Legislature(2011 - 2012)HOUSE FINANCE 519
03/27/2012 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Presentation: School Board Presidents or Designated Board Member Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 27, 2012
9:06 a.m.
9:06:28 AM
CALL TO ORDER
Co-Chair Thomas called the House Finance Committee meeting
to order at 9:06 a.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Mary Sage, Board Member, North Slope Borough School
District Board of Education; Eva Kinneeveauk, Board Member,
North Slope Borough School District Board of Education;
Peggy Cowan, Superintendent, North Slope Borough School
District; Marilyn Davidson, Assistant Superintendent,
Kodiak Island Borough School District School Board; Norm
Wooten, School Board Member, Kodiak Island Borough School
District School Board; Aaron Griffin, Board Member, Kodiak
Island Borough School District School Board; Representative
Alan Austerman; Representative Alan Dick.
PRESENT VIA TELECONFERENCE
Melissa Borton, President, Kodiak Island Borough School
District School Board; Susan Eagle, President, Wrangell
Public Schools School Board.
SUMMARY
PRESENTATION:
SCHOOL BOARD PRESIDENTS and BOARD MEMBER
TESTIMONY: North Slope Borough, Kodiak, Wrangell
9:07:05 AM
^PRESENTATION: SCHOOL BOARD PRESIDENTS OR DESIGNATED BOARD
MEMBER TESTIMONY
Co-Chair Thomas acknowledged school districts present in
the room including Sitka, North Slope, Northwest, Kodiak,
Petersburg, Anchorage, Southwest, and Kenai.
9:09:25 AM
NORTH SLOPE
MARY SAGE, BOARD MEMBER, NORTH SLOPE BOROUGH SCHOOL
DISTRICT BOARD OF EDUCATION, introduced herself and her
colleagues.
EVA KINNEEVEAUK, BOARD MEMBER, NORTH SLOPE BOROUGH SCHOOL
DISTRICT BOARD OF EDUCATION, introduced herself and shared
that she had been named after her great grandmother from
Point Hope. She provided a PowerPoint presentation: "North
Slope Borough School District" (copy on file). She
addressed slide 2:
What is your FY 13 total school district budget? What
percentage goes to personnel?
Ms. Sage relayed that the district's FY 13 budget was
$68,062,521, of which, 76 percent went to personnel costs.
There was a budget gap of $2.8 million primarily due to
healthcare and energy costs. There was no increase in
staffing or programs.
Ms. Kinneeveauk moved to slide 3:
Provide a graph that shows your total school district
budget from FY 09-FY 13 (5 years), broken down by
funding source (state/local/fed/mix)
Ms. Sage provided a breakdown of the funding sources for
the district's FY 13 budget; it was comprised of 36 percent
state funds, 12 percent federal funds, 49 percent from the
North Slope Borough, and 3 percent other funds. The graph
only included data for one year; additional years would be
provided at a later time.
Co-Chair Thomas commented that because of a piece of
legislation that had passed (SB 36) the North Slope
district's local contribution was higher than that of most
school districts. He elaborated that there were three or
four districts that had higher local contributions than the
majority due to the legislation.
9:12:12 AM
Ms. Kinneeveauk remarked that the school district was
thankful for the borough funding. She turned to slide 4:
Did you fund to the total allowable local contribution
in FY 12? In FY 13?
Ms. Sage communicated that the district had not funded to
its total allowable contribution in FY 12 or FY 13 (slide
4); however, the borough had always funded more than the
required minimum. The current borough budget funded 69
percent of the allowable level.
Ms. Kinneeveauk pointed to slide 5:
If not, how much below were you? Why?
Ms. Sage read from slide 5:
· $14,118,927
· NSB funds nearly three times the minimum required
local contribution but does not fund to the cap
· NSB supports critical services that other regions
receive from the state, e.g. public safety,
police, health and social services, search &
rescue
Ms. Sage elaborated that the borough used its funds to
provide search and rescue services to local and extending
areas (e.g. Prudhoe Bay and Alpine). The villages did not
have Village Public Safety Officers (VPSO); the borough
provided police service. She added that the borough had
always been very generous with education funding.
Ms. Kinneeveauk moved to slide 6:
How much has the state contributed to the PERS/TRS
unfunded liability on behalf of your school district
in FY 12 and FY 13?
Ms. Kinneeveauk relayed that state funding to the PERS/TRS
liability on behalf of the district had been $5.3 million
in FY 12 and $8.7 million in FY 13. She thanked the
committee for setting fixed rates that helped districts
plan. She read slide 7:
When was your most recently ratified teacher contract
put into place?
Negotiated 2012 for 2013
What were the terms? (salary and benefits
increases/decreases per year, in percentages {or
dollars, if appropriate})
0 percent, rolled over flat, salary schedule
honored
What is your average teacher salary?
$72,636
What is your starting teacher salary?
$53,046
Did you negotiate significant salary increases in your
labor contracts for FY 2013? If yes, why did you do
that given the current funding situation/debate?
