Education needs to find a new funding source to replace
federal money used to administer charter schools. He
maintained that it is "unfair" to use the fiscal note on HB
191 as a funding source for administration.
Representative Kohring MOVED to ADOPT proposed committee
substitute, 1-LS0598\M, 5/11/99. There being NO OBJECTION,
it was so ordered.
In response to a question by Representative Austerman,
Representative Dyson acknowledged that the facility charge
would be an unfunded mandate to the school districts. He
added that some schools would be able to utilize existing
vacant buildings. He noted that it could delay the need for
additional buildings.
In response to a question by Representative Grussendorf,
Representative Dyson reiterated that many charter school
organizations have increased efforts to acquire accounting
skills.
Vice-Chair Bunde pointed out that PTA's raise money within
school districts. He questioned if charter schools can also
raise funding through PTA's. Representative Dyson responded
that the section regarding fund raising was included at the
request of the Department of Education.
Representative J. Davies questioned how the legislation
would handle a situation where the school district offers a
charter school a facility that is not excepted.
Representative Dyson responded that he felt that the school
district "is absolutely in the driver's seat".
WES KELLER, STAFF, REPRESENTATIVE DYSON added that the
legislation is in the context of a contract between the
charter school and the school district. The current
restraints would remain.
Vice-Chair Bunde questioned if the legislation would change
the ratio of administrators to students achieved in SB 36.
Representative Dyson did not think that the legislation
would affect the student/administrator ratio. He pointed out
that charter schools have flexibility in the teacher/student
and administrator/teacher ratios. His experience was that
charter schools have weighted these ratios toward classroom
participation.
Representative J. Davies expressed concern with a simple pro
ration. He noted that charter school students could utilize
gymnasium and other facilities at existing schools.
Representative Dyson noted that these issues are negotiated
in the context of the contract. Representative Dyson did not
think that the legislation required funding of gymnasium
facilities for charter schools. He pointed out that not all
schools in school districts have gymnasiums.
Mr. Keller explained that page 3, line 11 addresses the
issue. Representative J. Davies argued that the language is
open to interpretation.
CARL ROSE, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF SCHOOL
BOARDS, JUNEAU provided information on HB 191. He recalled
concerns regarding the original legislation, start-up costs,
local determination, revocation, and equity. He referred to
section 2. He noted that school districts might not want to
grant a charter for any of the items in section 2. He
expressed concern with the dollars generated in charter
schools. He pointed out that regular instructional children
generate the bulk of funding. However school districts must
use this funding to support mandated special needs. He
stressed that regular instructional students receive what is
left after mandated expenses. He questioned how itemized
accounting and cost of administration could be identified
for purposes of funding charter school students should
receive. Since 1986, funding for public education has
remained relatively flat. There would be additional costs
for charter schools that are not housed within a regular
school. He maintained that charter schools would be funded
from existing resources. There is already a tremendous
amount of pressure for existing resources. He felt that
school districts with charter schools would be adversely
affected by the mandates to provide charter schools with
some facilities funding on a pro rata basis equal to the
cheapest facility cost in the district, to itemize costs and
provide manners in the same manner as other students.
CAROL COMEAU, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE testified
via teleconference. She stressed the need to review the
committee substitute. She maintained that the legislation
would impact the Anchorage School District. She asserted
that additional funding for charter schools would take away
from their school district. The Anchorage School District
has a space problem. There are already over 140 relocatable
classrooms. The legislation is an unfunded mandate that
would require reductions in the next year's budget. She
questioned the intent of the legislation.
BOB SHEFCHIK, FAIRBANKS NORTH STAR BOROUGH SCHOOL DISTRICT,
FAIRBANKS testified via teleconference. He stated that the
School District is in general support of charter schools. He
acknowledged that charter school funding is insufficient. He
disagreed with the method of solving the problem. He agreed
with section 1.
Mr. Shefchik discussed portions of the bill. He acknowledged
that the Fairbanks North Star Borough School District could
itemize costs. He noted that most charters do not have
accountant expertise. He expressed concern with section 3.
He noted that section 3 fails to recognize the difference in
program costs. Costs range from well behave, easy to teach
children to special needs. He noted that their school board
currently treats charter schools differently based on their
population. He expressed concerns with inclusion of special
education funding, impact aid, targeted federal funds,
contracts for operation of on base schools, tuition funding
for special students and optional excess contribution. He
questioned if the state can legally mandate how local option
contributions are spent.
Mr. Shefchik discussed subsection (2) in section 3,
facilities cost. He pointed out that this section does not
recognize that capital and operating funding are separate.
School buildings are provided through bonds.