No, all certified, classified, administrative and
exempt agreed to 0 salary increase in 2013,
holding flat in all areas because of current
budget difficulties
Ms. Sage expounded that the North Slope had to be
competitive with its salaries. She detailed that 5 years
earlier 84 of the district's 170 teachers had been new;
there had been a 50 percent turnover rate and some schools
had entirely new staff. At a recent job fair the school
system had learned that California districts had comparable
salaries but teachers were also provided a $6,000 signing
bonus. The Alaska rural average turnover rate was
approximately 30 percent. The board had made teacher
retention a priority and the turnover rate had been reduced
to 27 percent. She pointed out that the district was
recruiting teachers to live in the Arctic and salaries
needed to be competitive; in Barrow it was currently 34
degrees below zero without wind chill and water and many
sewer lines were frozen.
Co-Chair Thomas observed that there was a 70 degree
difference between the North Slope and Juneau at present.
9:16:13 AM
Ms. Kinneeveauk noted that progress had been made related
to the turnover rate and shared that for the first time in
11 years a principal had stayed for two years.
Ms. Sage discussed the high cost of living in the district;
one gallon of milk cost $10 and a bag of grapes cost $17.
In relation to teacher salaries, she asked the committee to
keep in mind that the district's cost differential was 79
percent.
Representative Wilson asked which programs had contributed
to the decline in turnover. Ms. Sage believed that part of
the reason for the decline was due to the new strong
leadership of Superintendent Peggy Cowan. The district
would begin the upcoming year with no empty classrooms. She
relayed that salaries attracted teachers and the district
strived to retain them. The school system worked to involve
the community and she believed the decrease in turnover was
due to teamwork.
Representative Gara wondered whether a funding formula that
kept up with inflation would help the district to address
turnover. Ms. Sage responded that it would greatly help the
district.
Representative Gara asked what the $14 million figure on
slide 5 represented. Ms. Sage clarified that the local
contribution had been $14 million below the maximum
allowable number.
Co-Chair Thomas pointed to slide 3, which showed the
percentage contributed by the borough in comparison to
other fund sources.
9:18:50 AM
Ms. Kinneeveauk discussed that one half gallon of milk cost
over $8 in her village; stove oil cost over $450. She
stressed that teacher retention was difficult.
Representative Edgmon asked for the total number of new
teachers that had been mentioned earlier. He wondered what
kind of orientation program the district had for new
teachers. Ms. Sage responded that five years earlier the
district had turned over 84 teachers and turnover in the
past year had been 27 percent. The district had a one-week
orientation for teachers that included cultural
orientation. She asked Ms. Cowan to elaborate on the issue.
PEGGY COWAN, SUPERINTENDENT, NORTH SLOPE BOROUGH SCHOOL
DISTRICT, shared that the orientation for all new teachers
was held for one week in early August. She explained that
orientation continued throughout the school year and
included items such as living on the North Slope and
introduction to instructional programs, assessment systems,
response to intervention programs, and curricular programs
integrated with culture and place.
Co-Chair Thomas asked where Ms. Cowan had lived prior to
the North Slope. Ms. Cowan replied that she had lived in
Juneau for 25 years and in Fairbanks prior to that.
9:21:30 AM
Ms. Kinneeveauk turned to slide 8:
What are the cost drivers in your budget?
· salaries and benefits
· energy
· transportation costs
Ms. Sage expounded on slide 8. She relayed that the
district's health insurance had increased in the past five
years. She shared that the district was comprised of 89,000
square miles (the size of the state of Minnesota) and that
moving people was expensive. She explained that all
purchases were shipped and resulted in high freight costs.
Ms. Kinneeveauk conveyed that she could not drive to a
board meeting because there were no connected roads. She
detailed that round-trip airfare cost $459 from Point Hope
to the nearest hub. Direct flights from Point Hope to
Barrow were only available twice per week and weather
played a large factor.
Ms. Kinneeveauk pointed to energy costs on slide 9:
How much were your energy costs in FY 11?
· $6,753,303
How much do you project them to be in FY 13?
· $7,237,500 (9% of overall costs, second highest
category)
Ms. Kinneeveauk addressed a graph titled "Adjusting to
Declining Enrollment" on slide 10. She communicated that
the district's enrollment had been relatively steady since
2007.
Ms. Sage moved to slide 11:
Do you have a system in place to make budget
adjustments when enrollment drops-how do you approach
this?
Ms. Sage explained that enrollment had been relatively
stable. The district adjusted on a case-by-case and school-
by-school basis; the issue had not been a large factor in
the past five years.
Ms. Kinneeveauk moved to slide 12:
What are your biggest instructional challenges?
· Broadband/Latency
· Delivery across 89,000 sq. miles
· Principal and Teacher Turnover
· Relevant/Engaging Curriculum
· Village Equity/High cost of highly qualified
staff for small sites
· Sustain Professional Development
· Lack of local teachers
Ms. Kinneeveauk elaborated that there were some things that
were not possible in the villages including alternative
schools. There was an alternative school in Barrow that
reached 50 to 60 kids annually; however, there were many
children that the district could not reach because it did
not have the necessary resources or tools. Additionally,
there were no advanced placement classes because funding
was not available. The district wanted to provide great
classes in the smaller communities but due to lack of
bandwidth and funding it was not possible. She discussed
the presentation from the Cordova teacher-of-the-year
related to a shift in information technology learning,
which the North Slope district would like to offer in its
community as well. She furthered that the North Slope
special education teacher was very excited about iPads;
however, there were days that internet connectivity was not
available.
9:26:56 AM
Ms. Kinneeveauk continued to discuss challenges facing the
district. She stressed that broadband internet was always
slow in the district. She discussed the school system's
work to bring relevancy to its curriculum and believed it
would positively impact student scores. She shared that
science teachers were currently able to use lemmings or
other local animals for dissections.
Representative Joule asked for a translation of an animal
mentioned. Ms. Kinneeveauk replied that it was caribou.
Ms. Kinneeveauk addressed district performance on slide 13:
What grade would you give your school district (A-F)?
· C
· We believe our district is proficient with a
commitment to excellence
What are you proposing to do differently to improve
student performance?
· Our goal is: All students will reach their
intellectual potential and achieve academic
success.
o Individual Learning Plans
o Developing Relevant Curriculum
Ms. Sage elaborated that it had been difficult to answer
the question related to the grade the district would give
itself because in their culture boasting or bragging was
not done; however, they needed to stand up for their school
district. She furthered that past students were attending
Ivy League schools and there was amazing student
achievement discussed each month in the school board
report. She stated that there was a lot of room for
improvement and relayed that the district had lost a
talented and inspirational student in a small village the
prior year; the impact had been very hard on other
students. She explained that there had only been a part-
time counselor in the village, which had also been very
difficult. She furthered that there was one teacher
teaching three grade levels who was trying as hard as
possible; it would be helpful to have another teacher.
Additionally, the district was facing a $2.8 million budget
gap. She moved to slide 14 "Curriculum Alignment
Integration and Mapping":
· Alaska leader in place based, culturally
appropriate education.
· Confluence of the Inupiaq Learning Framework
(ILF) and Understanding by Design (UbD)
· NSBSD has initiated and sustained a five year
phased curriculum alignment integration and
mapping effort (CAIM)
Ms. Sage pointed to slide 15 titled "Inupiaq learning frame
work and understanding by design." She addressed a picture
on the slide and explained that cultural learning was one
of the district's strategic plan goals. The district was
known statewide as a leader in place-based culturally
appropriate education. She shared a story about her 6 year-
old daughter and the picture and word matching game
illustrated on the slide; she was looking forward to seeing
her children receive homework that was relevant to the
district's surroundings. She shared that the joint
legislative task-force on theme-based education had visited
Barrow because it believed the district was the model for
rural education for the state. She thanked committee
members who had made the visit. She added that the
commissioner of DEED had used a Barrow classroom
instruction example when explaining new state standards in
a recent speech.
Ms. Kinneeveauk directed attention to slide 16 titled "DEED
Curriculum Support:"
Is the state providing the kind of planning and
curriculum support that is helpful to your school
district?
Yes, the department has sponsored curriculum
alignment and other conferences and has provided
technical assistance.
Ms. Sage turned to slide 17 titled "Help Other Than Money":
How can the DEED, the Board of Education or other
state agencies help you achieve better results, other
than just providing you with more money?
New teacher mentoring, technical assistance
expertise, less reporting requirements, have true
local control
9:32:12 AM
Co-Chair Thomas believed the state provided funds for new
teacher mentoring. He wondered whether the district was
currently receiving funds for the program and if so,
whether increased funds were needed. Ms. Cowan replied that
the district currently had teacher mentoring focused on
content areas; however, funding had been cut back from all
first-year and second-year teachers to first-year teachers
only. The program had been very successful and provided
neutral support for teachers, which helped principals
tasked with the job of evaluation, mentoring, and support.
She added that it had contributed to the decrease in
teacher turnover.
Co-Chair Thomas asked whether the University of Alaska
Southeast (UAS) prepared future teachers for teaching in
different rural areas with cultural differences throughout
Alaska. Ms. Cowan responded in the affirmative. She
explained the UAS [Masters in Teaching] program had a rural
practicum that involved students spending one week in a
village somewhere in Alaska in order to prepare them for
potential future transitions into a rural community. The
North Slope district hosted UAS students in its villages
and worked with the other university campuses as well.
9:35:13 AM
Representative Joule asked whether the district was working
on its own to implement its theme-based curriculum. He
believed there was a core group that worked around the
district helping to involve an increasing amount of the
workforce in the place-based education curriculum concept.