Mr. Shefchik asked that the legislation be held and reviewed
by legislative legal counsel. He acknowledged that the
changes in SB 36 did not adequately address the needs of
charter schools. He concluded that the legislation would
help charter schools at the expense of other schools.
Representative Dyson reviewed page 2, line 31. He noted that
this allows per student, per school cost to take into
consideration administrative or other services provided. He
emphasized that the intent is that contracts allow for the
level of service that the school takes or receives from the
district or provides for themselves. He added that charters
are at the discretion of the school district.
Representative Kohring spoke in support of the legislation.
He recounted experiences with charter schools. He observed
that charter schools have been able to put together
facilities at reduced costs through volunteer involvement.
He noted that the Midnight Sun Charter School operates at
$1,700 per student.
(Tape Change, HFC 99 - 129, Side 2)
DEBBIE ROTHERMEL, ACADEMY CHARTER SCHOOL, MATSU testified
via teleconference in support of the legislation. She
stressed that the intent is to receive an equal opportunity
to flourish within the school system. She maintained that
existing charter schools are doing a good job. She noted
that the Academy Charter School spent $50 thousand dollars
to improve their facilities in addition to volunteer effort.
She urged the Committee to maintain its commitment to the
charter school system. She noted that even matching funds
for facilities would be helpful.
KATHI GILLESPIE, ANCHORAGE SCHOOL DISTRICT, ANCHORAGE
testified via teleconference. She noted that the Anchorage
School District has concerns with the legislation. She
observed that they are concerned that the operating budget,
as proposed, would prioritize charter school students above
other students. She emphasized that the facility cost would
be an unfunded mandate. Rental money would come out of the
general fund. She noted that children housed in portables
are not allowed the option of renting space. She asked for
clarification on the fund raising issue and suggested that
if it is a problem than the problem should be fixed for all
students. She asked when does fund raising become tuition.
She observed that there was no fiscal note with the original
passage of the charter school legislation. She asked that
the Department of Education and school districts provide
fiscal notes. She stressed the need to discuss the
legislation with staff, parents and other interested
parties.
GREG MILLER, POLICY COMMITTEE, CHAIR, AQUARIAN CHARTER
SCHOOL, ANCHORAGE testified via teleconference. He discussed
section 5. He felt that the existing administrative ratio of
4.31 percent is working. He stressed that charter schools
can provide education at reduced costs.
Mr. Miller discussed facility funding. He maintained that
charter schools could provide facilities for less than
school districts. The Aquarium Charter School is currently
without a facility. They have been in portable classrooms.
They have arranged to rent space for the next year at $500
dollars per student. The school district is not willing to
help with this cost. He maintained that the issue is simple.
Local money should be passed on or a facility provided. He
stressed that every school needs a roof. He asserted that it
is not an unfunded mandate. He stated that they are not
asking for anything less then what other students receive.
CLAIRE MCCONNELL, ACADEMY CHARTER SCHOOL MATSU testified via
teleconference in support of the legislation. She stressed
that the Academy Charter School does a lot with very little.
Their students are in portable classrooms. Only two of their
classrooms have bathrooms nearby.
ROYCE CHAPMAN, FAIRBANKS NORTH STAR BOROUGH SCHOOL DISTRICT,
FAIRBANKS testified via teleconference. He stressed that the
School Board is supportive of charter schools, but expressed
concern with the legislation. He stressed that the
legislation imposes an idea as to what is best for the
Fairbanks North Star Borough School District and its charter
schools. He noted that the same problem does not exist in
every school in every district. He acknowledged the intent,
but did not support the solution. He stated that the best
solution would be to allow affected communities to solve
their own problems. He stressed the point is who decides
what is spent. He maintained that the legislature is not the
best place for the decision.
CHERYL TURNER, MATSU testified via teleconference in support
of HB 191. She expressed support for Representative Dyson.
She expressed support for a changing the contract length
from 5 to 10 years.
ANN RIGGS, ACADEMY CHARTER SCHOOL, MATSU testified via
teleconference in support of HB 191. She stressed that
charter schools are a great addition to the school system.
She emphasized the amount of parental involvement in the
creation of charter schools.
BARBARA GERARD, MATSU testified via teleconference in
support of HB 191. She maintained that clarification and
direction is needed to protect funding for charter schools.
GLEN BIEGEL, ANCHORAGE testified via teleconference in
support of HB 191. He noted that all charter schools are not
equal. He emphasized that if there is no roof there is no
school.
HB 191 was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 10:05 a.m.
House Finance Committee 6 5/12/99 a.m.
| Document Name | Date/Time | Subjects |
|---|