Ms. Cowan replied that the place-based curriculum was the
focus of the district's work. She explained that the school
system shared the in-service days allowed by the state
between site-based and district-based. She furthered that
in the current year every teacher had received multiple
days of training related to the development of rigorous,
culturally appropriate academic units. There were
approximately 50 teachers district-wide (at least one
language arts, one math, and one science teacher from each
school) who were on the core team that was conducting the
development work. She detailed that most of the work was
done in the summer and the district never had a district-
wide in-service in one location due to the high travel
cost.
Representative Gara wondered how the $2.8 million budget
gap would impact services the school system was able to
provide compared to the prior year. Additionally, he asked
how much the BSA would need to be increased in order for
the district to be held even to the prior year's services.
Ms. Cowan responded that the $2.8 million was the
equivalent of 23 teaching positions, but funds would not
only be taken from that area. She relayed that the board
would wait until the end of the legislative budget process
to make a final determination on what items would be cut.
She expounded that the district's priorities on curriculum
work and other would continue. Over $1 million of the gap
was due to increased insurance costs and other parts of the
total were a result of inflation costs.
Representative Gara asked how much the BSA would need to be
increased. Ms. Cowan responded that the BSA would need to
be increased by $538 per student.
Representative Gara surmised that a $538 increase per
student would mean a $100 million increase, which he did
not believe was possible. He wondered whether a BSA
increase that was commensurate with inflation would help.
Ms. Cowan answered that the district was supportive of a
BSA increase and was looking to combine it with other
funding sources; however, some cutbacks would need to be
made. The school system was planning to continue providing
its current program as long as some funding could be
gained.
9:40:26 AM
Representative Gara wondered what it would cost to improve
the broadband internet access in the North Slope district
in order to allow the school to offer advanced placement
and other internet courses. He wanted to see the
improvement for rural districts statewide. Ms. Cowan
replied that the improvement would involve infrastructure
and internet advancements in the district. Improvements did
need to be made and the district was working on grants to
allow it to utilize things like the Alaska Learning Network
in order for students to have courses that were necessary
for the Alaska Performance Scholarship and success. She
would get back to the committee on the question.
Co-Chair Thomas shared that Gustavus had requested $250,000
for a broadband tower the prior year in its capital
request.
Representative Wilson queried what "true local control"
meant (slide 17). Ms. Sage discussed the district's belief
that local control was eroded when bills and regulations
were passed providing mandates to districts.
Representative Wilson asked the school district to follow
up with specifics that would enable local control to
increase and reporting requirements to decrease.
Representative Joule opined that part of the answer to
Representative Wilson's question about local control was
related to the work the district had done on theme-based
education.
Representative Edgmon asked for an explanation of the
difference in insurance requirements for the North Slope
compared to a district like Juneau. Ms. Cowan responded
that some of the risk management and property insurance
costs were higher (the districts both went out to bid for
the services). Health insurance had gone up 5 percent in
the past several years and was the key element responsible
for the cost increase. Additionally, transportation costs
for medical services only available outside the North Slope
were also expensive compared to those of urban districts.
9:46:05 AM
Ms. Kinneeveauk drew attention to slide 18 titled "ARRA
Funds and Investments":
How much ARRA funding did you receive over the past
few years?
$895,000
How did you invest any ARRA funds you received?
One time expenditures on unmet needs such as a
van to assist with transfer of students with
disabilities, sewer and plumbing repairs and
other maintenance needs
Ms. Kinneeveauk elaborated that the district spent the ARRA
funding in the first two years of the program; therefore,
it was not contributing to the district's current budget
issues.
Representative Joule pointed to slide 15 and asked for
detail on the significance of the pairs of people (faded
and dark) surrounding the center images. Ms. Sage replied
that the faded characters represented Inupiaq ancestors and
the traditional knowledge they had carried for 10,000
years. The pairs of people represented the present and the
future.
Representative Joule asked for detail on how the image
related to North Slope students. Ms. Sage replied that the
district had developed the image with the help of community
members based on what they believed a graduate should look
like. Part of the image represented passing down
traditional knowledge and teaching customs that had been
taught for over 10,000 years including traditions, customs,
values, history, language, and family. The image recognized
the importance of involving elders in the education of
youths.
Co-Chair Stoltze thanked the district for the hospitality
on his recent visit to the village. Ms. Sage thanked
committee members for visiting and invited them to visit
any of the North Slope villages.
Co-Chair Thomas thanked the district for visiting. Ms.
Kinneeveauk invited the committee to visit during whaling
season.
Ms. Cowan concluded with a story about whaling.
9:49:54 AM
KODIAK
MELISSA BORTON, PRESIDENT, KODIAK ISLAND BOROUGH SCHOOL
DISTRICT SCHOOL BOARD, (via teleconference), thanked the
committee for its time. She addressed a questionnaire
provided by the committee (copy on file).
Co-Chair Stoltze acknowledged the presence of
Representative Alan Austerman and his advocacy for
education.
Ms. Borton pointed to the first question:
What is your FY 13 total school district budget?
Ms. Borton shared that the district's FY 13 budget was
slightly over $41 million. The school system was
anticipating a deficit of approximately $3.5 million. She
continued with the questions on page 1 of the handout:
What percentage goes to personnel?
81.53%
Provide a graph that shows your total school district
budget from FY 09-FY 13 (5 years), broken down by
funding source (state/local/fed/mix)
Attachment A [copy on file]
Did you fund to the total allowable local contribution
in FY 12? In FY 13?
The Kodiak Island Borough (KIB) did not fund to
the cap in FY12 and doesn't anticipate funding to
the cap in FY13.
Ms. Borton elaborated that the borough's budget would not
be set until May 2012; therefore, its final contribution
would not be known until that time.
If not, how much below were you? Why?
In FY12, KIB funded the Kodiak Island Borough
School District (KIBSD) $847,930 below the
maximum allowable. Based on an early estimate
from KIB, the District will be funded $1,433,702
below the maximum allowable in FY13. I can't tell
you why, that would be a question for our
Borough.
Ms. Borton expounded that reasons for funding under the
maximum allowable contribution cited by the borough
included revenue and the debt bond reimbursement for the
district's high school that was currently under
construction. She believed the question was up to the
borough to answer.
9:54:55 AM
Ms. Borton moved to the next question on page 1:
How much has the state contributed to the PERS/TRS
unfunded liability on behalf of your school district
in FY 12?
$5,586,280
How much is the state scheduled to contribute for
PERS/TRS unfunded liability costs on behalf of your
district in FY 13?
$7,356,688
When was your most recently ratified teacher contract
put into place? What were the terms? (salary and
benefits increases/decreases per year, in percentages
{or dollars, if appropriate})
Ms. Borton relayed that the district had ratified its most
recent teacher contract at its March 2012 school board
meeting; there were three remaining union groups to
negotiate with during the upcoming year. The board was
pleased to have good negotiations with the certificated
teacher union; a one-year rollover contract with no cost of
living increase had been negotiated. She noted that there
had been no salary growth and only regular movements in the
upcoming contract (a "soft rollover").
Co-Chair Stoltze asked what regular movements meant. [Ms.
Borton did not hear the question. The question was answered
by Mr. Norm Wooten later in the meeting.]
Ms. Borton continued on page 2:
What is your average teacher salary?
$69,778 (the figure)
What is your starting teacher salary?
$43,763
Ms. Borton detailed that with the inclusion of benefits the
average and starting teacher salaries increased to $98,000
and $72,000 respectively. She moved on to the next
question:
Did you negotiate significant salary increases in you
labor contracts for FY 2013?
Ms. Borton reiterated earlier remarks that the district had
completed negotiations with one of four teacher groups at
present. In a mutual agreement with the certificated
teaching group no salary increases had been negotiated. She
addressed budget cost drivers in the next question. She
relayed that the primary cost drivers in the budget were
energy, health insurance, personnel, and transportation;
most of the costs were due to inflation. Over the past four
years the district had reduced its budget by 34 teaching
positions and without additional funding it was looking at
the elimination of approximately 40 positions in the next
year's budget.
9:56:54 AM
Ms. Borton looked at energy costs on page 2:
How much were your energy costs in FY 11?
$1,972,908
How much do you project them to be in FY 13?
$2,327,728
Ms. Borton elaborated that the energy cost in FY 13
represented an 18 percent increase from FY 12. She moved to
the next question on page 1:
Do you have a system in place to make budget
adjustments when enrollment drops-how do you approach
this?
Ms. Borton replied in the affirmative. She communicated
that the district had a detailed staffing formula that was
scalable based on the student population versus the number
of teaching positions. The school system's enrollment had
only decreased slightly over the years. Additionally, the
school board was very active in reviewing and monitoring
the district's budget. Revenues and expenditures were
reviewed and approved on a monthly basis; there were also
three budget revisions that occurred annually.
Ms. Borton addressed significant instructional challenges
on page 3. She explained that one of the biggest challenges
was providing quality and equitable education to the
island's small remote schools; school numbers in the rural
sites continued to decline. Likewise, providing quality
instruction for English language learners, special
education, and gifted and talented students was a
challenge. She discussed that many students struggled in
traditional classrooms; therefore, Kodiak had elected to
invest heavily in vocational education; the programs were
vital, but very expensive. The school district had invested
in technology to meet challenges and to prepare students
for success in the world and to work towards a quality
education across the district. She added that increased
budget costs were always a challenge.
9:59:10 AM
Ms. Borton addressed the second question on page 3:
What grade would you give your school district (A-F)?
Ms. Borton gave the Kodiak school district a B+. She
believed the district was doing extremely well in some
areas and other areas needed improvement. She shared that
Kodiak was doing very well in vocational education;
students at the sophomore level were able to obtain
multiple industry certifications in welding and were job
ready when they graduated; however, most of the students
chose to get additional vocational education before
entering the workforce. The school system was also doing
well its music and arts programs. The district was in its
third year of providing music instruction through video
teleconferencing to all of its rural sites, which had been
successful.
Ms. Borton gave the district a C in other areas such as the
English language learners program; there were 14 different
languages spoken throughout the school district. She stated
that the issue was challenging, but the district strived to
provide the same education to all of its 411 students. She
shared that providing an equitable quality education to
Kodiak's rural sites remained an obstacle, but efforts
towards improvement were part of the district's daily
focus.
Ms. Borton moved to page 4:
What are you proposing to do differently to improve
student performance?
Ms. Borton shared that efforts were ongoing. The school
district, board, administration, teachers, and community
engaged in an intensive strategic planning effort and goal
setting process annually. The process helped to enable all
stakeholders to have a voice in the district's educational
programming, policies, and philosophy. Several new
improvement initiatives had been implemented and the
district planned to give each change ample time to become
effective. She looked at the second question on page 2:
Is the state providing the kind of planning and
curriculum support that is helpful to your school
district?
Ms. Borton discussed that the Kodiak school system had a
very positive working relationship with the State Board of
Education and the Department of Education and Early
Development. The district believed that the entities were
responsive to concerns in the district and provided
sufficient opportunities to give input on necessary actions
and responses. Many state committees had been formed that
allowed the Kodiak school district to participate. She
pointed to the next question:
How can the DEED, the Board of Education or other
state agencies help you achieve better results, other
than just providing you with more money?
Ms. Borton shared the opinion of the prior testifiers that
the teacher mentoring program needed to continue. The
district had an excellent relationship with DEED in
providing the mentoring project and hoped the project would
continue. The school system encouraged the department to
continue providing existing services.
Ms. Borton addressed how much ARRA funding the district had
received over the past few years. She relayed that the
school system had received just under $2.5 million in FY 10
and $366,000 in FY 11. Funds had been used to conduct an
overhaul on the district's technology infrastructure and on
technology in the classroom. Laptops and iPads had been
purchased for every school on the island; the devices were
one-to-one in rural schools and two-to-one in Kodiak
classrooms. Additionally, some of the software programs had
been upgraded and intense professional development had been
provided as well.
Representative Wilson wondered whether the school district
would use the university system mentoring program in the
upcoming year in place of the one offered by DEED or if it
would use both programs.
10:03:50 AM
MARILYN DAVIDSON, ASSISTANT SUPERINTENDENT, KODIAK ISLAND
BOROUGH SCHOOL DISTRICT SCHOOL BOARD replied that the
district used the state mentoring program and believed it
was run through the university. She added that the program
was supplemented with local efforts in teacher mentorship,
given the importance of teacher retention.
Representative Wilson understood that DEED would continue
its mentorship program and that the university would
conduct a program with urban schools including Kenai, Mat-
Su, Anchorage, and Fairbanks. Ms. Davidson responded that
Kodiak would not fall under the urban areas.
Representative Doogan asked whether 23 positions would be
eliminated under the proposed budget. Ms. Borton did not
have that data.
Representative Doogan asked how many teaching positions the
district had and how the current budget would impact them.
Ms. Borton responded that with a $3.5 million deficit the
school district was looking at a 40 position reduction
(32.5 classroom staff, 6 classified staff, and 2
administrative staff).
Co-Chair Thomas discussed that the legislature had forward
funded one year of education funding. He asked whether the
district was aware of the funds. Ms. Borton responded in
the affirmative and expressed appreciation for the funds.
Co-Chair Thomas thought people should know that the funding
had been put aside in a fund. The legislature had been told
by some that just because the money was in a fund did not
mean it was forward funding. He noted that the fund
included $1.2 billion. He stated that there was no BSA
included in the funds; the idea of forward funding was to
provide school districts with stability and assurance of
funding availability. He recalled that grants had been
given each school year for the same reason.
Co-Chair Stoltze interjected that the grants were called
learning opportunity grants.
Co-Chair Thomas continued that the grants had been used to
help districts offset their needs. He estimated that since
2008 the BSA increase was approximately $700.
10:07:52 AM
NORM WOOTEN, SCHOOL BOARD MEMBER, KODIAK ISLAND BOROUGH
SCHOOL DISTRICT SCHOOL BOARD, in response to an earlier
question by Co-Chair Stoltze, answered that there were
three ways that teachers could possibly get an increase on
the salary schedule. One of which was a cost of living
increase through negotiated agreement; the particular
increase would not happen for the upcoming year. The other
two ways fell under the steps and columns category and were
available to teachers for the upcoming year (an increase in
salary could be received based on a teacher's time with the
district or through the acquisition of district improved
course work for increased education).
Co-Chair Stoltze remarked that increases based on steps and
columns were essentially salary increases; however, they
were frequently not represented that way. Mr. Wooten
expressed his desire to be clear on the issue to make
certain the committee understood.
Co-Chair Thomas asked where the responsibility resided for
ensuring that teachers performed highly (i.e. state or
school boards). Ms. Borton replied that both the state and
school boards were responsible. She opined that having
local control for school boards and teachers that were
responsive to all community needs was important, but state
involvement was also important. She referred to the adage
"it takes a village to raise a child." She stressed that
the communities and state should work together to provide
excellent education to its kids.
Co-Chair Thomas wondered what the district did to ensure
that it had quality teachers. He wondered whether a tenured
teacher had ever been laid off.
10:10:58 AM
Ms. Borton responded that the district had a review process
that was currently under assessment. She deferred the
question to Ms. Davidson. Ms. Davidson did not have
additional information to add.
Representative Gara discussed that without a BSA increase
the forward funding available was the same amount as the
prior year. He wondered what BSA increase the district
would need to be held harmless from the prior year's levels
and to prevent cutting 40 positions. Ms. Borton replied
that the district would need a BSA increase of $320 in
addition to the maximum allowable contribution from the
borough and full funding for pupil transportation included
in SB 182.
Representative Gara wondered whether the district would
prefer the governor's one-time funding proposal of $10
million above the prior year funds or BSA increases
equaling inflation.
Ms. Borton replied that the district preferred the BSA
increase. She explained that the increase would provide the
district with a better ability to plan ahead. One-time
funding would not prevent the district from going through
the budget reduction process. She reiterated her earlier
testimony that the district had reduced its budget by 34
positions over the past four years. She emphasized that
there were no other areas to reduce without significantly
impacting educational programming.
10:14:02 AM
Representative Neuman discussed remote schools and the
Average Daily Membership (ADM) of 10. He asked what the
district's position was on increasing the ADM minimum for
school size. He understood that striving for highly
qualified teachers in core subjects as required by No Child
Left Behind was very expensive; costs for personnel were 75
percent to 80 percent in many districts.
Ms. Borton replied that she would not be agreeable to an
increase to the minimum school size. She believed that
schools in rural villages were the hub of the community and
were often the largest employer and a safe place for kids
to go. She relayed that Kodiak struggled with the 10
minimum and if it increased the district would need to
close schools. Kodiak had taken steps in the past few years
to provide more rigorous content to rural schools through
video teleconferencing, which had proven to be a good step;
however, there was more work to be done. The district was
taking steps to ensure that rural students received an
equitable education to the students in hub communities.
Representative Neuman understood that the discussion
[related to the ADM minimum] was difficult, but believed
that it needed to be part of the discussion on cost.
Co-Chair Stoltze remarked that there had been statements
made that Kodiak was a fishing economy and it did not
depend on oil production. He wondered whether Kodiak was
aware of the importance of oil to the state's economy.
AARON GRIFFIN, BOARD MEMBER, KODIAK ISLAND BOROUGH SCHOOL
DISTRICT SCHOOL BOARD, stated that Kodiak fully recognized
that oil funded Alaska. The district had looked at oil
projections in order to understand the position the
legislature was taking on funding. The community hoped that
a plan could be found (involving other state industries) to
address budget needs if oil ran out in the future. Kodiak
understood that the community did have fishing revenue and
hoped that the state could move to a place where it did not
only depend on oil, but on the result of educating its
children in other possible industries.
10:19:27 AM
WRANGELL
SUSAN EAGLE, PRESIDENT, WRANGELL SCHOOL BOARD, (via
teleconference), addressed the questionnaire provided by
the committee (copy on file):
What is your FY 13 total school district budget?
$6,751,735.00
What percentage goes to personnel?
76% for salary and benefits
Ms. Eagle pointed to a graph on page 1 that showed the
Wrangell school district budget from FY 09 to FY 13 broken
down by funding source (state/local/federal/mix). She noted
that the federal funds had been rolled into local funds as
of FY 10. She moved on to the next questions:
Did you fund to the total allowable local contribution
in FY 12?
No
In FY 13?
No
If not, how much below were you?
· FY2012 $157,696.00
· FY2013 $217,704.00
Why?
The Borough and City of Wrangell increased its
contribution by $200,000 July 1, 2012. The
borough just finished a bond for a new playground
and currently carries two additional bonds for
the school. The city conducts project manager
services for work the school district does and
currently has two roads on both sides of the
elementary school that are scheduled for paving.
How much has the state contributed to the PERS/TRS
unfunded liability on behalf of your school district
in FY 12?
In FY2012, the State is scheduled to give 32.99%
of the TRS cost and 11.49% of the PERS cost in
"on behalf of payment." The budgeted amount for
these items is $613,276.00 (TRS) and $87,992.00
(PERS). The actual amounts will be determined by
final salaries and wage costs.
How much is the state scheduled to contribute for
PERS/TRS unfunded liability costs on behalf of your
district in FY 13?
The State is scheduled to contribute 40.11 % of
the TRS cost and 1.84% of the PERS cost in "on
behalf of payments." The budgeted amounts are
$782,862.00 (TRS) and $110,537 (PERS). The actual
amounts will be determined by final salaries and
wage costs.
When was your most recently ratified teacher contract
put into place?
Ms. Eagle answered that the district's most recent
agreement was for the period of July 1, 2012 ending June
30, 2013; it was set to go into negotiations in the fall
for the following contract. She addressed additional
questions on page 2:
What were the terms? (salary and benefits
increases/decreases per year, in percentages {or
dollars, if appropriate})
The annual salary increase for each teacher is
$1,981.00 for each of the three years. The
teachers and board will split the health care
premium increases beginning in FY2012. The
teachers will contribute to health care costs in
FY12 and FY13 up to a maximum of $200 per teacher
each month.
Ms. Eagle elaborated that due to major cost increases in
employee benefits, the district had decided to share some
of the increases with employees.
10:24:06 AM
Ms. Eagle continued on page 2:
What is your average teacher salary?
$66,781 .00
What is your starting teacher salary?
$39,622.00
Ms. Eagle added that the district had a staff with
significant longevity; therefore, the average salary had
been increased. She relayed that the district had not
negotiated significant salary increases, given that there
had been a two-year contract prior to the upcoming year.
The school system currently had 22 full-time teachers;
their combined salary increase would be $43,582 due to step
and column increases.
Ms. Eagle communicated that the major cost drivers in the
budget were annual salary and benefit increases, health
insurance costs, and the cost of oil and electricity to
heat the buildings. Energy costs in FY 11 were $188,481 for
electric and diesel and projected costs for FY 13 were
$228,000. She shared that the district had installed
electric boilers at the high school in January 2011; it was
looking to install boilers in the elementary school as
well; however, due to oil that was still being used the
district expected costs to increase.
Ms. Eagle addressed the district's system to make budget
adjustments when enrollment dropped. She shared that the
school system had budget reviews three times per year and
tried to budget a few students less than it anticipated in
order to provide flexibility. She furthered that enrollment
had been stable for the last three years and the district
hoped not to see any further declines; there had been
significant declines approximately 10 years earlier.
Ms. Eagle discussed that one of the district's most
significant instructional challenges was meeting 100
percent of the No Child Left Behind compliance in 2014. The
Wrangell graduation rate was high, but the district was
working to increase it to 100 percent. Other challenges
included cutting staff due to budget decreases and the
possibility of losing second language, art, and vocational
education courses.
10:27:15 AM
Ms. Eagle explained that the district would give itself a
B+ grade; it looked at itself very critically and wanted to
provide even more for its students. She shared that the
district was proud that its elementary school was a Blue
Ribbon School. She communicated that the district would
like to see improvements and was working to improve the
science curriculum and technology integration. She relayed
that AYP had been achieved each year.
Ms. Eagle pointed to the second question on page 3:
What are you proposing to do differently to improve
student performance?
Ms. Eagle answered that the district had enrolled in DEED's
Alaska STEPP program [Alaska Steps Toward Educational
Progress and Partnership]; the program was not required,
but the school system felt that it would be helpful.
Additionally, the district was applying to the AASB QS2
program in hopes of receiving funding to increase community
involvement in Wrangell's schools. She added that both
programs would help the schools maintain their high student
achievement levels. She directed attention to the next
questions:
Is the state providing the kind of planning and
curriculum support that is helpful to your school
district?
The Department of Education's Alaska STEPP
program is the key tool to help us provide
evidence based performance outcomes for student
achievement. Additional funding for program
support at DEED is necessary. Some people feel
that the continued cuts and reductions to EED is
cancerous and does not provide the high quality
support staff (Experienced Alaska Educators) the
ability to provide school support in our schools.
How can the DEED, the Board of Education or other
state agencies help you achieve better results, other
than just providing you with more money?
Ms. Eagle stressed that DEED, the Board of Education, and
other state agencies needed to work together. She
highlighted that the state mentoring program was very
important to Wrangell's teachers and administrative staff.
She addressed the final question on page 3:
How much ARRA funding did you receive over the past
few years?
$461,642.00
Ms. Eagle specified that the funds had enabled the district
to keep its teaching staff and to add a high school
counseling position, which had been cut several years
earlier. The district would maintain the counseling
position due to available funds that had resulted from the
retirement of two teachers.
Representative Gara asked what BSA increase the district
would need to maintain the current level of curriculum
staffing from the prior year. Ms. Eagle replied that the
district did not currently have a deficit, in part because
of retiring teachers that were high on the pay scale. She
added that the district was able to continue current
funding but did not have any reserves.
Representative Doogan asked what the STEPP acronym stood
for. Ms. Eagle replied that the STEPP abbreviation was a
DEED term and she did not know what the term stood for
[Alaska Steps Toward Educational Progress and Partnership].
ADJOURNMENT
10:32:19 AM
The meeting was adjourned at 10:32 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2012 03 26 NSBSD House Financev9[1].pdf |
HFIN 3/27/2012 9:00:00 AM |
|
| Wrangell Testimony March 27.pdf |
HFIN 3/27/2012 9:00:00 AM |
|
| HFIN Kodiak Presentation 3.27.12.pdf |
HFIN 3/27/2012 9:00:00 AM |
|
| HFIN EDC Presentations 3.27.12 Unfunded Liability.pdf |
HFIN 3/27/2012 9:00:00 AM |